Risks

Crypto assets are not regulated, may not be suitable for retail investors, and the entire investment may be lost. It is important to read and understand the risks of this investment, which are explained in detail here.

Risks associated with investing in crypto assets

High-risk investment product

• The value of investments and the returns obtained from them can experience significant upward and downward fluctuations, with the potential to lose the entire invested amount.
• Investing in early-stage projects carries a high level of risk, so it is essential to properly understand their business model.
• Crypto assets under the scope of Circular 1/2022, of January 10, from the National Securities Market Commission (CNMV), regarding advertising of crypto assets presented as an investment object, are not covered by customer protection mechanisms such as the Deposit Guarantee Fund or the Investor Guarantee Fund.
• The prices of crypto assets are determined without mechanisms ensuring their proper formation, such as those present in regulated securities markets.
• Many crypto assets may lack the necessary liquidity to exit an investment without significant losses, as their circulation among both retail and professional investors can be very limited.

Technology-related risks

• Distributed ledger technologies are still in an early stage of development, with many networks recently created, so they may not be sufficiently tested, and significant operational and security failures could exist.
• The recording of transactions on networks based on distributed ledger technologies operates through consensus protocols that may be vulnerable to attacks attempting to alter this record. If these attacks succeed, there would be no alternative record to back these transactions or the balances corresponding to the public keys, potentially resulting in the total loss of crypto assets.
• The anonymity features of crypto assets can make them a target for cybercriminals, as if credentials or private keys are stolen, the crypto assets can be transferred to addresses that make recovery difficult or impossible.

Legal risks

• The acceptance of crypto assets as a medium of exchange is still very limited, and there is no legal obligation to accept them.
• If the service provider is not located in a European Union country, resolving any conflict could be costly and outside the jurisdiction of Spanish authorities.