Updated on 20 November 2022
All investing involves risk. Past performance does not guarantee or indicate future results. Please consider, among other important factors, your investment objectives, risk tolerance and Coinbits pricing before investing. Coinbits does not provide investment, tax, or legal advice, and you are solely responsible for determining whether any investment, investment strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance.
Coinbits may provide educational information about Bitcoin and other digital assets in order to assist its users in learning more about the various digital assets. Information may include, but is not limited to, blog posts, articles, or videos. The information provided on the Coinbits website does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the website's content as such. Coinbits does not recommend that any digital asset should be bought, sold, or held by you. Coinbits will not be held responsible for the decisions you make to buy, sell, or hold digital assets based on the information provided by Coinbits.
- Risks Associated with Cryptocurrency: Any malfunction, unintended function, unexpected functioning of or attack on the protocols underlying virtual currencies including cryptocurrency may cause the Services to malfunction or function in an unexpected or unintended manner, which in turn could interrupt the Services in whole or in part, including the delayed processing of Withdrawal Requests. Cryptocurrency may itself lose value and in turn decrease the dollar value Users receive upon Withdrawal Requests.
- Risks Associated with User Credentials: Any third party that gains access to or learns of your login credentials or views your Coinbits Transfers may be able to interrupt the Services or act in a manner that results in a total loss to you, with no liability or recourse available against Coinbits. To minimize this risk, you should guard against unauthorized access to your electronic devices. Best practices dictate that you safely store credentials in one or more backup locations geographically separated from the working location. In addition, you are responsible for giving us the correct address or account to process Withdrawal Requests. If you give us the incorrect address or account, we are not responsible for any losses that may occur.
- Risks Related to Digital Wallets. Coinbits will store cryptocurrencies purchased using Users’ Selected Amounts in a wallet that must be accessed with a password or by maintaining a private key. Digital Wallets can have known or unknown vulnerabilities, and any errors or malfunctions caused by or otherwise related to Coinbits’ Digital Wallet may result in the loss of cryptocurrency.
- Risk of Unfavorable Regulatory Action in One or More Jurisdictions: Virtual currencies have been the subject of scrutiny by various regulatory bodies around the world. The functioning of the Services could be impacted by one or more regulatory inquiries or actions, including the licensing of or restrictions on the use, sale, or possession of virtual currencies, which could impede, limit or end the development of the Services and increase legal costs.
- Risks from Taxation: You must seek your own tax advice in connection with using the Services, which may result in adverse tax consequences to you, including withholding taxes, income taxes, and tax reporting requirements. New or future changes to U.S. and non-U.S. tax laws could also adversely affect us and could affect our ability to develop and/or provide the Services. With respect to virtual currency the Internal Revenue Service has issued guidance through Notice 2014-21, which describes how existing general tax principles apply to transactions using virtual currency. Prior to using the Services, a prospective user should consult with his/her/its own investment, legal, tax and/or accounting advisors and/or other consultants to determine the potential tax consequences of such a transaction even though Users will at no point own or hold cryptocurrency through the Services.
- Risk of Theft and Hacking: Hackers or other groups or organizations or countries may attempt to interfere with the Services, the availability of Coinbits’ cryptocurrency purchased with Selected Amounts, third-party financial services applications or virtual currency exchanges used to provide the Services, or your Withdrawal Amount in any number of ways, including service attacks, Sybil attacks, spoofing, smurfing malware attacks, or consensus based attacks on Digital Wallets, Exchanges, or Coinbits itself, phishing, or other novel methods that may or may not be known to steal virtual currencies.
- Risk of Security Weaknesses in the Services software: There is a risk that Coinbits or other third parties may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructural elements of the Services, interfering with the use of or causing the loss of Coinbits’ cryptocurrency and by extension the delay or prevention of processing Withdrawal Requests.
- Risk of Weaknesses or Exploitable Breakthroughs in the Field of Cryptography: Advances in cryptography, or technical advances such as the development of quantum computers, could present risks to virtual currencies and the Services.
- Risk of Uninsured Losses: Coinbits is not a bank or any other type of institution the holdings of which are insured by any governmental authority. Therefore, unlike bank accounts or accounts at some other financial institutions, funds held using the Services are generally uninsured. In the event of any loss, there is no public insurer, such as the FDIC, or private insurer, to offer recourse to the User.
- Risk of Malfunction in the Services: It is possible that the Services malfunction in an unfavorable way, including one that results in the loss of Coinbits’ cryptocurrency or in the loss of Users’ Withdrawal Amounts.
- Unanticipated Risks: In addition to the risks discussed in the Coinbits Terms and Policies, there are risks that Coinbits cannot anticipate. Further risks may materialize as unanticipated combinations or variations of the discussed risks or the emergence of new risks.