Digital asset risk disclosure

Important notice

Whilst Zodia Custody is committed to providing secure digital asset custody services, crypto assets face distinct risks. The disclosures below do not disclose or explain all the risks involved and there may be additional risks that are not foreseen or identified. You acknowledge and accept these risks and will not hold Zodia Custody or its subsidiaries  responsible for losses arising from such risks. Please understand these risks fully before buying, selling, or holding crypto assets.

Risks include but are not limited to:

• Blockchain & digital asset risks
  • Blockchains and markets in which digital assets are purchased and traded may be subject to technology flaws, manipulations, hacks, double spending, “51%” attacks, other attacks, and operational limitations.
  • Advancements in cryptography could render current cryptography algorithms utilised by a Blockchain supporting a specific digital asset inoperative.
  • the functionality of any blockchain’s decentralised governance, could, among other things, lead to delays, conflicts of interest, or operational decisions that may impact you or your digital assets.
  • Dependent on the network’s consensus mechanism and any changes thereto, digital asset transactions are generally irreversible and errors may not be recoverable/rectified.
  • Some digital asset transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that transaction was initiated.
  • Zodia Custody does not monitor digital assets for actions taken by the issuer of such digital asset, which may include an issuer instruction requiring the transfer of a digital asset to a certain location.
• Regulatory risks
  • Changing legal and regulatory classification of crypto assets or crypto asset services at the international or local level may affect the use, transfer, exchange, operability and/or value of digital assets.
• Market volatility
  • Prices of digital assets can be highly volatile and may be illiquid, potentially leading to significant financial gains or losses.
  • This also includes stablecoins whose value may fluctuate, including below the price at which they are designed to track.
  • Digital assets are not subject to deposit protection.
• Counterparty and/or concentration risks
  • Crypto asset service providers may be unregulated and subject to bankruptcies, disruptions, cyber attacks etc.
• Technical risks
  • Including private key storage risks, protocol flaws, hacking risks, denial of service attacks, network fees, fork and technical changes which could impact the value or availability of assets.
• Zodia Custody provides no tax advice or investment recommendations. You are responsible for evaluating investment risks independently.
• Nothing on Zodia’s website should be construed as an offer to sell, a solicitation of an offer to buy or a recommendation for any digital asset or digital asset service by Zodia Custody.
• Zodia Custody may have actual or perceived conflicts of interest in the provision of service to clients.

We encourage all clients to carefully consider these risks, and others, before engaging in digital asset transactions or custody services.