Material Risks of Virtual Currency Disclosure Based on 23 NYCCR 200.19:

Last updated by Shayne McCulloch on July 02, 2019 12:14

  1. Virtual Currency (Bitcoin or other crypto currency) is not legal tender, is not backed by the government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections;
  2. legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of Virtual Currency;
  3. transactions in Virtual Currency may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;
  4. (some Virtual Currency transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the customer initiates the transaction;
  5. the value of Virtual Currency may be derived from the continued willingness of market participants to exchange Fiat Currency for Virtual Currency, which may result in the potential for permanent and total loss of value of a particular Virtual Currency should the market for that Virtual Currency disappear;
  6. there is no assurance that a Person who accepts a Virtual Currency as payment today will continue to do so in the future;
  7. the volatility and unpredictability of the price of Virtual Currency relative to Fiat Currency may result in significant loss over a short period of time;
  8. the nature of Virtual Currency may lead to an increased risk of fraud or cyber attack;
  9. the nature of Virtual Currency means that any technological difficulties experienced by Clic Technology may prevent the access or use of a customer’s Virtual Currency; and
  10. any bond or trust account maintained by Clic Technology for the benefit of its customers may not be sufficient to cover all losses incurred by customers.