Risk Disclosures
Blockchain technology and crypto-assets carry significant risks, including the possible loss of all value allocated in crypto-assets. Such risks arise from the novelty of this technology, the regulatory uncertainty, the possibility of hacking, the high volatility and the information asymmetry characterizing the crypto market. You should not purchase crypto-assets with funds that you cannot afford to lose. Furthermore, you are strongly encouraged to seek financial and legal advice regarding the use of crypto-assets and the use of our services.
While we may provide particulars relating to the Issuer, nothing in the particulars shall or is intended to form any form of advice or should be relied upon as advice. If you are uncertain about your investment or the Issuer, you should always conduct your own due diligence and assessments and/or seek professional and independent advice.
When purchasing an asset on ByStarter, you (“you” or a “Participant”) understand that you are entering into an agreement to either lock or first pay its purchase price (the “Purchase Price”) to the issuer of the asset (the “Issuer”) upon the Issuer’s proposed agreement (a “Delayed Issuance”) to issue to you the proposed asset (a “Delayed Issuance Token” or “DIT”) at a later date (the “Issuance Date”).
Delayed Issuances come with risks that you should be made aware of.
When you agree to a Delayed Issuance, the Issuer may not have the Delayed Issuance Token prior to the Issuance Date and may have to invest the Purchase Price into constructing the DIT. The Issuer may or may not use the Purchase Price in such an endeavor. Regardless of whether it does, you acknowledge and understand that you may not have any claim to any proceeds, interests, or by-product(s) arising from the Issuer’s use of your Purchase Price.
The Issuer may also run the risk of defaulting (failing to meet) on its obligations to deliver on the DIT upon the Issuance Date. While we will endeavor to conduct our own due diligence on Issuers, nothing on our platform guarantees the delivery by the Issuer.
During the Delayed Issuance, the Issuer may also make the asset available in other markets prior to your Issuance Date without prior notice or approval from you or us. During this period, the price of the DIT in whichever market it is made available may fluctuate. You understand that you may lose substantial value over your DIT if the general market conditions are not favorable during or after the Issuance Date.
If you fail to maintain your Purchase Price with us upon the prevailing conditions for whatever reason (e.g. on a smart contract), you may lose the right to receive the DIT Tokens purchased. The non-delivered DITs shall be redistributed among other Participants according to the modalities established by us. You understand that we do not have the obligation to inform you if for any reason your Purchase Price fails to meet your obligations under the Delayed Issuance.
A Delayed Issuance or a DIT is not equity, nor is it a share in the Issuer or the DIT’s underlying protocol. You should understand that no voting or influence rights arise from the purchase of such an interest. You also understand that external parties may influence either the Issuer or the DIT’s protocol which upon such influence may affect or implicate all of your rights either under the Delayed Issuance or the DIT.
Your payment for the Purchase Price will be non-refundable irrespective of whether the DITs are made available to you. Therefore, you shall give full consideration to all risk factors, including but not limited to the volatility of cryptocurrency prices and markets in general, risks of systemic failure, risks of code failure, bugs, hardware failure, loss of data, theft, lost usernames, passwords or private keys, incorrectly executed transactions and/or hacks which can lead to, inter alia, the complete loss of the DITs.