CRYPTER – RISK DISCLOSURE POLICY

1. PRELIMINARY PROVISIONS

1.1 Purpose and Scope of Policy

This Risk Disclosure Policy (the “Policy”) sets forth the material risks associated with the access to, use of, and reliance upon the services offered by Crypter (the “Platform”), a digital asset exchange platform owned and operated by Crypter, and operating under applicable European Union financial, data protection, and anti-money laundering regulations.

This Policy is intended to inform all natural persons and legal entities (collectively, “Users”) accessing or utilizing the Platform’s services, including without limitation trading, staking, custodial services, fiat-crypto conversion, token issuance, or yield-generating products, of the inherent, latent, and evolving risks associated with such activities.

This Policy is for informational and regulatory compliance purposes only and does not constitute, and shall not be interpreted as, legal, tax, financial, or investment advice under any applicable jurisdiction.

1.2 Binding Nature of Disclosure

By creating an account, initiating a transaction, accessing the Platform, or continuing to engage with any of Crypter’s services or interfaces (whether via web, mobile, API, or otherwise), the User acknowledges that they have read, understood, and expressly accepted the terms of this Policy. This Policy is incorporated by reference into and forms an integral part of the Platform’s Terms of Use and shall have contractual binding effect as between the User and Crypter.

If the User does not agree with any provision of this Policy, the User must refrain from using the Platform and immediately cease all access to Crypter’s services.

1.3 Regulatory Compliance Statement

Crypter endeavours to comply with applicable international standards and regional regulations, including but not limited to:

1. The Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114;
2. The Fifth and Sixth EU Anti-Money Laundering Directives (AMLD);
3. FATF Recommendations and Virtual Asset Guidelines;
4. GDPR (EU Regulation 2016/679) on data protection and privacy;
5. Law No. 297/2008 Coll. on the Protection against the Legalization of Proceeds of Criminal Activity (Turkey);
6. And, where applicable, regulatory frameworks of foreign jurisdictions in which Crypter lawfully operates or provides services, including the United States (SEC, FinCEN), United Kingdom (FCA), Singapore (MAS), UAE (VARA), and other competent authorities.

Crypter does not represent or warrant that its services are permitted, licensed, or compliant in all jurisdictions. The User is solely responsible for determining whether their use of the Platform is lawful in their country of residence or business.

1.4 Acceptance of Risk by User

The User expressly acknowledges and agrees that engaging in transactions involving digital assets, including but not limited to cryptocurrencies, stablecoins, tokens, and other cryptographic instruments, is inherently speculative, volatile, and subject to significant market, legal, and technological risk. The User further acknowledges that no assurance is provided by Crypter regarding the stability, liquidity, legality, or performance of any digital asset or trading pair available on the Platform.

The User represents and warrants that they have sufficient knowledge, understanding, and risk appetite to engage in digital asset transactions and have obtained independent professional advice where necessary.

1.5 Language and Governing Law Disclaimer

This Policy may be made available in multiple languages for convenience; however, the English version shall prevail in the event of any ambiguity, conflict, or inconsistency. This Policy shall be governed by and construed in accordance with the laws of Turkey, without prejudice to applicable mandatory consumer protection provisions of the User’s country of habitual residence, where such rights cannot be contractually waived.

2. GENERAL RISK ACKNOWLEDGEMENT

2.1 No Investment Advice Disclaimer

Crypter does not and shall not, under any circumstances, be deemed to provide investment, legal, tax, accounting, or financial advice. All content, data, charts, indicators, market insights, or communications made available on or through the Platform are purely informational and do not constitute a recommendation, solicitation, or endorsement to buy, sell, stake, hold, or otherwise deal in any digital asset or related instrument.

Users are strongly advised to seek independent financial, legal, and tax counsel from licensed professionals in their respective jurisdictions prior to making any investment or transactional decisions through the Platform.

2.2 User’s Responsibility to Conduct Independent Due Diligence

The User acknowledges that digital assets are complex, often opaque, and rapidly evolving financial instruments. Crypter does not conduct independent verification of the credibility, technical robustness, regulatory classification, or economic soundness of any digital asset, project, token issuer, or protocol.

The User bears the sole obligation to conduct adequate and ongoing due diligence on any digital asset or service before initiating any transaction, including but not limited to researching the development team, whitepaper, smart contract audit status, regulatory exposure, and economic model of any listed token or project.

The Platform shall not be liable for any loss arising out of reliance on incomplete, inaccurate, or outdated information posted on or through the Platform.

2.3 No Guarantee of Returns or Profit

All digital asset transactions involve substantial risk of loss and may result in a complete loss of the User’s funds. Past performance of any asset, token, trading strategy, or staking/yield product is not indicative of future results.

Crypter expressly disclaims any express or implied representation, warranty, or guarantee regarding:

1. The future value, utility, liquidity, or legality of any digital asset;
2. The accuracy or timeliness of market data or order book information;
3. The continued availability of trading pairs or listed tokens;
4. The stability or solvency of third-party token issuers, custodians, or yield partners.

The User agrees and understands that there are no guaranteed returns, interest, or yield in connection with any services or products offered by Crypter, unless specifically governed by a separate, written, and regulatory-compliant agreement.

2.4 User’s Capacity and Suitability Acknowledgement

By engaging with the Platform, the User expressly represents, warrants, and covenants that:

1. They possess the necessary financial sophistication, experience, and understanding to assess the merits and risks associated with digital asset transactions;
2. They are entering into transactions solely at their own initiative, based on their own judgment and after undertaking sufficient risk analysis;
3. They are not relying on any representation or warranty made by Crypter, its affiliates, employees, agents, or service providers, except as expressly stated in the Platform’s Terms of Use or this Policy;
4. They have the financial capability to bear the loss of the entire amount invested and understand that the value of digital assets can rapidly diminish to zero;
5. They are not acting on behalf of any third party who may be subject to legal or regulatory prohibitions from participating in digital asset transactions.

The User further acknowledges that Crypter does not assess or verify the suitability of any digital asset product or service for any User and does not provide any user risk-profiling, portfolio balancing, or trading restrictions based on financial circumstances.

3. MARKET RISKS

3.1 Volatility Risk of Digital Assets

The User acknowledges that digital assets, including cryptocurrencies, tokens, and other cryptographically secured instruments, are inherently volatile and subject to unpredictable price fluctuations. Such volatility may be caused by factors including, but not limited to, speculative trading, regulatory statements, protocol updates, media coverage, macroeconomic trends, cyber incidents, or third-party actions.

Prices may increase or decrease sharply within short timeframes and without warning. Users may therefore experience substantial losses, potentially amounting to the total value of assets held, traded, or staked through the Platform. The User assumes full responsibility for any losses attributable to such volatility.

3.2 Liquidity Risk

Certain digital assets may have limited market depth, low daily trading volume, or restricted access due to jurisdictional limitations or protocol-level constraints. As a result, Users may:

1. Encounter difficulty in executing orders at their desired price;
2. Experience significant slippage between quoted and executed prices;
3. Be unable to liquidate positions rapidly in adverse market conditions.

Crypter makes no representation or warranty that any particular trading pair will be sufficiently liquid or available at all times. Market illiquidity may lead to forced liquidation, wider bid-ask spreads, or inability to exit positions.

3.3 Market Manipulation and Price Slippage

The User understands and accepts that digital asset markets are subject to a heightened risk of market abuse, including but not limited to:

1. Pump-and-dump schemes;
2. Wash trading;
3. Spoofing and layering;
4. Front-running;
5. Insider trading.

Although Crypter maintains internal controls and market surveillance mechanisms, it cannot guarantee the complete exclusion of manipulative practices by third parties or other Users. Slippage, which is the difference between the expected price of a trade and the price at which it is executed, may occur especially during high-volatility periods or with large orders. Crypter shall not be held liable for any such price discrepancies.

3.4 Risks from Forks, Airdrops, and Protocol Changes

The User acknowledges that underlying blockchain networks may undergo changes in their protocols, including but not limited to:

1. Hard Forks (creating competing versions of a blockchain);
2. Soft Forks (non-backward-compatible upgrades);
3. Airdrops, token swaps, or other token distribution events.

Such changes may materially affect the functionality, value, or name of a digital asset and may result in multiple tokens existing under a single ticker symbol or project name. Crypter retains sole discretion in determining whether to support, list, or exclude any resulting token or chain. The User may lose access to the forked or airdropped tokens or suffer economic loss if the Platform does not support a resulting chain.

Crypter assumes no obligation to notify Users of pending or completed forks, or to support token migrations, upgrades, or protocol reversions unless mandated by law.

3.5 High-Frequency Trading and Algorithmic Risks

The digital asset ecosystem includes the use of high-frequency trading algorithms, bots, and API-integrated trading systems. These may lead to:

1. Rapid price movements unreflective of underlying value;
2. Flash crashes;
3. Temporary arbitrage or market inefficiencies;
4. Front-running or adverse selection risk.

Crypter does not restrict the use of trading bots or algorithms unless they violate applicable terms or laws. The User bears the risk of interacting in a market where such practices are present. Crypter is not liable for any loss caused by latency, system overload, API failures, or erroneous trades due to third-party trading bots.

4. LEGAL, REGULATORY, AND TAXATION RISKS

4.1 Jurisdictional Regulatory Uncertainty

Digital assets and services related thereto are subject to inconsistent and evolving regulatory treatment across jurisdictions. In certain countries or regions, the offer, sale, transfer, or use of cryptocurrencies and digital tokens may be deemed:

1. Illegal or prohibited by law;
2. Subject to licensing requirements or regulatory approval;
3. Restricted to certain user classes (e.g., qualified investors or institutional clients).

The User acknowledges that their access to the Platform, or their ability to engage in certain services or transactions, may be suspended, limited, or terminated at any time due to changes in legal, regulatory, or policy frameworks, with or without prior notice.

Crypter makes no representation that its services are lawful, available, or compliant in every jurisdiction. Users are solely responsible for verifying the legality of their activities in their country of residence, citizenship, or incorporation.

4.2 Risk of Regulatory Crackdowns, Sanctions or Bans

Users understand and accept the risk that governmental or regulatory authorities may:

1. Ban or restrict access to digital asset exchanges;
2. Enforce sanctions, trade embargoes, or financial restrictions;
3. Impose capital controls or transaction limitations;
4. Freeze, seize, or forfeit assets deemed to violate national laws.

Crypter reserves the right to comply with any applicable sanctions program, court order, or regulatory instruction, including but not limited to those issued by:

1. The European Union and Turkish Financial Intelligence Unit (FIU);
2. The United Nations Security Council;
3. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC);
4. The United Kingdom’s HM Treasury Sanctions List.

Crypter may, without liability, restrict access, suspend accounts, or take other remedial actions where required to ensure compliance with such measures.

4.3 Risk of Licensing Changes and Service Suspension

Crypter operates in reliance upon specific regulatory interpretations, licensing frameworks, or no-action positions within its jurisdiction of incorporation (Turkey) and other markets. These frameworks may be reinterpreted, amended, or revoked by competent authorities, leading to:

1. Revocation or suspension of Crypter’s ability to operate;
2. Requirement to obtain new or additional authorizations;
3. Cessation of specific products or services, including staking, custodial wallets, or fiat on-ramps.

The User acknowledges that Crypter may, at its sole discretion and without liability, modify or terminate access to any feature, trading pair, or service in response to such changes, without obligation to continue support or compensate affected Users.

4.4 Risk of Asset Freezing or Seizure by Authorities

Digital assets held or transacted through the Platform may be subject to freezing, forfeiture, or seizure by government authorities, tax agencies, or law enforcement, including in cooperation with other jurisdictions under mutual legal assistance treaties or international enforcement initiatives.

Crypter shall cooperate fully with legally binding requests, subpoenas, and investigations conducted by competent authorities and may be required to disclose User data, transaction history, or wallet details, in compliance with:

1. GDPR and Turkish Law on Personal Data Protection;
2. FATF-compliant AML/ CFT regulations;
3. Relevant data access laws of other competent authorities.

Users agree that they shall not hold Crypter liable for any action lawfully taken in accordance with such requests.

4.5 User Responsibility for Local Tax and Reporting Obligations

Crypter does not provide tax advice and does not assume any responsibility for the tax treatment or classification of digital asset transactions, earnings, gains, losses, or holdings.

The User is solely responsible for:

1. Determining the applicable tax implications of trading, staking, converting, or otherwise disposing of digital assets;
2. Accurately reporting such transactions to the competent tax authority in their jurisdiction;
3. Paying any applicable income, capital gains, transaction, withholding, VAT/GST, or other taxes arising from their use of the Platform.

Users are urged to consult licensed tax advisors in their country of tax residence. Crypter shall not be liable for any penalties, interest, back taxes, or other losses arising from a User’s failure to comply with tax laws.

5. TECHNOLOGY AND CYBERSECURITY RISKS

5.1 Blockchain-Specific Technology Risks

Users acknowledge that blockchain technology, which underpins all digital assets available through the Crypter platform, is subject to a variety of operational and technical risks, including but not limited to:

1. Bugs in the blockchain protocol;
2. Flaws in the consensus mechanism (e.g., 51% attacks);
3. Transaction malleability;
4. Unintended chain reorganizations or rollbacks.

Crypter does not have control over the functioning of underlying blockchains and shall not be liable for any disruptions, loss of data, or asset value depreciation arising from issues inherent to third-party blockchain networks.

5.2 Risks of Smart Contract Vulnerabilities

Where Crypter offers access to services involving smart contracts—such as decentralized finance (DeFi) integrations, staking mechanisms, or wrapped tokens—Users understand that smart contracts are code-based and may:

1. Contain undetected bugs or vulnerabilities;
2. Be exploited by malicious actors;
3. Behave unexpectedly due to external interactions or oracles.

Even contracts audited by reputable third parties may be susceptible to zero-day exploits or logic flaws. Crypter disclaims all liability for any loss of funds, data, or access resulting from a smart contract vulnerability, exploit, or failure.

5.3 Wallet Security Risks (Hot vs Cold Storage Disclosure)

Crypter employs a hybrid custodial model utilizing both “hot” wallets (connected to the internet for operational liquidity) and “cold” wallets (offline, for secure asset storage). Users acknowledge the following associated risks:

1. Hot Wallets: Vulnerable to real-time cyberattacks, malware, and unauthorized access;
2. Cold Wallets: While more secure, may face delays in withdrawal or fund retrieval due to offline storage protocols.

Crypter implements multi-signature wallets, hardware security modules (HSMs), and robust access control mechanisms, but no system is immune to compromise. Users storing assets on the platform accept that such custodianship carries inherent cybersecurity risk.

5.4 Cyberattacks, Hacks, Data Breaches, and System Failures

Crypter’s infrastructure may be targeted by various malicious actors, including but not limited to:

1. Distributed denial-of-service (DDoS) attacks;
2. Phishing, spoofing, and social engineering schemes;
3. Insider threats or rogue employee activity;
4. Exploits targeting platform infrastructure, servers, APIs, or user interfaces.

These attacks may result in service disruptions, theft or loss of assets, delays in transaction processing, or unauthorized disclosure of personal or financial data. Crypter maintains enterprise-grade firewalls, intrusion detection systems (IDS), and third-party threat monitoring, but does not warrant immunity from such events.

Users agree to bear the risk of loss resulting from external attacks or unforeseen failures unless attributable to Crypter’s gross negligence or willful misconduct.

5.5 Risks Arising from Third-Party Service Providers and Oracles

Crypter relies on third-party service providers, including:

1. Custodial solution providers;
2. Payment gateway processors;
3. Chain data oracles;
4. Cloud hosting providers;
5. Identity verification vendors (KYC/AML).

Each of these providers may experience service outages, cyberattacks, contractual breaches, or regulatory restrictions. The User accepts that Crypter shall not be liable for damages arising from the failure, delay, or error of any third-party infrastructure or service relied upon for platform functionality.

Additionally, price feeds, gas fees, token valuations, or network data sourced from third-party oracles may be inaccurate, stale, or manipulated. Users should not place sole reliance on such data when making trading decisions.

5.6 System Maintenance and Downtime Risk

Crypter may perform scheduled or emergency maintenance on its systems, which may result in:

1. Temporary suspension of trading or withdrawals;
2. Inaccessibility of user accounts;
3. Delays in order execution or fund transfers.

System downtime may also occur due to:

1. Software bugs;
2. Database failures;
3. Infrastructure overload during market volatility.

Crypter shall endeavor to provide reasonable notice of planned maintenance and will take commercially reasonable efforts to resume service expeditiously. However, Crypter makes no guarantee of uninterrupted access or error-free operation and disclaims all liability for losses caused by temporary or prolonged system outages.

6. OPERATIONAL RISKS

6.1 Risks from Transaction Delays or Failures

The User acknowledges that transactions initiated through the Platform—including but not limited to trades, deposits, withdrawals, swaps, or transfers—may be subject to delays, rejections, or failures due to:

1. Congestion or overload of blockchain networks;
2. Temporary suspension of Crypter’s platform services;
3. Internal review procedures for fraud detection or AML screening;
4. Insufficient liquidity or market depth;
5. Gas fee fluctuations or protocol-level transaction failure.

Crypter shall make commercially reasonable efforts to process transactions in a timely manner, but offers no guarantee regarding the execution time, order matching, or finality of transactions. Users accept the risk that such delays may result in loss of opportunity, adverse price movement, or unexpected settlement outcomes.

6.2 Order Execution and Matching Engine Limitations

Crypter provides a centralized order book system designed to match buy and sell orders at prevailing market rates. However, the User acknowledges and agrees that:

1. Orders may not be executed at the intended price due to latency, slippage, or partial fills;
2. Orders may be cancelled, rejected, or suspended due to compliance flags, system errors, or network instability;
3. During periods of high volatility or system stress, the matching engine may experience delays, rebalancing anomalies, or require intervention.

Crypter shall not be liable for execution failures or trading outcomes where such failure is attributable to system load, external market volatility, or user misconfiguration of orders (e.g., incorrect limit/stop-loss placement).

6.3 Deposit and Withdrawal Latency or Failures

Deposits or withdrawals of digital assets or fiat currencies may be delayed or unsuccessful due to:

1. Blockchain congestion, minimum confirmation thresholds not being met;
2. Compliance holds for identity verification, sanctions screening, or fraud alerts;
3. Banking partner downtime or cross-border settlement issues;
4. Custodial cold wallet limitations or manual sign-off procedures;
5. Incorrect deposit addresses, tag/memo errors, or expired payment instructions.

Users are responsible for exercising extreme caution when inputting deposit addresses, network selections (e.g., ERC-20 vs. BEP-20), and ensuring that receiving wallets are compatible with the asset being transferred. Crypter shall not be liable for losses resulting from user error, third-party wallet incompatibility, or transaction failures outside its technical control.

6.4 Failure of Custodian, Banking Partner, or Stablecoin Issuer

Crypter leverages licensed third-party custodians and banking service providers to manage digital asset storage and fiat operations. Users understand that:

1. Such third parties may face insolvency, operational failure, security breaches, or regulatory enforcement actions;
2. Funds held in custodial wallets may not be eligible for deposit insurance, and Crypter may not be able to recover assets if a custodian defaults;
3. Stablecoin issuers (e.g., USDT, USDC, algorithmic tokens) may lose their peg, be suspended by regulators, or face redemption failures, affecting the liquidity and valuation of stablecoin holdings on the Platform.

Crypter disclaims liability for losses arising from the operational failure, fraud, or insolvency of any third-party custodian, bank, payment processor, or token issuer.

6.5 Risks Due to Inaccurate User Information or Loss of Credentials

The User is solely responsible for maintaining the accuracy and security of their account information, including:

1. Email address, linked wallet addresses, payment details;
2. Two-factor authentication (2FA) credentials;
3. Security passwords, PINs, and backup codes.

Failure to maintain accurate account credentials or to safeguard access credentials may result in unauthorized account access, permanent loss of assets, or denial of support services. Crypter shall not be liable for any loss or damage arising from unauthorized access caused by phishing, social engineering, SIM swapping, keylogging, or malware affecting the User.

Where Crypter has implemented strong authentication measures and risk controls, the burden of due diligence shifts to the User to ensure the integrity of their access environment.

7. STABLECOIN-SPECIFIC RISKS

7.1 Risk of De-Pegging or Collapse of Stablecoin Value

The User acknowledges that stablecoins—digital assets that purport to maintain a fixed 1:1 peg with a fiat currency or other benchmark asset—may lose their peg due to a variety of structural, market, or issuer-specific reasons. These include, but are not limited to:

1. Sudden liquidation events or redemption pressure;
2. Loss of trust in the issuer or custodian;
3. Regulatory enforcement action or market delisting;
4. Inadequate or non-transparent reserves backing the stablecoin.

In the event of de-pegging, Users may suffer substantial losses, particularly where the stablecoin is used as collateral, part of a trading pair, or a yield-bearing instrument. Crypter shall not be liable for any losses resulting from stablecoin volatility, illiquidity, or collapse.

7.2 Risks Related to Collateralization and Transparency

Stablecoins may adopt one or more of the following collateralization models:

1. Fiat-collateralized: Backed by fiat currencies (e.g., USD, EUR) held in reserve by a centralized custodian;
2. Crypto-collateralized: Over-collateralized by other digital assets (e.g., ETH, BTC) to absorb volatility;
3. Algorithmic: Maintained via programmatic mint-and-burn mechanisms with no direct collateral.

Each model carries different degrees of risk. In particular:

1. Fiat reserves may be subject to bank insolvency, regulatory freezing, or lack of transparency;
2. Crypto collateral may be subject to price collapse, liquidity crunches, or oracle failure;
3. Algorithmic models have historically exhibited vulnerability to death spirals and loss of market confidence.

Crypter does not guarantee the solvency, reserve adequacy, or audit verifiability of any stablecoin issuer or protocol. Users are advised to review publicly available attestations and whitepapers and to consider the systemic implications of interacting with uncollateralized or poorly governed stablecoins.

7.3 Regulatory Action Against Stablecoin Issuers

Users understand that stablecoin issuers may become subject to enforcement action by national or supranational regulatory bodies, including but not limited to:

1. Designation as unlicensed money transmitters or illegal securities;
2. Orders to cease issuance, redemption, or trading;
3. Freezing of underlying fiat reserves by banking regulators;
4. Mandated delisting by exchanges in regulated jurisdictions.

Such enforcement may cause irreparable harm to the utility, value, and tradability of the affected stablecoin. Crypter may, without prior notice and at its sole discretion, suspend or remove stablecoins in response to regulatory or compliance risks.

Crypter assumes no obligation to support redemption, litigation recovery, or loss mitigation efforts in the event of issuer insolvency or legal prohibition.

7.4 Redemption Limitations or Failures

The User acknowledges that redemption of stablecoins (i.e., the conversion of the digital token back into fiat currency) may be:

1. Available only to whitelisted or institutional accounts;
2. Subject to high minimum thresholds, delays, or fees;
3. Denied due to AML/CFT compliance failures, sanctions screening, or technical outages;
4. Temporarily suspended or permanently discontinued by the issuer.

Crypter is not a party to the redemption mechanics of third-party stablecoins unless explicitly stated in a separate agreement. Users are solely responsible for understanding the redemption policies and procedures of each stablecoin they use or hold on the Platform.

8. THIRD-PARTY TOKEN RISKS

8.1 No Endorsement of Listed Tokens or Projects

Crypter provides access to a range of digital assets created, issued, and maintained by independent third parties. The listing, availability, or visibility of any such token on the Platform shall not be construed as:

1. An endorsement, recommendation, or approval by Crypter;
2. A representation as to the token’s legality, utility, stability, value, or future performance;
3. A guarantee of its compliance with applicable laws, regulatory registrations, or licensing requirements.

Users are cautioned that the mere inclusion of a token on Crypter’s exchange or wallet services does not imply that Crypter has conducted any financial, technical, legal, or regulatory due diligence on the token issuer, protocol governance, or project sustainability.

8.2 Delisting, Suspension, or Removal of Tokens

Crypter reserves the unilateral right, at its sole discretion and without prior notice, to:

1. Delist or suspend any token from trading;
2. Disable deposit, withdrawal, or staking functionalities;
3. Restrict access to tokens found to pose compliance, operational, reputational, or market integrity risks.

Such action may be taken for reasons including but not limited to:

1. Regulatory investigations or enforcement action;
2. Involvement in illegal or unethical activities (e.g., money laundering, sanctions evasion, fraud);
3. Technical vulnerabilities, smart contract exploits, or failure of project maintenance;
4. Low liquidity, thin order books, or market manipulation concerns;
5. User complaints, rug pull allegations, or insolvency of the token issuer.

Crypter shall not be liable for any financial losses, opportunity costs, or reputational damages suffered by Users due to the suspension or removal of any third-party token.

8.3 Token Project Failures or Abandonment

The User acknowledges the speculative nature of token projects, many of which are early-stage ventures with limited track records, governance oversight, or capital reserves. Common risks include:

1. Project teams abandoning the token or protocol;
2. Failure to deliver promised features, roadmaps, or technical upgrades;
3. Termination of community development or funding;
4. Exploits of underlying smart contracts or governance systems.

Tokens associated with such failed or abandoned projects may become illiquid, untradeable, or worthless. Crypter assumes no responsibility for monitoring or ensuring the operational continuity, solvency, or project execution of any third-party token issuer or developer community.

8.4 Misrepresentations or Fraud by Token Issuers

Crypter does not control, vet, or monitor the disclosures, marketing communications, or public statements made by third-party token issuers. The User bears the risk of relying on false, misleading, or fraudulent information disseminated by:

1. Token developers, promoters, influencers, or affiliates;
2. Project whitepapers, social media campaigns, or sponsored news content;
3. Undisclosed affiliate arrangements or fake audit certificates.

Such misrepresentations may lead to the artificial inflation of token prices, exit scams, or pump-and-dump schemes. Users are strongly advised to conduct rigorous independent research and not to rely on third-party statements or implied community sentiment when making investment or trading decisions.

Crypter disclaims all liability arising from token issuer misconduct, misstatements, or fraudulent omissions, including any loss of capital or access resulting therefrom.

9. STAKING, YIELD, AND EARNING PROGRAM RISKS

9.1 Protocol-Level Risks in Yield Products

Crypter may, from time to time, provide Users access to yield-generating products, including but not limited to:

1. Staking of native protocol tokens (e.g., ETH 2.0, ADA, DOT);
2. Delegated staking via third-party validator nodes;
3. Lending pools or liquidity provisioning mechanisms;
4. Tokenized yield-bearing assets (e.g., wrapped tokens or synthetic derivatives).

Each such activity is subject to protocol-level risks, which may include:

1. Smart contract vulnerabilities, validator slashing, or forking events;
2. Governance attacks or changes to protocol reward distribution logic;
3. Failures in price oracles, staking mechanics, or collateral thresholds.

Users acknowledge that once tokens are staked or delegated, they may be irreversibly locked, inaccessible for an indefinite period, and subject to loss in part or whole due to protocol-specific technical failure or malicious exploits.

Crypter shall not be liable for any damages arising from staking on behalf of Users where the underlying failure originates at the protocol or third-party validator level.

9.2 Slashing and Lock-Up Periods

Users participating in proof-of-stake or delegated staking products understand and accept the risk of slashing, wherein a portion of staked tokens may be destroyed or seized by the protocol as a penalty for validator misbehaviour, downtime, or double-signing.

Furthermore, Users may be subject to:

1. Fixed or flexible lock-up periods during which their staked tokens are non-transferable;
2. Mandatory unbonding or withdrawal waiting periods before tokens are accessible again;
3. Variable staking yields based on protocol reward emissions, inflation, or rebase logic.

Crypter does not guarantee uninterrupted access to staked tokens and makes no assurances that tokens can be redeemed at original face value or without delay. Users are expected to review the terms of each staking or yield program prior to participation.

9.3 No Guaranteed Returns or Repayment

Any promotional communication, displayed APY (Annual Percentage Yield), APR (Annual Percentage Rate), or estimated return shown on the Crypter platform is for illustrative purposes only and does not constitute a legally binding offer, guarantee, or assurance of return.

Returns on yield-bearing programs are contingent upon:

1. Protocol emissions, validator uptime, and pool allocation;
2. Market volatility and demand for lending/borrowing;
3. Network fees and inflationary effects on token supply.

Users accept that returns may be variable, non-linear, or negative in extreme scenarios. Crypter does not provide principal protection, insurance, or any guarantee of fixed income or return on deposited or staked tokens.

9.4 Jurisdictional Restrictions and Bans

Yield-generating products may be restricted or prohibited in certain jurisdictions where:

1. Such programs are deemed to constitute unregistered securities offerings;
2. Staking-as-a-service is classified as a regulated investment activity;
3. Yield-bearing accounts violate local consumer protection or banking laws.

Crypter reserves the right to:

1. Limit access to staking or yield programs in specific jurisdictions;
2. Modify or terminate existing programs to remain in compliance with regulatory directives;
3. Freeze participation or withhold rewards pending regulatory clarification.

Users are solely responsible for understanding the regulatory implications of engaging in such programs in their respective jurisdictions. Crypter disclaims any liability for enforcement actions, penalties, or legal consequences suffered by Users for unauthorized participation in yield products in restricted territories.

10. FIAT CONVERSION AND CURRENCY RISKS

10.1 Foreign Exchange Rate Risk

The User acknowledges that transactions involving conversion between fiat currencies (e.g., EUR, USD, INR) and digital assets are subject to foreign exchange (FX) rate fluctuations and conversion spreads. Rates may:

• Differ significantly from centralized benchmarks or interbank rates;
• Vary depending on the liquidity, volume, and time of execution;
• Be affected by geopolitical events, central bank policies, or market instability.

Crypter does not guarantee any particular exchange rate and disclaims liability for losses or slippage resulting from FX volatility, spreads applied by fiat payment processors, or delays in execution.

Users are advised to verify prevailing conversion rates before initiating fiat-crypto trades, withdrawals, or remittances.

10.2 Risks from Bank Delays or Reversals

Fiat transactions initiated through Crypter, including deposits, withdrawals, and card-based payments, may be subject to processing delays, rejections, or reversals due to:

1. Bank holidays, cut-off times, or cross-border clearing delays;
2. Intermediary bank reviews or payment processor compliance checks;
3. AML/CFT flags, regulatory reporting thresholds, or sender/recipient mismatches;
4. Manual holds imposed by partner financial institutions.

Crypter does not warrant real-time execution of fiat transactions and shall not be held liable for delays or rejections attributable to correspondent banks, SWIFT intermediaries, or national payment systems.

In the event of a reversal, returned funds may be credited net of charges, fees, or exchange rate losses, and subject to KYC revalidation.

10.3 Fiat Deposit/Withdrawal Restrictions by Region

Due to applicable laws and banking infrastructure limitations, Crypter may:

1. Support only specific fiat currencies or regional corridors;
2. Require minimum or maximum transaction thresholds;
3. Restrict fiat access for Users in high-risk jurisdictions or sanctioned territories;
4. Suspend fiat services in response to central bank directives or service provider disruptions.

Crypter shall provide updated information on supported fiat channels via its official platform communications. However, Users accept the risk that fiat functionality may be:

1. Suspended without prior notice;
2. Temporarily disabled for operational maintenance or legal compliance;
3. Permanently removed due to strategic or regulatory reasons.

Users must ensure that their linked bank accounts or payment methods are compatible with the geographic and regulatory scope of Crypter’s fiat services.

10.4 Chargebacks and Frozen Funds

The User acknowledges that fiat payment methods such as credit cards, debit cards, or e-wallets may allow for chargebacks, reversals, or disputes initiated by the User or third-party issuer. Such claims may trigger:

1. Temporary or indefinite freezing of associated crypto assets or account balances;
2. Suspension of withdrawal privileges or imposition of security reserves;
3. Investigation under Crypter’s fraud, abuse, and AML policy.

Crypter retains the right to:

1. Recover reversed fiat amounts by deducting from the User’s crypto balances;
2. Initiate legal recovery proceedings or law enforcement reports in cases of fraudulent chargebacks;
3. Restrict future use of fiat channels for Users engaged in excessive or malicious chargeback behaviour.

Users must ensure they have full legal and financial authority to use any fiat instrument associated with their account and that no fraudulent or unauthorized payment method is employed.

11. JURISDICTIONAL LIMITATIONS

11.1 Geoblocking and Prohibited Jurisdictions

Crypter provides services on a global basis but expressly prohibits access to the Platform from certain jurisdictions that are subject to:

1. Economic or trade sanctions;
2. Comprehensive AML/CFT restrictions;
3. National laws prohibiting cryptocurrency trading or custody;
4. Government-imposed bans or moratoria on digital asset activity.

Crypter currently restricts or prohibits access, directly or indirectly, to Users who are:

1. Citizens, residents, or physically located in comprehensively sanctioned countries (e.g., North Korea, Iran, Syria, Cuba, Crimea Region);
2. Listed on any international sanctions list (e.g., OFAC’s SDN List, EU Consolidated List, UN Sanctions List);
3. Located in countries where the provision of crypto services without a local license is unlawful.

Crypter uses IP geolocation tools and other compliance mechanisms to enforce jurisdictional restrictions. However, Users bear full responsibility for ensuring that their access to Crypter’s services is lawful under their applicable local laws.

11.2 Risk of Unavailability Due to Local Law Changes

Users understand and acknowledge that:

1. Crypter’s ability to offer services may be altered, suspended, or terminated at any time in response to changes in applicable law, regulation, judicial or governmental orders;
2. Licensing, registration, or authorization requirements may arise in certain jurisdictions, which could result in Crypter ceasing operations in such territories without prior notice;
3. Legal or regulatory developments may render continued use of the Platform illegal for certain Users or restrict access to specific features (e.g., staking, derivatives, fiat services).

Crypter assumes no liability for any disruption, inconvenience, or loss caused by legal or regulatory restrictions imposed in the User’s jurisdiction.

11.3 User Responsibility to Stay Informed of Local Laws

The User is solely responsible for:

1. Understanding and complying with all laws, regulations, tax codes, and licensing requirements applicable to their access and use of the Platform;
2. Ensuring that their use of Crypter’s services does not violate local laws related to financial services, capital controls, digital assets, data protection, or consumer protection;
3. Consulting qualified legal or tax advisors in their country of residence or incorporation before transacting on the Platform.

Crypter shall not be held liable for a User’s failure to adhere to jurisdictional obligations or for any enforcement action taken by regulatory authorities as a result of unauthorized access.

11.4 Conflicts Between Local Law and Platform Policy

In the event of any conflict between Crypter’s Terms of Use, this Risk Disclosure Policy, or other platform policies and any applicable local law:

1. The local law shall prevail to the extent that such law is mandatory and cannot be contractually waived;
2. Crypter reserves the right to interpret, modify, or restrict its services in compliance with such law;
3. Any provision found to be unlawful or unenforceable shall be severed without affecting the validity of the remainder of the Policy.

Users waive any claim against Crypter arising from their inability to use the Platform in any jurisdiction due to the application of local laws or Crypter’s own compliance obligations.

12. DATA AND PRIVACY RISKS

12.1 GDPR and Data Transfer Risks

Crypter, as a data controller and processor under the General Data Protection Regulation (GDPR), collects and processes certain categories of personal data for the purposes of:

1. Know-Your-Customer (KYC) and Anti-Money Laundering (AML) compliance;
2. Transaction processing and account servicing;
3. Risk management, fraud prevention, and platform security;
4. Regulatory reporting and audit obligations.

Where data is transferred outside the European Economic Area (EEA), including to service providers, custodians, or affiliates located in jurisdictions that may not provide an equivalent level of data protection, such transfers are made:

1. Subject to appropriate safeguards, including Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs);
2. In accordance with Crypter’s internal Data Transfer Risk Assessment procedures;
3. With the understanding that Users bear residual risks from extra-EEA processing.

Despite Crypter’s compliance mechanisms, Users acknowledge that no data transfer method is immune from interception, surveillance, or unauthorized access, especially where foreign governments claim access rights under local laws (e.g., the U.S. CLOUD Act or China’s CSL).

12.2 Risks Related to Personal Data Breaches

Crypter employs industry-standard security measures including encryption, pseudonymization, access control protocols, and periodic penetration testing. Nonetheless, Users acknowledge that:

1. Data breaches may occur due to system compromise, insider misconduct, or third-party vendor vulnerability;
2. Exposed personal data may include identification documents, wallet addresses, transactional history, and communication metadata;
3. Consequences of such breaches may involve identity theft, phishing attacks, or reputational harm.

In the event of a personal data breach, Crypter will:

1. Notify affected Users and competent data protection authorities as required under Article 33 and 34 of the GDPR;
2. Investigate the incident and take appropriate remedial action;
3. Provide limited support in mitigating downstream damages, without assuming liability for losses caused by third-party misuse of breached data.

12.3 Risks from Cross-Border Data Sharing with Regulators

Users understand and agree that Crypter may be legally compelled to share personal data, transactional records, or account metadata with:

1. Financial Intelligence Units (FIUs) under AML/CFT laws;
2. Tax authorities under global transparency frameworks such as the Common Reporting Standard (CRS) or Foreign Account Tax Compliance Act (FATCA);
3. Law enforcement agencies pursuant to court orders, subpoenas, or Mutual Legal Assistance Treaties (MLATs);
4. National regulators requiring disclosure under licensing, audit, or surveillance obligations.

Such disclosures may be made without User consent where Crypter has a legal obligation to do so, and may involve jurisdictions with lesser data protection frameworks. Users acknowledge that data disclosed in this manner may be retained, used, or further disclosed by public authorities in accordance with their domestic laws and practices.

12.4 Data Portability and Third-Party Access

Crypter may allow Users to:

1. Export their account-related personal data in machine-readable formats under Article 20 of the GDPR;
2. Authorize third-party applications to access certain data via APIs or OAuth protocols;
3. Utilize data interoperability features, subject to verification, consent, and audit logging.

Users are responsible for:

1. Verifying the trustworthiness of third-party applications;
2. Monitoring and managing access permissions;
3. Understanding the privacy policies of external service providers with whom data is voluntarily shared.

Crypter disclaims liability for data misuse, leakage, or unauthorized processing by third parties once User data has been exported or shared upon User initiation. Please refer to our Privacy Policy for more details.

13. FORCE MAJEURE RISKS

13.1 War, Acts of God, Natural Disasters

Users acknowledge and agree that Crypter shall not be liable for any delay, failure, interruption, or error in the performance or availability of its services if such performance is rendered impossible, commercially impracticable, or substantially hindered by a Force Majeure Event, including but not limited to:

1. War, military conflict, civil unrest, terrorism, or sabotage;
2. Natural disasters such as floods, fires, earthquakes, tsunamis, or hurricanes;
3. Epidemics, pandemics, or other public health emergencies;
4. Acts of God or other unforeseeable events beyond Crypter’s reasonable control.

Such events may result in the temporary or permanent suspension of operations, freezing of accounts, disruption of market access, or inability to execute deposits, withdrawals, or trades.

13.2 Government Action or Political Instability

Crypter shall not be responsible for any disruption, limitation, or unavailability of its services arising from:

1. Governmental restrictions, embargoes, blockades, or imposition of capital controls;
2. Suspension or revocation of licenses, registrations, or banking relationships;
3. Declaration of national emergencies, martial law, or expropriation of assets;
4. Judicial or legislative actions that render the operation of Crypter unlawful or infeasible in one or more jurisdictions.

In such circumstances, Crypter reserves the right to take any necessary action to preserve the integrity of its platform and comply with applicable laws, including the immediate suspension of certain services or closure of accounts without prior notice.

13.3 Communication or Internet Failures

Users understand that the Platform is reliant on stable access to global communications infrastructure, including:

1. Internet service providers (ISPs);
2. DNS resolution services;
3. Distributed networks and blockchain nodes;
4. Telecommunication providers and hosting services.

Interruptions, outages, or degradation in any such infrastructure—whether due to cyberattacks, power grid failure, satellite disruption, or submarine cable severance—may lead to service degradation, unavailability, or erroneous account behaviour. Crypter shall not be liable for losses incurred due to such network failures or data transmission errors.

13.4 Infrastructure Attacks and Acts of Terrorism

Crypter acknowledges that digital asset infrastructure is a potential target for:

1. Distributed denial-of-service (DDoS) attacks;
2. Physical destruction of data centers or custodial vaults;
3. State-sponsored cyber warfare or economic disruption campaigns;
4. Biometric, social engineering, or zero-day cyber exploits.

While Crypter implements comprehensive threat detection and risk mitigation strategies, no system is impenetrable. In the event of a catastrophic infrastructure attack, Users may experience total or partial loss of access, data, or funds. Crypter disclaims any liability arising from such Force Majeure incidents unless demonstrably caused by its gross negligence or willful misconduct.

14. AML/CFT COMPLIANCE RISKS

14.1 Transaction Monitoring and Account Freezing Risks

Crypter is legally required to conduct real-time and retrospective monitoring of all transactions executed on its platform to detect patterns indicative of money laundering, terrorist financing, fraud, tax evasion, sanctions evasion, or other predicate financial crimes.

As part of its compliance obligations, Crypter reserves the right, at any time and without prior notice, to:

1. Flag and freeze transactions or accounts deemed suspicious;
2. Escalate cases to competent financial intelligence units (FIUs) or regulatory authorities;
3. Restrict access to trading, deposit, or withdrawal functions during the course of an internal investigation;
4. Request enhanced due diligence (EDD), including additional identity verification, source of funds declarations, or documentation.

Users understand that false positives may occur due to algorithmic detection systems, transaction size, blockchain metadata (e.g., use of mixing protocols), or counterparty behavior. Crypter disclaims liability for losses arising from preventive freezing or investigative action undertaken in good faith compliance with AML/CFT obligations.

14.2 Risk of False Positives from AML Screening

Crypter uses global screening tools, sanctions watchlists, and blockchain analytics services to detect and prevent interaction with:

1. High-risk wallets flagged by chain analysis tools;
2. Addresses linked to darknet markets, ransomware, stolen funds, or sanctioned entities;
3. Wallets identified as mixers, tumblers, privacy coins, or non-custodial anonymity-enhancing tools.

Users may be wrongfully associated with flagged wallets through prior ownership, inadvertent receipt, or on-chain proximity. Such “false positives” may lead to delays, reputational damage, and increased compliance burdens.

Crypter shall not be responsible for loss of access, missed trading opportunities, or asset immobilization caused by third-party analytics flags unless it is proven that Crypter acted with gross negligence.

14.3 Sanctions Compliance and Wallet Blacklisting

Crypter adheres to international sanctions regimes and is prohibited from:

1. Facilitating transactions involving persons or entities on OFAC, EU, UN, HM Treasury, or other official sanctions lists;
2. Enabling trade or custody of digital assets originating from or destined to sanctioned jurisdictions;
3. Allowing the use of wallet addresses or IPs associated with embargoed territories or designated nationals.

Crypter reserves the right to:

1. Blacklist wallet addresses interacting with sanctioned actors or protocols;
2. Suspend or terminate accounts without notice upon identification of sanctions exposure;
3. Report attempted or completed violations to competent authorities and cooperate with investigative proceedings.

Users are responsible for ensuring they are not in violation of applicable sanctions laws and acknowledge that Crypter may be legally bound to take immediate action upon detection of a breach.

14.4 Suspicious Activity Reporting and Regulatory Intervention

In compliance with the applicable AML/CFT laws, Crypter is obligated to file Suspicious Transaction Reports (STRs), Suspicious Activity Reports (SARs), or equivalent declarations to local and international regulators where:

1. Transactions lack economic or lawful purpose;
2. User behaviour is inconsistent with known source of wealth or declared purpose;
3. Patterns suggest layering, structuring, or attempts to evade reporting thresholds;
4. Regulatory triggers are met based on transaction size, frequency, or blockchain tracing alerts.

Crypter is prohibited from notifying Users when such reports are filed (“tipping off” prohibition under AML laws) and shall not be liable for any resulting account action or reputational consequences.

Furthermore, Crypter may be required to comply with binding orders from regulators, prosecutors, or courts instructing it to:

1. Freeze accounts;
2. Disclose transactional data;
3. Restrict service access;
4. Surrender evidence of suspicious activity.

Please refer to our AML/ CFT Policy for more details.

15. RISK OF PERMANENT LOSS

15.1 Loss of Private Keys, Recovery Phrases, or Access Credentials

The User acknowledges and accepts that the security and confidentiality of their private keys, recovery phrases, passwords, two-factor authentication (2FA) credentials, and any other access credentials are solely their responsibility.

Crypter does not store or have access to User private keys in relation to self-custodied wallets or externally connected Web3 wallets. In the event that a User:

1. Loses access to their credentials;
2. Fails to back up their recovery phrase securely;
3. Experiences unauthorized access due to credential compromise;
4. all associated digital assets may be permanently inaccessible, with no ability for Crypter to recover, reset, or reverse access loss. Users waive all claims against Crypter for such losses, including where such loss results in total financial depletion of account assets.

15.2 Loss Due to Phishing, Scams, or Social Engineering

Crypter shall not be liable for losses arising from:

1. Phishing attacks that imitate Crypter’s user interface, emails, or domains;
2. Scams perpetrated through impersonation of Crypter’s employees, affiliates, or legal representatives;
3. Social engineering attacks tricking Users into disclosing login credentials, authorizing malicious transactions, or interacting with fraudulent smart contracts.

The blockchain’s decentralized and irreversible nature prevents Crypter from reversing unauthorized or fraudulent transactions once they are validated on-chain. Users are advised to:

1. Carefully verify URLs, emails, and interfaces before transacting;
2. Never disclose private keys, passwords, or security codes to anyone;
3. Regularly monitor activity and enable all available security features.

15.3 Irrecoverable Transactions Due to Blockchain Finality

Digital asset transactions confirmed on the blockchain are final and irreversible. Once broadcast to the network and confirmed:

1. Transactions cannot be reversed, cancelled, or rolled back by Crypter or any third party;
2. Erroneous deposits to incorrect wallet addresses may result in permanent loss;
3. Transfers to unsupported networks or tokens sent without required tags/memos may not be recoverable.

Users are solely responsible for:

1. Verifying the accuracy of transaction details, including recipient address, token type, and network;
2. Ensuring that third-party wallets or exchanges are compatible with the selected asset;
3. Double-checking destination formats, particularly for assets requiring secondary identifiers (e.g., XRP, XLM, EOS).

Crypter disclaims liability for failed or misplaced transactions resulting from User error.

15.4 Crypter’s Non-Responsibility Clause for User-Induced Losses

To the maximum extent permitted under applicable law, Crypter shall not be held liable for any losses, damages, or claims arising directly or indirectly from:

1. Mismanagement of User wallets, keys, or credentials;
2. Misinterpretation of platform instructions or warning notices;
3. Use of unauthorized, insecure, or compromised devices or browsers;
4. Interaction with malicious smart contracts, websites, or third-party DApps.

Users are strongly encouraged to adopt best practices in crypto hygiene, including hardware wallet use, cold storage for long-term holdings, regular credential rotation, and zero-trust principles for online engagements.

16. TOKENOMICS AND INFLATIONARY RISK

16.1 Supply Dilution and Developer Lock-In Risk

The User acknowledges that digital assets listed on the Crypter platform may be subject to significant token supply inflation, often driven by:

1. Unlocking of founder or developer tokens based on vesting schedules;
2. Pre-mined allocations to early investors, teams, or advisory wallets;
3. Periodic minting mechanisms not clearly disclosed to the public.

Such inflation may lead to substantial dilution of token value, adversely impacting Users holding the asset. Crypter does not warrant or verify:

1. The fairness or transparency of token vesting schedules;
2. Whether lock-ups are enforced via smart contracts or merely promised off-chain;
3. Whether vested tokens are dumped into the market in breach of representations.

Users are expected to consult whitepapers, token allocation charts, and third-party audits before investing in any token.

16.2 Manipulative Tokenomics (Mint/Burn Risks)

Certain tokens implement mint-and-burn mechanics, dynamic supply adjustments, or algorithmic stabilization features that may be susceptible to:

1. Exploitation by insiders or administrators with access to token supply functions;
2. Sudden over-minting without community governance or multi-signature authorization;
3. Hidden developer privileges (e.g., “god mode” functions or proxy upgrades) enabling unilateral changes.

These mechanisms can create artificial scarcity or hyperinflation, resulting in extreme price volatility or permanent devaluation. Crypter is not responsible for auditing or guaranteeing the integrity of any third-party token’s smart contract design, and Users assume the full risk of interacting with inflationary or deflationary systems.

16.3 Insufficient Token Utility or Demand

The long-term value of any token depends, in part, on the existence of:

1. Legitimate and sustainable utility within a broader ecosystem (e.g., staking, governance, fee payments);
2. Actual demand from users, developers, or business integrations.

Tokens with no substantive use case beyond speculation may experience:

1. Market collapse once initial hype subsides;
2. Exchange delisting due to inactivity or low volume;
3. Regulatory classification as non-compliant securities or unregistered financial instruments.

Crypter does not guarantee continued liquidity or price support for any token, particularly those lacking active user adoption or utility beyond exchange speculation.

16.4 Token Governance and Insider Risk

Many tokens purport to offer decentralized governance features—such as voting rights, protocol upgrade influence, or staking-based governance. However, in practice, these systems may be:

1. Heavily centralized, with founders or a small cohort holding outsized voting power;
2. Subject to governance capture or manipulation by early investors or coordinated entities;
3. Undermined by a lack of community engagement or technical barriers to participation.

Users are cautioned that such governance models may not offer real decentralization and can be used to:

1. Pass self-serving proposals;
2. Redirect token emissions;
3. Alter the fundamental economics of the project to the detriment of minority holders.

Crypter makes no representations as to the fairness, security, or distributional equity of any project’s governance structure or tokenomic model.

17. PLATFORM-SPECIFIC RISKS

17.1 Bugs and Errors in Crypter Platform

Despite robust security testing, auditing procedures, and continuous monitoring, Crypter may experience technical bugs, coding errors, or logic flaws in its frontend or backend systems. These may affect:

1. Wallet balances or transaction displays;
2. Order execution, slippage calculation, or fee application;
3. Token display data (e.g., price, volume, market cap);
4. Smart contract interactions or staking interfaces.

Such bugs may result in:

1. Execution of unintended trades;
2. Incorrect account balances or misattributed deposits;
3. Temporary inaccessibility or loss of platform functionality.

Crypter shall make reasonable efforts to detect and remedy such errors but does not guarantee an error-free experience. Users acknowledge that they use the platform “as is” and at their own risk.

17.2 Inadvertent Execution of Orders

Due to real-time trading dynamics, market volatility, and system latency, Users may experience:

1. Orders being executed at prices materially different from anticipated (“slippage”);
2. Duplicate or partial order fills;
3. Mismatches between displayed and final executed prices;
4. Accidental trades due to misclicks or incorrect order configurations.

Crypter does not provide undo functionality for confirmed orders and shall not be liable for unintended trades unless directly caused by a confirmed system malfunction demonstrably attributable to Crypter.

Users are strongly advised to:

1. Double-check order inputs before confirmation;
2. Use stop-loss or limit orders instead of relying solely on market orders;
3. Avoid high-frequency trading without sufficient technical setup.

17.3 API and Mobile App Vulnerabilities

Crypter offers API access and mobile application interfaces to facilitate trading, data retrieval, and account management. These tools may be susceptible to:

1. Integration bugs;
2. Latency or sync issues;
3. Security vulnerabilities in the User’s local environment (e.g., jailbroken devices, unpatched software);
4. Exploits caused by insufficient request validation or session management.

Crypter is not liable for any losses resulting from:

1. Improper use or unauthorized access through API keys;
2. Application crashes, malfunctions, or outdated versions of mobile apps;
3. Third-party trading bots, scripts, or automation tools connected to Crypter APIs.

Users are responsible for managing their access tokens, implementing rate limits, and securing their own devices.

17.4 Version Updates, Legacy Code Risks

Crypter continuously evolves its technology stack through version updates, UI redesigns, and backend upgrades. While updates aim to improve security and user experience, they may introduce:

1. Temporary incompatibility with third-party services;
2. New bugs or regressions;
3. Discontinued support for older browsers or mobile OS versions;
4. Changed behaviors of existing functions (e.g., wallet formats, staking mechanics, fee logic).

Users must ensure that:

1. Their software and devices are kept up to date;
2. They review update notes and change logs where published;
3. They test mission-critical functionality (e.g., API-based trades) in a sandboxed environment where applicable.

Crypter disclaims liability for losses resulting from User reliance on deprecated platform versions or misinterpretation of new feature behavior.

18. CONFLICTS OF INTEREST

18.1 Market-Making by Affiliates or Crypter Entities

Users acknowledge that Crypter, its subsidiaries, affiliates, or related entities may engage in market-making, liquidity provisioning, or proprietary trading activities on the Crypter platform. These entities may:

1. Quote bid/ask spreads in listed trading pairs;
2. Provide liquidity to incentivize trading volume or reduce slippage;
3. Trade for profit based on internal risk models or inventory positions.

Such activities may create a conflict of interest, particularly where Crypter-affiliated traders are better positioned to access order flow data, trading patterns, or platform latency advantages.

Crypter maintains internal protocols, including firewalls, order anonymization, and restricted data access to mitigate the potential for front-running or unfair trading advantage. However, Users accept that such conflicts may arise and waive claims based solely on the presence of Crypter-affiliated market participants.

18.2 Listing Bias and Preferential Treatment Disclosures

Crypter may list, promote, or feature tokens or projects that:

1. Are affiliated with Crypter’s shareholders, board members, or commercial partners;
2. Have paid listing, marketing, or promotional fees to Crypter or its affiliates;
3. Are otherwise commercially aligned with Crypter’s long-term strategic interests.

Although Crypter employs a Token Listing Policy incorporating technical, legal, and reputational due diligence, the decision to list or delist a token may not be free from commercial bias or conflict.

Crypter disclaims any fiduciary duty to the User in relation to token selection or listing decisions and does not guarantee neutrality or merit-based listings. Users are advised to conduct independent due diligence on any token or project—regardless of its platform prominence or visibility.

18.3 Cross-Product Conflicts (e.g., Wallet + Exchange Services)

Crypter may provide a suite of vertically integrated services, including but not limited to:

1. Exchange trading;
2. Custodial wallets;
3. Staking and yield programs;
4. Fiat on/off ramps;
5. Token issuance platforms.

These integrated offerings may lead to structural conflicts, such as:

1. Incentivizing Users to use Crypter’s own wallet over third-party custodians;
2. Promoting yield products that benefit Crypter-affiliated validators;
3. Favoring Crypter-issued tokens or stablecoins over third-party alternatives.

Crypter may derive financial benefit from these services, including transaction fees, interest spreads, or asset flows. Users acknowledge that while Crypter aims to ensure fair access and operational transparency, certain features may be designed with underlying commercial interests in mind.

18.4 Employee and Insider Trading Restrictions

Crypter’s employees, contractors, officers, and directors may personally invest in digital assets listed on the platform. To mitigate potential insider trading or misuse of material non-public information (MNPI), Crypter enforces an internal Employee Trading Policy, which includes:

1. Restricted access to confidential listing, delisting, and system change data;
2. Trading blackout windows during material event windows;
3. Monitoring of employee trading accounts for suspicious activity.

Nonetheless, Users understand that Crypter cannot fully eliminate the risk of improper conduct or perceived conflicts, and agree to use the platform notwithstanding such residual risk.

19. LIMITATION OF LIABILITY AND INDEMNITY

19.1 Crypter’s Liability Limitation

To the maximum extent permitted under applicable law, Crypter, including its affiliates, directors, officers, employees, contractors, licensors, service providers, and agents (collectively, “Crypter Parties”), shall not be liable to any User for:

1. Loss of profits, revenue, business, opportunity, or data;
2. Indirect, consequential, incidental, special, exemplary, or punitive damages;
3. Any loss resulting from trading decisions, missed opportunities, or asset devaluation;
4. Any loss, delay, or error arising from acts or omissions of third-party service providers, including custodians, oracles, liquidity partners, banks, and blockchain networks;
5. Unauthorized access to, or use of, the User’s account resulting from User negligence or failure to maintain adequate security.

This limitation applies regardless of the legal theory under which liability is asserted (contract, tort, negligence, statutory duty, or otherwise), and whether Crypter was advised of, or could have foreseen, the possibility of such damages.

19.2 No Liability for Consequential, Indirect or Punitive Damages

Under no circumstances shall Crypter Parties be liable for any consequential, indirect, exemplary, or punitive damages, including but not limited to:

1. Reputational harm;
2. Regulatory penalties incurred by Users;
3. Losses arising from account closure or compliance enforcement;
4. System outages, transactional slippage, or operational downtime.

Crypter’s maximum cumulative liability for any claim arising out of or relating to the User’s use of the platform shall not exceed the lesser of:

1. The amount of fees actually paid by the User to Crypter in the preceding twelve (12) months, or;
2. One thousand euros (€1,000.00), unless otherwise required by mandatory law.

19.3 User Indemnification Obligations

The User agrees to indemnify, defend, and hold harmless Crypter and Crypter Parties from and against any and all claims, actions, proceedings, damages, losses, liabilities, costs, and expenses (including attorneys’ fees) arising from or related to:

1. The User’s breach of any provision of the Terms of Use, this Risk Disclosure Policy, or any applicable law;
2. The User’s use or misuse of the platform, or any violation of the rights of a third party;
3. The User’s failure to comply with AML/CFT, tax, data protection, or sanctions-related obligations;
4. Disputes between the User and any third party relating to digital assets, wallet interactions, or off-platform transactions facilitated by or advertised through Crypter.

Crypter reserves the right to assume exclusive control of any matter subject to indemnification, and the User agrees to cooperate fully with Crypter’s defense strategy.

19.4 No Fiduciary Relationship Disclaimer

The User acknowledges that Crypter is not a fiduciary, trustee, financial advisor, or agent acting on behalf of the User in any capacity. No communications or interactions with Crypter or its representatives—whether written, oral, or electronic—shall create a fiduciary duty or advisory relationship unless expressly agreed upon in writing and subject to regulatory licensing requirements.

The User is solely responsible for evaluating their own financial circumstances, investment objectives, risk tolerance, and tax situation before engaging in any transaction via Crypter.

20. RISK MITIGATION BY USER

20.1 Use of Hardware Wallets and Two-Factor Authentication (2FA)

Users are strongly advised to:

1. Use hardware wallets (cold storage) for long-term asset storage, especially for significant holdings not actively traded;
2. Enable multi-factor authentication (2FA) on their Crypter account using a time-based one-time password (TOTP) app (e.g., Google Authenticator), rather than SMS-based verification;
3. Regularly rotate 2FA recovery codes and ensure that backup credentials are stored securely and offline.

Failure to implement these basic security measures significantly increases the risk of unauthorized access, phishing, and permanent loss of funds. Crypter shall not be liable for losses arising from User-side security negligence.

20.2 Diversification and Allocation Strategy

Users should adopt a diversified approach to digital asset management, avoiding overconcentration in any single:

1. Token or asset class;
2. Protocol or staking pool;
3. Custodial platform or third-party service provider.

Diversification can mitigate exposure to project-specific risks, smart contract failures, and black swan events. Users are encouraged to assess portfolio allocations periodically in light of market conditions, regulatory developments, and personal risk tolerance.

20.3 Understanding Smart Contract Audits

Before interacting with any smart contract, token, or staking product available via Crypter or its integrated services, Users should:

1. Review any available audit reports from reputable firms;
2. Examine whether the contract has been formally verified, is open-source, or subject to ongoing bug bounty programs;
3. Recognize that even audited contracts may contain undiscovered vulnerabilities or suffer from design flaws.

Users accept full responsibility for engaging with on-chain protocols and should not equate audit presence with guaranteed safety.

20.4 Personal Cybersecurity Best Practices

To reduce risk exposure from phishing, malware, and social engineering attacks, Users must:

1. Keep their devices and browsers updated with the latest security patches;
2. Use unique, complex passwords stored in a secure password manager;
3. Avoid interacting with links or files from untrusted sources, including emails purporting to be from Crypter;
4. Refrain from sharing login credentials, wallet seeds, or API keys under any circumstances.

Users should also monitor their account activity regularly and report any unauthorized access or suspicious behaviour to Crypter’s support team immediately.

20.5 Regular Self-Assessment of Risk Tolerance

Digital asset markets are volatile, speculative, and subject to systemic, regulatory, and technological risks. Users must:

1. Periodically re-evaluate their financial objectives, liquidity needs, and capacity to absorb loss;
2. Stay informed on market trends, policy updates, and new platform features;
3. Seek independent financial, legal, and tax advice where appropriate.

Users should only invest or trade with capital they can afford to lose and must be mentally and financially prepared for extreme drawdowns, illiquidity, or permanent loss of assets.

21. UPDATES AND AMENDMENTS

21.1 Right to Amend the Risk Disclosure Policy

Crypter reserves the sole and absolute right to modify, update, amend, or replace this Risk Disclosure Policy at any time, in whole or in part, in its discretion and in accordance with:

1. Changes in applicable law or regulatory guidance;
2. Evolving business operations, risk factors, or service offerings;
3. Security threats, technology changes, or industry best practices;
4. Feedback from Users or directives issued by supervisory authorities.

No consent shall be required for such updates unless mandated by law. Users agree that continued use of the platform after the effective date of any amendment constitutes full acceptance of the revised Policy.

21.2 Notice Mechanism for Updates

Where required by applicable law, Crypter shall:

1. Provide reasonable notice of material updates via email, dashboard notification, or public announcement on the Crypter website;
2. Indicate the date of last revision at the beginning or end of this document;
3. Clearly identify the sections that have been materially modified.

It is the User’s responsibility to regularly review this Policy. Crypter is not obligated to send individual or personalized notifications unless specifically required under governing law.

For immaterial or administrative amendments (e.g., stylistic improvements, cross-reference corrections), no advance notice will be provided.

21.3 User Duty to Review Changes Periodically

By using or continuing to use Crypter’s services after an amendment takes effect, the User:

1. Affirms they have read, understood, and agreed to the updated Risk Disclosure Policy;
2. Accepts all changes as legally binding and enforceable as of the effective date;
3. Waives any claim or defense arising from failure to review the updated Policy.

Users who do not agree with the amended terms must immediately discontinue use of the Platform and may request account closure, subject to applicable withdrawal procedures and regulatory obligations.

22. ACKNOWLEDGEMENT AND ACCEPTANCE

22.1 Electronic Acceptance Mechanism

By creating an account on Crypter, accessing the Platform, or utilizing any service, feature, or product offered by Crypter—whether directly or through an authorized interface or integration—the User expressly acknowledges that they have:

1. Read and understood the entirety of this Risk Disclosure Policy;
2. Accepted and agreed to be legally bound by its terms;
3. Provided informed and voluntary consent to assume all associated risks described herein.

This consent is effective upon electronic acknowledgment (e.g., checkbox selection, “I Agree” button, or continued use of the Platform), and shall constitute a valid and enforceable agreement under applicable law.

22.2 No Use of Platform Without Risk Acknowledgement

Users are prohibited from using any portion of the Platform—including viewing balances, executing trades, depositing or withdrawing assets, or interacting with APIs—unless they have accepted the terms of this Risk Disclosure Policy.

Any unauthorized access or use of the Platform without full acceptance of this Policy shall constitute a material breach of Crypter’s Terms of Use and may result in the immediate suspension or termination of services.

Crypter disclaims all liability for Users who access or use the Platform in violation of this provision.

22.3 Binding Effect of Continued Use

The User agrees that:

1. Their continued use of the Crypter Platform following any material update or amendment to this Policy shall be deemed reaffirmation and reconfirmation of their acceptance;
2. They shall be bound by the most current version of the Risk Disclosure Policy available at the time of such use;
3. They waive any right to claim non-enforceability on the grounds of lack of awareness, provided the Policy was made available via the Platform or User dashboard.

This acknowledgment shall survive account suspension, restriction, or termination, and shall continue to apply to all interactions and transactions executed while the Policy was in effect.