Engaging with digital asset transactions with Ledn involves risks. Here are key considerations:
- Market Volatility: The value of digital assets can be extremely volatile and unpredictable, and you can experience significant loss in a short period of time
- Regulatory Uncertainty: 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.
- Fraud and Cyber-attacks: The nature of digital assets may lead to an increased risk of fraud or cyber-attack.
- No Insurance: Any digital assets held on the Ledn platform are not guaranteed by any entity and are not covered by any government deposit insurer or investor protection against losses anywhere in the world.
- Loan Collateral Risk: 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 as collateral for the loan. We may also liquidate your digital asset collateral if an event of default occurs on your Loan, in whole or in part, by selling such digital assets in accordance with your USD Loan Agreement
- Rehypothecation Risk: We may hold the digital assets held in your Growth accounts and digital assets held in your Standard Loan collateral wallets 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, read our Risk Disclosure Statement and the risk disclosures outlined in Ledn’s product-specific legal terms.