Crypto Risk Summary

1. Introduction

Jigzo Limited (“Jigzo”) provides access to cryptoasset services for its corporate Customers while adhering to applicable regulations, including those set by FINTRAC, the European Union, and the United Kingdom. Cryptoassets are considered high-risk investments, and this policy outlines the key risks associated with cryptoasset transactions and investments through Jigzo's platform.

2. Key Risks

• You Could Lose All the Money You Invest
  The value of most cryptoassets is highly volatile, meaning their prices can drop as quickly as they rise. Customers should be prepared for the possibility of losing the full value of their investment in cryptoassets.
  
  

• The Cryptoasset Market Is Largely Unregulated
  While Jigzo adheres to regulatory requirements in the jurisdictions it operates, the broader cryptoasset market remains largely unregulated. Risks include, but are not limited to, cyber-attacks, financial crime, and the failure of third-party service providers.
  
  

• Staking Cryptoassets Involves Risks
  Staking may expose Customers to the risk of slashing, a penalty resulting in asset loss due to validator non-compliance or other network-related issues.

3. Limited Protection for Cryptoasset Activities

• No Protection from Financial Compensation Schemes
  Investments in cryptoassets are not recognised as ‘specified investments’ under UK regulations or other regulatory frameworks. Therefore, they are not covered by compensation schemes such as the Financial Services Compensation Scheme (FSCS) in the UK.
  
  

• Limited Protection from Dispute Resolution Mechanisms
  While complaints against regulated firms may be handled by relevant dispute resolution bodies such as the Financial Ombudsman Service (FOS) in the UK, poor investment performance or losses related to cryptoassets are not covered.

4. Liquidity Risks

• Difficulty Selling Cryptoassets
  There is no guarantee that Customers will be able to sell their cryptoassets when desired. Liquidity depends on market conditions, including supply and demand at a given time.
  
  

• Operational Delays
  Issues such as technology outages, cyber-attacks, or operational failings may delay the sale or transfer of cryptoassets. Additionally, some staking activities may involve lock-up periods, during which assets cannot be sold.

5. Complexity of Cryptoassets

• Understanding the Risks
  Cryptoasset investments can be complex, making it difficult for Customers to fully understand the associated risks. Jigzo encourages all Customers to conduct thorough research before investing and to avoid offers that seem too good to be true.
  
  

• Diversity of Investments
  Concentrating investments in cryptoassets increases risk. Jigzo recommends diversifying investments and advises against allocating more than 10% of funds to high-risk investments like cryptoassets.

6. Risk Variance Among Cryptoassets

Not all cryptoassets carry the same risks. Customers should review cryptoasset-specific performance stats which are available on the platform and conduct additional research to understand the unique risks associated with different types of cryptoassets.

7. Education and Resources

Jigzo encourages Customers to educate themselves about cryptoassets and the associated risks. For more information, Customers can consult resources provided by financial regulators, including FINTRAC, the Financial Conduct Authority (FCA), and the European Union.

8. Disclaimer

Cryptoasset investments are high-risk and may not be suitable for all Customers. This policy serves as 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.

For further information about cryptoassets and how to protect yourself, visit regulatory websites such as FINTRAC’s or the FCA’s cryptoasset information pages.