Yes, there are risks associated with buying, selling, or holding digital assets, or entering into a transaction involving digital assets with Ledn. You should understand the risks involved before trading digital assets. Some of these risks are detailed below:
- The value of digital assets can be extremely volatile and unpredictable, and you can experience significant loss in a short period of time.
- The regulation of digital assets continues to evolve across the globe, which may restrict the use of digital assets or otherwise impact the demand for digital assets.
- The nature of digital assets may lead to an increased risk of fraud or cyber-attack.
- Any digital assets held on the Ledn platform are not protected by the Canadian Investor Protection Fund, the Canadian Deposit Insurance Corporation or any other investor protection insurance scheme anywhere in the world.
- If you have posted digital assets as collateral for a loan and the value of such digital assets decreases, you may be required to deposit additional digital assets to top up your collateral for the loan. We may also liquidate your digital assets posted as collateral, in whole or in part, to repay your outstanding loan in the event of default, by selling such digital assets. However, you remain responsible for any deficiency which remains after the net proceeds of the collateral sale are credited against any amounts owing by you to us.
- Except for digital assets held in U.S. Savings Accounts, we may hold your digital assets in our name or in another name, and we may pledge, repledge, hypothecate, rehypothecate, sell, lend, or otherwise transfer or use any amount of such digital assets, separately or together with other property, with all attendant rights of ownership, and for any period of time and without retaining a like amount of digital assets, and use or invest such digital assets. We will use our commercial best efforts to prevent losses but there is a risk of loss.
For more information, check out the Risk Disclosure Statement section of our Terms of Service, which can be accessed here.