Risk Disclaimer Earn Account

1. Relationship to the User and Earn Agreement

This risk disclaimer provides you with a summary of the main risks to consider when choosing to use an Earn Account and the associated Services, including buying and selling Crypto and making your Crypto available to Coinmerce Earn for the Yield Service.

This risk disclaimer forms part of the User Agreement and Earn Agreement and must be read in conjunction with these agreements. You should carefully review this risk disclaimer. By agreeing to the User Agreement, the Earn Agreement and this risk disclaimer, you confirm that you understand the risks described in this risk disclaimer and declare that you accept them.

This risk disclaimer identifies the main risks associated with the Earn Account, but is not an exhaustive list. In this risk disclaimer, two types of risks are distinguished, namely the general risks associated with trading in Crypto, and the risks associated with the Yield Service.

2. Risks when trading Crypto

BLOX offers you an environment focused on exchanging crypto for funds. For this service, BLOX holds, in accordance with Article 19 of the User Agreement, a license 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. Crypto prices can swing significantly and you may lose your initial investment or part of it. Prices change at any moment of the day. It sounds cliché, but past performance is no guarantee of future results.

BLOX wants to inform you as honestly and clearly as possible about the important risks of trading in crypto. On specific pages for each crypto asset, any additional risks are described, where applicable. This information is based on general, objective sources, such as the whitepapers of the relevant crypto.

2.1. Market risk

The value of crypto can fluctuate significantly. Factors such as market forces, regulation, economic events, and technological developments can influence the value. These factors make it difficult to predict the value of your investments.

Cryptocurrencies are also not covered by bank deposit guarantee schemes. Note: investing in crypto carries risks, you can lose your investment.

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 irreversible.

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 is completed. Users are therefore strongly encouraged to carefully verify order details.

If an incorrect wallet address is entered due to a User 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

Crypto is sometimes misused for fraudulent actions or illegal activities, such as scams, money laundering or hacking. Be careful with offers that seem too good to be true and investigate the reliability of the parties you do business with.

2.4. Liquidity risk

BLOX provides you with 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 demand and supply 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 on whether to accept BLOX’s quote. The User is aware of and understands that, for this reason, there is a risk that the User may not be able to buy or sell the desired volume at a reasonable quote via the BLOX Environment. In the event that BLOX offers a quote that deviates substantially (by more than 2.5%) from the market price for that specific Crypto, BLOX will warn you by displaying a warning message.

3. The Yield Service

If you use the Earn Account facilitated by BLOX, then in accordance with the Earn Agreement we will make your Crypto available to Coinmerce Earn for the Yield Service. In the event of such a transfer of your Crypto, BLOX facilitates the so-called Crypto Asset Transfer Service. For this Crypto Asset Transfer Service, BLOX holds its MiCAR license. Please note: in this case, your Crypto will no longer be held and managed on behalf of BLOX in Stichting BLOX Custody.

Coinmerce Earn then conducts risk management on the Crypto you have provided to Coinmerce Earn in order to generate returns on this Crypto. As part of these activities, your Crypto may be lent to third parties or used for staking. When lending the Crypto you have provided to Coinmerce Earn, there is a risk that your lent Crypto (or part of it) may be lost if a third party cannot repay this Crypto or pay the promised returns.

The yield service facilitated by BLOX and executed by Coinmerce Earn is not subject to AFM supervision.

4. Use of the website

We have written this website and the BLOX app with love and care and always strive to share accurate and up-to-date information. However, no rights can be derived from the information on the website and the app. Therefore, using the information on this website or app is always at your own risk. Do you have any questions about the content of the website or app? Then please contact us. We will look into it.

Our articles are written with passion. Therefore, we retain the copyright on this website. Would you like to reproduce or distribute information from our articles? Please 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 to which reference is made or that refer to our website or app.
BLOX aims 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 any losses or damage 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, discloses and destroys) personal data. We hereby comply with the General Data Protection Regulation (“GDPR”). Personal data are processed by us only for the purposes for which the personal data are intended or for compatible purposes.