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C-Patex Risks Disclosure Statement
- This Risks Disclosure Statement
- Legal Uncertainty Risk
- Liquidity and Market Risks
- Counterparty Risks
- Risks Related to the Projects
- Risk of Theft
- Risks Related to the Functionality
- Risk of Software Weaknesses
- Risk Inherent in the Blockchain
- Risk of Flawed Logic of Software
- Risks Associated with the Credentials
- Risk of Confusing User Interface
- No Deposit Protection or Insurance
- Unanticipated Risks
This Risks Disclosure Statement
This Risks Disclosure Statement (this Statement
) is provided by C-Patex, forms an integral part of the C-Patex Terms of Service (the Terms
) and shall be read in conjunction with the Terms. Unless otherwise defined herein, the terms used in this Statement shall have the meanings assigned in the Terms.
YOU HEREBY EXPRESSLY ACKNOWLEDGE, ACCEPT, AND ASSUME THE RISKS SET OUT IN THIS STATEMENT AND AGREE THAT, TO THE MAXIMUM EXTENT PERMITTED UNDER THE APPLICABLE LAW, IN NO EVENT SHALL THE C-PATEX PARTIES BE HELD LIABLE OR RESPONSIBLE FOR ANY DAMAGES, LOSSES, OR COSTS ARISING OUT OF OR IN CONNECTION WITH SUCH RISKS. THE BELOW RISKS ARE NOT INTENDED TO BE EXHAUSTIVE AND ARE NOT INTENDED TO BE PRESENTED IN ANY ASSUMED ORDER OF PRIORITY.
Legal Uncertainty Risk
Our activities may be subject to various laws and regulations in the countries where we operate or intend to operate. We might be obliged to obtain different licences or other permissive documents in jurisdictions where we intend to operate our business, therefore, our business in such jurisdictions shall always be subject to obtaining such licences or permissive documents, if so directed by applicable laws. There is also a risk that certain activities may be deemed in violation of any such law or regulation. Penalties for any such potential violation would be unknown. Additionally, changes in applicable laws or regulations or evolving interpretations of existing law could, in certain circumstances, result in increased compliance costs or capital expenditures, which could affect our ability to (i) carry on the business model, develop, and maintain the Services, (ii) provide the Services in certain jurisdictions or territories, (iii) maintain any particular functionality, (iv) support any particular asset, etc. Furthermore, the legal status of Digital Assets may be uncertain, and owning Digital Assets may not always be legal or compliant with the laws. You are obliged to know the legal status of your Digital Assets, as well as how they are treated and taxed under applicable laws. According to the laws of the jurisdiction where you are located, it may become illegal to use or hold the Digital Assets. You should always independently investigate the legal consequences applicable to you due to buying, selling, holding, or disposing of the Digital Assets.
Liquidity and Market Risks
There is no guarantee that there is or will be an active market to buy or sell any particular Digital Asset. In addition, markets for Digital Assets (in general) are highly volatile and, therefore, there is no assurance with respect to the price of the Digital Assets and the degree of liquidity regarding the Digital Assets. There may be no liquidity or market for the Digital Assets at all and it is possible that the Digital Assets will become useless or abandoned. There are also no warranties or guarantees that the market for any particular Digital Assets will appear or exist. The volatility and unpredictability of the value of Digital Assets relative to Fiat Currencies or other Digital Assets may result in a significant or complete loss of value over a short period of time.
Counterparty Risks
You should always be diligent when interacting with third parties regarding your Funds. Such third parties may include any other persons (counterparties to a transaction), including Projects, exchanges, custodians, Storage Mechanisms operators, service providers, fiat gateways, banks, payment service providers, etc. There is always a risk of losing Funds when transacting with third parties, including due to fraud, insolvency, breach of contract, trust, or security. Furthermore, such third parties may not act in a timely or reliable manner, or as expected or intended, or may fail to act, which can lead to inaccessibility of the functionality of the Services, or partial or complete loss of the respective Funds. The C-Patex Parties shall not be responsible for any acts or omissions of any third party. You hereby acknowledge and accept that your transactions with the Funds may be irreversible. Once you send Funds to any third party, such third party will become the owner of such Funds and you will lose access to and control over such Funds.
Risks Related to the Projects
We are not a developer, manager, or operator of any Project, and have no influence on or control over the Projects, Launchpad Tokens, their development, functionality or performance. There is no assurance that the operator of the respective Project is in good standing under the applicable laws of the jurisdiction in which it is established, or where it conducts business. Furthermore, there is no guarantee that any Project will act in good faith or timely manner, will be developing its business or technology, continue its operations, or carry out any other activities. You must do your own due diligence on the respective Project and Token Offering in advance of purchasing the Launchpad Tokens.
Risk of Theft
Although we make reasonable efforts to follow the high-security standards and ensure that the User’s Funds are securely stored and held, there is no assurance that the Funds will be absolutely immune from theft as a result of the attack, hacker attack, sophisticated cyber-attack, phishing attack, double-spent attack, flash-loan attack, weakness, vulnerability or defect of the underlying blockchain. For our part, we will make all reasonable efforts to prevent any events, which may lead to partial or complete steal or loss of Funds. Such events may include, for example, flaws in the logic of the software, flaws or errors in programming or source code leading to exploitation or abuse thereof. We will not be responsible for any partial or complete steal or loss of Funds, unless such steal or loss occurs as a result of our fault or gross negligence.
Risks Related to the Functionality
There is no assurance that the Services, as well as any other systems, will be uninterrupted for any period of time, or will not experience system failures. However, we will make reasonable efforts to prevent such system failures, unplanned interruptions in their network, hardware or software defects, security breaches or other causes that could adversely affect the Services or your access thereto or, in case of their occurrence, to eliminate them as soon as practicable.
Risk of Software Weaknesses
You acknowledge that the applicable blockchain networks and related software (including smart-contracts), which we neither manage nor control, may contain weaknesses, bugs, flaws, vulnerabilities, viruses, or other defects which may have a material adverse effect on the Services or may lead to the loss of the Funds or access thereto, and Users may not be able to return or withdraw their Funds, or other losses and damages. Further, we are not liable for any damages, losses, or interruptions in the Services, or your inability to use them, caused by any computer viruses or other malicious code that may affect your device (computer, laptop, phone, etc.), or other equipment. We encourage you to regularly use reputable virus screening and prevention software.
Risk Inherent in the Blockchain
Digital Assets operate on the underlying blockchain networks. As a result, any malfunction, breakdown, or abandonment of the respective blockchains may have a material adverse effect on the Digital Assets or respective transactions. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, etc., could present risks to the Digital Assets and related blockchain software by rendering ineffective the cryptographic consensus mechanism that underpins the blockchains. The smart-contract concept, the underlying software application and software platform (i.e., blockchains) are still in an early development stage and unproven. Although it is unlikely, a blockchain can be attacked which may result in downtime, consensus split, long reorganisation of the chain, 51% attack or other adverse outcomes each of which may lead to complete loss of Digital Assets.
Risk of Flawed Logic of Software
The underlying logic of the software, blockchain networks, as well as smart-contracts may be flawed, defective, or impaired, which can result in the software operating incorrectly or not as expected, or transactions being executed in violation of logic which underpins such software, which can lead to partial or complete loss of the Funds used in a transaction or other adverse outcomes. The software that underlies Digital Assets is normally open-source software operated by third parties, which means that: (i) the operations, functionalities and development of such Digital Assets and their underlying networks are outside of the C-Patex Parties’ control; and (ii) such software protocols may be subject to sudden, unexpected, controversial or other changes (forks), that might have a significant impact on the availability, usability, or value of a given Digital Asset.
Risks Associated with the Credentials
You are responsible for keeping your Credentials safe, because if any third party gains access to your User Account or learns of the Credentials may be able to manage and dispose of the Funds held or stored in your User Account. To minimise this risk, a User should guard against unauthorised access to their electronic devices and Credentials.
Risk of Confusing User Interface
Use the Services carefully, as certain user interface elements or design decisions of the Services potentially can be confusing or mislead you, which may result in the execution of a different action or transaction than intended or desired, including choosing the wrong Digital Asset or Fiat Currency to be used in a transaction, wrong type of transaction, wrong blockchain network, card, or account. We strive to provide a user-friendly and clear interface to eliminate any cases of confusion or misunderstanding, but we cannot be held liable due to your negligence or inattentiveness.
No Deposit Protection or Insurance
Neither Digital Assets nor any Fiat Currencies held or stored in your User Account are protected as a deposit. Your User Account balance is not subject to any insurance, unless you specifically obtain third party private insurance with respect to it.
Unanticipated Risks
In addition to the risks set forth herein, there are risks that we cannot anticipate. Further risks may materialise as unanticipated combinations or variations of the discussed risks or the emergence of new risks.