This Risk Disclosure Statement ("Disclosure") outlines the material risks associated with using VaultX services and investing in cryptocurrencies. Cryptocurrency markets are highly volatile and speculative. Investing in digital assets involves substantial risk of loss, including the possibility of complete loss of your investment.
YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND ACCEPT THESE RISKS BEFORE USING VAULTX.
Cryptocurrency values are highly volatile. Bitcoin has experienced price swings of 50% or more in a single month. Ethereum, Solana, and other altcoins are even more volatile. The value of your holdings can decline dramatically and rapidly.
It is possible to lose 100% of your investment in cryptocurrency. You may invest $10,000 and it could become worth $1,000, $100, or $0. This is not a theoretical risk—it has occurred repeatedly in crypto history.
Unlike traditional securities markets where circuit breakers halt trading, cryptocurrency markets operate 24/7 with no limits on price movement. Prices can crash suddenly with no mechanism to halt losses.
Bitcoin's 100x returns over 10 years do not guarantee future performance. Past price appreciation is not indicative of future results. Many cryptocurrencies have lost 90% of their value and never recovered.
Cryptocurrency regulation varies significantly by jurisdiction and continues to evolve. Laws that are favorable to crypto today could become restrictive tomorrow. Changes in regulation could significantly impact cryptocurrency value and accessibility.
Some countries have banned cryptocurrency transactions or imposed strict limitations. Your government could restrict or prohibit cryptocurrency ownership, exchange, or use, affecting the value and utility of your holdings.
Tax treatment of cryptocurrency varies by jurisdiction. You may have significant tax obligations on trading gains. Failure to comply with tax requirements could result in penalties and legal consequences.
Government agencies may take enforcement action against cryptocurrency exchanges, services, or users. This could result in asset freezes, account closures, or other restrictions on your ability to access or trade your digital assets.
VaultX is a non-custodial wallet. You maintain sole control and responsibility for your private keys. If you lose your private keys or recovery phrase, your assets are permanently lost and cannot be recovered, even by VaultX.
Cryptocurrency transactions are permanent and irreversible once confirmed on the blockchain. If you send funds to the wrong address, there is no refund mechanism. Mistakes cannot be undone.
Many cryptocurrency losses result from user error: losing recovery phrases, forgetting passwords, sending to wrong addresses, or clicking malicious links. VaultX cannot recover assets lost due to user error.
Cryptocurrency and blockchain technology may contain undiscovered bugs or vulnerabilities. Smart contract code may have security flaws that could result in loss of funds.
Blockchain protocols are updated regularly. These updates could affect the security, value, or usability of cryptocurrencies. Hard forks could result in chain splits and confusion about asset ownership.
Technology underlying cryptocurrencies could become obsolete. New consensus mechanisms or technologies could render existing cryptocurrencies less valuable or obsolete.
Smaller cryptocurrencies may have limited liquidity. If you attempt to sell a large position, you may not find enough buyers at your desired price, forcing you to accept significant discounts.
Cryptocurrency markets are susceptible to manipulation, including pump-and-dump schemes, spoofing, and wash trading. Market prices may not reflect true supply and demand fundamentals.
Cryptocurrency exchanges and services can fail or shut down suddenly. If your assets are on an exchange when it fails, you may lose your funds with no recourse.
Cryptocurrency addresses and wallets are targets for hackers. While VaultX implements security measures, no system is 100% secure. Hackers, malware, or social engineering could result in theft of your assets.
Sophisticated phishing attacks can trick you into revealing private keys, recovery phrases, or passwords. Malicious websites, fake apps, and impersonation scams are common in the crypto space.
Even reputable cryptocurrency exchanges have been hacked, resulting in loss of customer funds. While VaultX is non-custodial (meaning we don't hold your keys), if you use other services or leave funds on exchanges, those are at risk.
In most jurisdictions, selling cryptocurrency at a profit triggers capital gains tax. Short-term gains are typically taxed at higher rates than long-term gains. You are responsible for calculating and paying applicable taxes.
Some jurisdictions treat frequent trading as business activity subject to income tax rather than favorable capital gains treatment. Swapping one cryptocurrency for another may trigger a taxable event.
You are responsible for maintaining detailed records of all cryptocurrency transactions for tax purposes. Failure to maintain accurate records or file tax returns could result in penalties and legal consequences.
Tax treatment of cryptocurrency continues to evolve. Laws that are favorable today may change, creating unexpected tax liabilities for past transactions.
VaultX makes no representation or warranty regarding future cryptocurrency prices, investment returns, or the safety of the cryptocurrency markets. We do not guarantee the accuracy of market data, the security of blockchain networks, or the viability of any cryptocurrency.
VaultX provides tools and information for managing cryptocurrency but does not provide investment advice. You should not make investment decisions based on information from VaultX. Consult with qualified financial, legal, and tax professionals before making investment decisions.
Only invest in cryptocurrency an amount that you can afford to lose completely. Do not invest borrowed money, emergency funds, or funds needed for basic living expenses.
You are solely responsible for your investment decisions and the consequences thereof. VaultX is not liable for your losses, regardless of cause.
Last Updated: April 2026