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Digital securities risk disclosure

Important Notice(s)

Frictionless Markets is dedicated to offering secure digital securities services, but it's important to note that digital securities carry unique risks. The disclosures below do not encompass all possible risks, and there may be unforeseen or unidentified risks as well. By proceeding, you acknowledge and accept these risks, and agree not to hold Frictionless Markets, its parent company Frictionless Group Holdings S.à r.l or its subsidiaries liable for any resulting losses.

Frictionless Markets does not provide tax advice or investment recommendations. You are solely responsible for independently assessing investment risks. 

Nothing on the Frictionless Markets website should be interpreted as an offer to sell, a solicitation to buy, or a recommendation for any digital securities or services. Please be aware that Frictionless Markets may have actual or perceived conflicts of interest in providing services to clients.

We strongly encourage all clients to carefully evaluate these and other risks before engaging in transactions or services involving tokenized products or digital securities.

No Advice

Neither Frictionless Markets nor its parent company Frictionless Group Holdings S.à r.l or any subsidiaries provide any investment advice nor will they make any investment recommendations to any person, institution or entity ever and no communication through herein or in any other medium should be construed as such. Your capital is at risk, by accessing this site you agree to be bound by our terms of use and privacy policy.

Capital at Risk

All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

Please refer to each product factsheet and DDQ for specific disclosure on risk.

General Risks
Risks include, but are not limited to:

Blockchain & Digital Securities Risks
  1. Blockchains and the markets where digital securities are bought and sold may be vulnerable to technology flaws, manipulation, hacking, double spending, “51%” attacks, and other operational limitations.  
  2. Advances in cryptography could render the current cryptographic algorithms used by a blockchain supporting specific digital securities inoperative.  
  3. The decentralized governance of any blockchain could result in delays, conflicts of interest, or operational decisions that may affect you or your digital securities.  
  4. Depending on the network’s consensus mechanism, digital securities transactions are generally irreversible, and errors may not be recoverable or rectifiable.  
  5. Some digital securities transactions are considered final when recorded on a public ledger, which may not align with the actual date or time the transaction was initiated.

Regulatory Risks
  1. Changes in the legal and regulatory classification of digital securities or related services, at both international and local levels, may impact the use, transfer, exchange, operability, and/or value of digital securities.

Market Volatility 
  1. Digital securities can experience significant price volatility and may be illiquid, leading to substantial financial gains or losses.  
  2. Digital securities are not covered by deposit protection.

Counterparty and Concentration Risks 
  1. Crypto asset service providers may be unregulated and could face bankruptcy, disruptions, cyber-attacks, and other significant risks.

Technical Risks 
  1. These include risks related to private key storage, protocol flaws, hacking, denial of service attacks, network fees, forks, and technical changes, all of which could impact the value or availability of digital securities.