Risk Disclosure Statement

Version: 1.0
Date: :14 March 2025

 

1. Introduction

This Risk Disclosure Statement (“Statement”) outlines the risks associated with trading and investing in Virtual Assets through Homecubes Management FZE (“Homecubes”). This document is intended to provide clients with key risk factors to consider before engaging in Virtual Asset transactions.

By using Homecubes’ Brokerage Services, you acknowledge and accept the risks outlined in this Statement.

 

2. General Risk Factors

Investing and trading in Virtual Assets carries significant risks, including but not limited to:

• Market Volatility: Virtual Assets are highly volatile, and their value can fluctuate drastically within short periods.
• Liquidity Risks: Some Virtual Assets may have limited liquidity, making it difficult to buy or sell at a desired price.
• Regulatory Risks: Virtual Asset regulations are evolving, and changes may impact trading activities.
• Cybersecurity Risks: Virtual Assets are susceptible to hacking, phishing, and other cyber threats.
• Operational Risks: Errors in trading systems, technology failures, or third-party service provider disruptions may impact transactions.
• Loss of Access: Loss of private keys or credentials may result in permanent loss of Virtual Assets.

 

3. No Investment Advice

Homecubes does not provide investment, legal, or tax advice. Clients must conduct independent research and seek professional advice before making investment decisions.

 

4. Virtual Asset Trading Risks

4.1 High Price Volatility

The price of Virtual Assets may be influenced by factors such as market sentiment, adoption rates, regulatory developments, and macroeconomic events. Investors should be prepared for significant price swings.

 

4.2 Counterparty and Liquidity Risks

Virtual Assets may not always have sufficient liquidity, making it difficult to execute large trades or exit positions at preferred prices.

 

4.3 Market Manipulation Risks

Virtual Asset markets are susceptible to price manipulation due to limited regulation in certain jurisdictions. Clients should remain vigilant and assess market conditions before trading.

 

4.4 Settlement and Execution Risks

Virtual Asset transactions are generally irreversible once confirmed on the blockchain. Errors in wallet addresses or transaction details may lead to the permanent loss of assets.

 

5. Custody and Security Risks

• Homecubes does not provide Virtual Asset Custody Services but facilitates wallet connectivity through third-party providers like Privy.io.
• Clients are responsible for securing their own Virtual Assets and must ensure they use safe storage methods, such as hardware wallets or multi-signature wallets.
• Security breaches, phishing scams, or personal negligence can lead to asset loss.

 

6. Regulatory and Legal Risks

• Virtual Assets are subject to evolving regulations across different jurisdictions.
• Compliance requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, may impact trading activities.
• Clients must ensure they comply with all applicable laws in their country of residence.

 

7. Taxation Risks

• Tax treatment of Virtual Assets varies by jurisdiction.
• Clients are responsible for understanding and complying with their local tax obligations related to Virtual Asset transactions.

 

8. Cybersecurity and Fraud Risks

• Virtual Assets are a target for cybercriminals due to their digital nature.
• Clients should adopt strong security practices, such as enabling two-factor authentication (2FA) and using secure wallets.
• Beware of scams, phishing attempts, and fraudulent schemes.

 

9. System and Technical Risks

• Trading Virtual Assets requires access to online platforms, which may be affected by system failures, maintenance, or cyberattacks.
• Internet connectivity issues may impact trading execution and access to funds.
• Homecubes is not responsible for losses caused by system failures or technical malfunctions.

 

10. Business and Operational Risks

• Virtual Asset businesses operate in a rapidly changing environment, with risks including insolvency, operational failures, and regulatory actions.
• Clients should diversify investments to manage risk exposure.

 

11. Acceptance of Risk

By using Homecubes’ Brokerage Services, you acknowledge that:

• Virtual Assets involve significant risk and may not be suitable for all investors.
• You are solely responsible for your investment decisions.
• Homecubes shall not be liable for any losses, damages, or expenses arising from Virtual Asset trading activities.

 

12. Amendments to this Statement

Homecubes reserves the right to update this Risk Disclosure Statement as needed. Changes will be published on our website and will take effect immediately upon posting.

 

13. Contact Information

For any questions regarding this Risk Disclosure Statement, please contact:

Homecubes Management FZE
Dubai World Trade Centre, Sheikh Rashid Tower, Level 5, Office SRT-FLR05-05.03
Dubai, United Arab Emirates
Email: compliance@homecubes.com