YouHodler, S.A. (‘YouHodler’) hereby provides you with general information about the main risks associated with the investment and use of cryptoassets. Please note that the description below does not set out each and every possible specific risk associated with each of the services offered by YouHodler, nor how each of these risks may affect you depending on your personal circumstances. The main risks that you should take into account prior to investing in crypto-assets are as follows:
1.- Lack of personal advice
YouHodler does not provide any type of investment advice, financial advice, commercial advice or any other type of advice to its users. None of the communications or information provided by YouHodler is intended to be, or should be considered or construed as, personal advice of any kind. The User is solely responsible for determining whether any investment, investment strategy or transaction is suitable for his or her personal investment objectives, financial circumstances and risk tolerance. If in doubt, the User should consult a professional in the field.
YouHodler also does not provide any legal or tax advice. Cryptoasset transactions may have tax implications. Users should inform themselves and be aware of the tax obligations arising from the execution of crypto-asset transactions and, in particular, of the tax obligations arising from the services provided by YouHodler and comply with such tax obligations. It is expressly recommended that Users seek independent advice if they have any doubts about the tax situation or obligations with respect to cryptoassets or services provided by YouHodler.
2.- High Volatility:
The value of investments and the return obtained from them may experience significant upward and downward variations, leading to a partial or total loss of the investment.
Investments in early-stage projects involve a high level of risk, so it is necessary to properly understand their business model.
Changes in the value of cryptoassets can be significant and can occur rapidly and without warning. The past performance of a particular cryptoasset should not serve as a reliable indicator for assessing the future performance of cryptoassets.
Many cryptoassets may lack the liquidity necessary to unwind an investment without significant losses, since their circulation among both retail and professional investors may be very limited.
3.- There are no compensation schemes:
Cryptoassets are not covered by compensation or indemnity systems in the event that the issuer of such cryptoassets or their provider goes bankrupt.
4.- Risks inherent in the technology
Distributed registry technologies are still at an early stage of maturity, with many of these networks having been created only recently, so they may not be sufficiently tested and there may be significant operational failures in their operation and security.
The recording of transactions in networks based on distributed ledger technologies works through consensus protocols that may be susceptible to cyber-attacks that attempt to modify this record and, if these cyber-attacks are successful, there would be no alternative record to back up these transactions and therefore the balances corresponding to the public keys, and all the crypto-assets could be lost.
The anonymity facilities that crypto-assets can provide make them a target for cybercriminals, since in the event of stealing credentials or private keys they can transfer the crypto-assets to addresses that make their recovery difficult or impossible.
The safekeeping of crypto-assets and the private keys that give access to them is crucial, since the entirety of their crypto-assets can be lost in the event of theft or loss of the private keys.