Digital currency is a new technology that often works differently to your prior experience. It therefore entails various risks that you should understand. We have highlighted some of these risks below:
- Digital currency transactions sent from your MX Global wallet are irreversible. If you send digital currency to an incorrect address, or send the wrong amount, you cannot get them back. MX Global cannot be held liable for executing a transaction if the instruction relates to an incorrect address.
- Before buying or selling digital currency, educate yourself about it. Buying and selling digital currency entails risks and could result in a complete loss of your funds. Please ensure that you fully understand the risks involved.
- Digital currency is not backed by any entity. Neither MX Global nor anyone else has an obligation to buy back your digital currency in the future.
- Additionally it is very important to note the following risks:
- Digital currency is not legal tender and it is not backed by the government. Accounts and value balances are not subject to any Government backed deposit insurance or any other Government protections;
- Legislative and regulatory changes or actions at the state or international level may adversely affect the use, transfer, exchange, and value of digital currencies;
- Transactions in digital currency are generally irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;
- Digital currency transactions shall be deemed to be made when recorded on a “block chain” ledger, which is not necessarily the date or time that you initiate the transaction;
- Digital currency is derived from the continued willingness of market participants to exchange fiat currency for digital currency, which may result in the potential for permanent and total loss of value, should the market for digital currency disappear;
- There is no assurance that a person who accepts a digital currency as payment today will continue to do so in the future;
- The volatility and unpredictability of the price of digital currency relative to fiat currency may result in significant loss or tax liability over a short period of time;
- The nature of digital currency may lead to an increased risk of fraud or cyber attack;
- The nature of digital currency means that any technological difficulties experienced by a service provider may prevent the access or use of your digital currency.
- The abovementioned is not a closed list, there may be additional risks that we have not foreseen or identified here.