Information about risks of investing in cryptoassets

High-risk investment product

1. The value of investments and the return obtained from them can experience significant fluctuations, both upwards and downwards, and it is possible to lose the entire invested amount.

2. Investments in early-stage projects entail a high level of risk, so it is necessary to understand their business model properly.

3. The cryptoassets we offer are not covered by customer protection mechanisms such as the Deposit Guarantee Fund or the Investors Guarantee Fund.

4. The prices of cryptoassets are established in the absence of mechanisms that ensure their correct formation, such as those present in regulated securities markets.

5. Many cryptoassets may lack the necessary liquidity to be divested without suffering significant losses, as their circulation among retail and professional investors can be very limited.

Technology-related risks

6. Distributed ledger technologies are still in an early stage of maturity, and many of these networks have been created recently, so they may not be sufficiently tested, and significant failures in their operation and security may exist.

7. The recording of transactions on networks based on distributed ledger technologies works through consensus protocols that may be susceptible to attacks attempting to modify said record. If these attacks are successful, there would be no alternative record supporting such transactions or the corresponding balances of public keys, and the entire cryptoassets could be lost.

8. The anonymity features provided by cryptoassets make them a target for cybercriminals, as in the case of stealing credentials or private keys, they can transfer the cryptoassets to addresses that make their recovery difficult or impossible.

9. The custody of cryptoassets entails a very relevant responsibility, as they can be completely lost in the event of theft or loss of private keys.

BITNOVO does not provide custody services for the advertised cryptoassets, and the user is solely responsible for their custody.

Legal risks

10. The acceptance of cryptoassets as a means of exchange is still very limited, and there is no legal obligation to accept them.

11. When the service provider is not located in a European Union country, resolving any disputes could be costly and outside the scope of Spanish authorities' competence. BITNOVO is located in Valencia (Spain) under Spanish and European regulations. BITNOVO is registered with the Bank of Spain as a provider of virtual currency to fiat currency exchange services with coding number D687, in accordance with the provisions of the Second Additional Provision of Law 10/2010, of April 28, on the prevention of money laundering and terrorist financing.

12. As you can see, from Bitnovo we are not custodians of your wallet, and you are solely responsible for your wallet, and we do not have access to your security seed. The wallet user has all the rights over it and can buy or sell as they wish, incurring losses and/or gains.

If you have any doubts with all this information, you can find more information in the FAQ section of our website or contact us directly via info@bitnovo.com PRESSBROKERS SL