Last Updated: 20 February 2025

Introduction

This Risk Disclosure serves as an important notice for investors, highlighting the potential risks associated with digital asset investments. Its primary purpose is to help investors evaluate their own risk tolerance before engaging in such financial activities.

Before participating in transactions involving highly leveraged futures contracts, investors are strongly advised to seek legal counsel or consult independent financial professionals to ensure they fully understand the associated risks.

Understanding the Risks of NEIVE Services

As part of our commitment to regulatory compliance and user protection, this Risk Warning outlines key risks associated with using NEIVE Services. However, it is important to note that each NEIVE Service comes with its own specific risks, and this document provides only a general overview.

While we strive to inform users about these risks, this document does not cover every possible risk scenario or how these risks may apply to individual circumstances. Before engaging with NEIVE Services, it is crucial that you conduct thorough research and read the specific terms applicable to the services you wish to use. By using NEIVE Services and participating in transactions, you acknowledge and accept all associated risks.

No Financial Advice Provided

NEIVE does not offer personalized investment advice. While we may provide factual information about transactions, procedures, and potential risks, we do not offer recommendations or strategic guidance. Any decision to use NEIVE Services is solely yours to make.

No communication from NEIVE should be interpreted as investment, financial, or trading advice. You are fully responsible for evaluating whether a particular investment, strategy, or transaction aligns with your financial situation, objectives, and risk tolerance.

No Fiduciary Relationship with NEIVE

NEIVE does not act as a broker, intermediary, agent, or financial advisor. We have no fiduciary obligation to you, meaning we do not oversee or manage your trading activities. NEIVE does not monitor whether your financial goals align with your usage of our services.

It is your responsibility to assess the appropriateness of your activities within NEIVE Services based on your financial position and risk appetite.

Taxation Responsibilities

When engaging in transactions through NEIVE Services, you bear full responsibility for determining your tax obligations. It is up to you to identify applicable taxes, understand how they affect you, and ensure timely reporting and payment. NEIVE does not provide tax or legal advice.

Furthermore, NEIVE may be required by law to report your transaction details to tax or other government authorities. In some instances, NEIVE may be required to withhold taxes on your behalf. You may also be requested to submit additional tax-related documentation. Failure to comply with such requests could result in NEIVE withholding taxes as mandated by law. We strongly encourage you to consult a tax professional to ensure compliance with all applicable regulations.

Volatility and Market Risks

Investing in digital assets carries substantial risks. The value of your investments can fluctuate unpredictably, and there is a possibility that you may lose all or a significant portion of your investment. If you are new to digital assets, consider investing only a small amount and never invest more than you can afford to lose. Conduct your own research to fully understand the potential risks.

Speculative Nature of Digital Asset Trading

Trading digital assets is inherently speculative, with market prices being highly volatile and difficult to predict. Supply and demand for these assets can shift suddenly due to a variety of factors, including regulatory changes, economic conditions, and developments within the digital asset ecosystem. Consequently, all investments in digital assets involve the risk of financial loss.

Past Performance Is Not an Indicator of Future Results

Historical performance of digital assets or trading strategies does not guarantee future success. NEIVE does not provide any assurances regarding the potential performance or market value of digital assets or related products available on our platform.

Systemic and Systematic Risks

The digital asset industry is exposed to both systemic and systematic risks.

•  Systemic risk refers to the potential for a failure within a company or sector to trigger widespread financial instability.

•  Systematic risk involves broader market risks that stem from economic, political, technological, or environmental changes.

Both types of risk can significantly impact digital asset prices, and investors should be aware that such risks are largely unpredictable.

Technological and Industry Evolution Risks

Blockchain technology is still in its early stages and continues to evolve. The long-term growth and stability of digital assets depend on various unpredictable factors, including regulatory developments, technological advancements, and market adoption.

Similarly, the viability of digital asset networks may be influenced by unforeseen technical or economic challenges. These factors can have a direct impact on the value of digital assets.

Market Perception and Reputation Risks

The public perception of digital assets plays a crucial role in their valuation. Negative press, regulatory crackdowns, security breaches, or financial scandals within the industry can cause market confidence to decline, leading to increased volatility or a substantial drop in asset value.

Counterparty and Operational Risks

When using NEIVE Services, you may be exposed to risks related to counterparties involved in transactions. These risks may include, but are not limited to:

•   Market makers or liquidity providers facing difficulties, potentially resulting in price slippage or unexecuted trades.

•   Payment processor issues that may cause delays in deposits or withdrawals.

•   Borrowers defaulting on loan repayments, affecting your ability to redeem funds from certain financial products.

In some exceptional circumstances, these risks could result in unforeseen consequences, such as:

•   Incomplete or failed transactions.

•   Irrecoverable trading costs.

•   Loss of expected profits.

•   Inability to buy or sell assets at desired prices or times.

Market and Liquidity Risks

Digital Asset prices on the secondary market are determined by supply and demand dynamics, making them highly volatile. Digital Assets may have limited liquidity, which can make it difficult or impossible for you to exit a position when desired. This risk is particularly pronounced during periods of rapid price movements.

While NEIVE aims to maintain a seamless user experience, service availability cannot be guaranteed at all times. Unplanned service outages, network congestion, or maintenance may prevent users from buying, selling, transferring, sending, or receiving Digital Assets at critical moments.

Digital Asset markets operate 24 hours a day, 7 days a week. Sudden price fluctuations can occur at any time, including outside of traditional business hours, which may affect trading strategies and asset values.

Regulatory and Jurisdictional Risks

Various legal requirements in different countries may restrict NEIVE’s ability to offer certain products or services. Some functionalities within the NEIVE platform, such as fiat services, may not be available in certain jurisdictions or for certain users.

Users are responsible for understanding and complying with the legal and regulatory restrictions applicable to their jurisdiction. NEIVE reserves the right to modify or impose additional access restrictions at its sole discretion without prior notice.

Legislative and regulatory changes may materially affect the use, transfer, exchange, and value of Digital Assets. Such changes can occur quickly and without warning, potentially impacting the availability of NEIVE Services in certain jurisdictions.

In some jurisdictions, Digital Assets may not be classified as "property" under applicable laws. This classification could affect the enforceability of your rights and interests in Digital Assets.

Third-Party Service Risks

Third-party providers, including payment processors, custodians, and banking partners, may be involved in NEIVE Services. Users may be subject to the terms and conditions of these third parties, and NEIVE is not responsible for any loss arising from their services unless explicitly stated otherwise.

External service providers may experience operational failures, cyberattacks, or insolvency, potentially affecting your ability to deposit, withdraw, or transact in Digital Assets. NEIVE does not guarantee the availability or reliability of third-party services.

Security and Cyberattack Risks

The nature of Digital Assets exposes them to an increased risk of cyberattacks. While NEIVE implements robust security measures, no exchange can completely eliminate cybersecurity threats. There is no absolute guarantee that security protocols will always prevent unauthorized access to the platform or user funds.

Users are responsible for securing their NEIVE account credentials. Any transactions conducted under your NEIVE account, whether authorized or not, are your sole responsibility. Given the irreversible nature of Digital Asset transactions, losses from unauthorized access or fraud may not be recoverable.

Technological Risks and Blockchain Vulnerabilities

Digital Assets and their underlying blockchain networks are subject to various technological risks, including:

•   Software faults, defects, or unforeseen bugs that impact blockchain functionality.

•   Irreversibility of Digital Asset transactions, meaning losses due to errors or fraud may be permanent.

•   Potential obsolescence of certain Digital Assets due to technological advancements or loss of community support.

•   Delays or failures in transaction confirmations due to network congestion or technical disruptions.

•   Potential 51% attacks, where a malicious actor gains majority control over a blockchain's computing power, potentially leading to double-spending or network manipulation.

•   Hard forks that result in parallel blockchain networks, affecting asset value and adoption. g. The concentration of assets in a few blockchain addresses, which, if liquidated, could cause severe market volatility.

Communication and Operational Risks

Electronic communication with NEIVE may be subject to failure, delay, security risks, or misdelivery. NEIVE is not responsible for communication failures that result in losses or transaction delays.

Currency and Exchange Rate Risks

Fluctuations in currency exchange rates may impact the value of Digital Assets and the returns on transactions, particularly when converting between fiat currencies and Digital Assets.

Collateral and Loan-Related Risks

When participating in NEIVE's Digital Assets Loan Services, you may be required to provide Collateral to support your obligations. If market conditions move unfavorably or if NEIVE changes the Collateral Requirements, you may be asked to provide additional Collateral, which could be substantial during adverse market conditions.

NEIVE may use your Collateral in Flexible Rate Loans to subscribe to Flexible Simple Earn Offers on your behalf. Your Collateral will be treated in accordance with Digital Assets Loan Service Terms and Simple Earn Terms. Users should refer to the Risk Disclosure Statement for further details on risks associated with subscribing to Virtual Assets via Simple Earn Offers.

The risk of loss in financing transactions through Collateral is significant. Users may experience losses exceeding the amount of Collateral held with NEIVE, and in extreme scenarios, they may lose their entire initial and additional Collateral.

Minor price movements in Digital Asset markets can have a magnified impact on loan positions, resulting in substantial gains or losses. In some cases, losses may exceed the amount of deposited Collateral, leading to additional liabilities.

If a user fails to meet Collateral requirements within the prescribed timeframe, NEIVE may liquidate their Collateral and/or terminate the Loan or Digital Assets Loan Services without consent. Any shortfall after liquidation remains the user's responsibility.

Users must carefully assess their financial position and risk tolerance before participating in NEIVE’s Digital Assets Loan Services. Seeking independent financial advice is recommended for those unfamiliar with loan structures and collateralized lending.

Conclusion

Digital Asset investments and NEIVE Services involve significant financial and technological risks. Users should carefully evaluate their investment strategies and risk tolerance before engaging in Digital Asset transactions.

NEIVE does not provide investment, financial, or legal advice, and users are solely responsible for their decisions.

Before proceeding with any transaction, we strongly recommend conducting thorough research, seeking professional advice, and ensuring that you are fully aware of all associated risks.

By using NEIVE Services, you acknowledge and accept all risks outlined in this disclosure and agree to use NEIVE Services at your own risk.

NEIVE team