Risk Disclosure Statement

IT IS IMPORTANT YOU READ AND FULLY UNDERSTAND THE FOLLOWING RISKS OF BUYING, SELLING AND HOLDING CRYPTO-ASSETS IN YOUR CLEVERLEE ACCOUNT.

This Crypto-Asset Risk Disclosure provides a non-exhaustive overview of risks that you may be exposed to while buying, selling and holding crypto-assets in your Cleverlee account. It should be read together with the Cleverlee UAB (“Cleverlee”, “we”, “our”, “us”) Customer Agreement, as part of the terms of the contract between us and you. You should read it carefully and ensure you fully understand it. Cleverlee UAB is a private limited liability company incorporated in the Republic of Lithuania (legal entity code: 305935751, registered address: J. Jasinskio g. 16C, LT-03163, Vilnius, Lithuania). Cleverlee is registered with the Financial Crime Investigation Service (FCIS) in Lithuania as a Virtual Currency Exchange Operator and a Depository Virtual Currency Wallet Operator in accordance with applicable laws and regulations of the Republic of Lithuania. Terms not otherwise defined in this Risk Disclosure have the meanings given to them in the Cleverlee Customer Agreement.
General Risk of Trading Crypto-Assets

1. Acceptance of Risks 
By using the Services, you have acknowledged, assessed and made a decision to accept the risks of buying, selling, and holding crypto-assets. Investing in, buying, and selling crypto-assets presents a variety of risks that are not presented by investing in, buying, and selling products in other, more traditional asset classes. You acknowledge that: (i) you are solely responsible for understanding and accepting the risks involved in investing in, buying, and selling crypto-assets, (ii) subject to the terms of this Agreement, Cleverlee has no control or influence over such risks, and (iii) Cleverlee shall not be liable for any loss in value of crypto-assets that occurs in connection, directly or indirectly, with these risks or for the loss or theft of crypto-assets from third-party venues used by Cleverlee for trading.

2. Fluctuation of Crypto-Asset Values
You understand that the value of crypto-assets, and any unsupported forked crypto-asset, can fluctuate substantially. This may result in a significant or total loss of the value of the assets held in your Account or of any unsupported forked crypto-asset. You agree that Cleverlee will not be liable for any loss in value of crypto-assets or unsupported forked crypto-assets at any time. Without limiting the foregoing, you understand that, particularly during periods of high volume, illiquidity, fast movement, or volatility in the marketplace for any crypto-asset, the actual market rate at which a market order or trade is executed may differ from the prevailing rate indicated via the crypto-asset Trading Services at the time of your order or trade.

3. Limited Access to Crypto-Asset Supplies
The supply of crypto-assets available to Cleverlee to provide to you through trade orders, and the ability of Cleverlee to deliver crypto-assets, depends on third-party providers that are outside of Cleverlee’s control. Under certain market conditions, you may find it difficult or impossible to liquidate a position, such as where the market reaches a daily price fluctuation limit or where there is insufficient liquidity in the market. Further, Cleverlee does not own or control any of the protocols that are used in connection with crypto-assets and their related networks, including those resulting from a fork. Accordingly, Cleverlee disclaims all liability relating to such protocols and any change in the value of any crypto-assets (whether forked assets or not), and makes no guarantees regarding the security, functionality, or availability of such protocols or networks. You accept all risks associated with the use of the Services to conduct transactions, including risks in connection with the failure of hardware, software, and internet connections.

4. Risks Associated with Regulation
4.1 Lack of Protection. 
Your investment in crypto-assets is not protected by any government insurance, government compensation scheme, or by any private insurance purchased by Cleverlee. In the majority of circumstances, financial services compensation schemes do not protect investments in crypto-assets, because such investments are not considered “specified investments” under the respective regulatory regimes. In other words, this type of investment is not recognised as warranting guarantees or protection.

4.2 Uncertain Regulatory Environment. 
The regulatory status of crypto-assets and distributed ledger technology may be unclear or unsettled in certain jurisdictions. The acceptance of crypto-assets as a medium of exchange is still limited and there is no legal obligation to accept them. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to crypto-assets. It is likewise difficult to predict how or whether legislatures or regulatory agencies may in the future implement changes to law and regulation affecting crypto-assets. Regulatory actions could negatively impact crypto-assets in various ways, including, by way of example only, through a determination that a crypto-asset is a regulated financial instrument requiring registration or licensing.

5. Pricing and Execution Risks

Cleverlee may execute orders on behalf of customers or transmit an order to a third party. Please note that the price of crypto-assets can fluctuate significantly within short periods of time due to various factors, including market demand, regulatory changes, and general market sentiment. The price at which you execute a trade may differ from the price displayed at the time you place your order, due to delays in processing or changes in market conditions during execution. Additionally, the execution of your trade may be delayed or may not occur at all during periods of high volatility or low liquidity. This could result in a less favourable price than anticipated, or even a failure to execute the transaction at your desired price. Crypto-asset markets are decentralised and often fragmented, meaning that prices can vary between different platforms or exchanges.

6. Risk of Phishing and Social Engineering

SMS and e-mail services are vulnerable to spoofing and phishing attacks. You should always log into your Account to review any transactions or required actions if you have any uncertainty regarding the authenticity of any communication or notice. Phishing attacks can also occur via search engines, advertisements in search engines, or through other fraudulent links, despite SMS, e-mail, or equivalent security measures.

7. Additional Risks

Additional risks of investing in crypto-assets include, but are not limited to, the following:
7.1 Crypto-assets are not legal tender, operate without central authority or banks, and are not backed by any government.
7.2 Crypto-assets are a new technological innovation with a limited history and are a highly speculative asset class. They have in the past experienced, and are likely in the future to continue to experience, high volatility, including periods of extreme volatility. The volatility and unpredictability of the price of crypto-assets relative to fiat currency may result in significant loss over a short period of time.
7.3 Crypto-assets are virtual products. They may become delisted or unsupported at any time, which means they may no longer be offered for sale or exchange on markets. If this happens, the crypto-assets may become worthless and/or illiquid.
7.4 Crypto-assets could become subject to forks and various types of cyberattacks, including a “51% Attack” or a “Replay Attack.” The nature of crypto-assets may lead to an increased risk of fraud or cyberattack.
7.5 Transactions in crypto-assets may be irreversible, and accordingly, losses due to fraudulent or accidental transactions may not be recoverable.
7.6 In your jurisdiction, Cleverlee may not be regulated as a financial institution.
7.7 Trading platforms on which crypto-assets are traded, including exchanges that may be used by Cleverlee to support trade orders, may stop operating or shut down due to fraud, technical problems, hackers, or malware. These trading platforms may be more susceptible to fraud and security breaches than established, regulated exchanges for other products.
7.8 The nature of crypto-assets is such that any technological difficulties experienced by Cleverlee may prevent access to or use of a user’s crypto-assets.
7.9 Some crypto-asset transactions shall be deemed to be made when recorded on the public ledger, which is not necessarily the date or time a user initiates a transaction. The decentralized, open-source protocol of the peer-to-peer computer network supporting a crypto-asset could be affected by internet disruptions, fraud, or cybersecurity attacks, and such networks may not be adequately maintained or protected by their participants.
7.10 Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of crypto-assets.
7.11 A crypto-asset could decline in popularity, acceptance, or use, thereby impairing its price and liquidity. The value of crypto-assets may be derived from the continued willingness of market participants to exchange fiat currency for crypto-assets. This may result in the potential for permanent and total loss of value of a particular crypto-asset should the market for that crypto-asset disappear. There is no assurance that a person who accepts a crypto-asset as payment today will continue to do so in the future.