Risk Disclosure

1. General Risk Warning

1.1 Trading in cryptocurrencies and digital assets carries a high level of risk and may not be suitable for every investor. The value of cryptocurrencies can rise or fall, and you could lose some or all of your initial investment, or potentially more.

1.2 Before undertaking any trading activity, please carefully assess your investment objectives, level of experience and tolerance for risk. Only invest money you can afford to lose in full.

1.3 Automated trading systems, including AI-powered bots, involve specific risks. They do not guarantee profits and may fail or operate unpredictably because of software issues or market conditions beyond their intended parameters. Users are entirely responsible for monitoring automated systems and for any losses that may result.

1.4 The past performance of any trading system or strategy does not guarantee future results. Any historical data and performance figures shown on this Website are provided for illustrative purposes only.

1.5 This Website is provided solely for information and marketing purposes. The Company does not offer financial advice or make investment recommendations.

2. Cryptocurrency Trading Risks

2.1 Cryptocurrencies are highly speculative assets. Prices can be extremely volatile and may move sharply over short periods.

2.2 Unlike traditional financial markets, cryptocurrency markets operate around the clock and, in most jurisdictions, are not subject to the same level of regulatory oversight.

2.3 The value of a cryptocurrency can be influenced by changes to government regulation, technological advances, market sentiment, activity by large holders, security incidents, and broader economic conditions.

2.4 Some cryptocurrencies can lose their value completely. There is no guarantee that any cryptocurrency will retain any value at all.

3. Market and Liquidity Risk

3.1 Cryptocurrency markets are some of the most volatile globally. Daily price swings of 10%, 20% or more are quite common.

3.2 In periods of extreme market volatility, trading platforms may be subject to delays, outages, or an inability to execute trades at the intended price (slippage).

3.3 Limited liquidity — especially for smaller or lesser-known coins — may lead to substantial price slippage when orders are placed. In extreme market conditions, it may not be possible to close out a position at any price.

3.4 During periods of high market volatility or limited liquidity, stop-loss orders and other risk management tools may not prevent losses from exceeding the amount you intended to limit.

4. Leverage and Margin Risk

4.1 Some third-party platforms you can access through this Website may provide leveraged or margin trading products. Leverage can increase both potential profits and potential losses.

4.2 Trading on margin carries the risk of losing more than your initial deposit. If the market moves against your position, it may be closed automatically at a loss.

4.3 Around 70–80% of retail investor accounts lose money when trading leveraged products. Consider whether you can afford the significant risk of losing your money.

5. Technology and Security Risk

5.1 Trading via internet-based platforms involves inherent risks, including internet connection failures, hardware or software issues, delays in order execution, and periods when the platform may be unavailable.

5.2 The Company does not guarantee that this Website, or any connected third-party platform, will operate continuously, without interruption, or free from errors.

5.3 Cryptocurrency accounts are often targeted by cybercriminals. Key risks include phishing, malware, SIM swapping and exchange breaches. Although the Company applies industry-standard security measures, no system is entirely protected from cyberattacks.

5.4 Cryptocurrency transactions are generally irreversible. If your login details are compromised, you may permanently lose access to your funds. The Company is not liable for any losses resulting from cybersecurity incidents affecting the User's own devices or accounts.

6. Regulatory and Legal Risk

6.1 The regulatory status of cryptocurrencies can vary considerably across different jurisdictions and may change quickly. What is permitted in one country could be prohibited or subject to restrictions in another.

6.2 Changes to applicable laws may negatively affect the use, value or transfer of cryptocurrencies. Users are solely responsible for ensuring that their use of this Website complies with all laws that apply in their jurisdiction.

6.3 The tax treatment of cryptocurrency gains can differ depending on your jurisdiction. Users are responsible for understanding and meeting their own tax obligations.

7. Third-Party Risk

7.1 This Website connects Users with third-party trading platforms ("Advertisers"). The Company neither controls nor endorses any third-party platform, and makes no representations or guarantees regarding their services, security, or financial stability.

7.2 Third-party platforms may become insolvent, stop operating, or face regulatory action. If this occurs, Users may lose access to their funds.

7.3 Before depositing funds with any third-party platform, Users should carry out their own due diligence and confirm the platform’s regulatory status.

8. No Guarantee of Returns

8.1 The Company does not represent or guarantee that Users will achieve any specific level of return from trading activities.

8.2 Any earnings figures, performance examples or profit projections displayed on this Website are provided for illustrative purposes only and should not be relied on when making any investment decision.

8.3 There is no "safe" or "risk-free" way to trade cryptocurrencies. Any claim that a system can guarantee profits should be viewed with extreme scepticism.

9. Suitability Warning and Contact

9.1 Cryptocurrency trading is not suitable for everyone. You should only trade if you understand how cryptocurrency markets operate, recognise the full extent of the risks involved, and have the financial capacity to absorb a total loss.

9.2 The Company strongly recommends that you do not invest money you cannot afford to lose. Never trade using borrowed funds or money needed for essential living expenses.

9.3 If you are unsure whether cryptocurrency trading is right for you, please seek advice from an independent, licensed financial adviser.

9.4 If you have any questions about this Statement or would like to lodge a complaint, please contact us at: support@sovereignkapitix.com