Risk Warning statement

Updated 09.01.2024

The following Risk Warning Statement provides important information about the risks associated with trading cryptocurrencies and digital assets. As a user of Crescendo Capital s.r.o. VASP’s Products and Services, which involve buying, selling, and exchanging digital assets, it is essential to understand and acknowledge the risks involved. The prices of cryptocurrencies and related assets are highly volatile and can fluctuate significantly, often more so than traditional stocks. If you are accustomed to trading in the stock market, it is crucial to be aware of the increased risk associated with trading cryptocurrencies. We strongly recommend that users research and implement effective risk management practices when engaging in crypto trading. If you are uncertain about any aspect of trading, it is advisable to consult a professional financial advisor. This Risk Warning Statement does not cover all possible risks that traders may encounter in the cryptocurrency markets. Users are responsible for conducting their own research on the risks and underlying technologies associated with digital assets to make informed trading decisions while using Crescendo Capital's services.

Crescendo Capital s.r.o. (hereinafter referred to as 'Crescendo Capital VASP') does not assume responsibility for any losses or damages incurred while using our Services or any other Product, including losses or damages resulting from buying, selling, or trading digital assets. Users bear full responsibility for their own trading decisions, and it is important to note that Crescendo Capital VASP is not a financial advisor. None of the information, literature, or communications provided by Crescendo Capital VASP should be considered as financial advice.

Listed below are some of the risks involved in trading digital assets:

1. MARKET CONDITIONS

Digital assets exhibit high volatility and are subject to significant price changes. It is not uncommon for the price of an asset to fluctuate by over 20% in a single day. Transactions made on blockchain networks are typically irreversible and cannot be reversed or cancelled. If users fall victim to fraudulent or erroneous transactions, it may not be possible to recover the lost funds. Blockchain networks can also be vulnerable to attacks by malicious actors, which can impact the price and value of the supported assets. Liquidity in digital asset markets can change suddenly, and trading may be halted for various reasons. Traders may face losses due to system or software failures or disruptions in the market.

2. LEGAL CONSENT

The legal and regulatory status of digital assets varies across different countries and jurisdictions. Some jurisdictions consider fundraising events like initial coin offerings (ICOs) to involve the sale of securities. Users participating in such events may be subject to securities laws and regulations. The sale of unlicensed securities may be illegal in certain areas. It is important for users to understand the regulatory environment surrounding digital assets and how it may impact them individually. In accordance with prevailing legal and regulatory frameworks, Crescendo Capital VASP expressly refrains from providing financial advisory services and participating in any international Initial Coin Offerings (ICOs).

3. TAXATION

Users must research and understand how cryptocurrency transactions are taxed in their respective jurisdictions. Cryptocurrencies are often classified as property and subject to capital gains tax in certain countries. However, tax guidelines and definitions related to cryptocurrencies and digital assets may differ across jurisdictions. Users are responsible for complying with tax obligations related to their cryptocurrency activities.

4. THIRD PARTIES

Crescendo Capital VASP works with various third-party entities, including payment providers, digital identification verifiers, financial institutions, regulators, and others. Any losses resulting from actions or conditions related to these third parties are not the responsibility of Crescendo Capital VASP.

5. RISK STATEMENT AWARENESS

This Risk Warning Statement may be subject to changes over time due to legal, regulatory, or operational requirements. Users are advised to review the risk statement periodically to ensure they are aware of the current risks associated with trading digital assets.

6. CONTACT US

For any inquiries or clarifications regarding the information provided in this Risk Warning Statement, please contact us at [email protected]

Please note that this Risk Warning Statement applies specifically to Crescendo Capital VASP, a registered and licensed Virtual Asset Service Provider (VASP) in the Czech Republic under registration number 19388403. Our services are extended to clients based in the EU, EEA, Switzerland, Australia, and other international markets as appropriate, who engage in the exchange of crypto or fiat assets, subject to compliance with the respective legal and regulatory requirements of these jurisdictions.

By using our Services, you acknowledge that you have read, understood, and agreed to the risks outlined in this Risk Warning Statement.

Legal Disclaimer for Crescendo Capital s.r.o.

This legal disclaimer pertains to Crescendo Capital s.r.o. ("the Company"), a registered and licensed Virtual Asset Service Provider (VASP) in the Czech Republic under registration number 19388403. Please read this disclaimer carefully before using any services provided by the Company.

1. Compliance with AML/CFT Act: The Company operates in strict compliance with the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Act of the Czech Republic. The definitions of VASPs provided in Section 2(1)(l) and Section 4(8) of the AML/CFT Act cover all five activities associated with VASPs. The Company adheres to all relevant regulations and guidelines to ensure the highest standards of legal and regulatory compliance.

2. No Financial or Legal Advice: The information provided by the Company, including but not limited to articles, guides, opinions, and any other form of content, is for informational purposes only. It should not be considered as financial or legal advice. The Company does not provide personalized financial or legal advice, and any decisions made based on the information provided are solely at the user's own risk.

3. Risk Disclosure: Cryptocurrency investments and trading involve inherent risks. The value of cryptocurrencies can fluctuate significantly, and investors may experience partial or total loss of their investments. Users should carefully assess their risk tolerance and financial situation before engaging in any cryptocurrency-related activities. The Company does not guarantee the accuracy, completeness, or reliability of any information provided, nor does it assume any responsibility for any losses incurred by users.

4. Third-Party Content: The Company may provide links or references to third-party websites, platforms, or content for informational purposes. These links are provided solely as a convenience to users, and the Company does not endorse or assume any responsibility for the content, accuracy, or legality of these third-party sources. Users should exercise caution and conduct their own research when accessing and using such third-party content.

5. Regulatory Changes: The legal and regulatory landscape governing cryptocurrencies and VASPs is constantly evolving. The Company endeavours to stay abreast of all relevant changes and updates to ensure compliance with applicable laws and regulations. However, the Company cannot guarantee the accuracy or timeliness of information related to legal and regulatory matters. Users are responsible for understanding and complying with the laws and regulations applicable to their jurisdiction.

6. Personal Data Protection: The Company takes the privacy and protection of personal data seriously. The collection, storage, and processing of personal data are carried out in accordance with applicable data protection laws. By using the Company's services, users consent to the collection and processing of their personal data as outlined in the Company's Privacy Policy.

7. Limitation of Liability: To the fullest extent permitted by law, the Company, its directors, employees, affiliates, and partners shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of or in connection with the use of its services or reliance on any information provided. This limitation of liability applies regardless of the cause of action, including but not limited to negligence, breach of contract, or any other claim.

8. UK Citizen and Resident Restriction: The Company does not currently accept UK citizens or residents living in the UK as clients. These restrictions are in compliance with the UK Financial Promotions Regime (FPR) effective from 08.10.2023, adhering to the conditions of an exemption in The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Financial Promotion Order). By accessing or using the Company's services, users confirm that they are not taxpayers or residents in the UK. This includes an assurance that they are not using any virtual private network (VPN) or other methods to bypass geographical restrictions applicable to the UK taxpayers or residents. Additionally, all customers are required to complete a thorough Know Your Customer (KYC)/Anti-Money Laundering (AML) verification process, where the user's country of residence will be verified and confirmed by our compliance team. Users must provide accurate and truthful information during this verification process. Non-compliance with these requirements, including the provisions of the UK Financial Promotions Regime and related laws, may result in denial of service or other legal actions as deemed appropriate by the Company.

9. Restriction on Sanctioned and Black-Listed Countries: The Company does not currently accept clients who are citizens, taxpayers, or residents of any countries that are subject to international sanctions or have been black-listed. This policy is in accordance with international regulatory standards and is intended to uphold the Company's commitment to legal and ethical business practices. However, an exception may be made for such citizens if they are permanent residents and taxpayers in the European Union (EU), the European Economic Area (EEA), or Switzerland excluding the UK citizens, residents, and taxpayers. In such cases, the individual must provide verifiable evidence of their residency and taxpayer status in one of these regions. This evidence will be subject to a thorough review and verification process by our compliance team as part of our Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. The granting of any exception is at the sole discretion of the Company and will be in compliance with all applicable laws and regulations.