INFORMATION ON THE RISK TO INVEST IN DIGITAL ASSETS

This information is an integral part of the Contract and is supplemented by the provisions of the standard Contract and of the Terms and Conditions (T&C) in force.

Hence, for this Contract to come into force and for the signature of the contract regarding the OFS Packages and Services, please note that:

Prior to entering into the contract, you need to carefully consider whether or not you understand how each of the contracted Packages works, how Digital Assets are traded and how the blockchain technology works in order to assess whether or not you afford to take the high risk of losing all of the Digital Assets you shall use in the performance of the Contract.

The information or materials forwarded by OFS are for advertising purposes and have educational or informational purposes only, they are not and cannot be deemed as recommendations to purchase / sell / retain a particular Digital Asset, they are not and should not be treated as indications or advice regarding trading strategies applied to demo or actual accounts.

OFS assumes no liability for the outcome of the transactions based on or influenced by any of the above information. OFS offers its services exclusively for the management / administration of Digital Asset portfolios. OFS acts as a trustee by managing a common portfolio of Digital Assets that are transmitted by the Clients in order to achieve the Common Purpose.

OFS warns its clients and potential clients of the high risks involved in trading Digital Assets (including but not limited to the listing, the fluctuation of the prices of Digital Assets on the relevant markets, the yields and/or profits, the fluctuation of the exchange rate, the risk of losing the entire investment).
OFS may use leverage trading mechanisms at its discretion. This leverage effect can lead to the multiplication of both profits and losses caused to the OFS portfolio. The Client shall exonerate OFS from any liability in this regard.

OFS warns the Clients that the past performances are not guarantees of any future performances. As a result, OFS highly recommends its clients or potential clients to approach such Digital Assets and Digital Asset portfolio management services only after understanding the operating mechanism and the risks and after a prior documentation that is as accurate and complete as possible.

OFS and its representatives shall be available to the clients and potential clients through customized assistance in order to provide all the support and information needed to understand how the Digital Assets and the blockchain technology that underlies this new and unregulated market operate.
The Clients and the potential Clients understand or should understand that the Digital Assets, the Crypto Strategies, the blockchain technology, Ethereum protocol, Bitcoin protocol, ether, bitcoin, USDT and other related or similar technologies are new and insufficiently tested technologies and beyond any actual control OFS might have. The clients understand that certain changes on the markets of digital assets or changes in the technologies of the blockchain networks corresponding to the Digital Assets OFS buys may drastically affect the performance of the portfolio managed by OFS for its clients.

Moreover, OFS warns its clients and potential clients of the following risks:

the legal risk regarding the qualification of a Digital Asset as a financial instrument in one or more states – the Clients and potential Clients understand that OFS does not implicitly or explicitly guarantee that both the Crypto Strategies and the Digital Assets cannot be qualified in time as financial instruments or investments in financial instruments. The investments in financial instruments require a license. The packages containing financial instruments may be accompanied by restrictions in terms of acquisition, sale, promotion in one or more states where the Clients or potential Clients have their home or residence addresses. Unlike the bank accounts or the accounts held with financial institutions with capital coming from foreign currencies or financial instruments, the Digital Assets portfolios and the Digital Assets are not insured by the public authorities. The Clients and potential Clients understand that the use of the OFS Services shall not generate the protection available to those persons accessing the regulated financial investment services. The OFS clients shall not benefit from access to the Investors Compensation Fund in Romania or in another EU Member State or from access to the services offered by the Financial Ombudsman Service in order to settle the disputes resulting from this Contract;

legal risks regarding the actions of the supervisory and control authorities in one or more states– the operation of the protocols Ethereum, Bitcoin, USDT and of other protocols corresponding to the Digital Assets can be affected by the actions of the supervisory, regulatory and control bodies of some states. These actions may impose restrictions on the right to dispose of the Digital Assets or on the implementation of the Crypto Strategies. This can lead to a drastic decrease in the market value of the Digital Assets and hence of the portfolios managed by OFS;

risks associated with the Protocol Ethereum, Bitcoin, USDT and with other protocols corresponding to the Digital Assets – any malfunction, functionality with technical problems or defective functioning of these protocols can lead to a decrease in the value of the Digital Assets, which can lead to a drastic reduction of the portfolios managed by OFS for its Clients;

the risk of cyber theft and the Risk of cyber attack – the hackers or other groups or organizations with or without criminal intents may try to access the Client’s Wallet or the OFS Wallets, the Website, or they may affect the OFS Crypto Strategies and Digital Assets through a series of attacks, including but not limited to: 51% attacks (attacks based on the consensus protocol of a certain blockchain network), Sybil attacks, spoofing, smurfing, malware attacks, etc.;

the Security Risk of the Platform and of any associated software and/or the operation of the Internet – these risks may affect the provision of the OFS Services and may result in losses of Digital Assets;

the risk of low cash on the Digital Assets market – the OFS’s Crypto Strategies may suffer due to the lack of cash for one or more of the Digital Assets. This risk may lead to the blocking of transactions and to delays in Repaying the Balance to the Clients;

the risk of losing the value assigned to one or more of the Digital Assets – due to the high volatility that characterizes the Digital Assets markets, their value can fluctuate greatly, which could lead to negative effects on the OFS portfolio and on the Client’s Individual Balance in equivalent;

the risk of trading and custody of omnibus accounts – no central bank or financial authority shall take actions to supervise the markets and to correct in order to protect the value of the Digital Assets in the event of an economic crisis or of serious problems on Digital Assets markets that are not regulated. For the provision of the OFS Services, OFS may use the infrastructure (including custody services) of unregulated external providers inside or outside the EU. If such a third party custodian is declared insolvent or goes bankrupt, there is a risk that the amounts owed to each Client are reduced pro rated to the amounts lost by him/her;

unforeseen risks – the Digital Assets and the blockchain networks are new and insufficiently tested technologies. In addition to the Risks described above, there may be risks that OFS cannot foresee, which may affect the provision of the OFS Services, the execution of the Crypto Strategies and the market value of the Digital Assets.