1. Purpose of the Document
This document aims to provide the Client with a clear and comprehensive understanding of the main risks related to:
the purchase and holding of crypto assets;
the use of crypto-asset wealth management services provided by YouHodler Italy S.r.l. (“YHIT”).
This information is prepared in accordance with the framework outlined in Regulation (EU) 2023/1114 (MiCAR).
2. What Crypto Assets Are
Crypto assets are digital instruments representing rights or value, which are stored and transferred electronically using Distributed Ledger Technology (DLT) or similar technologies.
They are not legal tender and are not guaranteed or backed by central banks or other public authorities.
3. Types of Risk
The main risks are described below, presented in a different order but with the same substantive content.
Capital Loss Risk
Investing in crypto assets carries a real possibility of significant losses, up to the total loss of the invested capital.
Such losses may occur even over very short periods.
Market Risk
The value of crypto assets is subject to significant fluctuations due to the inherent volatility of digital markets, with rapid upward or downward movements.
There is no guarantee of price stability or profit.
Liquidity Risk
Some crypto assets may not have a sufficiently deep or active market.
In such cases, buying or selling at perceived fair prices may be difficult or impossible in the short term.
Custody Risk
Secure storage of crypto assets requires specialized technical infrastructure, advanced cybersecurity measures, and cryptographic solutions.
Any system breaches, cyberattacks, or malfunctions may result in permanent loss of assets, without the possibility of recovery.
Technological Risk
DLT networks may experience software bugs, blockchain forks, network congestion, or other technical anomalies.
These events can affect operations, transaction execution, or even the availability of the crypto assets themselves.
Operational Risk
Human errors, organizational problems, or platform malfunctions can temporarily affect the correct execution of orders or the usability of services.
Counterparty Risk
The use of third parties, such as exchanges, brokers, or sub-custodians, entails dependence on the reliability, operational procedures, and financial stability of these intermediaries.
Their default or financial crisis may negatively impact the Client’s assets.
Regulatory and Legal Risk
The regulatory framework for crypto assets is continuously evolving.
Legislative or regulatory interventions, as well as interpretative changes, may affect the tradability, tax treatment, or admissibility of transactions carried out.
Currency Risk
Since crypto assets are often denominated in units other than fiat currency (such as the euro), their value in traditional currency may fluctuate due to exchange rate movements.
This is particularly relevant when converting from crypto to fiat or vice versa.
Reputational Risk
The use of crypto assets may not be fully accepted or understood by some institutional or financial operators.
This perception may influence relationships with banks, intermediaries, or other counterparties.
4. Absence of Public Coverage and Guarantees
Crypto assets handled through YHIT:
are not covered by any investor compensation scheme under Directive 97/9/EC;
are not included in any deposit guarantee scheme under Directive 2014/49/EU.
The Client is therefore aware that such instruments do not enjoy the typical protections provided for traditional financial products or deposits with banking intermediaries.
5. Absence of Return Guarantees or Protection
YHIT provides no guarantee regarding the preservation of the initial capital nor does it ensure any specific return.
By agreeing to the contractual terms, the Client declares that they have read and understood the risks described in this document.
6. Suitability Assessment and Client Profile
Access to the Service is subject to completing a profiling questionnaire to verify whether the Client’s characteristics (knowledge, experience, and risk tolerance) are consistent with crypto-asset operations.
If the resulting profile is deemed unsuitable for the available strategies, YHIT may limit functionalities or decline to activate the Service.
7. Final Considerations for the Client
Before undertaking any investment in crypto assets, the Client should carefully consider:
their ability to bear potential losses;
their overall financial situation;
the level of risk they are willing to tolerate.
YHIT is available to provide clarification on the services offered at the following address: [email protected]