This Risk Disclosure Statement (“Statement”) is designed to inform investors about the risks tied to xStocks tokens, assisting investors in evaluating their personal risk tolerance. Before engaging in xStocks tokens, investors are strongly encouraged to consult independent professionals or seek legal advice.
The information presented in this Statement is not exhaustive and does not reflect all of the risks (or other important factors) you should consider before engaging with xStocks tokens. You must make your own decision whether to access or use this service and should seek any advice that you consider necessary or desirable from independent advisers.
By accessing, registering, or utilizing any part of BloFin.com (“BloFin”) and its services (“Services”), you confirm that, after obtaining independent professional guidance, you have fully read, comprehended, and accepted all risks associated with trading xStocks tokens.
Terms referenced here carry the same definitions and interpretations as outlined in the BloFin Terms of Use, available at https://support.blofin.com/hc/en-us/articles/7296238795279-TERMS-OF-USE.
About xStocks tokens/the Products
xStocks is a blockchain-native solution for equity investing created by Backed Finance, a leader in the compliant tokenization of real-world assets. BloFin assumes no responsibility for any losses caused by related transactions. By using the Services, you hereby acknowledge the relevant risks and agree to bear the trading risks on your own, and further acknowledge, represent and warrant that the statements set forth below are true and correct as of the date hereof:
- You are not a US Person as defined under the Securities Act of 1933;
- You are not domiciled in a Restricted Location provided under BloFin’s Terms of Use;
- You are not a United Kingdom Person (including Northern Ireland), including but not limited to British Nationals and all bodies incorporated or constituted under the law or any part of the United Kingdom;
- You are not purchasing xStocks tokens for the account or benefit of a US Person, Restricted Location or United Kingdom Person;
- You were not a US Person, Restricted Location or United Kingdom Person when the xStocks tokens were offered to you;
- You, including any authorized director, employee, signatory or representative who placed the buy order are outside of the US, Restricted Location or United Kingdom at the time the buy order was originated;
- You are eligible to participate in the xStocks token offering, whether as a professional, sophisticated or accredited investor or otherwise, as may be required under the laws of the jurisdiction in which you are located or other laws applicable to you;
- You possess the requisite experience, knowledge and expertise in financial and business matters to be capable of evaluating the merits, risks and suitability of participating in transactions of xStocks tokens;
- You have not entered into, and are not purchasing the xStocks tokens with the view of entering into any agreement or arrangement for or in connection with the resale or transfer of the xStocks tokens, under which the economic benefits and risks of the xStocks tokens would pass on to such person.
Notwithstanding the above, you shall not transfer any xStocks tokens at any such time if the transfer will result in a violation of any applicable laws.
Understanding the Risks
PARTICIPATING IN THE TRADING OR INVESTMENT OF XSTOCKS TOKENS COULD RESULT IN THE COMPLETE LOSS OF YOUR FUNDS, ASSETS, OR POSITIONS, WITH NO GUARANTEE OF RECOVERY OR COMPENSATION.
1. xStocks Tokens
BloFin is not the issuer of any xStocks tokens. All xStocks tokens are issued and redeemed solely by third-party issuers. BloFin makes no guarantees as to the issuance, collateralization, redemption, delivery or fair pricing of any xStocks token. The mechanics of token issuance and redemption relating to xStocks tokens are outside BloFin’s control. Users must independently assess the credibility and risks of the underlying mechanisms.
2. Market Volatility Risk
The value of xStocks tokens can swing dramatically due to numerous influencing factors, making it challenging for investors to react in real time. Such unpredictability may lead to substantial losses, for which investors must assume full liability.
3. Regulatory Risk and Transaction Risk
The legal and regulatory landscape for digital assets is evolving. Changes in laws and regulations may impact the availability or legality of products and services, including xStocks tokens.
4. Liquidity Challenges
xStocks tokens might lack sufficient liquidity, hindering your ability to sell or exit positions when desired. This risk, heightened during sharp price shifts, could lead to significant financial setbacks.
5. 24/5 Market Dynamics
xStocks token markets only operate 24 hours a day, 5 days a week (weekdays only) and digital asset markets experience rapid price changes at any hour, including outside standard business times, adding to monitoring difficulties.
6. Bubble and Confidence Risk
xStocks tokens may face irrational exuberance or sudden drops in confidence, potentially triggering steep and swift value declines.
7. Service Availability
Services may experience unexpected outages or network delays, and we cannot assure constant availability. This could prevent you from trading, transferring, or managing xStocks tokens when needed.
8. Security Vulnerabilities
While BloFin strives to maintain security, no system is immune to all threats. You are accountable for safeguarding your account password, and any transactions, authorized or not, under your account are your responsibility. Digital Asset transactions are final, with losses from fraud or unauthorized actions often unrecoverable.
9. Third-Party Involvement
Services may rely on external entities like payment processors or custodians, subject to their terms. You are subject to the terms and conditions of these third parties. BloFin is not liable for losses caused by these third parties.
10. Communication Uncertainty
Electronic interactions with us may be delayed, insecure, or fail to reach us/you, posing risks to timely decision-making.
11. Regulatory and Policy Shifts
Trading xStock tokens might encounter regulatory hurdles in some regions. BloFin may halt services in response to legal or policy changes, and investors must assess these risks independently, as BloFin bears no responsibility for such disruptions.
12. Legal and Valuation Impact
Shifts in legislation can unpredictably alter xStock token’s values, with effects varying across markets.
13. Currency Exchange Fluctuations
Changes in exchange rates between currencies can affect your profits or losses.
14. Uninsured Assets
Unlike bank deposits, xStocks tokens on BloFin lack government or private insurance, offering no protection against loss or theft.
15. Tax Considerations
Trading xStocks tokens may trigger tax obligations, which can be complex and subject to retroactive changes. Compliance is your responsibility.
16. Platform Oversight
BloFin functions as a crypto trading platform, and is not your broker, dealer, or advisor, potentially reducing user safeguards in disputes or losses.
17. High Leverage Oversight
Excessive leverage increases risks for both users and BloFin. To ensure market stability, we may monitor and intervene in high-leverage positions—through actions like forced reductions or liquidations—if deemed harmful, with or without prior notice. All resulting outcomes are borne by the user. BloFin may, but is not obligated to, send any notifications to you on the measures taken.
18. Rule Adjustments
Trading rules, including but not limited to expiration dates or coefficients, may shift/modified based on operational needs. Early or delayed product delivery, announced via website or e-mail, requires prompt user action, with any gains or losses solely the user’s burden.
Important Notes
The risk factors mentioned in this statement are not exhaustive and all risk factors related to xStock tokens are not listed in detail. BloFin does not promise profits or share in investors’ risks or gains. Other unforeseen issues may arise, and investors should carefully consider other possible risks before participating.
We sometimes offer factual insights on procedures and risks but do not provide tailored advice. YOUR CHOICE TO USE BLOFIN AND SERVICES IS ENTIRELY YOUR OWN. Information from us is not investment, financial, or trading advice. You alone determine if a strategy suits your goals, finances, and risk tolerance. BloFin holds no advisory role or fiduciary duty, nor do we track if our services align with your objectives. Assessing your financial capacity and risk appetite is your responsibility.
Investors should thoroughly understand digital currency trading basics, associated risks, and BloFin’s operational rules before proceeding.
Final Warning
BloFin urges investors to weigh their participation in xStock token trading carefully, allocating assets wisely based on their risk tolerance and financial situation. As a platform for crypto products, we emphasize that cryptocurrency/digital asset trading carries significant risk. Evaluate if BloFin suits you by reviewing our Terms of Use, Privacy Policy, and this Statement.