Risk Disclosure

Risk Disclosure

This Risk Disclosure Statement aims to inform you about potential risks associated with the custody of digital assets and the utilization of services offered by us. The information provided in this statement is not exhaustive and does not coverall risks (or other crucial factors) that should be considered before engaging with custodial services. You acknowledge and accept these risks and will not hold Rakkar Digital Pte. Ltd, Rakkar Digital (Hong Kong) Limited, Rakkar Digital Co., Ltd. (together “Rakkar Digital”, “Company”, “we” or “us”) responsible for losses arising from such risks.

1.     Risk Disclosures

1.1.  Managing digital assets involves significant risks and the possibility of financial losses. The information on the websites under Rakkar Digital brand or mobile application should not be considered as professional, investment, legal and/or financial advice. It is your responsibility to make an informed decision to access or use the services, and you should seek any necessary advice, including financial and/or legal guidance from independent advisors. It is your sole responsibility to understand all relevant risks associated with digital assets custody, analyse the terms, features, and arrangements related to digital assets, and assess whether such custody is suitable for you based on your experience, objectives, financial resources, specific needs, risk tolerance, and other relevant circumstances. Under no circumstances shall any of the indemnified persons be held responsible or liable for any direct or indirect losses (including profit loss, business impact, or missed opportunities),damages, or costs resulting from your use or reliance on the information outlined in this Risk Disclosure Statement.

1.2.  The attributes, functionalities, characteristics, operation, usage, and other properties of any digital assets and the software, networks, protocols, systems, and other underlying technologies (including any blockchain) employed for administering, initiating, issuing, transferring, cancelling, using, or transacting in any digital assets may be intricate, technical, or challenging to comprehend or evaluate. Such digital assets properties and underlying technology pose significant risks when dealing with digital assets.

1.3.  Our decision to facilitate the transfer or store any specific digital assets through our services does not imply approval or disapproval of the digital assets or the integrity, security, or operation of the digital assets or its underlying technology. The risks associated with digital assets persist regardless of our decision to support particular digital assets.


2.     Digital Assets and Blockchain Risks

2.1.  The Company neither owns nor controls the underlying technology, including the software, networks, protocols, systems, blockchain, blockchain consensus, blockchain governance and other technologies governing the operation of digital assets supported on the platforms, as well as the markets where digital assets are stored, transferred, purchased and traded. Users are exposed to potential technological flaws, manipulations, hacks, double spending, "51%"attacks, and other operational vulnerabilities that may impact the value and security of their digital assets. The Company explicitly disclaims any representation, warranty, or undertaking, whether express or implied, statutory or otherwise, regarding the functionality, characteristics, operation, use, and other properties of any underlying technology, digital assets, or blockchain.The Company assumes no responsibility for breaches of security in these aspects.

2.2.  Transactions involving digital assets may be irreversible, and losses resulting from fraudulent or accidental transactions may not be recoverable. Users should exercise diligence and adopt best practices to minimize such risks.

2.3.  Some transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.

2.4.  The Company has no obligations to inquire into the ownership, genuineness, validity, utility and investment suitability and collectability of digital assets.

2.5.  The Company assumes no responsibility for the functionality or security of digital assets and their underlying technology. It does not offer any assurances regarding the operation of these assets. Users are expressly cautioned to recognize and consent to the inherent risks associated with potential alterations or security breaches in the underlying technology of digital assets stored within their digital assets’ wallet.


3.     Market and Liquidity Risks

3.1.  Digital assets may encounter fluctuating levels of liquidity in the market. Liquidity is impacted by factors such as volatile market demand, trading volumes, regulatory developments, and market manipulation. Clients should be aware that instances may arise where the swift sale or liquidation of digital assets held in custody might be challenging, potentially causing delays or unfavorable pricing.

3.2.  The value of digital assets is prone to price volatilities, posing the risk of a permanent and total loss of value of a particular digital asset.


4.     Legal and Regulatory Risks

4.1.  Regulatory and legislative changes or actions at the state, federal, or international level may have adverse effects on digital assets, including their use, transfer, exchange, and overall value, as well as the services provided by us.The potential consequences of these changes on the price, liquidity, and tradability of digital assets, as well as the utilization of custodial services, should be considered.

4.2.  Regulatory actions hold the potential to negatively impact digital assets, possibly necessitating retroactive or prospective classification as regulated financial instruments requiring registration or licensing in specific jurisdictions. There is a risk that certain digital assets or services may need to be suspended, limited, or disallowed based on users' citizenship, residence, or location due to regulatory prohibitions. Such regulatory interventions could significantly impact the price, liquidity, and tradability of digital assets, as well as the availability of custodial services.

4.3.  Digital assets do not hold legal tender status and lack backing from any central bank or government. Account balances and values are not covered by government-backed deposit insurance, any other governmental protections or any other form of insurance coverage. We do not offer any assurance or guarantee that your deposit or loss with be covered by any insurance.

4.4.  We retain absolute discretion to suspend or reject the execution of user instructions, suspend, or cease support for specific digital assets, or terminate user access to accounts or services. These actions may be considered necessary or desirable by us to ensure compliance with applicable laws or in response to orders, directives, or requests from law enforcement or regulatory authorities.


5.     Technology and Security Risks

5.1.  Digital assets and their underlying technology are susceptible to fraud or cyber-attacks. The Company makes no representation, warranty, or undertaking, whether express or implied, statutory, or otherwise, regarding the functionality of any underlying technology or blockchain. Additionally, no assurances are given concerning the prevention of security breaches within the underlying technology or blockchain.Users may experience losses due to system failures, hardware failures, software failures, network connectivity disruptions, and data corruption.

5.2.  Digital assets or underlying technology may undergo material operating alterations due to modifications, changes using built-in features, or attacks. These alterations, including events like a "fork," "airdrop," "rollback," or"bootstrap" of digital assets or blockchain, can significantly impact availability, value, functionality, and the names of digital assets stored in user wallets. The Company retains the right to support or not support any of these changes. Users acknowledge and accept these risks, understanding that theCompany is not responsible for such changes and is not liable for any loss of value experienced as a consequence.

5.3.  The Company will make efforts to provide notice of its response to any material operating alterations; however, such changes are beyond the Company's control and may occur without notice. The Company reserves the right to suspend or cease supporting the transfer, storage, or trading of any digital assets at its discretion in response to material operating alterations.

5.4.  The Company disclaims any responsibility for the operation of digital assets or their underlying technology and does not provide assurances regarding the functionality or security of any digital assets or their underlying technology. Users acknowledge and assume the risk associated with any changes or security breaches in the underlying technology of digital assets stored in their wallet.

5.5.  Your account(s) may be accessed or utilized by unauthorized third parties, allowing them to carry out transactions without your awareness or permission. This could happen through means such as acquiring your account(s) password, taking control of another device or account associated with enhanced security measures for your account(s), or utilizing alternative methods. The Company bears no responsibility for any losses resulting from such unauthorized access.

5.6.  If any digital assets are sent to an incorrect address (due to formatting errors, inaccuracies, or being intended for a different type of digital assets), it may be irretrievably lost. You acknowledge and agree that (a) you use the correct address for any deposit, withdrawal, or transfer, and that the address you use is a valid address for the digital assets that you intend to transfer; (b) the Company does not assure the recovery of digital assets sent to incorrect addresses; (c) the Company is not obliged to aid in any digital assets recovery efforts; and (d) any assistance provided by the company for digital assets recovery is at its sole and absolute discretion and considered on a case-by-case basis. Additional fees and recovery charges may apply to our attempts to recover digital assets on your behalf.


Last updated: February 2024