Risk Disclosure Statement

Last Updated: 26th August 2024

IMPORTANT

To better safeguard your interests, CCO2 reminds you that trading and/or investing in the carbon credits and digital asset markets is subject to severe risks. By participating in these activities, you risk losing ALL OR SUBSTANTIALLY ALL OF YOUR ASSETS. Please understand and evaluate the risk of trading and assess your risk tolerance carefully before conducting any carbon credit or digital asset trading or investment activities.

INTERPRETATION

A) All terms used in this notice, which are defined in the CCO2 User Agreement (the ‘User Agreement’), shall have the same meaning and construction as in the User Agreement.

B) This Risk Disclosure Statement (the ‘Statement’) shall form part and parcel of the Legal Documents and shall have the same effect thereto.

CCO2 SERVICES

A) This Statement provides you with information about the risks associated with CCO2 Services. Each CCO2 Service has its own distinct risks, which may be separately contained under the corresponding Legal Documents. This Statement provides a non-exclusive, general disclosure of the risks involved when you use CCO2 Services.

B) This Statement does not explain all of the risks or how such risks relate to your personal circumstances. It is important that you fully understand the risks involved before making a decision to use CCO2 Services.

NO ADVICE

We do not provide advice in relation to our Products or Services. We sometimes provide factual information, information about transaction procedures, and information about the potential risks. However, any decision to use our Products or Services is made by you. No communication or information provided to you by us is intended as, or shall be considered or construed as, investment advice, financial advice, trading advice, or any other sort of advice. You are solely responsible for determining whether any investment, investment strategy, or related transaction is appropriate for you according to your personal investment objectives, financial circumstances, and risk tolerance.

NO MONITORING

CCO2 is not your broker, intermediary, agent, or advisor and has no fiduciary relationship or obligation to you in connection with any trades or other decisions or activities undertaken by you using CCO2 Services. We do not monitor whether your use of CCO2 Services is consistent with your financial goals and objectives. It is up to you to assess whether your financial resources are adequate to engage in financial activity with us and to consider your risk appetite in the Products and Services you use.

NO TAX, REGULATORY, OR LEGAL ADVICE

The taxation of carbon credits and digital assets is uncertain and may vary from location to location. You are responsible for determining what taxes you might be liable to, and how they apply, when transacting through CCO2 Services. It is your responsibility to report and pay any taxes that may arise from using CCO2 Services, and you acknowledge that CCO2 does not provide legal or tax advice relative to these transactions. If you have any doubts about your tax status or obligations when using CCO2 Services, or with respect to the carbon credits or digital assets held in your CCO2 Account, you are encouraged to seek independent advice.

MARKET RISKS

Trading carbon credits and digital assets is subject to severe market risk and price volatility. Changes in value may be significant and may occur rapidly and without warning. Past performance is not in any way an indicator of future performance. The value of an investment and any returns can go down as well as up. You may not get back the amount you have invested, and there are severe risks of losing all of your assets.

LIQUIDITY RISKS

Carbon credits and digital 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 and from time to time, including at times of rapid price movements.

AVAILABILITY RISKS

We do not guarantee that CCO2 Services will be available at any particular time or that CCO2 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 carbon credits or digital assets when you wish to do so.

When a carbon credit project or digital asset project party faces bankruptcy, liquidation, and dissolution, or violates national laws and regulations, or under the request of the project party, CCO2 will delist such carbon credits or digital assets, which may cause losses for Users.

There are legal requirements in various countries which may restrict the Products and Services that CCO2 can lawfully provide. Accordingly, some products and services and/or certain functionality of the CCO2 Platform may not be available or may be restricted in certain jurisdictions or regions or to certain Users, and any CCO2 marketing campaign, activities, or other promotions will not be open to (and are not targeted at or intended for) Users to whom restrictions apply. 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 CCO2 Platform and the corresponding Services in each jurisdiction from which the Platform and the corresponding Services are accessed by or on behalf of the User. CCO2 reserves the right to change, modify, or impose additional restrictions with respect to the access to and use of the Platform and/or the corresponding Services from time to time in its sole discretion without notification.

THIRD PARTY RISKS

Third parties, such as payment providers, custodians, and banking partners, may be involved in the provision of CCO2 Services. You may be subject to the terms & conditions of these third parties. CCO2 shall not be held responsible for any loss that these third parties may cause to you.

SECURITY RISKS

It is not possible for CCO2 to eliminate all security risks. You are responsible for keeping your CCO2 Account password safe, and you may be responsible for all the transactions under your CCO2 Account, whether you authorized them or not. Transactions involving carbon credits and digital assets may be irreversible, and losses due to fraudulent or unauthorized transactions may not be recoverable.

RISKS RELATED TO CARBON CREDITS AND DIGITAL ASSETS THEMSELVES

Given the nature of carbon credits, digital assets, and their underlying technologies, there are a number of intrinsic risks, including but not limited to:

a) Faults, defects, hacks, exploits, errors, protocol failures, or unforeseen circumstances occurring in respect of carbon credits, digital assets, or the technologies or economic systems on which they rely; b) Transactions involving carbon credits or digital assets being irreversible. Consequently, losses due to fraudulent or accidental transactions may not be recoverable; c) Technological development leading to the obsolescence of a carbon credit or digital asset; and d) Attacks on the protocol or technologies on which carbon credits or digital assets depend, 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.

MONITORING RISKS

Carbon credit and digital asset markets are open 24 hours a day, 7 days a week. Rapid price changes may occur at any time, including outside of normal business hours. You are solely responsible for ensuring constant monitoring of the carbon credit and digital asset markets.

COMMUNICATION RISKS

When you communicate with CCO2 via electronic communication, you should be aware that electronic communications can fail, can be delayed, may not be secure, and/or may not reach the intended destination.

CURRENCY RISKS

Currency exchange fluctuations will impact your gains and losses.

LEGAL RISKS

Changes in laws and regulations may materially affect the value of carbon credits and digital assets. This risk is unpredictable and may vary from market to market. Also, you may suffer severe losses if your actions breach national laws or regulations.

OTHER RISKS

This Statement is a non-exclusive list of the risks that may be involved during your use of CCO2 Services. However, there are other risks which may be Service-specific or Product-specific. You should carefully read the risk disclosures contained separately under the Legal Documents, including the User Agreement.

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