Risk Disclaimer
COVESTING LEGAL AND RISK DISCLAIMER (“Disclaimer”) V date 6 Jan 2019
This disclaimer (together with our Terms of Use Terms of Use (the“Terms”), Privacy Policy (the“Privacy Policy”) and any other documents referred to in those documents) is given by Covesting International Limited of 57/63 Line Wall Road, Gibraltar, and sets out the risks to the User associated with trading and the use of the Trading Platform.
Please read the following carefully to understand these risks. By visiting https://covesting.io the User are accepting and consenting to the practices described in this policy.
All defined terms are as defined in the body of the text or in the Terms.
THE RISKS DESCRIBED BELOW ARE NOT NOR ARE THEY INTENDED TO BE A COMPREHENSIVE OR EXHAUSTIVE LIST OF RISK FACTORS.
ASSUMPTION OF RISK
The trading of goods and products, real or virtual, as well as crypto-currencies as well as the use of the Covesting Platform involves significant risk, and the User specifically agrees to assume the risks set out in this Disclaimer (“Risks”) as well as other risks not set out herein which are inherent to online trading and cryptocurrency speculation.
The Client agrees to assume the following risks and acknowledges and agrees that Covesting SHALL NOT be responsible for or otherwise liable for any direct or indirect loss or damage of any kind whatsoever arising directly or indirectly from the occurrence in full or in part of any and all of the following Risk events:
| Trading risk: | There is an inherent risk that losses will occur as a result of buying, selling or trading anything on a market. |
| Price fluctuation risk: | Cryptocurrency prices can and do fluctuate greatly on any given day and due to such price fluctuations, the User’s cryptographic assets may be subject to large swings in value and may even become worthless. |
| Risk in placing orders: | An Order may be incomplete and incorrect. Any Order, including Market Orders, Limit Orders and Stop Orders, may not be (and are not guaranteed) executable at the price or amount specified by the User. Orders may be cancelled at Covesting’s discretion or for any other reason. A Market Order will normally be executed as soon as possible and the execution price of the Transaction may deviate significantly (for example, 10%) from the nearest bid/ask price seen by the User, resulting in significant loss. In addition, an Order may not place completely or at all or may be placed at the wrong price or may suffer an unexpected delay in execution because of any of a variety of reasons. Under certain market conditions, the User may find it difficult or impossible to liquidate a position. This can occur, for example, when there is insufficient liquidity in the market. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit losses or lock profits to the intended amounts, since market conditions may make it impossible to execute such orders. The User may inadvertently due to their own error or because of a system or other human error place an Order for an asset which results in an unwanted Order. The User, Covesting or any third party (including a financial institution or payment institution or hacker) may send crypto to the wrong wallet address during the funding or withdrawal of their Account. The User may be prevented from sending an Order or email may not be received by Covesting or the Services, due to hardware, software or services issues (including, without limitation, Internet and other network connectivity issues). An executed Order, Transaction instruction or email to Covesting or the Services may be lost, intercepted or altered during transmission. Unauthorized third parties may access or use their Account and effect Transactions without their knowledge or authorization. Exceptional Market Conditions, Force Majeure Events and similar events can cause the booking of funds to be delayed. Covesting may refuse to act upon any instruction from a User or any person authorized by the User if Covesting reasonably believes that the transaction, pursuant to the instruction submitted, will be in violation of e.g. market rules, usual market practice, and/or applicable law, including, but not limited to, legislation on money laundering and insider trading. |
| Information risk: | There may be errors or omissions on the reporting module or otherwise delay, inaccuracy, error, interruption or omissions in providing market quotations or other information provided on the Site on which the User might rely in making an Order. |
| Cyber attack risk: | There may be third party or other attacks targeting computers/networks, spreading malware, running botnets, (D)DOS attacks, defacing websites, violations of network security, etc which can material alter, intercept or otherwise interfere with the giving or execution of a an Order or the transfer of Funds to and from the User´s wallet. |
| Counterparty Exchange risk: | There may be errors, acts or omissions by the Counterparty Exchange or the Counterparty Exchange system may suffer a partial or complete failure, including, without limitation, a cyber attack, such as phishing, pharming, etc, failure of hardware, software, human error, etc. |
| Copy trading risk: | A copied trader's account(s), portfolio(s) and/or strategy position(s) shall be copied in an amount equal to the lower of either the minimum position amount as shall be set by Covesting from time to time or the proportional amounts of the copied trade to the realised equity of the copied trader as the basis for the proportions of copied trades. Such positions shall have the same leverage (if any), stop loss and take profit, to the maximum extent possible. Trades below the minimum trade amount shall not be opened. All such positions shall be modified and/or closed automatically if and when modified/closed by the copied trader, for whatsoever reason, without providing any further notice and without any action on the User’s part. The User should be able and prepared to bear the loss of the entire investment the User made in such a copied trader. If the User places additional trades in the User’s account or the User modify or cancel an order generated by a Social Trading service the User may achieve a materially different result than the user that the User copied. Unopened copied trades in amounts lower than the minimum trade may also result in different results. Cash-out and withdrawal by the copied trader may also generate a materially different result than the User copied as it may affect the copy trading proportions. |
| Financial or payment institution risk: | Errors, acts or omissions of a financial or payment institution, including delays in sending or receiving funds from an Account to or from a. |
| Tax risk: | Transactions the User completes using the Trading Platform may be subject to various taxes, such as VAT, sales tax or transfer taxes that are imposed and any profit or loss the User obtain therefrom. |
| Account/Password appropriation risk: | Unauthorised access by third parties of the User’s login credentials to gain access to the User’s Account, including through carelessness or forgetfulness of the User, or the third party obtaining control over another device or account used by the User in connection with any enhanced security measures enabled for their Account. |
| Platform risk: | There is no warranty or assurance that the development of the platform software or hardware will be uninterrupted or error-free, and there is an inherent risk that the software could contain defects, weaknesses, vulnerabilities, viruses or bugs causing substantial loss. |
| Token risk: | Any Token listed, or the underlying project, may be abandoned by the creators, suffer from lack of success or business failure for a number of reasons including but not limited to lack of interest from the public, funding failures, lack of commercial success or prospects (e.g. caused by competing projects) and the User may incur substantial losses as a result of investing in any token listed on the Covesting platform. The features, functions, characteristics, operation, use and other properties of any Token (“Token Properties”) and the software, networks, protocols, systems, and other technology (including, if applicable, any blockchain) (“Underlying Technology”) used to administer, create, issue, transfer, cancel, use or transact in any Token may be complex, technical or difficult to understand or evaluate, and Covesting agrees no obligation to provide individual advice or information in respect of any Token, Token Properties or Underlying Technology. Any Token and its Underlying Technology may be vulnerable to attacks on the security, integrity or operation of the Token or its Underlying Technology (“Attacks”), including Attacks using computing power sufficient to overwhelm the normal operation of a blockchain or other Underlying Technology. Any Token, Token Properties 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. These changes may include, without limitation, a “fork” or “rollback” of a Token or blockchain. Any Token may be cancelled, lost or double spent, or otherwise lose all or most of their value, due to forks, rollbacks, Attacks, changes to Token Properties or failure of the Token to operate as intended. Covesting may suspend or cease to support the transfer, storage or trading of any Token at any time at Covesting’s discretion. Other exchanges and service providers may do the same. Covesting may suspend or reject Orders, suspend or cease support for Tokens, or suspend or terminate the User’s access to the Services to comply with applicable laws or regulations or an order from law enforcement or other governmental authority, for other reasons as specified in these Terms or otherwise at Covesting’s discretion. |
| Token listing risk: | A Token listed by a corporate User may be cancelled or rendered non-operational at any time without prior notice to the User, intentionally or otherwise (for example, due to a regulatory intervention, security concern or as a result of a third party hacking attempt), irrespective of any communications or prior agreement between the parties, resulting in significant reputational, financial or other loss to the User, other Users or other Token holders of the cancelled Token. |
LIMITATION OF LIABILITY
Except as expressly provided to the contrary in writing by us, the Trading Platform is provided on an “as is” and “as available” basis. Covesting expressly disclaim, and the User waive, all warranties of any kind, whether express or implied, including, without limitation, implied warranties of merchantability, fitness for a particular purpose, title and non-infringement as to the Trading Platform, including the information, content and materials contained therein.
Covesting is not liable for any breach of an obligation under the Terms where Covesting is hindered or prevented from carrying out its obligations by any cause outside of our reasonable control. In no event shall Covesting, its directors, shareholders, officers, members, employees, affiliates or agents be liable to the User for any special, direct, indirect or consequential damages, or any other damages of any kind, including but not limited to loss of use, loss of profits or loss of data, whether in an action in contract, tort including but not limited to negligence or otherwise, arising out of or in any way connected with the use of or inability to use the Trading Platform, including without limitation any damages that result from mistakes, omissions, interruptions, deletion of files or email, errors, defects, viruses, delays in operation or transmission or any failure of performance, whether or not resulting from acts of god, communications failure, theft, destruction or unauthorized access to the Trading Platform, records, programs or services.
Covesting does not assume any liability for negligent or wilful misconduct of Covesting’s directors, shareholders, officers, members, employees, affiliates or agents (or corresponding hierarchical level) and potential clients should not rely upon the Trading Platform or information provided by the same in deciding whether or not to use the Trading Platform. The Purchaser hereby holds harmless and indemnifies and keeps indemnified the Trading Platform and its officers and employees from and against all liabilities, costs and damages of any kind (including, for the avoidance of doubt, all legal expenses incidental thereto) which may be incurred by any of them and all actions or proceedings which may be brought by or against them.
Covesting shall in no event be liable to the User by way of indemnity or by reason of any breach of the Terms or in tort or otherwise for loss of use of the Assets or any part thereof or for loss of opportunity, loss of profit, or for any indirect, special or consequential loss or damage that may be suffered by the User in connection with the use of the Trading Platform or the Site or the provision by Covesting of the Services in connection with the same.
In no event shall our aggregate liability, whether in contract, warranty, tort (including negligence, whether active, passive or imputed), product liability, strict liability or other theory, arising out of or relating to the use of and/or inability to use the Trading Platform exceed the amount of 250 USD (two hundred and fifty United States Dollars) during the 6 months immediately preceding the date of any claim giving rise to such liability.
This limitation of liability is subject to the maximum liability cap set out in the Terms.
IF YOU MAKE INVESTMENT DECISIONS IN RELIANCE ON INFORMATION WHICH IS AVAILABLE ON THE SITE OR AS A RESULT OF THE USE OF THE SOCIAL TRADING SERVICES, YOU DO SO AT YOUR OWN RISK. COVESTING AND ITS AFFILIATES, THEIR EMPLOYEES AND ITS AGENTS WILL NOT BE LIABLE FOR ANY LOSSES THAT YOU MAY SUSTAIN.
YOU SHOULD NOT MAKE ANY INVESTMENT DECISION WITHOUT FIRST CONDUCTING YOUR OWN RESEARCH. YOU ARE SOLELY AND EXCLUSIVELY RESPONSIBLE FOR DETERMINING WHETHER ANY INVESTMENT, OR STRATEGY, OR ANY OTHER PRODUCT OR SERVICE IS APPROPRIATE OR SUITABLE FOR YOU BASED ON YOUR INVESTMENT OBJECTIVES AND PERSONAL AND FINANCIAL SITUATION.
Any past performance of our users, risk score, statistics and any other information with respect to users appearing on our websites and applications are not indicative of future results and should be considered as hypothetical as more fully described below. It is important to understand that risk scores, statistical information and historical performance are not a guarantee of future performance.
NO REPRESENTATION OR GUARANTEE IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN AND/OR THAT A RISK SCORE OF A COPIED USER SHALL NOT IN FACT BE HIGHER.
When reviewing the portfolio, financial performance information, opinions or advice of another registered user, The User should not assume that the user is unbiased, independent or qualified to provide financial information or opinions. Covesting does not guarantee any order including the placing of stop orders. Accordingly, regardless of the entry or closing designation, Covesting does not guarantee that the trade will be filled at the order price/stop loss percentage and the User may lose more than the original amount used to copy such trader.
PAST PERFORMANCE AND/OR RISK SCORES SHOULD BE CONSIDERED AS HYPOTHETICAL PERFORMANCE RESULTS. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS. NO REPRESENTATION OR GUARANTEE IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THE PAST PERFORMANCE OR RISK SCORE SHOWN. THE ACTUAL PERCENTAGE GAINS/LOSSES EXPERIENCED BY INVESTORS WILL VARY DEPENDING ON MANY FACTORS, INCLUDING BUT NOT LIMITED TO: STARTING ACCOUNT BALANCES (DEPOSITS AND WITHDRAWALS), MARKET BEHAVIOR, MINIMUM TRADE SIZE, THE INVESTOR'S ACCOUNT SETTINGS AND THE ACTUAL PERFORMANCE OF THE COPIED USER.
ACCORDINGLY, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL/PAST PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
NO ASPECT OF THE INFORMATION AND/OR SOCIAL TRADING FEATURE PROVIDED AND/OR MADE AVAILABLE ON OUR WEBSITES IS INTENDED TO PROVIDE, OR SHOULD BE CONSTRUED AS PROVIDING, ANY INVESTMENT, TAX OR OTHER FINANCIAL RELATED ADVICE OF ANY KIND. YOU SHOULD NOT CONSIDER ANY SUCH CONTENT AND/OR ANY SUCH FEATURE TO BE A SUBSTITUTE FOR PROFESSIONAL FINANCIAL AND/OR INVESTMENT ADVICE. IF YOU CHOOSE TO ENGAGE IN TRANSACTIONS BASED ON CONTENT ON THE WEBSITE AND/OR ELECT TO COPY SPECIFIC TRADERS AND/OR TRADES, THEN SUCH DECISIONS AND TRANSACTIONS AND ANY CONSEQUENCES FLOWING THEREFROM ARE YOUR SOLE RESPONSIBILITY. WHILE INDIVIDUAL PARTICIPANTS MAY OFFER INVESTMENT ADVICE OR OPINIONS AND/OR EFFECT A TRANSACTION WHICH MAY BE SUBSEQUENTLY COPIED BY OTHER TRADERS, SUCH ADVICE, OPINIONS OR TRADES AMOUNT TO NOTHING MORE THAN EXCHANGES BETWEEN PERSONS WHO MAY BE ANONYMOUS OR UNIDENTIFIABLE OR SIMPLY THE EXECUTION OF A TRADE BY SUCH TRADERS. COVESTING AND ITS AFFILIATES DO NOT PROVIDE INVESTMENT ADVICE DIRECTLY, INDIRECTLY, IMPLICITLY, OR IN ANY MANNER WHATSOEVER BY MAKING SUCH INFORMATION AND/OR FEATURES AVAILABLE TO YOU. ANY DATA YOU GATHER FROM HERE OR FROM USING THE SOCIAL TRADING FEATURES IS PROVIDED FOR INFORMATION ONLY.
INDEMNITY
The User agree to defend, indemnify, and hold us harmless, and each of our officers, directors, shareholders, members, employees, agents and affiliates, from any claim, demand, action, damage, loss, cost, or expense, including without limitation reasonable professional fees, arising out or relating to (i) the User’s use of, or conduct in connection with the Trading Platform; (b) the User’s violation of the Terms; or (c) the User’s violation of any rights of any other person or entity and we will have the right, in our sole discretion, to control any action or proceeding and determine whether we wish to settle it, and if so, on what terms.
In making a decision to copy a specific trader, account, portfolio and/or strategy, the User have considered the User’s entire financial situation including financial commitments and the User understand that using Social Trading service is highly speculative and that the User could sustain significant losses exceeding the amount used to copy a trader or traders;
information in relation to Social Trading provided by Covesting is provided solely for informational purposes. Covesting and its affiliates and their employees and agents are not investment or financial advisers.
