Dealing (exchanging, staking, etc.) with Digital Currencies/ Digital Assets involves significant risks. We have highlighted some of those risks below:
Prices of Digital Currencies/ Digital Assets can rapidly and significantly fluctuate on any given moment. Because of such rapid and significant price fluctuations, you may gain or lose value of your Digital Currencies/ Digital Assets at any moment. Digital Currency/ Digital Asset may be subject to large swings in value and may become even worthless (in some cases, you may incur losses even beyond that).
Impermanent loss may happen when you provide (farm) Digital Assets to a liquidity pool, and the price of your deposited Digital Assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to this risk. It means less Digital Assets value at the time of withdrawal than at the time of deposit.
You put your trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer (network in which interconnected nodes ("peers") share resources amongst each other without the use of a centralized administrative system) networking and cryptography to maintain its integrity. This means that there is no central bank that can take corrective measure to protect the value of Digital Currency/ Digital Asset in a crisis or issue more Digital Currency/ Digital Asset. Your Digital Currency/ Digital Asset capital is not protected under the investor or deposit protection schemes or any other comparable protection schemes anywhere in the world. Dealing with Digital Currencies/ Digital Assets is not regulated, is not subject to any licensing or any other authorization requirements, except to ensure compliance with anti-money laundering and counter-terrorism financing rules. As a consequence, regulatory protections associated with financial services subject to authorization are not available to you;
The underlying protocols may be subject to sudden changes in operating rules (including “forks”). Any such material operating changes may affect the functionality, availability and/or value of your Digital Currency/ Digital Asset. We do not control the timing and features of these material operating changes. In case of any such operational change, we shall have the right to take such actions as may be necessary to protect the security and safety of Digital Currencies/ Digital Assets within our platform, including temporarily suspending operations for the involved Digital Currencies/ Digital Assets, and other necessary actions. Such changes in operating rules of underlying protocols are outside of our control and may occur without notice to you. Atheleum shall have a right to not support any new Digital Currency/ Digital Asset, fork;
Digital Currency/ Digital Asset trading is probably susceptible to irrational (or rational) bubbles or loss of confidence, which could collapse in demand relative to supply. For example, due to the fundamentals of the Digital Currency/ Digital Asset trading system’s functioning, it is vulnerable to fluctuations in the level of confidence of market participants, which directly affects the level of demand or supply. The level of confidence can be affected both by purely economic factors and non-economic, including technological ones;
Under certain circumstances, it may be very difficult or even impossible to carry out actions (e.g., buy/stake/lend/farm or sell/un-stake/redeem) with your Digital Currency/ Digital Asset. This may occur due to various reasons e.g., excess volume, bouts of illiquidity or other volatility within the market for Digital Currencies/ Digital Assets;