Risk Disclosure Statement

LabyrinthX Digital Technologies Limited (“EXN“), a company limited by shares incorporated in Labuan (Company No.: LL18211) is licensed by the Labuan Financial Services Authority to carry on money-broking business (as defined under section 86 of the Labuan Financial Services and Securities Act 2010 (“LFSSA”) and operate a payment system (as defined under section 171 of the LFSSA) (Licence No: MB/23/0110).

All terms used in this Risk Disclosure Statement, which are defined in the EXN Terms of Use (the “Terms of Use”), have the same meaning and construction as in the Terms of Use.

Risk Disclosures

This Risk Disclosure Statement provides you with information about some of the risks associated with Services provided by EXN. The information presented in this Risk Disclosure Statement is not all-encompassing and does not reflect all of the risks you should consider before using the Platform and Services. 

No communication or information provided to you by EXN is intended as, or shall be considered or construed as, investment advice, financial advice, trading advice, or any other sort of advice. You must make your own independent decision to access or use the Services and should seek any advice that you consider necessary or desirable (including financial, legal and/or tax advice) from independent advisers. It is your sole responsibility to ensure that you understand all the relevant risks of using the Services and trading any Assets, and carefully consider whether such trading is appropriate for you in light of your experience, objectives, financial resources, particular needs, risk appetite, and other relevant circumstances. 

General Trading Risks

Trading in Assets entails significant risks of financial loss. You should not commit funds to trading in Assets that you are not prepared to lose entirely. Asset markets can be volatile and prices can fluctuate significantly, which could result in sudden and significant increases or decreases in the value of your assets at any given moment. You should assess whether your financial situation and risk tolerance is suitable for buying, selling or trading Assets. You accept and agree that you are solely responsible for any decision to buy, sell, trade or otherwise hold or deal with Assets. You should be aware that the risk of loss in trading or holding Assets can be substantial.

The type of Assets available for trading on the Platform may change from time to time. EXN may suspend or terminate the trading of any Asset on the Platform at any time.

Liquidity Risks

Assets may have limited liquidity which may make it difficult or impossible for you to sell or exit a position when you wish to do so. This may occur at any time, including at times of rapid price movements.

Availability Risk

We do not guarantee that the Services will be available at any particular time or that the Services will not be subject to unplanned service outages or network congestion. It may not be possible for you to buy, sell, store, transfer, send or receive Collateral or Assets when you wish to do so.

There are legal requirements in various countries which may restrict the products and services that EXN can lawfully provide. Accordingly, some products and services and/or certain functionality within the Platform may not be available or may be restricted in certain jurisdictions or regions or to certain Users. Users are responsible for informing themselves about and observing any restrictions and/or requirements imposed with respect to the access to and use of the Services and the Platform in each jurisdiction from which the Services and the Platform are accessed by or on behalf of the User. EXN reserves the right to change, modify or impose additional restrictions with respect to the access to and use of the Services and/or the Platform from time to time in its sole discretion without notification.

Risks related to Digital Assets

The features, functions, characteristics, operation, use and other properties of any Digital Assets and the software, networks, protocols, systems, and other technology (including, if applicable, any blockchain) used to administer, create, issue, transfer, cancel, use or transact in any Digital Assets may be complex, technical or difficult to understand or evaluate.

Given the nature of Digital Assets and their underlying technologies, risks relating to Digital Assets include, but are not limited to:

• faults, defects, hacks, exploits, errors, protocol failures or unforeseen circumstances occurring in respect of a Digital Asset or the technologies or economic systems on which the Digital Asset relies;
• transactions in Digital Assets being irreversible. Losses due to fraudulent or accidental transactions may not be recoverable;
• technological development leading to the obsolescence of a Digital Asset;
• delays causing a transactions not be settled on the scheduled delivery date; and 
• attacks on the protocol or technologies on which a Digital Asset depends, including, but not limited to: distributed denial of service; sybil attacks; phishing; social engineering; hacking; smurfing; malware; double spending; majority-mining, consensus-based or other mining attacks; misinformation campaigns; forks; and spoofing.

Any Digital Asset or underlying technology may change or otherwise cease to operate as expected due to a change made to the underlying technology, a change made using features or functions built into the underlying technology or a change resulting from an attack on its security, integrity or operations (“Material Operating Changes“). Such Material Operating Changes may materially affect the availability, value, functionality, and/or the name of the Digital Assets in your Account. This includes but is not limited to Digital Assets potentially being cancelled, lost or double spent, or otherwise losing all or most of their value. You acknowledge and accept the risks of Material Operating Changes to underlying technology and agree that EXN is not responsible for such changes and not liable for any loss of value you may experience as a result of such changes.

EXN reserves the right to suspend or cease to support the transfer, storage or trading of any Digital Assets at any time at EXN’s discretion in response to any Material Operating Change. EXN may, but is not obligated to, make changes to your Account(s) in response to a Material Operating Change.

You may be unable to withdraw Digital Assets prior to EXN ceasing to support transfer of any such Digital Assets as a result of Material Operating Changes, potentially resulting in the total loss of any such Digital Assets remaining in your Account.

Any Digital Asset may be lost forever if sent to the wrong address (including, without limitation, if the address is improperly formatted, contains errors, or is intended to be used for a different type of Digital Asset).

Legal and Regulatory Risks

Government regulation of Digital Assets is unsettled and rapidly evolving. The application and interpretation of existing laws and regulations are often largely untested and there is a lack of certainty as to how they will be applied. New laws and regulations may be promulgated in the future that apply to blockchain technology and Digital Assets, and related service providers, and no assurance can be given that any such changes will not adversely affect Digital Assets generally (including the use, transfer, exchange and value of Digital Assets) or the Services. It is not possible to predict how such changes would affect the price, liquidity and/or tradability of Digital Assets, or the use of any Services. Any Digital Asset may decrease in value or lose all of its value due to changes in laws or regulations, or any action taken by governmental or regulatory authorities.

EXN has sole and absolute discretion to suspend or reject the execution of any of your Instructions, Orders and/or Irrevocable Orders, suspend or cease support for any Assets, or suspend or terminate your access to any Accounts or Services, where any such action or inaction is, in the sole opinion of EXN, required or desirable to facilitate EXN’s compliance with Applicable Laws, or any order, directive or request from law enforcement or other governmental or regulatory authorities.

Platform’s Cybersecurity Risks

There are various risks associated with utilising an Internet-based trading system (such as the Platform) including, but not limited to, the failure of hardware, software, and Internet connections, the risk of malicious software introduction, the risk that third parties may obtain unauthorized access to information and/or assets (including your Collateral and Assets) stored on your behalf, cyber-attack, failure of underlying technology, blockchain or other networks, computer viruses, communication failures, disruptions, errors, distortions or delays you may experience when trading via the Services, howsoever caused, spyware, scareware, Trojan horses, worms or other malware that may affect your computer or other equipment, or any phishing, spoofing or other attack. Any such cybersecurity failures or breaches, whether involving the Platform or third-party service providers (including, but not limited to, hardware or software providers, or cloud services providers) could have a negative impact on the price, liquidity and/or tradability of Assets, or the use of any Services.

Platform’s Operational Risks

• Any technological difficulties experienced by EXN could prevent your access or use of the Collateral or Assets in your Account.
• You may be prevented from sending an Instruction, transaction request or email, or your Instruction, transaction request or email may not be received by EXN and/or the Platform, due to hardware, software or services issues (including, without limitation, Internet and other network connectivity issues).
• Your Instruction, transaction request or email to EXN and/or the Platform may be lost, intercepted or altered during transmission.
• Deposits, withdrawals and transfers may not be instantaneous, and EXN is not responsible for any price movements during that time and any losses incurred.
• The entire balance displayed in your Account(s) may not be tradeable, withdrawable or transferable.
• EXN may, from time to time, perform maintenance on the Platform or in relation to any of the Services, routine or otherwise. This may lead to Platform or Services downtime and your inability to access the Platform or any of the Services, potentially resulting in a delay or cancellation of any Orders or Irrevocable Orders. EXN may also suspend or permanently cease support for one or more Assets during network upgrades and/or network changes.

Unauthorised Access 

Unauthorised third parties may access or use your Account(s) and effect transactions without your knowledge or authorisation, whether by obtaining the password to your Account(s), obtaining control over another device or account used by you in connection with any enhanced security measures enabled for your Account(s), or by other methods. EXN will not be liable to you for any losses resulting from any of these kinds of unauthorised access.

Third-Party Risks

Third parties, such as Liquidity Providers, payment providers and custodians may be involved in the provision of Services. EXN will not be responsible for any loss that these third parties may cause to you.

The abovementioned risks described in this Risk Disclosure Statement may result in loss of Collateral or Assets, decrease in or loss of all value for Collateral or Assets, inability to access or transfer Collateral or Assets, inability to trade Assets, and other financial losses to you. The information presented in this Risk Disclosure Statement is not all-encompassing and does not reflect all of the risks you should consider before using the Platform and Services. You hereby acknowledge that EXN will have no responsibility or liability for any such risks whether identified in this Risk Disclosure Statement or not.

Under no circumstances shall any of the Indemnified Persons be responsible or liable to you or any other person or entity for any direct or indirect losses (including loss of profits, business or opportunities), damages or costs by reason of, or arising from, or as a consequence of, your use or reliance on any of the information set out in this Risk Disclosure Statement.