Crypto-Asset Risk Disclosure
This warning is published by COINMATE a.s., ID No. 140 71 711, with its registered office at Pernerova 697/35, Karlín, 186 00 Prague 8, Czech Republic, registered in the Commercial Register kept by the Municipal Court in Prague under file No. B 26903 („Coinmate“). Coinmate is a crypto-asset service provider authorised under Regulation (EU) 2023/1114 on markets in crypto-assets („MiCA“). Coinmate is supervised by the Czech National Bank („CNB“).
We publish this warning in accordance with Article 66(3) of MiCA. It summarises the main risks associated with buying, selling, exchanging, transferring and holding crypto-assets (commonly referred to as cryptocurrencies). The list of risks is not exhaustive. Please read this warning together with our Terms and Conditions. It does not constitute investment, legal or tax advice.
1. The value of crypto-assets fluctuates sharply
Crypto-asset prices can change significantly within very short periods, in both directions. Price movements cannot be reliably predicted, and past performance does not guarantee future results. The value of your crypto-assets may fall to zero. Only invest funds you can afford to lose.
In addition, the rate at which we actually execute your order may differ from the rate displayed when you placed it. This applies in particular during periods of high volatility or low market liquidity.
2. You may not be able to sell a crypto-asset
Liquidity in crypto-asset markets fluctuates. You may not be able to sell a crypto-asset when you want to, or at the price you expect. Crypto-assets with low trading volume may be difficult to sell, temporarily or permanently. We may also discontinue support for a specific crypto-asset; we will always announce such a step in advance in the manner agreed in our terms and conditions.
3. Protection is limited – crypto-assets are not an insured deposit
Crypto-assets are not legal tender. They are not backed by any state or central bank. They are not a bank deposit, and they are not covered by deposit insurance or investor compensation schemes. If the value of your crypto-assets falls, no one will compensate your loss.
Authorisation under MiCA means that the CNB supervises our activities – for example our risk management, the safekeeping of clients‘ assets and our complaints handling. It does not mean that the CNB approves or recommends crypto-assets or guarantees their value. Overall, the protection associated with crypto-assets is weaker than for traditional financial products.
4. Technology risks and irreversible transactions
Crypto-assets rely on distributed ledger technology (blockchain), which we do not operate or control. The networks of individual crypto-assets may experience outages, attacks, protocol changes or splits (so-called forks). Such events can affect both the value and the usability of a crypto-asset.
A transaction recorded on the blockchain is generally irreversible. If you send crypto-assets to a wrong address or on a wrong network, they may be permanently lost. Always check the address and the selected network carefully before confirming a transfer. When withdrawing to your own wallet, you are responsible for safekeeping your private keys; losing them means losing your crypto-assets permanently.
5. Fraud and cyberattacks
Crypto-assets carry an increased risk of fraud – phishing, fake investment offers, impersonation of well-known figures, or „guaranteed“ tips on social media. If someone promises you fast or risk-free returns, it is very likely a scam.
Stay alert: we will never ask you for your login credentials or passwords. Always make sure you are communicating with Coinmate through our official website or app. Protect your account with a strong password and two-factor authentication.
6. Regulatory and tax risks
The regulation of crypto-assets is evolving. Future changes in the laws of the Czech Republic, the EU or other jurisdictions may affect the value, transferability or usability of crypto-assets, as well as the scope of our services. Income from crypto-assets may be subject to tax. You are solely responsible for meeting your tax obligations; if in doubt, consult a tax adviser.
7. Service availability
Our services may not be available at all times. Operations may be temporarily limited by technical maintenance, outages, cyberattacks or extreme market conditions. During such periods, you may be unable to place orders or to deposit or withdraw funds and crypto-assets.
8. Before you decide
- Consider your knowledge, experience, financial situation and goals. If you do not understand a product, it is not suitable for you.
- Only invest as much as you can afford to lose.
- Review the available information on the specific crypto-asset, including its white paper (see below).
- Do not rely on tips from influencers or anonymous „experts“. They may be misleading or driven by their own profit.
- You can verify the authorisation of service providers in the CNB register and in the ESMA register.
9. White papers and further information
For the crypto-assets in relation to which we provide services, we make available links to their crypto-asset white papers. A white paper describes the crypto-asset, its technology and its risks. The information in it comes from its author and may be incomplete or one-sided.
We update this warning on an ongoing basis. It does not constitute investment advice or a recommendation to buy or sell crypto-assets. The decision is always yours. If you have any questions, contact our support..
