Risk Disclaimer Custody Account
1. Relation to the User and Custody and Management Agreement
This risk disclaimer provides you with a summary of the main risks you need to consider when choosing to use a Custody Account and the associated Services, including buying and selling Crypto and the safekeeping and management of your Crypto with Stichting BLOX Custody.
This risk disclaimer forms part of the User Agreement and Custody and Management Agreement and must be read in conjunction with these agreements. You should carefully review this risk disclaimer. By agreeing to the User Agreement, the Custody and Management Agreement and this risk disclaimer, you confirm that you understand the risks described herein and agree to accept them.
This risk disclaimer identifies the main risks associated with the Custody Account, but is not an exhaustive list. In this risk disclaimer, two types of risks are distinguished, namely the general risks inherent in trading crypto and the risks associated with the safekeeping and management of your crypto by Stichting BLOX Custody.
2. Risks when trading Crypto
BLOX offers you an environment focused on exchanging Crypto for fiat currency and the custody and management of your Crypto. For these services, BLOX holds, in accordance with Article 19 of the User Agreement, a licence as a crypto-asset service provider within the meaning of the Markets in Crypto Assets Regulation (“MiCAR”).
Trading in Crypto always involves significant risks. Therefore, only invest with funds you can afford to lose. The price of Crypto can fluctuate significantly, and you may lose your entire investment or a portion of it. Prices change at any moment of the day. It may sound cliché, but past performance offers no guarantees for the future.
BLOX wants to inform you as fairly and clearly as possible about the important risks of trading in crypto. On specific pages for each crypto asset, additional risks for each crypto are described where applicable. This information is based on general, objective sources, such as whitepapers of the respective crypto.
2.1. Exchange rate risk
The value of crypto can fluctuate sharply. Factors such as market dynamics, regulations, economic events and technological developments can influence its value. These factors make it difficult to predict the value of your investments.
Cryptocurrencies are also not covered by the deposit guarantee schemes for bank deposits. Note: investing in crypto carries risks, you can lose your deposit.
2.2. Technology risk
Cryptocurrencies are supported by Distributed Ledger Technology, are decentralized and pseudo-anonymous. Once a transaction is confirmed by the system, it is added to the ledger and can no longer be modified, reversed or removed. As a result, all transactions are considered final and irrevocable.
While this immutability can provide security and trust within a decentralized network, it also introduces risks for users of such technology. If an error occurs – whether due to user mistakes, technical issues, or fraud – it may be impossible to recover customer funds or correct the transaction. There are no mechanisms within most blockchains to reverse a confirmed transaction, nor are there guarantees that customer funds can be reclaimed once a transfer has been completed. Users are therefore strongly encouraged to carefully verify order details.
If an incorrect wallet address is entered due to a User’s error, this transaction can no longer be corrected. Errors in the information provided when depositing Crypto are therefore entirely the responsibility and risk of the User in accordance with Article 8 of the User Agreement.
2.3. Fraud risk
Cryptocurrencies are sometimes misused for fraudulent actions or illegal activities, such as scams, money laundering or hacking. Be cautious of offers that seem too good to be true and investigate the reliability of the parties you do business with.
2.4. Liquidity Risk
BLOX offers you a quote for your Crypto as soon as you wish to buy or sell (part of it). Under extreme market conditions or for less popular Crypto, there may be a (complete) lack of liquidity due to (very) limited supply and demand in the respective Crypto. As a result, it may be difficult for BLOX to establish a fair price. Since these are automated processes within BLOX’s Services, it is up to the User to make the final decision whether to accept BLOX’s quote. The User is aware of and understands that for this reason there is a risk that the User cannot buy or sell the desired volume at a reasonable quote via the BLOX Environment. In the event BLOX offers a quote that deviates substantially (more than 2.5%) from the market price for that specific Crypto, BLOX will warn you by displaying a warning message.
3. The Custody and Management Service
If you use the Custody Account and the accompanying safekeeping and custody service of BLOX, then, in accordance with the Safekeeping and Custody Agreement, your crypto is held and managed by Stichting BLOX Custody. BLOX holds a MiCAR licence for this crypto asset transfer service.
By storing and managing your Crypto in Stichting BLOX Custody, there is a strict segregation of assets between BLOX’s own funds and your Crypto. This segregation of assets is aimed at limiting negative consequences for your Crypto as a user should financial problems unexpectedly arise at BLOX.
For the safekeeping and management of crypto, Stichting BLOX Custody employs a diversified approach in which crypto is stored and managed, among other things, through technical integration with an external service provider. Stichting BLOX Custody has implemented governance and ICT security measures to protect your crypto.
It is important to understand that, despite the security measures, certain risks may arise, including the realization of risks related to distributed ledger technology as described in paragraph 2.2 of this risk disclaimer. These may, among other things, result in you temporarily being unable to access your Crypto. In an exceptional case, you may even lose your Crypto in this way.
Additionally, when you buy or sell Crypto, you execute a transaction with BLOX. BLOX settles its positions with Stichting BLOX Custody within 24 hours at the latest, thereby giving substance to its custody and management service. During these 24 hours, you are subject to counterparty risk in relation to BLOX.
4. Use of the website
We have written this website and the BLOX app with love and care and always strive to share accurate, up-to-date information. However, no rights can be derived from the information on the website and the app. Using the information on this website or app is therefore always at your own risk. Do you have any questions about the content of the website or app? Please contact us. We will take a look.
Our articles are written with passion. Therefore we retain the copyright on this website. Do you want to reproduce or distribute information from articles? Then cite BLOX as the source and request written permission from us.
5. Liability
BLOX accepts no liability for damage arising from:
- The use of our website or the app.
- The temporary inability to access our website or the app.
- The content of external websites that are referenced or that refer to our website or app.
- BLOX strives to provide accurate and up-to-date information, but cannot guarantee that all data is error-free, complete, or current. BLOX accepts no liability for losses or damages resulting from the aforementioned or other risks, your use of this website, our services, or your reliance on the information provided.
6. Protection of your personal data.
BLOX processes (collects, uses, stores, provides, and destroys) personal data. We hereby comply with the General Data Protection Regulation (“GDPR”). Personal data is processed by us only for the purposes for which the personal data are intended or for compatible purposes.