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Risk Warning
Last updated May 16th 2023

Please read the following risk warnings carefully before using the MULTIBANQ Service.

This document provides you with information about the risks associated with using trading in 
cryptocurrencies and with using the MULTIBANQ Service, which allows you to buy or sell interests in 
cryptocurrency via our partner cryptocurrency exchange(s) (each a “Cryptocurrency Exchange”).


The trading of goods and products, real or virtual, as well as virtual currencies involves 
significant risk. Prices can and do fluctuate on any given day. Due to such price fluctuations, you 
may increase or lose value in your assets at any given moment. Any currency - virtual or not - may 
be subject to large swings in value and may even become worthless. There is an inherent risk that 
losses will occur as a result of buying, selling or trading anything on a market. If you are in any 
doubt about whether the Cryptocurrency Service is right for you, you may wish to seek guidance from 
a professional adviser.


You should carefully assess whether your financial situation and tolerance for risk is suitable for 
any form of exposure to cryptocurrencies. You should never invest in cryptocurrencies unless you 
can afford to lose 100% of your investment.

Trading in Cryptocurrencies is unregulated
Trading cryptocurrencies such as Bitcoin has special risks not generally shared with official 
currencies or goods or commodities in a market. Unlike most currencies, which are backed by 
governments or other legal entities, or by commodities such as gold or silver, cryptocurrencies are 
a unique kind of Internet digital currency, backed by technology and trust. There is no central 
bank that can take corrective measure to protect the value of any cryptocurrency in a crisis or issue more currency.


Instead, cryptocurrencies are an as-yet autonomous and largely unregulated global system of 
currency firms and individuals. Traders put their trust in a digital, decentralized, and partially 
anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity. 
As such, cryptocurrencies are not governed by any specific Panamanian or other regulatory 
framework. This means that, when you use the Multibanq Service to purchase cryptocurrencies, you will not 
benefit from the protections available to customers receiving
e-money/payment services provided by our third-party service providers.


We use our banking providers in order to receive client moneys and making payments. Our banking 
providers DO NOT transfer cryptocurrencies, exchange cryptocurrencies, or provide any services in 
connection with cryptocurrencies.

The value of Cryptocurrencies is highly volatile
The trading of cryptocurrencies is often susceptible to irrational bubbles or loss of confidence, 
which could collapse demand relative to supply. For example, confidence might collapse in 
cryptocurrencies because of unexpected changes imposed by software developers or others, a 
government crackdown, the creation of superior competing alternative currencies, or a deflationary 
or inflationary spiral. Confidence might also collapse because of technical problems: if the 
anonymity of the system is compromised, if money is lost or stolen, or if hackers or governments 
are able to prevent any transactions from settling.


There may be additional risks that we have not foreseen or identified in our “Terms of Use”.


You should carefully assess whether your financial situation and tolerance for risk is suitable for 
buying, selling or trading cryptocurrencies. You should never trade in cryptocurrencies unless you 
can afford to lose 100% of your investment.


There may be additional risks that we have not foreseen or identified in our “Terms of Use”. You 
should carefully assess whether your financial situation and tolerance for risk are suitable for 
buying, selling, or trading cryptocurrencies.


Cryptocurrency exchanges are vulnerable to cyber attacks
Cryptocurrency exchanges are entirely digital and, as with any virtual system, are at risk from 
hackers, malware and operational glitches. Even though Cryptocurrency Exchanges take various steps 
to preserve the security of their platforms, cryptocurrency which is held in wallets provided by 
such exchanges remain vulnerable to hacking.

If a thief gains access to one or more Supported Cryptocurrencies (i.e. by stealing the private 
encryption key to the Cryptocurrency Exchange wallets), he/she could transfer the stolen assets to 
another account. This is particularly problematic since all cryptocurrency transactions are 
permanent and irreversible.


Accordingly, a hack is likely to lead to substantial depletion of the Supported Cryptocurrency held 
on your behalf (see below). Whilst the Cryptocurrency Exchange may be willing to compensate users 
for any such loss, they are not obliged to do so. A serious hack could also have the effect of 
putting a Cryptocurrency Exchange into insolvency.

The supported cryptocurrencies are held in non- custodial wallets by a third party.
When you use the MULTIBANQ Service to buy interests in one or more of the Supported 
Cryptocurrencies, they will be held on your behalf by a third party (usually the Exchange) who will 
act as custodian (the “Custodian”). Records will be held by the Cryptocurrency Exchange and us to 
show that the Supported Cryptocurrencies are held on your behalf and do not belong to any third 

The Cryptocurrency Exchange may terminate their service at any time
To provide the MULTIBANQ Service to you, we partner with one or more Cryptocurrency Exchanges to 
(a) facilitate the buying and selling of interests in Supported Cryptocurrencies; and (b) in some 
cases, hold the Supported Cryptocurrencies as Custodian.

Given the various risks attaching to cryptocurrency exchanges (including the uncertain legal 
environment), it is possible that a Cryptocurrency Exchange could suspend or terminate its 
relationship with us and may not tell us why. In these circumstances, we may have to suspend the 
MULTIBANQ Service ourselves but we will try to transfer the underlying Supported Cryptocurrency to 
another Cryptocurrency Exchange as soon as possible.


The legal status of cryptocurrency is uncertain and evolving
Given that the market for cryptocurrencies is relatively new, the legal nature of cryptocurrency 
is, in most jurisdictions, yet to be determined by statute, regulation or case law. In the absence 
of such authority, it is not clear how a regulator or court may treat interests or rights arising 
cryptocurrency trading. In particular, the law applicable to firms who hold cryptocurrencies in 
custody (particularly in the event of such firms’ insolvency) is far from clear.

It is possible that a national or supranational regulator may take unilateral action to legislate 
the cryptocurrency market in a manner which prevents or encumbers the proper operation of the 
market in your jurisdiction. This may impact whether we can offer the Cryptocurrency Service to you


The functioning of the cryptocurrency network is outside our control
Since the Blockchain is an independent public peer-to peer network and is not subject to regulation 
or control by any governmental or other authority or firm, we are not responsible for any failure, 
mistake, error and/or breach which shall occur on the Blockchain or on any other networks in which 
the Supported Cryptocurrencies are being issued and/or traded.


We do not own or control the underlying software protocols which govern the operation of the 
Supported Cryptocurrencies. In general, the underlying protocols are open source and anyone can 
use, copy, modify, and distribute them.


The underlying protocols of the Supported Cryptocurrencies are subject to sudden changes in 
operating rules (‘forks’), and such forks may materially affect the value, function, and/or even 
the name of the Supported Cryptocurrency.


Changes and additions to this Risk Warning
Please check back often to review this Risk Warning as we may amend it from time to time. If you 
have any questions regarding this Risk Statement, via the contact form on The Contact
Us” page of our website.


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