LCT

Risk Disclosure Statement

All definitions in this Risk Disclosure Statement have the same meaning as in the "User Agreement" published by LCT Global FZE (hereinafter referred to as "we" or "LCT"). This Risk Disclosure Statement provides information and warnings about the risks associated with virtual assets, trading, and other related risks. You should carefully read this Risk Disclosure Statement before using LCT services (including website and mobile services) and ensure that you understand the associated risks. If you have any questions, it is recommended that you seek advice from professionals first. The risks listed in this Risk Disclosure Statement are not exhaustive. You should carefully consider your financial situation and your risk tolerance to determine whether you are suitable for investing in virtual assets and using LCT services.

1.General risks associated with virtual assets
  • Partial/Total loss. A virtual asset may lose its total value and subsequently you may lose partial or all of your fund invested in such virtual asset.
  • Volatility. Prices of virtual assets can be highly volatile, unpredictable and inconsistent. Virtual assets are traded continuously throughout the day without any price limit. If you cannot effectively control the risk, it is very likely that your funds will suffer partial or even total losses.
  • Not a legal tender. Virtual assets are not a legal tender. Virtual assets are not issued by governments, financial institutions, or LCT. At present, the vast majority of virtual assets are not regulated, and their value and price are not controlled or protected by central banks or other financial institutions.
  • Liquidity There is no guarantee that the markets for any virtual asset will be liquid or permit you to establish or liquidate virtual assets positions when you want, or at favorable prices. There can be a scarcity of persons who are willing to trade at any one time which might lead to the liquidity problem of virtual assets. Thinly traded or illiquid markets have potential increased risk of loss because virtual assets can experience high volatility of prices and in such markets market participants may find it impossible to liquidate market positions except at very unfavorable prices.
  • Technology risks. The services provided for trading virtual assets are based on computer network technology, blockchain technology, and other foundational technologies. These technologies may experience failures, defects, hacker attacks, exploits, errors, protocol failures, or other unforeseen risks.
  • Cyber-attack. The intangible nature of virtual assets and their heavy reliance on technology may make them subject to an increased risk of cyber-attack and theft. Virtual Assets are susceptible to specific types of cyber-attacks as a result of their network architecture.
  • Irreversibility. Each virtual asset has its unique deposit address. If an exchange user accidentally deposits any other virtual assets into the address, those virtual assets would be lost forever and cannot be recovered. Likewise, if an exchange user accidentally types in a wrong withdrawal address, once the withdrawal request is processed and the transaction is completed from the exchange’s end, the transaction is irreversible, and the withdrawn amount cannot be retrieved by the exchange user. Finally, and for the same reason, virtual assets which are stolen as a result of a cyber-attack, as well as virtual assets where the private keys are lost, destroyed or stolen, may not be recoverable.
  • Legal and Regulatory Risks. Trading in virtual assets and derivatives may face legal, policy, and regulatory risks in relevant jurisdictions. Regulation may develop that restricts the use of virtual assets or otherwise influences the demand for virtual assets, which may affect the price and value of virtual assets. Furthermore, banks and other financial institutions may refuse to process funds for virtual asset transactions, process wire transfers to or from virtual asset trading platforms, virtual asset-related companies or service providers, or maintain accounts for persons or entities transacting in virtual assets. This might result in you holding virtual assets which you are unable to convert into fiat currency to use.
  • Tax Risks. You should pay special attention that the profits obtained from trading virtual assets and derivatives may be subject to taxation, tariffs, or other fees as required by relevant jurisdictions. You are responsible for reporting and paying any taxes that may arise from virtual assets transactions. If you have any questions about your tax situation or tax obligations for virtual assets investment or transactions, you should seek advice from professionals.
2.Risks associated with using LCT’s Services.
  • Internet and Network Risks. Users may experience network communication failures, system failures, disruptions, errors, delays, and other communication problems which might result in losses.
  • Cyber-attack and Hacking Risks. Cyber-attacks in the form of virus, trojan horse, malicious programs or apps can jeopardize the safety of your account and your virtual assets which might result in losses.
  • Phishing Risks. Attackers may host websites that might have similar names or domain names as LCT. By creating phishing websites, sending phishing messages or emails to users, attackers may induce users to input their data, personal information, password or other personal sensitive information which could incur losses for the users.
  • Information or Data Defects. Certain transactions are not private and may be recorded on public distributed ledger technologies (DLTs). Inaccuracy, defects, error, interruptions, delays or loss of data might occur in the data transmission might result in losses for the users.
  • Security Risks. If you are not keeping your account information safe or setting up weak passwords, your account might be subject to attacks and/or unauthorized log in which might result in losses.
  • Regulatory Risks. LCT may be subject to regulatory enforcement measures such as suspension or termination of providing services which might result in users being unable to have access to their virtual assets and incur losses for the users.

You assure and promise that you are aware of and understand the related risks indicated in this Risk Disclosure Statement. You agree and understand that you should bear the related risks involved in using LCT services and other risks listed in this Risk Disclosure Statement. The risks listed in this Risk Disclosure Statement are not exhaustive. You should carefully consider whether to use LCT services based on your financial situation and risk tolerance and seek professional advice if necessary. You should bear any losses to your funds caused by related risks.