All terms used in this notice are defined in the FalconX Terms of Use (“Terms of Use”) and have the same meaning and interpretation as in the Terms of Use.
1. FalconX service
This notice provides you with information about the risks associated with FalconX services. Each FalconX service has its unique risks. This notice provides a general description of the risks you face when using FalconX services.
This notice does not explain all risks or how such risks relate to your personal circumstances. Please ensure you fully understand the risks involved before deciding to use FalconX services.
2. No personal suggestions.
We do not offer personal advice related to our products or services. We may occasionally provide factual information, information about transaction procedures, and information about potential risks. However, any decision to use our products or services is entirely yours to make.
Any communications or information provided to you by FalconX should not be considered or construed as investment advice, financial advice, trading advice, or any other type of advice. You are solely responsible for determining whether any investment, investment strategy, or related transaction is suitable for you based on your individual investment objectives, financial situation, and risk tolerance.
3. No surveillance
FalconX is not your broker, intermediary, agent, or advisor. FalconX has no fiduciary relationship or obligation with you regarding any transactions or other decisions or activities you make using FalconX services. We do not monitor whether your use of FalconX services aligns with your financial objectives. You should independently assess whether your financial resources are sufficient to meet your financial activities with us and the risk tolerance of the products and services you use.
4. No tax, regulatory, or legal advice is provided.
Taxation of digital assets is uncertain, and it is your responsibility to determine what taxes you may be subject to and how they apply when trading through FalconX services. You are responsible for reporting and paying any taxes that may arise from your transactions on FalconX services, and you acknowledge that FalconX does not provide legal or tax advice related to these transactions. If you have any questions about your tax situation or obligations while using FalconX services, or about the digital assets held in your FalconX account, you may wish to seek independent advice.
You acknowledge that, at the time and place required by applicable law, FalconX is obligated to report information regarding your transactions, transfers, allocations, or payments to tax or other public authorities. Similarly, FalconX is obligated to withhold taxes related to your transactions, transfers, allocations, or payments at the time and place required by applicable law. Applicable legislation may also require FalconX to request additional tax information, status, certificates, or documents from you. You acknowledge that failure to respond to these requests within the stipulated time may result in FalconX withholding taxes and remitting them to the tax authorities required by applicable law. We encourage you to seek professional and personal tax advice regarding the above before engaging in any digital asset transactions.
5. Market Risk
Digital asset trading involves high market risk and price volatility. Value changes can be significant and can occur rapidly without warning. Past performance is not a reliable indicator of future results. The value of an investment and any returns can rise or fall, and you may not be able to recover your initial investment.
6. Liquidity Risk
The liquidity of digital assets can be limited, which may make it difficult or impossible for you to sell or exit your position when you wish. This can happen at any time, including during periods of rapid price fluctuation.
7. Fees and charges
Our fees and charges are listed here. FalconX may update these fees and charges from time to time at its sole discretion. Please note all costs and charges that apply to you, as these will affect the benefits you receive from using FalconX services.
8. Availability Risks
We do not guarantee that FalconX services will be available at any given time, nor do we guarantee that FalconX services will be free from unexpected service interruptions or network congestion. You may not be able to buy, sell, store, transfer, send, or receive digital assets when you wish.
The legal requirements of various countries may limit the products and services that FalconX can legally offer. Therefore, certain products and services and/or certain features within the platform may not be available or may be restricted in certain jurisdictions or regions or for certain users, and any FalconX activities, user contests, or other promotional activities will not be directed to (or intended to be directed against) users subject to these restrictions. Users are solely responsible for understanding and complying with any restrictions and/or requirements imposed on access to and use of the platform and FalconX services in each jurisdiction where the user or their representative accesses the platform and FalconX services. FalconX reserves the right to make changes.
9. Third-party risks
Payment providers, custodians, and banking partners may be involved in the provision of FalconX services. You may be subject to the terms and conditions of these third parties, and FalconX may not be liable for any losses that may be caused to you by these third parties.
10. Security Risks
FalconX cannot eliminate all security risks. You are responsible for the security of your FalconX account password and may be liable for all transactions under your FalconX account, whether or not you authorized them. Digital asset transactions may be irreversible, and losses due to fraud or unauthorized transactions may be irrecoverable.
11. Risks related to digital assets
Given the nature of digital assets and their underlying technologies, there are many inherent risks, including but not limited to:
11.1 Failures, defects, hacking attacks, exploits, errors, protocol failures, or unforeseen circumstances that occur in digital assets or the technological or economic systems on which digital assets depend;
11.2 Digital asset transactions are irreversible. Therefore, losses due to fraud or accidental transactions may be irrecoverable.
11.3 Technological advancements lead to the obsolescence of digital assets;
11.4 Delays that prevent transactions from settling on the scheduled settlement date; and attacks on the protocols or technologies upon which digital assets rely, including but not limited to:
I. Distributed Denial of Service;
II. Witch Attack;
III. Phishing;
IV. Social Engineering;
V. Hacker attacks;
VI. The Smurfs;
7. Malware;
8. Double-spending;
9. Majority mining, consensus-based attacks or other mining attacks;
10. Misinformation dissemination campaign.
12. Monitoring Risks
The digital asset market is open 24/7. Prices can change rapidly at any time, including outside of normal business hours.
13. Communication Risks
When you communicate with us electronically, you should be aware that electronic communications may fail, may be delayed, may be insecure, and/or may fail to reach the intended destination.
14. Currency
Currency exchange rate fluctuations can affect your gains and losses.
15. Legal Risks
Changes in laws and regulations can have a significant impact on the value of digital assets. This risk is unpredictable and can vary from market to market.