Risk Disclosure

The value of crypto-assets available on KuCoin EU platform is influenced by global economic conditions, regulatory changes, and market sentiment, resulting in significant price fluctuations and periods of extreme volatility. As such, the value of these assets can rapidly decrease and potentially fall to zero. Investments in crypto-assets are only suitable for users who can accept the full risk of losing their entire invested capital and should not be entered into with the expectation of steady or guaranteed returns. Past performance is not indicative of future results, and users must carefully consider their risk tolerance before engaging in such transactions.

  

The availability of any crypto-asset or service on KuCoin EU platform does not represent a recommendation or endorsement to engage in any specific transaction, nor does it guarantee that a product is suitable or appropriate for your individual circumstances. Many of these products involve significant risks, and you should only proceed after fully understanding these risks and independently determining whether the product fits your needs. None of the information provided should be interpreted as financial, investment, trading, legal, regulatory, tax, or accounting advice. Additionally, investments in crypto-assets are generally not protected by financial compensation schemes because they are typically not classified as "specified investments" under applicable regulatory frameworks. This means such investments lack the guarantees or protections that these compensation schemes usually provide.

  

KuCoin EU platform’s underlying technology, including software applications, smart contract platforms, and related IT systems, is complex and continuously evolving, operating beyond the direct control of KuCoin EU. These systems carry inherent risks such as technical failures, security vulnerabilities, and operational errors, which may lead to temporary service disruptions or affect data accuracy and availability. Encryption methods designed to protect data might fail, increasing exposure to cyber threats, while external attacks can compromise system confidentiality and integrity. Human errors in system operation or input can also impact performance and may be difficult to detect. Furthermore, the decentralized nature of blockchain and distributed ledger technologies introduces additional unpredictability and risks outside KuCoin EU’s influence. Although standard security certificates from trusted third parties are used, they cannot guarantee complete protection. Users are encouraged to regularly update their apps, browsers, and devices to help mitigate potential vulnerabilities.

    

The software and platforms supporting crypto-assets, including smart contract systems and related technologies, may be vulnerable to cyberattacks or physical security breaches. Such incidents could lead to permanent theft or loss of crypto-assets, as well as unauthorized access to or loss of sensitive personal information.

  

SMS and email are vulnerable to phishing attempts. Always verify suspicious messages by logging into your account directly before acting. Phishing can also occur via fake ads or links. Enabling 2FA improves security but cannot fully protect if your credentials or codes are compromised. Use strong passwords and robust 2FA methods, like authenticator apps or hardware tokens, and stay vigilant.

  

Strong account security measures, including the use of two-factor authentication (2FA), are highly recommended to protect your account and crypto-assets. However, the protective effect of 2FA can be compromised if both authentication factors are accessible through the same device or credentials. Without 2FA, anyone who knows your password and email could potentially gain access to your account and conduct transactions on your behalf. Password strength plays a critical role in security, weak passwords, especially those containing personal information or common words, are more vulnerable to attacks. It is essential to use a unique, complex password that is not reused across other services and to enable 2FA where possible. Although password strength indicators may provide general guidance, they cannot guarantee protection against all attacks. No security measure can offer absolute safety, so ongoing vigilance is necessary.

  

Blockchain networks face risks from various mining and network attacks that can disrupt transaction validation and network operations. Attackers may use multiple fake identities to manipulate the network, flood it with excessive traffic to cause downtime, or hijack computing resources for unauthorized mining. Such attacks can undermine transaction integrity, delay confirmations, and cause financial losses for users.

  

Transaction processing on the blockchain depends on nodes to detect and record deposits and withdrawals. Occasionally, a node might miss a transaction, which could delay or prevent updating balances. Supported crypto-assets may be discontinued or experience changes in function due to market interest, funding, or competition beyond the platform’s control. Additionally, blockchain protocols may undergo changes, such as forks, that can alter the asset’s value, function, or identity, creating added uncertainty.

  

KuCoin EU platform is not responsible for crypto-assets that claim to be backed or secured by other assets, such as stablecoins. Responsibility for such collateralized assets lies solely with their issuers, and KuCoin EU platform has no control over their actions.

  

Regulatory and legal frameworks governing crypto-assets are continuously evolving across different jurisdictions, including within the European Union. While KuCoin EU is dedicated to ensuring that its platform and services remain compliant with all applicable laws and regulations, changes in statutory or regulatory requirements may materially impact the platform’s operations or the availability and liquidity of certain crypto-assets. Consequently, some services may be limited, modified, or discontinued due to such regulatory developments, and KuCoin EU cannot guarantee uninterrupted access to all offerings under changing legal environments. Certain products available on our platform may fall outside the scope of MiCAR regulation.

  

Liquidity risk refers to the possibility that certain crypto-assets may not be easily tradable without causing significant price fluctuations. This risk arises from variations in market demand and supply, which can change over time, potentially impacting the ability to buy or sell these assets quickly and at stable prices.

  

Purchasing, selling, exchanging, holding, or otherwise disposing of assets available on the KuCoin EU platform may have tax implications for you. Many jurisdictions have already established specific tax requirements for crypto-assets, but further tax laws and updates are expected. KuCoin EU may be required, now or in the future, to withhold taxes on certain transactions and remit these directly to relevant tax authorities, with no possibility of refunding withheld amounts. KuCoin EU will also disclose transactions and holdings information to tax authorities as mandated by law. To ensure compliance, KuCoin EU may collect documentation such as taxpayer identification numbers or certificates verifying your tax status. You should independently assess your tax obligations regarding crypto-assets and consult a qualified tax professional before engaging in any transactions.