Investing in and trading Digital Assets is volatile, and prices can rise and fall. Like real goods and products, the prices of Digital Assets are volatile and subject to large swings in value. At any time, they may lose a majority or all of their value. As such, there is an inherent risk that gains or losses will occur as a result of buying, selling, or trading anything on any market.
Digital Asset trading also carries special risks not generally shared with official nation-issued currencies, goods, or commodities in a market. Unlike most recognized currencies or commodities and financial instruments, Digital Assets are backed by technology and decentralized trust systems. Typically, with Digital Assets offered by Agridex Ltd ("Agridex"), there will not be a central bank or authority that can take corrective measures, such as creating or issuing more Digital Assets, to protect the Digital Asset's value in periods of crisis. Digital Assets may be autonomous or issued by particular legal entities that may be based and domiciled in any jurisdiction worldwide.
Distributed Ledger Technologies are technology applications and software that largely share information throughout various jurisdictions and locations using protocols, many of which are open source. As a result, such open-source protocols are subject to change in their architecture, composition, and makeup. Consequently, changes may occur, and the underlying protocols are subject to sudden changes in operating rules (also known as "forks"), and such forks may materially affect the value, function, and/or even the name of any Digital Asset.
Many jurisdictions ban and impose criminal penalties on the use, creation, and/or the legal or beneficial ownership of Digital Assets, and individuals should always be aware of the jurisdictions with which they may have connections and how those jurisdictions regulate Digital Assets, as this may involve criminal liabilities, taxation, or other penalties.
Digital Assets are susceptible to irrational (or rational) ‘bubbles’ or loss of confidence (usually referred to as ‘FUD’s - Fear, Uncertainty, and Doubt), which could collapse demand relative to supply. In particular, Digital Asset markets are largely susceptible to consumer sentiment, and swings in confidence are particularly volatile. For example, confidence in particular Digital Assets may collapse due to unexpected changes imposed by software developers or others, a change of regulatory position, the creation of superior competing alternative Digital Assets, or a deflationary or inflationary spiral. Confidence might collapse because of technical problems, such as where Digital Assets are lost or stolen, if hackers or governments can affect transactions or compromise and affect the settling and processing of other elements of any particular Digital Asset protocol (for example, a 51% attack).
Changes in confidence for any particular Digital Asset are also inherent due to ongoing reputational and public relation events where principals of any particular creator or entity responsible for aspects of any particular Digital Asset may be involved in litigation, fraudulent activity, or other reputational questioning.
Ultimately, acquiring and holding Digital Assets should not be done solely with a view to considering the financial appreciation or depreciation as the only metric for using Digital Assets. Individuals should always carefully assess whether their financial situation and risk appetite are suitable for buying, selling, or trading Digital Assets.
Agridex Ltd carries out its own risk assessments and may choose not to accept new business from individuals, or may choose to discontinue servicing existing clients, whose financial position is not one that may accommodate tolerance for the highly risky nature of trading or holding Digital Assets.
Individuals should be aware of the risks associated with any market maker, platforms, or any other process whereby individuals are purchasing Digital Assets using fiat currencies. These may include but are not limited to the risks of disclosing personal information such as identity and bank account information and considering that this information may be compromised.
Similarly, individuals should consider the risks associated with the technical elements of owning Digital Asset wallets and also the risks associated with holding any Digital Assets in a ‘hot wallet’ (i.e., on a device connected to the internet) and the risks that they may be susceptible to hacks.
Agridex may offer its clients the opportunity to trade particular Digital Assets known as stablecoins. Clients should note that Agridex is not the regulated issuer, agent, or distributor of any stablecoin. While Agridex has considered the stablecoins in which it deals, Agridex makes no representations or warranties regarding the adequate reserving or redemption process for any given Digital Asset or stablecoin.
Clients acknowledge that stablecoins are issued by private issuers and understand the risk that the ‘peg’ or ‘value’ of such a stablecoin may lose its weighted 1:1 value when measured against any other particular asset or pricing. This means that clients holding or trading stablecoins may lose all or part of their value when measured against other assets or fiat values.
Any significant changes to risks will be published by updating this page or by providing notice on Agridex owned social media pages from time to time.