This Risk Disclosure Statement governs the general risks associated with holding or trading digital assets as well as the risks associated with
MV Capital (referred to as the "Service", "We" or "Us") digital products (referred to as the "Algorithm"). This Risk Disclosure Statement is incorporated by reference into the
MV Capital's Terms and Conditions (referred to as the "Agreement"). The disclosures below do not disclose or explain all the risks involved or how such risks relate to your personal circumstances; there may be additional risks that are not foreseen or identified. The primary aim of this document is to outline and explain the risks to You as an investor.
IMPORTANT: BY INVESTING IN ANY OF THE ALGORITHMS, ACCOUNTS, AND/OR STRATEGIES DESCRIBED AND AVAILABLE ON THE SERVICE, YOU EXPRESSLY ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, ARE FULLY AWARE OF, AND AGREE WITH THE RISKS OUTLINED IN OUR RISK DISCLOSURE STATEMENT, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL, AND WILL NOT HOLD THE SERVICE OR ANY OTHER SERVICE ENTITY RESPONSIBLE FOR LOSSES ARISING FROM SUCH RISKS. THERE IS NO GUARANTEE THAT THE INVESTMENT OBJECTIVES OF ALGORITHMS, ACCOUNTS, AND/OR STRATEGIES WILL BE ACHIEVED, AND RETURNS MAY VARY SIGNIFICANTLY OVER TIME. INVESTMENT IN THE ALGORITHMS, ACCOUNTS, AND/OR STRATEGIES DESCRIBED ON THE WEBSITE IS NOT SUITABLE FOR ALL INVESTORS. IF YOU HAVE ANY DOUBTS OR REQUIRE CLARIFICATION, WE RECOMMEND SEEKING ADVICE FROM FINANCIAL OR LEGAL EXPERTS.
YOU RECOGNIZE THE IMPORTANCE OF CONDUCTING YOUR OWN RESEARCH, STAYING INFORMED, AND CAREFULLY CONSIDERING YOUR INVESTMENT OBJECTIVES, RISK TOLERANCE, FINANCIAL CIRCUMSTANCES, AND APPROACH TO INVESTING WITH CAUTION AND RESPONSIBILITY.
- Investment Risk: The trading of digital assets involves significant risk. Although You are not directly trading in any Digital Asset, You are exposed to the same investment risks as if You were. Prices for Digital Assets are subject to volatility and can fluctuate on any given day. Due to such price fluctuations, You may increase or lose value in Digital Assets that We hold as part of your investment at any given moment. Past performance is not indicative of future results.
- Algorithmic Trading Risk: The Service rely on algorithmic trading models. While these models are designed to perform in a variety of market conditions, there can be no assurance that they will perform as expected. Models may fail to predict market movements accurately, leading to investment losses.
- Liquidity Risk: Even though the Service deploys advanced state-of-the-art countermeasures, investments made by the Service may be subject to liquidity risk, which means that there may not be a ready market to sell an investment when desired, potentially leading to losses.
- Technology Risk: The Service is dependent on the uninterrupted operation of the computer systems used to execute trades. In the event of a system failure, the Service may suffer substantial trading losses.
- Market Risk: The value of the investments managed by the Service may be adversely affected by changes in market conditions, such as economic, political, or other factors, which can lead to declines in the overall value of the investments.
- Market Volatility: Digital assets are a new technological innovation with a limited history and are a highly speculative asset class. As such, they have in the past experienced, and are likely in the future to continue experiencing, high volatility, including periods of extreme volatility. The volatility and unpredictability of the price of digital assets relative to fiat currency may result in significant losses over a short period of time.
- Regulatory Risk: Changes in laws, regulations, or government policies may affect the operations, investments, or performance of the Service. The Service cannot predict the impact of such changes, which may be adverse. Compliance with regulatory requirements may involve additional costs or restrictions on investment activities.
- Operational Risk: The Service may be subject to operational risks, such as human error, system failures, or other disruptions, which could negatively affect the Service performance.
- Security Risk: It is not possible for the Service to eliminate all security risks. You are responsible for keeping your Service Account password safe, and you may be responsible for all transactions under your Service Account, whether you authorized them or not. Transactions in Digital Assets may be irreversible, and losses due to fraudulent or unauthorized transactions may not be recoverable.
- Concentration Risk: Certain products of the Service may concentrate investments in a single asset and/or employ a singular trading strategy, increasing the risk of loss if that particular asset performs poorly.
- Communication Risks: When You communicate with Us via electronic communication, You should be aware that electronic communications can fail, be delayed, may not be secure, and/or may not reach the intended destination.
- Insurance Risks: Digital Assets in Your Account may not be considered "deposits", as that term may be used under the applicable laws, rules, or regulations in Your jurisdiction. In particular, Digital Assets in Your custody accounts are not subject to deposit insurance protection.
- Ownership Risk: You will not have any legal title, rights of ownership, or beneficial interest in any of the Digital Assets held as part of Your investment. You will only be entitled to any proceeds from the sale of these Investments at Your direction. At no time will you be able to transfer any of the Digital Assets, except the base currency, to any person, including moving the Digital Assets off the platform into Your own wallet.
- Credit Risk: If the Service becomes insolvent, then because You do not have any legal rights to the Digital Assets You invested in, You will be an unsecured creditor in relation to Your contributions, and You may not be repaid in full or at all.
- Tax Risk: The tax treatment of the Service, its investments, and its investors may be subject to change. Investors should consult their tax advisors regarding the tax consequences of investing in the Service.
- Counterparty Risk: The Service may engage in transactions with counterparties, such as exchanges or custodians, which may be subject to default, insolvency, or bankruptcy, potentially leading to losses.
- Backtesting Risks: Backtesting, a common practice in developing quantitative models, may not accurately predict future performance. Deviations between historical and actual results could impact the Service's performance.
- Investor Understanding Risk: Investors are urged to acquire a comprehensive understanding of the cryptocurrency market, blockchain technology, and the specific investment strategies employed by the Service. Lack of understanding may result in suboptimal investment decisions.
- Stablecoin De-peg Risk: A stablecoin, also recognized as a pegged cryptocurrency, is a form of digital currency whose value is linked to an underlying asset, usually fiat (government-backed currency) like the US dollar or gold. The term "Depeg risk" refers to the potential for stablecoins to fail to maintain their peg and fluctuate in value beyond a minute percentage on the open market. As the Service's base currency is Tether USDt (USDT), this risk is associated with potential losses. To learn more about how we handle this particular risk, please check our Terms and Conditions and/or Security page.
- Custodial Risk: Risks associated with the safekeeping of Digital Assets, particularly when held in wallets or on exchanges, include the potential for loss due to hacking, theft, or operational errors. The security of digital wallets used to store digital assets is critical. Loss of private keys, wallet credentials, or exposure to security vulnerabilities can result in the permanent loss of digital assets. If this is the case, You understand that the Service will be liable to repay Your Investments to You in accordance with the Service Terms and Conditions, but any repayment will be subject to the counterparty risk and credit risk detailed above.
- Blockchain/digital asset Risk: The Service has no control over the blockchains and markets in which Digital Assets are purchased and traded, and they may be subject to technology flaws, manipulations, hacks, double spending, "51%" attacks, other attacks, and operational limitations. Transactions in Digital Assets may be irreversible, and accordingly, losses due to fraudulent or accidental transactions may not be recoverable.
- Legal Status and Government Protection: In most jurisdictions, Digital Assets are not recognized as legal tender, and investments in these assets are not protected by any government schemes or insurance policies. This means that losses due to market volatility, fraud, technological failures, or regulatory changes are not covered by any state guarantees or compensation programs. The legal status of Digital Assets varies between jurisdictions and may change over time. Users may need to comply with changing regulatory requirements, including know-your-customer (KYC) and anti-money laundering (AML) protocols.
- Accuracy of Information: While the Service endeavors to keep the information displayed on the Services as accurate as possible, there is a risk that it may not be correct, complete, or updated.
Changes to Our Risk Disclosure Statement and Risk Exposure Practices
- Posting of Revised Risk Disclosure Statement: We will post any adjustments to the Risk Disclosure Statement on this web page and update the "Revision Date" at the bottom of this document. If you are concerned about Service exposure to risk, then bookmark this page and periodically review this Risk Disclosure Statement. Your continued use of the Service after changes to the Risk Disclosure Statement constitutes Your acceptance of the new terms of the Risk Disclosure Statement.
- New Exposure: From time to time, We may develop Products that expose Us to new risks not previously disclosed in our Risk Disclosure Statement. If our practices and/or exposure to risk change in a way that would significantly deviate from the risks defined in this Risk Disclosure Statement, then We will make reasonable efforts to provide notice and obtain consent for any such exposure.
Languages and Order of Precedence
This Risk Disclosure Statement may be published in different languages, both as human and machine translations. However, in the event of any discrepancy, this English version shall prevail.
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