Digital asset risk disclosure
Key matters to consider before any arrangement
Market volatility and collateral
Collateral values can fall rapidly. A collateralised loan may be subject to margin calls, top-ups, liquidation or shortfall obligations depending on the agreed contract.
Custody and counterparty
Custody and financing arrangements create operational, technical, insolvency, fraud and counterparty risks. Legal ownership, control, segregation, withdrawal rights and safeguards require explicit verification.
Staking and reuse of assets
Staking, lending, rehypothecation and custody are different activities. Staking may involve lock-up, slashing, protocol vulnerabilities and loss of assets. No staking returns or protections are implied.
Costs and commercial terms
A proposed upfront charge equal to 10% of a loan amount has been discussed but is not agreed, explained or payable. Its classification, timing, refundability and legal permissibility must be established before any offer.