Risk disclosure
Important
This Risk Disclosure is an integral and substantial part of the Terms and is hereby incorporated by reference.
Any definitions contained in the Terms will apply mutatis mutandis to this Risk Disclosure.
Additional definitions used in this Risk Disclosure are listed below:
“Cryptocurrency/ies” shall have the same meaning as ascribed to “Cryptos” as defined in the Terms; and
“Stablecoin” means a type of Cryptocurrency that is designed to maintain a stable market price, and which has its value fixed by pegging its price to the price of another reference asset such as Fiat, other Cryptocurrencies or commodities.
Section 1: Risks
Cryptocurrencies are new technologies that often work differently from your prior experience with financial products. They entail various risks that you should understand and be aware of prior to using the Platform.
Before using NebAfrica, we encourage you to educate yourself about the risks associated with Cryptocurrency and not to invest money that you cannot afford to lose.
We have highlighted some of the key risks below:
- Cryptocurrency transactions are generally irreversible. This means that you may not be able to recover the Cryptocurrency where:
1.1. You send Cryptocurrency to an incorrect address;
1.2. You send the incorrect amount of Cryptocurrency;
1.3. You send Cryptocurrency to a fraudulent scheme; or
1.4. Fraudulent Cryptocurrency transactions are made from your NebAfrica Account.
NebAfrica will not be liable to you for any losses resulting from these kinds of accidental or fraudulent transactions.
- The volatility and unpredictability of the price of Cryptocurrency relative to local currency may result in significant loss over a short period of time. Buying and selling Cryptocurrency could result in a complete loss of your funds relative to local currency.
- The nature of NebAfrica’s Supported Cryptocurrencies are such that you may have no right of recourse against an issuing entity / protocol of the particular Supported Cryptocurrency. It also means that neither NebAfrica nor anyone else has an obligation to buy back your Cryptocurrency in the future.
- Supported Cryptocurrencies are not considered legal tender and are not backed by any government within the jurisdictions that NebAfrica is based at this point in time. NebAfrica Accounts and value balances are not subject to any government-backed deposit insurance or any other government protections. Government regulation of Cryptocurrency is still unsettled and rapidly evolving.
- Legislative and regulatory changes or actions at local or international level may affect the use, transfer, exchange, and value of Cryptocurrency. Any Cryptocurrency may decrease in value or lose all of its value due to legislative or regulatory activity, or other government action.
- On-chain Cryptocurrency transactions are deemed to be made when recorded on a “blockchain” ledger, which is not necessarily the date or time that you initiate the transaction.
- The value of each Cryptocurrency is driven by the continued willingness of market participants to exchange that Cryptocurrency for local currency or another Cryptocurrency. Should this demand disappear, it could result in permanent and total loss of the value of the Cryptocurrency. The volatility of the value of Cryptocurrency relative to Fiat may result in significant losses.
- There is no assurance that a person or business who currently accepts Cryptocurrency as payment will continue to do so in the future.
- Buying and selling Cryptocurrency may result in tax liability and you are solely responsible for complying with your tax obligations.
- The nature of Cryptocurrency means that any technological difficulties experienced by a service provider may prevent access to or use of your Cryptocurrency.
- Stablecoin
11.1. The Account Holder agrees and understands that while Stablecoins are commonly purported to be a more stable form of digital asset, the pegging of Stablecoins to Fiat or any other backing asset, could lead to increased risk of loss to the Account Holder in instances where the value of the relevant Fiat decreases or becomes illiquid.
11.2. The Account Holder acknowledges that:
11.2.1. NebAfrica does not purport nor does it guarantee that any Stablecoin issued or made available on the Platform is backed by any cash reserves on the part of the issuer of the Stablecoin; and
11.2.2. The Account Holder assumes full risk for any Stablecoin purchased and sold via the Platform.
- Trading in Cryptocurrency together with any other digital rights or assets and use of Services provided by NebAfrica involves significant risks and potential for financial losses, including without limitation the following:
12.1. The features, functions, characteristics, operation, use and other properties of any Cryptocurrency (“Cryptocurrency Properties”) and the software, networks, protocols, systems, and other technology (including, if applicable, any blockchain) (“Underlying Technology”) used to administer, create, issue, transfer, cancel, use or transact in Cryptocurrency may be complex, technical or difficult to understand or evaluate.
12.2. Any Cryptocurrency and its Underlying Technology may be vulnerable to attacks on the security, integrity or operation of the Cryptocurrency or its Underlying Technology (“Attacks”), including Attacks using computing power sufficient to overwhelm the normal operation of a blockchain or other Underlying Technology.
12.3. Any Cryptocurrency, Cryptocurrency Properties or Underlying Technology may change or otherwise cease to operate as expected due to a change made to the Underlying Technology, a change made using features or functions built into the Underlying Technology or a change resulting from an Attack. These changes may include, without limitation, a “fork” or “rollback” of a Cryptocurrency or blockchain.
12.4. Any Cryptocurrency may be cancelled, lost or double spent, or otherwise lose all or most of its value, due to forks, rollbacks, Attacks, changes to Cryptocurrency Properties or failure of the Cryptocurrency to operate as intended. NebAfrica may in its sole discretion and at any time, delist a Supported Cryptocurrency. When a Supported Cryptocurrency is delisted, NebAfrica may in its sole discretion choose to process any Account Holder withdrawals from their NebAfrica Account in the Account Holder’s local Fiat currency equivalent of such Account Holder’s NebAfrica Account balance as at the later of the repayment date or the date that NebAfrica is able to recover funds on a best efforts basis, rather than in the relevant Supported Cryptocurrency.
12.5. Just as NebAfrica may suspend or cease to support the transfer, storage or trading of Cryptocurrency at any time at NebAfrica’s discretion, other exchanges or service providers may do the same.
- Unless specifically announced on the Platform or other official public statement of NebAfrica, NebAfrica may not support (without limitation) metacoins, coloured coins, or other Cryptocurrency, or its related side chains or other Underlying Technology that is based on a fork, enhancement, or other functionality such as protocol governance and/or smart contract functionality which may supplement or interact with a Supported Cryptocurrency, or derivative of an alternative Crypto or Underlying Technology (“Derivative Protocol”) even if the Derivative Protocol is based on a Cryptocurrency that is supported by NebAfrica. Other exchanges or service providers may do the same.
- An Account Holder may be unable to withdraw Cryptocurrency prior to NebAfrica ceasing to support transfer of any such Cryptocurrency, resulting in the loss of any such Cryptocurrency remaining in an Account Holder’s NebAfrica Account.
- Cryptocurrency may decrease in value or lose all of its value due to various factors including discovery of wrongful conduct, market manipulation, changes to Cryptocurrency Properties or perceived value of Cryptocurrency Properties, Attacks, suspension or cessation of support for a Cryptocurrency by NebAfrica or other exchanges or service providers, and other factors outside the control of NebAfrica.
- An Account Holder may be prevented from sending a transaction request, or your transaction request or email may not be received by NebAfrica, due to hardware, software or services issues (including, without limitation, Internet and other network connectivity issues).
- An Account Holder’s transaction request or email to NebAfrica may be lost, intercepted or altered during transmission.
- Unauthorised third parties may access or use an Account Holder’s Account and effect transactions without an Account Holder’s knowledge or authorisation, whether by obtaining the password to the NebAfrica Account, obtaining control over another device or account used by an Account Holder in connection with any enhanced security measures enabled for the NebAfrica Account, or by other methods.
- NebAfrica’s decision to support transfer, storage or trading of a Cryptocurrency or any other cryptocurrency through the Services does not indicate NebAfrica’s approval or disapproval of the Cryptocurrency or any other cryptocurrency or the integrity, security or operation thereof or its Underlying Technology.
- The risks described in this Risk Disclosure may result in loss of Cryptocurrency, decrease in or loss of all value for Cryptocurrency, inability to access or transfer Cryptocurrency, inability to trade Cryptocurrencies, inability to receive financial benefits available to other Cryptocurrency holders, and other financial losses to an Account Holder.
Section 2: Indemnity, Limitation of Liability & Warranties
Indemnity
To the maximum extent permitted by any Applicable Law, the Account Holder agrees to indemnify NebAfrica, its operating entities or any other Affiliates (including their respective directors, members, employees and/or agents) against any action, liability, cost, claim, loss, damage, proceeding or expense suffered or incurred directly or indirectly arising from their use of or conduct in relation to the NebAfrica Website and/or their NebAfrica Account, or from their violation of the Terms and/or this Risk Disclosure.
Limitation of Liability
The provisions of clause 25.10 of the Terms shall apply mutatis mutandis to this Risk Disclosure. These limitations of liability shall apply to the fullest extent permitted by Applicable Law in any applicable jurisdiction. Because some jurisdictions do not allow the exclusion of certain warranties or the limitation or exclusion of liability for incidental or consequential damages, some of the limitations in this section may not apply to an Account Holder.
Warranties by Account Holder
The Account Holder represents and warrants that it has the necessary technical expertise and ability to review and evaluate the security, integrity and operation of any Cryptocurrency that it may decide to acquire or trade; and the knowledge, experience, understanding, professional advice and information to make its own evaluation of the merits and risks of any Cryptocurrency or trade. The Account Holder accepts the risk of trading Cryptocurrency by using the Services, and is responsible for conducting its own independent analysis of the risks specific to Cryptocurrency and the Services. An Account Holder acknowledges that it should not acquire or trade any Cryptocurrency unless it has sufficient financial resources and can afford to lose all value of the Fiat and/or Cryptocurrency.
Section 3: Disclaimer
NebAfrica makes no express, implied or statutory representations, warranties, or guarantees in connection with the Services.
Except for any express warranties in the Terms, the Services are provided to an Account Holder “as is,” and on a “where available” basis. NebAfrica makes no other warranties, express or implied, statutory or otherwise, including but not limited to warranties of merchantability, title, fitness for a particular purpose or non-infringement