Risk Disclosure

Monetica Srl, with registered office in Viale Pasteur n. 49, 00144 Rome, registered in the business register of Rome under no. RM – 1642333, VAT/CF number: 16220311001 provides you with this Risk Disclosure in order to help you understand the risks that our products and services pose.

In particular, Monetica is a provider of services connected to the use of virtual currency as defined in art. 1, co. 2, lit. ff) of Legislative Decree 231/2007, as amended by Legislative Decree 125/2019, or any natural or legal person who provides third parties, on a professional basis, including online, services functional to the use, exchange, storage of virtual currency and their conversion from or into currencies having legal tender or in representations valuable digital currencies, including those convertible into other virtual currencies as well as the issue, offer, transfer and clearing services and any other service functional to the acquisition, negotiation or intermediation in the exchange of the same currencies.

It is important to keep in mind that cryptocurrencies are high-risk speculative products, and it is crucial that you understand the risks involved before starting to trade.

For this reason, we recommend that you seek the advice of an independent financial advisor before deciding whether to start trading.

Below we indicate, by way of example and not exhaustively, the main risks associated with the use of virtual currencies:

  1. Lack of information: in the absence of disclosure obligations, it can be difficult to find reliable indications to understand the functioning, costs, value and risks of each type of virtual currency;
  2. Absence of legal and contractual safeguards: the purchase, exchange and use of virtual currencies are not assisted by legal and/or contractual safeguards similar to those accompanying transactions in legal tender currency; virtual currency transactions are almost always technically irreversible;
  3. Absence of forms of control and supervision: the issue and management of virtual currencies, including the conversion into legal tender currency, are activities not subject to supervision by any other authority in Italy;
  4. Absence of forms of protection or guarantee of the sums deposited: in the event of fraudulent conduct, bankruptcy or cessation of activity of the trading platforms, there are no specific regulatory protections aimed at covering the losses suffered. Similarly, traditional protection instruments, such as deposit guarantee schemes, do not operate for sums in virtual currency deposited with third parties;
  5. High volatility of value and risk of loss: the value of virtual currencies is characterized by great volatility, also due to price formation mechanisms and the absence of a central authority capable of intervening to stabilize their value. This circumstance may lead to losses in case of holding virtual currency;
  6. Risk of use for criminal and illicit purposes: the virtual currency network may lend itself to being used for transactions related to criminal activities, including money laundering to be avoided with adequate anti-money laundering safeguards;
  7. Legal risk: The legal status of virtual currencies and certain digital tokens is uncertain. This may mean that holding or trading in some countries may be subject to express regulation, as well as prohibition by public authorities;
  8. Market Risk: The market for virtual currencies and crypto tokens is still new and uncertain. No one should invest funds in this market or speculate if they are not willing to suffer losses, i.e. are not prepared to lose their entire investment;
  9. Counterparty risk: the presence of virtual currencies or digital tokens on deposit, including through the provision of third-party services, involves custody risks. These risks include security breaches, risk of loss, blocks in the operation of Exchangers (i.e. websites that allow you to exchange virtual currencies with legal tender currencies and vice versa or virtual currencies). End users are required to take every possible precaution to avoid – or eliminate as much as possible – the stocks of virtual currencies and digital tokens in the internal wallets made available by the exchange platforms;
  10. Conversion, buying and selling risks: In addition to liquidity risks, the values of virtual currencies and cryptographic tokens in any market are highly volatile and can experience sudden changes. Participants who trade, buy or sell virtual currencies and digital tokens should pay particular attention to how the value can be affected by sudden changes or information. Furthermore, the participant exposes himself to the risk of not being able to convert the virtual currencies and digital tokens into a legal tender currency even for a long period;
  11. Liquidity risk: The virtual currency and digital token markets have varying degrees of liquidity. Some are quite liquid, while others may be less liquid. The latter can amplify price volatility.

ver 1.0 del 05 ottobre 2021