Risk Disclaimer

EXOLOTL GmbH is a limited liability company incorporated under the laws of Switzerland and duly registered in the commercial register of the Canton of Zug under the following company registration number: CHE-386.691.497 and having its registered address at Baarerstrasse 12, 6300, Zug, Switzerland.

The Company is a service provider in the field of digital assets, i.e. the exchange and brokerage between fiat money and crypto assets (on- and off-ramp services), supervised by the VQF (Verein zur Qualitätssicherung von Finanzdienstleistungen), a Swiss self-regulatory organization recognized and supervised by the Swiss Financial Market Authority (FINMA).

Crypto assets are highly speculative and therefore entail significant risks, which can result in partial or total loss of capital. Crypto asset prices may face extreme and unexpected movements within short time periods due to market sentiment, liquidity conditions, regulatory changes, technological matters or macroeconomic factors. Prior to engaging in any digital asset transaction, you must carefully consider the following non-exhaustive risks:

Regulatory Risk: regulation related to crypto assets is constantly evolving and these changes may bring a negative impact on digital assets, affecting their value, transferability, tradability, availability, convertibility and volatility. In many states digital assets may also be negatively affected by certain actions at the national or international level, especially when digital assets are subject to uncertain legal framework, which brings the risk of penalties, fines, restrictions, and compliance risks.

Liquidity Risk: Certain Crypto assets may have limited liquidity, shallow order books or restricted market access. Depending on market conditions, you may experience difficulties or be unable to liquidate digital assets positions at a fair price within the desired timeframe. This may happen when no third party is willing to trade the assets, trading is halted or unusual trading activity occurs. It is important to understand that liquidity risk is more distinct in the digital asset market than in traditional financial markets, and it can be extremely challenging for novices.

Market Risk: Digital asset markets are evolving and may be subject to high volatility, lack of transparency and limited reliability. There is also a high risk of manipulation, abusive practices, and information asymmetry, including spoofing, pump-and-dump schemes, wash trading, insider dealing, front-running related to digital asset markets.

Technological Risk: Crypto asset transactions depend on blockchain networks, which may face congestion, forks, upgrades, technical failures or attacks. Crypto asset transactions on a blockchain or distributed ledger are final and cannot be reversed. As a result, if a Crypto asset transfer is initiated to an incorrect wallet address, with a wrong network or with a technical mistake, it may lead to permanent loss of assets. Additionally, in some situations, blockchain transactions might remain unconfirmed for some period or may not be confirmed at all, which means there is a risk of digital assets being captured in a state where transferring them to another wallet becomes impossible. Furthermore, certain exchanges and other parties may not support all blockchain networks, so there is a risk of not being able to retrieve Crypto assets if they are sent via an unsupported network. Losing the private key for accessing an electronic wallet could lead to the permanent loss of digital assets stored in the wallet.

Cybersecurity Risk: Typically, Crypto assets are stored in an electronic wallet, which comes with a public key and a private key or password. Nevertheless, these wallets are still susceptible to hacking, so there is a risk of crypto assets being stolen with slight possibility of recovery. Crypto assets may be subject to hacking, phishing, malware or other cybersecurity threats, which are affecting service providers, its clients, or market infrastructure.

Neither EXOLOTL GmbH itself nor its type of business activity have been directly licensed by the Swiss Financial Market Authority. Clients’ assets are not covered by the Swiss depositor protection scheme in the event of bankruptcy proceedings.