This Risk Warning forms an integral part of the Terms of Use. Read it before opening an Account, depositing assets or placing an order. Trading in Virtual Assets involves substantial risk, including the loss of the entire amount deposited. Do not commit funds that you cannot afford to lose. Nothing on the Platform is investment, legal or tax advice.
1. No deposit protection
1.1. Virtual Assets held on the Platform are not bank deposits and are not covered by any deposit guarantee or insurance scheme of the Republic of El Salvador or any other jurisdiction.
1.2. The Operator is a digital asset service provider registered with CNAD under entry PSAD-0038. Registration is not an endorsement of any asset or of the Platform by the regulator and does not guarantee the return of your assets.
2. Market and price risk
2.1. Prices of Virtual Assets are highly volatile. A price can move by tens of percent within minutes, including outside conventional trading hours. Past performance does not predict future results.
2.2. Market orders execute at the best available price in the order book at the moment of execution. The estimated execution price displayed in the order ticket includes slippage across the visible order book but is not a guarantee. In thin or fast markets the executed price may differ materially from the displayed estimate.
2.3. Liquidity varies by pair and by time. Some pairs may have wide spreads, shallow order books or periods without counterparties. You may be unable to close a position at the desired price or at all.
2.4. The order book of the Platform is shared with the Operator's technology partner. Orders placed by users of a related venue may be matched against yours. This increases available liquidity but means that price formation is not limited to users of this Platform.
3. Stablecoin risk
3.1. Trading pairs are quoted against USDT and USDC. These assets aim to maintain a value of one US dollar but are issued by third parties and depend on the issuer's reserves, redemption policy and regulatory status. A stablecoin may trade below its target value, lose its peg or become unredeemable. The Operator does not guarantee the value of any quote asset.
4. Derivatives risk (where available)
4.1. Derivatives are offered only after the Operator obtains the required authorisation and only to users who hold Advanced verification, have passed the knowledge test and have accepted the Derivatives risk disclosure.
4.2. Leverage multiplies both gains and losses. At 20x leverage a price move of 5% against your position results in the loss of the entire margin. Losses can occur faster than you are able to react.
4.3. Liquidation. If the margin falls to the maintenance level, your position is closed automatically at the prevailing market price. The liquidation price displayed in the order ticket is an estimate; the actual closing price may be worse. In extreme conditions the loss may exceed the margin allocated to the position.
4.4. Funding payments are exchanged between users holding opposite positions at published intervals and change the cost of holding a position over time.
4.5. The Operator may reduce maximum leverage, restrict new positions or close positions in conditions of extreme volatility, illiquidity or under a compliance decision.
5. Technology and operational risk
5.1. The Platform, the matching engine, the wallet infrastructure and the connectivity depend on software and hardware that may fail, be attacked or be unavailable. Downtime may prevent you from placing, modifying or cancelling orders or from withdrawing assets, including at moments of high volatility.
5.2. Market data may become stale during connection problems. The terminal displays this condition and blocks order submission; you should not rely on a displayed price until the connection is restored.
5.3. Blockchain transactions are irreversible. Sending assets to a wrong address, a wrong network or without a required memo or tag results in permanent loss that the Operator cannot reverse.
5.4. Blockchain networks may suffer congestion, forks, reorganisations or protocol failures. The Operator may suspend deposits and withdrawals of an affected asset and may decide not to support a fork or airdrop.
5.5. Smart-contract based assets carry the risk of bugs or exploits in their code that are outside the Operator's control.
6. Custody risk
6.1. Assets are held in an omnibus custody model. You do not own specific coins at a specific address; you hold a claim against the Operator for delivery of an equivalent amount. Client assets are recorded separately from the Operator's own funds and the majority is held in cold storage, but custody involves the risk of theft, loss of keys, insider misconduct and failure of infrastructure providers.
6.2. If the Operator or an infrastructure provider becomes insolvent, the return of assets may be delayed or reduced. The Operator maintains a Wind-Down Plan for the orderly return of client assets, but the outcome is not guaranteed.
7. Legal and regulatory risk
7.1. Regulation of Virtual Assets changes frequently. New laws, regulatory decisions, sanctions or court rulings may restrict or prohibit certain assets, features or users, may require the Operator to freeze or return assets, or may alter the tax treatment of your transactions.
7.2. The Operator's registration authorises it to operate and offer services in El Salvador. You are responsible for determining whether using the Platform is lawful in your own jurisdiction. Residents of Restricted Jurisdictions are not served.
7.3. The Operator does not support bitcoin. Bitcoin operations fall outside the Operator's registry entry until a separate registration is obtained.
8. Compliance risk
8.1. Every deposit and withdrawal is screened. A transaction linked to high-risk sources may be held for review, refused or reported to authorities. Holds may last until the review is complete, and the Operator may be prohibited by law from explaining the reason.
8.2. Failure to complete identity verification, to update your data or to respond to a compliance request may result in restriction of the Account and freezing of assets.
9. Security risk on your side
9.1. Your Account is only as secure as your email account, your password and your 2FA device. Phishing, SIM swapping, malware and social engineering are the most common causes of loss. The Operator never asks for your password or 2FA codes.
9.2. API keys grant programmatic access to your Account. A compromised key may be used to trade or withdraw. Apply IP restrictions, least privilege and key rotation.
10. Third-party and counterparty risk
10.1. The Operator relies on third parties for identity verification, blockchain analytics, infrastructure and liquidity. Failure, error or insolvency of a provider may affect the availability of the Platform or the processing of your transactions.
11. Tax risk
11.1. Transactions in Virtual Assets may be taxable in your jurisdiction. The Operator does not provide tax advice and does not calculate your tax liability. Obtain independent advice.
12. Suitability
12.1. Trading in Virtual Assets is not suitable for everyone. Before trading consider your financial situation, experience and risk tolerance. The knowledge test required for Derivatives is a minimum gate, not a confirmation that the product is suitable for you.
By using the Platform you confirm that you have read and understood this Risk Warning and accept the risks described.
Boulder Tech, S.A.S. de C.V.