Risk Disclosure

September 2024

This Risk Disclosure provides information about some of the main risks associated within the services of Luso Digital Assets (after this referred to as Luso). Each Luso service has its own specific risks.

This Risk Disclosure does not explicitly cover all the risks or how these risks relate to the personal circumstances of each user. It is important that the user understands the risks involved before deciding to use our services, and should read the relevant applicable documents. When using our site, the user should be aware of all the pros and cons of this type of Service, so we advise greater diligence. The user should seek advice from a duly certified professional and ensure that has the appropriate risk appetite, experience, and relevant knowledge before deciding to trade.

Luso does not provide any kind of personal advice and can only elucidate factual information, information about transactional procedures, and information about possible risks. However, any decision to use our services is made by the user. No communication or information provided by Luso to the user is intended, or should be considered or interpreted as, investment advice, financial advice, trading advice, or any other kind of advice. The user is solely responsible for determining whether any investment, investment strategy, or related transaction is appropriate for his profile, according to personal investment goals, financial circumstances, and risk appetite.

It is the user's responsibility:

• Get acquainted with cryptocurrencies and the forecasts regarding potential gains and losses;
• Monitor the investments, reduce them, or deposit additional margin of funds to avoid losses;
• Do not invest more than can be afford to sustain.

By using the site, the user acknowledge that fully understands the associated risks and that accept these risks, in particular:

• Price Volatility

The prices of virtual assets can be highly volatile, influenced by decentralized monetary protocols that are still in the experimental stage and can change at any moment. Rapid appreciation or depreciation may occur without warning, leading to significant losses. Adverse information regarding virtual assets can diminish investor confidence in the markets, resulting in greater volatility. Virtual asset markets operate 24 hours a day, 7 days a week, allowing rapid price changes at any moment. Additionally, fluctuations in conversion rates can significantly affect gains and losses.

• Capital Loss

Investing in virtual assets carries the risk of losing the entire investment, with no guarantees of returns. Luso does not provide any guarantees or assurances regarding the performance or market price of virtual assets or products offered through our services.

• No tax, regulatory, or legal advice provided

The user is fully responsible for determining the applicable taxes, how and when they apply, and for fulfilling those tax obligations when conducting transactions through Luso's services. We do not provide legal or tax advice. The user also acknowledges, as required by applicable law, that Luso may report information and withhold taxes related to transactions, transfers, distributions, or payments to tax authorities or other public entities. The applicable law may also require Luso to request additional tax information, documents, or other details. In most jurisdictions, virtual assets are not insured or protected by state guarantees.

• Liquidity Risk

Some virtual assets may have limited liquidity, which can make it challenging to sell quickly at a fair price.

• Counterparty and third-party service provider risks

The user may face inherent risks associated with counterparties and third parties while using Luso's services. This includes, but is not limited to, the inability to settle trades and potential failures with payment processors that could delay transactions. Such circumstances may negatively impact the user's assets and ability to transact or trade, resulting in various consequences, such as transactions not being completed as expected, unrecoverable trading costs, loss of profits, and the inability to acquire or dispose of assets at the desired time or price. When dealing with third-party providers, the user will be subject to their terms and conditions. Unless explicitly stated otherwise, Luso will not be liable for any losses incurred by the user as a result of or in connection with the services provided by these third parties.

• Fees and charges

Our fees and charges are available for review while using our services. Luso may update these fees and charges periodically at its discretion. Therefore, users should be aware of all applicable fees and charges, as they will impact the returns generated through our services.

• Cybersecurity risks

Although Luso makes all reasonable efforts to protect virtual assets and safeguard the website against cyberattacks, it is not possible for any virtual asset provider to completely eliminate security risks. Cyberattacks, such as hacking, theft, or loss of private keys, can result in irreversible loss of virtual assets. The user is responsible for keeping account information secure and will be liable for all transactions conducted, whether authorized or not.

• Uncertain Regulation

Regulations for virtual assets are continually evolving and can vary between countries. Changes in these regulations may impact the value and legality of transactions involving virtual assets.

• Irreversibility

Unlike traditional bank transfers, transactions involving virtual assets are typically irreversible. If assets are sent to the wrong address or in cases of fraud, recovery may not be possible.

• Operational Risk

Failures in trading platforms or digital wallets can lead to loss of access to assets or delays in transactions.

• Lack of Technological Knowledge

Virtual assets employ relatively new and complex technologies, such as blockchain. Users should be aware that a lack of knowledge with these technologies can increase risks.