Please read this document carefully before investing in cryptocurrencies.
Last updated: January 15, 2025
Cryptocurrency investments are highly speculative and involve substantial risk of loss. You could lose some or all of your invested capital. Only invest money you can afford to lose entirely.
This Risk Disclosure Statement provides important information about the risks associated with investing in cryptocurrencies through Nebula Crypto's platform. It is essential that you read and understand this document before using our Services.
Cryptocurrency trading and investment involve significant risks and may not be suitable for all investors. The high degree of leverage that is often obtainable in cryptocurrency trading can work against you as well as for you. You should carefully consider whether such trading is appropriate for you in light of your circumstances and financial resources.
Cryptocurrency prices are extremely volatile. Bitcoin, for example, has experienced price swings of over 80% in a single year. Daily price movements of 10-20% are common. This volatility can result in substantial losses in a very short period.
It is possible to lose your entire investment. Cryptocurrencies can become worthless, and there is no guarantee that any cryptocurrency will maintain any value whatsoever.
Cryptocurrency markets may be subject to manipulation, including pump-and-dump schemes, wash trading, and coordinated trading by large holders ("whales"). Such manipulation can cause significant and sudden price movements.
Cryptocurrencies are a relatively new asset class with limited historical data. This makes it difficult to predict future performance and assess long-term viability.
DeFi protocols and smart contracts may contain bugs, vulnerabilities, or coding errors that could result in loss of funds. These issues may not be discovered until after significant losses have occurred.
Cryptocurrency exchanges, wallets, and protocols have been targets of hacking attacks resulting in billions of dollars in losses. Despite security measures, no system is completely immune to cyber attacks.
Blockchain networks may undergo forks, upgrades, or protocol changes that could affect the value and functionality of your holdings. These changes may be contentious and result in multiple competing versions of a cryptocurrency.
Blockchain networks may experience congestion, resulting in slow transaction processing and high fees. This could prevent timely execution of trades or withdrawals.
The regulatory environment for cryptocurrencies is evolving and uncertain. Governments may implement new regulations that could restrict, prohibit, or heavily tax cryptocurrency activities, potentially making it impossible to trade or hold certain assets.
Cryptocurrencies may become illegal in certain jurisdictions. If this occurs in your jurisdiction, you may be required to liquidate your holdings, potentially at a loss.
Some cryptocurrencies may have limited liquidity, making it difficult to buy or sell large amounts without significantly affecting the price. During periods of market stress, liquidity may dry up entirely.
There may be circumstances where withdrawals are delayed or temporarily suspended due to technical issues, regulatory requirements, or extreme market conditions.
When you use Nebula Crypto's Services, you are exposed to counterparty risk:
Our AI trading systems are based on historical data and patterns that may not repeat in the future. Market conditions can change in ways that render historical models ineffective.
Past performance shown in backtests is hypothetical and does not reflect actual trading. Real trading involves slippage, fees, and market impact that may not be fully captured in backtests.
Despite extensive testing, our AI systems may contain bugs or make errors that result in unexpected losses. Automated systems can also malfunction during extreme market conditions.
Cryptocurrency transactions may have significant tax implications:
Before investing in cryptocurrencies, you should honestly assess whether this investment is suitable for you. Consider:
If you answered "no" to any of these questions, cryptocurrency investment may not be suitable for you.
By using Nebula Crypto's Services, you acknowledge and agree that:
IMPORTANT: This Risk Disclosure Statement does not disclose all risks associated with cryptocurrency investments. You should conduct your own research and consider seeking advice from independent financial, tax, and legal advisors before making any investment decisions.