1. Disclaimer
The virtual assets (including but not limited to cryptocurrencies and digital tokens) may lose their value in part or in full, and you may lose your entire investment. These assets are subject to extreme price volatility, which means their values can fluctuate significantly over short periods.
2. Risk disclosure statement
This Risk Disclosure Statement outlines material risks associated with virtual assets, but it is not exhaustive and additional risks may exist. It is essential for our clients to have a clear understanding of these risks before engaging in virtual asset activities. Please take note of the following key points.
2.1 Value volatility and loss
Volatility
Virtual assets can experience extreme price fluctuations, with potential changes of 50% or more in a single day, which can result in rapid and substantial increases or decreases in value.
Potential loss
There is a risk that virtual assets may lose their value in part or in full. You should only invest what you can afford to lose entirely, as investments can become worthless with little or no warning and with no opportunity for recovery.
2.2 Transferability and irreversibility
Transfer limitations
Virtual assets may not always be transferable. There might be instances where transferring assets is restricted or not possible.
Irreversible transfers
Virtual asset transfers are typically irreversible and cannot be canceled or recalled once initiated. Any errors in the transaction details, including but not limited to incorrect addresses, amounts, or network selections, will likely result in permanent and unrecoverable loss of assets. Neither Metra nor any third party can reverse or recover incorrectly transferred assets.
2.3 Liquidity concerns
Liquidity risk
Virtual assets may not always be liquid, meaning you may be unable to sell your assets when desired or may be forced to accept a significant price discount to complete a transaction. Market conditions, technical issues, or regulatory actions could severely restrict or eliminate your ability to trade.
2.4 Privacy and public records
Non-private transactions
Unless specifically designated as private or confidential, transactions involving virtual assets are generally public and are recorded on Distributed Ledger Technologies (DLTs), such as blockchain. This means that transaction details could be accessible to the public and could potentially compromise user privacy.
2.5 Fraud, manipulation, and theft
Fraud and manipulation
Virtual assets are frequently targeted by sophisticated fraudulent schemes, market manipulation, and scams including but not limited to social media misinformation campaigns. These activities can significantly affect asset values and may be difficult to identify before losses occur.
Theft and hacks
There is a risk of virtual assets being stolen through hacks or other targeted schemes. Unlike traditional assets, virtual assets may not benefit from legal protections or insurance coverage, making recovery difficult in case of theft. Virtual assets may not be subject to the same regulatory protections as traditional financial assets, which means you may have no legal recourse or right to recovery in case of loss.