Investor risk
The digital assets offered by Shares Digital Assets sp. z o.o. with its registered seat in Kraków, at: ul. Mogilska 43, 31-545 Kraków, entered into the Register of Entrepreneurs of the National Court Register, maintained by District Court for Kraków-Śródmieście in Kraków, XI Division of the National Court Register, under the KRS number: 0000978485, Tax Identification Number (NIP): 6751766591 and REGON number: 522390149 ("Shares Digital Assets" or "SDA"), an indirect wholly-owned subsidiary of Shares SAS, offers you the regulated business of custody of digital assets on behalf of a client, service of exchange between digital assets and fiat currency, as well as exchange between fiat currency and digital assets and the service of exchange of digital assets for other digital assets, in its capacity as a digital asset service provider registered in the register of virtual currency activity, held by the Director of the Tax Administration Chamber in Katowice, Poland, under No. RDWW-389.
The digital assets can be purchased and held by any individual resident in a country where the Application and the Services are available. However, investors must first ensure that the investment in digital assets is suitable for their financial situation and investment objectives. Furthermore, it is recalled that in the interest of investment diversification, it is generally recommended to individual investors that the portion of their wealth invested in this type of asset represents only a minor part of the total value of said wealth.
Risk of capital loss
The price of digital assets constantly fluctuates according to the relative amounts of demand for buying and selling on marketplaces. The greater the upward and downward movement in the price of a digital asset, the greater the volatility. This volatility is positively associated with the expectation of gain and negatively associated with the risk of capital loss. Making a digital asset transaction involves a high degree of risk of capital loss up to the full value of the purchase or exchange of the digital asset.
Volatility risk
The value of all Crypto-assets can change rapidly. Customers should be aware of their exposure to different Crypto-assets and that their exposure may be potentially impacted by sudden and unpredictable price changes that would affect their Transactions.
Tax risk
The tax status of certain Crypto-assets may be undetermined in the jurisdiction in which the Customer is located. This implies that the Customer must verify, under his sole responsibility, the obligation to declare the possession, purchase,sale or exchange, and if required, the payment of taxes and duties on Crypto-assets to the tax authorities.
Tax risk
The tax status of certain Crypto-assets may be undetermined in the jurisdiction in which the Customer is located. This implies that the Customer must verify, under his sole responsibility, the obligation to declare the possession, purchase,sale or exchange, and if required, the payment of taxes and duties on Crypto-assets to the tax authorities.
Risks related to digital assets
The following is a list of some of the many risks inherent to the use of digital assets:
- Risk of hacking a blockchain,
- Risks inherent to digital assets such as coding errors, counterparty risk, etc,
- Risk of hacking of a digital asset marketplace,
- Risk of access problems of any kind between Shares Digital Assets and the partner Digital Assets Marketplace, including loss of internet connection,
- Risk of temporary or permanent shutdown of a digital asset marketplaces or blockchains,,
- Unforeseen risks due to the young age and experimental nature of the technologies used.
Risk of digital identity theft
Shares Digital Assets is susceptible to identity theft as a company. Customers may be victims of fraud by third parties posing as Shares Digital Assets. Customers are responsible for verifying that they are using our Application.
Risk of hacking of the User Account
Account hacking refers to a malicious individual taking control of a Crypto-account to the detriment of its legitimate owner. The Customer is warned of this risk and is recommended to follow the security procedures for the Customer account proposed by Shares Digital Assets.
Market risk
There is a risk of loss of value of digital assets caused by adverse price movements of these assets. Accordingly, Customers should consider the risk of partial or total loss of their investment due to significant fluctuations in the value of digital assets.
Regulatory risk
Shares Digital Assets is a digital asset service provider registered with the National Revenue Administration in Poland. Shares Digital Assets is subject to regulatory risk that may result in it being inspected and possibly sanctioned by regulatory authorities.
Liquidity risk
The Investments made available via the Application are all admitted to trading on digital assets marketplaces, and in the event that you wish to sell your Investments, a corresponding buyer of those Investments must be found in the underlying market. Whilst certain Investments can be very liquid, you should be aware that others, such as the digital assets with smaller capitalisation, can be less liquid and it is not guaranteed that there will be a buyer for your Investments. Therefore, you may not be able to realise your investment or realise it at its actual market value. In some circumstances, such as instances of market volatility or where trading in a particular Investment or on a particular underlying market has been suspended or otherwise restricted, it may not be possible to find a buyer for your Investments, meaning you will not be able to liquidate your Positions.
If you close your Crypto-account, all Positions in Investments will need to be sold via the Application.
