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RISK WARNING

RISK WARNING

UPDATE DATE: 03/12/2021

This Risk Notice (the "Notice"), together with the Terms and Conditions, Privacy Policy, and any other document referred to in those documents, is presented by The Place S.A. de C.V. ("Lemon" or the "Company", interchangeably), a company incorporated and registered in El Salvador registered in the Commercial Registry under number 65 of book 4786 and with Tax Identification Number ("TIN") 0614-140723-102-8; and authorized to operate as a Bitcoin Service Provider such as: Bitcoin Custodian, Digital Exchange or Exchange, Digital Wallet for Bitcoin, and Payment Processor by the Government of El Salvador, under Registration Code 64bea97579e50005ac471c50, with address at Calle Llana del Bosque Pie. Urb. Madre Selvalli, Edi. Avante Local 313 Antiguo Cuscatlan, La Libertad, El Salvador. 

All defined terms have the meaning set forth in the Terms and Conditions.

THE RISKS DESCRIBED BELOW ARE NOT, NOR ARE THEY INTENDED TO BE A COMPREHENSIVE OR EXHAUSTIVE LIST OF RISK FACTORS. NOTHING IN THIS NOTICE EXEMPTS THE USER FROM THE RESPONSIBILITY OF KNOWING AND UNDERSTANDING THE TECHNOLOGICAL, ECONOMIC, AND LEGAL NATURE OF DIGITAL CURRENCIES AND OF CAREFULLY MANAGING SUCH RISKS IN ACCORDANCE WITH THEIR OWN UNDERSTANDING OF SUCH TECHNOLOGY, DIGITAL CURRENCIES, THEIR TECHNOLOGY, AND THE RISK OF VOLATILITY THAT THEY INVOLVE.

When the User becomes an Account Holder and/or uses the Services, they expressly acknowledge, accept, and assume the following risks, and agree that Lemon shall not be liable in any way for any losses or damages of any kind arising directly or indirectly from the updating, total or partial, of any of the following risk events:

1. Account security risk: Unauthorized access by third parties to the User's login credentials to access their Account, including unauthorized access due to lack of care or forgetfulness by the Account Holder, or by the third party gaining control over another device or account used by the User in connection with any authorized enhanced security measures for their Account.

2. Investment Risks: Investing in cryptocurrencies carries significant risks and the User may lose a substantial portion, or all, of their investment in them. The value of cryptocurrencies is subject to fluctuations both up and down. The performance of cryptocurrencies is subject to various factors. The User should carefully consider whether they wish to assume the risks arising from their use and investment.

3. Software weaknesses risk: Since the Services are based on the Blockchain and/or distributed ledger records, any malfunction, breakdown, or abandonment of any Blockchain can have a material adverse effect on the Services. Additionally, advances in cryptography, or technical components may present risks to the Services, making cryptographic consensus or other technological elements supporting the blockchain and digital assets ineffective.  

4. Regulatory Risk: Blockchain technology enables new forms of interaction and it is possible that certain jurisdictions may apply existing regulations or introduce new regulations on blockchain technology-based applications, and that such regulations may result in substantial modifications to the Services, including their termination.

5. Risks associated with uncertain regulations and enforcement actions: Lemon may cease operations in a jurisdiction if, due to regulatory actions or changes to the law or regulations, it becomes illegal to operate in that jurisdiction, or it is not commercially desirable to obtain the necessary regulatory approval(s) to operate in that jurisdiction. This may result in the User losing access to their Account and may also result in the loss of any Digital Assets stored or held in the Account.

6. Mining attacks risks: Blockchains are susceptible to mining attacks, including, but not limited to, double-spend attacks, majority miner power attacks, self-mining attacks, and strange condition attacks. Any successful attack presents a risk to the Services and to the expected proper execution and to the sequence of operations carried out through the Services. The User understands and agrees that the network of miners will, ultimately, be in control of delivering the cryptocurrencies through the Blockchain, and that a majority of miners could agree, at any time, to make changes, updates, modifications to, or carry out the elimination or destruction of the Blockchain.

7. Risks arising from tax matters: The tax treatment of cryptocurrencies is uncertain. The User should seek their own tax advice in relation to the acquisition, storage, and use of any cryptocurrency, which may result in adverse tax consequences for the User, including, but not limited to, being subject to withholding taxes, transfer taxes, value added taxes, income taxes, and taxes, fees, duties, or other similar tax reporting requirements.

8. Company or network dissolution risk: It is possible that, due to certain reasons within which, in an enumerative manner, negative adoption of the Services, failure of business relationships, challenges related to ownership of intellectual property among others, it may no longer be viable to operate the Services and therefore it may be necessary to dissolve the Company, which may result in any cryptocurrency stored or held in the Account being irrecoverable and/or permanently lost.

9. Unforeseen Risks: Cryptocurrencies and blockchain technology are new technologies. In addition to these risks, there are other risks associated with the acquisition, storage, transmission, and use of any cryptocurrency through the User's Account, including those risks that cannot be anticipated. Such risks may materialize additionally as unforeseen variations or combinations of the risks described here.

10. Volatility Risk: The price of Bitcoin and other cryptocurrencies is highly volatile. It is common for prices to increase or decrease significantly and abruptly, in a single day. While this could result in profits, it could also result in substantial losses. The User should carefully consider whether they can assume the risk of investing in cryptocurrencies.

11. Project Risk: Cryptocurrencies and other virtual assets can be created and maintained by teams or entities that may fail for non-technological reasons. Even when Lemon conducts thorough analyses to list particular projects, the projects may fail.

Additionally, any cryptocurrency, or virtual asset, may be canceled, lost, or spent repeatedly, it may lose all or most of its value, due to deviations, restorations, attacks, or unusual operations of the cryptocurrency.

What a bank would never do: Verify in real time where all the funds we custody are with our Proof of Reserves and Proof of Solvency

What a bank would never do: Verify in real time where all the funds we custody are with our Proof of Reserves and Proof of Solvency

What a bank would never do: Verify in real time where all the funds we custody are with our Proof of Reserves and Proof of Solvency