Bitcoin is a new technology that often works differently to your prior experience. It therefore entails various risks that you should understand. We have highlighted some of these risks below.
Bitcoin transactions sent from your BitX wallet are irreversible. If you send Bitcoins to an incorrect address, or send the wrong amount of Bitcoins, you cannot get them back. BitX cannot be held liable for executing a transaction if the instruction relates to an incorrect Bitcoin address.
Before buying or selling Bitcoin, educate yourself about Bitcoin. Buying and selling Bitcoin entails risks and could result in a complete loss of your funds. Please ensure that you fully understand the risks involved and do not invest money that you cannot afford to lose.
Bitcoin is not backed by any entity. Neither BitX nor anyone else has an obligation to buy back your Bitcoins in the future.
Additionally it is very important to note the following risks:
- Bitcoin is not legal tender and it is not backed by the government. Accounts and value balances are not subject to any Government backed deposit insurance or any other Government protections;
- Legislative and regulatory changes or actions at the state or international level may adversely affect the use, transfer, exchange, and value of Bitcoin;
- Transactions in Bitcoin are generally irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;
- Bitcoin transactions shall be deemed to be made when recorded on a “block chain” ledger, which is not necessarily the date or time that you initiate the transaction;
- Bitcoin is derived from the continued willingness of market participants to exchange fiat currency for Bitcoin, which may result in the potential for permanent and total loss of value of Bitcoin, should the market for Bitcoin disappear;
- There is no assurance that a person who accepts a Bitcoin as payment today will continue to do so in the future;
- The volatility and unpredictability of the price of Bitcoin relative to fiat currency may result in significant loss or tax liability over a short period of time;
- The nature of Bitcoin may lead to an increased risk of fraud or cyber attack;
- The nature of Bitcoin means that any technological difficulties experienced by a service provider may prevent the access or use of your Bitcoin.