Risk Disclosure
[Version 2.0 — Last updated 14.10.2025]
Digital Assets and related products involve varying levels of risk exposure. When deciding whether to trade in or purchase any Digital Asset, potential investors should carefully consider the following.
An investment in any Digital Asset involves risk. These may include, among others, market, liquidity, volatility, tax, custody, cybersecurity, issuer and counterparty risks, as well as economic, political, and regulatory factors - or any combination thereof. Some of these risks are discussed below.
Speculative Nature of Crypto Assets
Digital Assets are often issued by early-stage companies and therefore carry a high risk of failure. Many Tokens have no intrinsic value beyond the potential use of an undeveloped service or product. There is no guarantee such products will be successfully developed, and any resulting benefit may be small relative to the invested capital.
Depending on how Digital Assets or Tokens are structured, they may qualify as crypto-assets under the EU Markets in Crypto-Assets Regulation (MiCA) or, in some cases, as financial instruments under MiFID II. Clients are responsible for understanding how Digital Assets and Tokens are regulated and taxed under applicable law.
Acquisition of Digital Assets and Tokens
Blockchain-based companies face significant financial and operational risks. The industry is highly competitive, and only a small percentage of firms survive. Such companies frequently encounter problems in product development, marketing, financing, or general management that cannot easily be resolved. They may also require additional funding that may not be available through private or public markets.
Legal and Regulatory Risks
The regulatory framework for Digital Assets has evolved since 2018. In the EU, MiCA establishes harmonised rules for issuance and trading, while ESMA and EBA issue complementary standards. National laws may continue to apply when Digital Assets qualify as financial instruments.
Because regulation still varies internationally, new or changing laws - or interpretations of existing ones - may materially affect the value of Digital Assets or the rights of holders. Authorities may restrict or prohibit trading or redemption of certain Digital Assets.
Country and Sanctions Risk
Certain jurisdictions may impose sanctions, currency controls, or restrictions on the trading or holding of Digital Assets. Clients are responsible for ensuring that their use of the VALOR Platform complies with applicable local laws, including sanctions and foreign-exchange restrictions. Regulatory or political actions in any country may prevent access to or redemption of Digital Assets.
Market Risk
Market risk is the potential for losses due to factors affecting overall market performance. The Digital Asset market remains volatile and unpredictable. Prices may rise or fall sharply, and investors may lose all or a substantial part of their investment, whether in the short or long term. There is no assurance that any Digital Asset will increase in value; total loss is possible.
Liquidity Risk
Liquidity risk arises when a Digital Asset cannot be traded quickly without materially affecting its price. Markets differ widely in liquidity; some may be illiquid or disappear entirely. SMART VALOR does not guarantee that any Digital Asset traded on the VALOR Platform will remain tradeable in the future. Any Digital Asset may be delisted without prior notice or consent.
Volatility Risk
The prices of Digital Assets are highly volatile and influenced by many factors, including:
• Global supply and demand; merchant acceptance of crypto-payments
• Security and reliability of exchanges and wallets
• Expectations of inflation or interest rates
• Regulatory or monetary policies
• Software or protocol changes and hardware requirements
• Global economic or political events
Price declines in one major Digital Asset can impact the entire market.
Investment Horizon Risk
Investments in Digital Assets are not suitable for clients who rely on investment income. Both short- and long-term holdings carry significant risk, and liquidity cannot be assured over any specific horizon.
Transaction Risk
Transaction risk arises from exchange-rate fluctuations between contract initiation and settlement. Longer settlement periods increase exposure to currency or valuation changes.
Execution and Pricing Risk
Execution risk includes the possibility that an order will not be filled within the expected range due to volatility, slippage, or fragmented liquidity. Orders may remain unfilled or execute at unfavourable prices during extreme conditions.
Settlement Risk
Settlement risk occurs when payment and delivery are not simultaneous. A Client may pay for a Digital Asset before receiving it or deliver an asset before receiving payment. Either scenario can result in delayed or failed settlement.
Staking Risks
Staking involves protocol and validator risks (including slashing), reward variability, lock-up and unbonding periods, smart-contract vulnerabilities, and regulatory changes. Rewards are not guaranteed and may differ from network-quoted rates due to validator performance, downtime, or fees.
Derivatives and Leverage Risks
SMART VALOR does not offer derivatives, margin, or leveraged products. All trading on the Platform is fully funded and spot-based. If such products are introduced in the future, users should note that derivatives and leverage involve a high risk of loss due to liquidations and market volatility.
Segregation of Client Assets
SMART VALOR keeps all client assets fully segregated from its own assets. Client assets are held in dedicated wallets separate from operational funds. SMART VALOR does not use, lend, or rehypothecate client assets under any circumstances. In the event of insolvency, segregated client assets are intended to remain outside the company’s estate, subject to applicable law and custodian arrangements.
Compliance and Travel-Rule Effects
To comply with AML/CFT and Travel-Rule requirements, SMART VALOR or its partners may delay, block, or reverse transactions or freeze assets pending review. Missing or mismatched sender/beneficiary information may cause rejection or reversal.
Network-Level Risks
Network congestion, gas-fee spikes, mempool delays, miner-extractable value (MEV), or chain reorganizations may delay or disrupt transaction confirmations and affect deposits or withdrawals.
Forks, Airdrops, and Protocol Changes
Blockchain protocols may undergo hard or soft forks that impact the functionality, value, or continuity of Digital Assets. SMART VALOR may choose whether or not to support any fork, airdrop, or token upgrade. Unsupported assets may not be credited and could become inaccessible. Governance or protocol changes may also affect token functionality or supply.
Service Availability and Halts
SMART VALOR may suspend deposits, withdrawals, or trading (including order cancellations) during maintenance, security incidents, or market stress. Users remain responsible for market movements during such periods.
Platform Adoption Risk
The VALOR Platform may not achieve widespread adoption or maintain a large user base. Limited use or public interest in the Platform or distributed-ledger technology could negatively affect liquidity and the value of listed Digital Assets.
Security and Internet Risks
Use of the internet and blockchain technology involves inherent security risks. Accounts and wallets may be subject to hacking, phishing, malware, denial-of-service, or loss of access credentials. Blockchain networks may suffer consensus failures, software bugs, or majority (51 %) attacks that disrupt services or result in loss of assets. Transactions sent to incorrect addresses or executed on compromised networks may lead to irreversible losses.
Finality and Irrevocability of Transactions
Most blockchain transactions are final once confirmed and cannot be reversed. Clients must verify transaction details before submission, as errors or fraudulent transfers cannot be undone.
Communication and Transmission Risks
Errors in transmission, network defects, overloads, or third-party interference may delay or prevent transactions. Failures of telecommunication or internet service providers may temporarily limit access to accounts or market data.
Sustainability and Environmental Impact
Crypto-asset transactions consume energy and may have environmental impacts. SMART VALOR will publish per-asset sustainability indicators as required under MiCA.
Third-Party and Insurance Risks
Certain services, including custody, cloud hosting, and payment rails, depend on third-party providers. Failures or outages may disrupt the VALOR Platform. Unless explicitly stated, no digital-asset insurance coverage applies.
Reputational and Force Majeure Risk
Negative publicity, operational incidents, or regulatory actions involving SMART VALOR or the wider industry may reduce confidence in the Platform. Events beyond SMART VALOR’s control, such as natural disasters, power outages, or political unrest, may disrupt services or access to Digital Assets.
Delisting and Suspension Risk
SMART VALOR may suspend, restrict, or delist a Digital Asset at any time for regulatory, technical, or commercial reasons. Clients must withdraw affected assets within the specified time frame; otherwise they may become inaccessible.
User Responsibility and Self-Custody Risk
When transferring assets off-platform, Clients are fully responsible for the accuracy of destination wallet addresses and for securing their private keys. Transactions sent to incorrect or incompatible addresses are irreversible and may result in permanent loss of assets.
Data Transmission and Integrity Disclaimer
Data sent over public networks (such as the Internet) may not be fully secure or accurate. Even when encrypted, sender and recipient identities may be inferred. SMART VALOR does not guarantee the integrity, accuracy, or completeness of data transmitted via public networks or displayed on its Platform.
SMART VALOR encourages all clients to carefully evaluate these risks and seek independent financial and legal advice before engaging in any Digital Asset transactions.
SMART VALOR accepts no liability for losses resulting from risks described above, except as required by law.
In case of conflict, the Terms of Use prevail.