1. Price volatility
Digital asset prices can move rapidly and without warning. Values may fall sharply and may not recover. Past performance is not indicative of future results.
2. Liquidity risk
Markets may be thin or may gap in stressed conditions. Orders may execute at materially different prices than expected, or may not execute at all.
3. Custody and operational risk
Holding digital assets depends on key management, operational procedures, and the security of supporting infrastructure. Errors, failures, or compromises may result in loss.
4. Cybersecurity risk
Platforms, devices, and individual accounts are targets for attack. Phishing, credential compromise, and software vulnerabilities can affect access to assets.
5. Counterparty risk
Where services involve third parties, the solvency, controls, and conduct of those parties may affect the availability or value of assets.
6. Legal and regulatory risk
Rules applicable to digital assets are evolving and may differ by jurisdiction. Changes in law, licensing requirements, or enforcement posture may affect access to services.