Cryptocurrency Risks

This document outlines the key risks associated with cryptocurrency transactions and investments. Silk markets cryptocurrency services that are provided through our branded platform by a regulated partner. Cryptocurrencies are considered high-risk investments, and this summary is designed to help you make informed decisions.

1.1 Volatility and Capital Loss Risk
Cryptocurrencies are highly volatile financial instruments. Their value can fluctuate dramatically over short periods, potentially resulting in significant financial losses. The cryptocurrency market operates 24/7 and can be influenced by various macroeconomic and technological factors.
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Important Notice: You could lose all the money you invest in cryptocurrencies. Customers should be prepared for the possibility of losing the full value of their cryptocurrency investments.

1.2 Limited Regulatory Protection
The broader cryptocurrency market remains largely unregulated compared to traditional financial markets. This limited regulatory oversight means:

• Cryptocurrency investments are not recognized as "specified investments" under many regulatory frameworks.
• They are typically not covered by financial compensation schemes (such as the FSCS in the UK).
• Poor investment performance or losses related to cryptocurrencies are typically not covered by standard dispute resolution mechanisms.

1.3 Liquidity Risks
Liquidity in cryptocurrency markets can vary significantly:

• There is no guarantee that you will be able to sell your cryptocurrencies when desired.
• Operational delays, technology outages, or cyber-attacks may delay transactions.

1.4 Operational and Technological Risks

• Technology outages, cyber-attacks, or operational failings may delay or prevent transactions.
• Security breaches could potentially result in loss of assets.
• Software updates or "forks" in blockchain networks may impact asset values.

Cryptocurrency investments are high-risk and may not be suitable for all corporate treasuries. This summary provides a general overview of risks and does not constitute financial or investment advice. Customers are responsible for making informed decisions and should consult professional advisers where necessary.

Silk markets services provided by a regulated platform operator. Users accessing services through Silk will be subject to the terms, conditions, and policies of the regulated platform operator.

Last updated: April 2026