Trading and financing trades in Digital Tokens entail certain risks. This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding, trading, or engaging in financing or financed transactions in Digital Tokens. Risks include, but are not limited to, the following:
Market Risk
The market for Digital Tokens is still new and uncertain. No one should invest funds that he is not prepared to lose entirely in Digital Tokens or speculate in Digital Tokens. It is unknown whether the market for one or more Digital Tokens will move up or down, or whether a particular Digital Token will lose all or substantially all of its value. This applies both to traders that are going long and to traders who are shorting the market. Participants should be cautious about holding Digital Tokens.

Liquidity and Listing Risk
Markets for Digital Tokens have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade Digital Tokens or products derived from or ancillary to them.
Furthermore, any market for tokens may abruptly appear and vanish. Bitfinex makes no representations or warranties about whether a Digital Token that will be traded on the Site at any point in the future. Any Digital Token is subject to the risk of being delisted without notice or consent.

Legal Risk
The legal status of specific Digital Tokens may be uncertain, which means that the legality of holding or trading Tokens is not always clear. Whether and how one or more Digital Tokens constitute property, assets, or rights of any kind also seems to be unclear. Participants are responsible for knowing and understanding how Digital Tokens will be addressed, regulated, and taxed under applicable law.

Exchange Risk (Counterparty Risk)
Having Digital Tokens on deposit or with any third party in a custodial relationship has attendant risks. These risks include security breaches, the risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold their property for any reason.

Trading Risk
In addition to liquidity risks, values in any Digital Tokens marketplace are volatile and may shift quickly. Participants in any Digital Tokens market should pay close attention to their position and holdings, and how they may be impacted by sudden and adverse shifts in trading and other market activities.

Risks Associated with Financing Activities
When you finance a purchase or sale of Digital Tokens on a peer-to-peer basis, you will run the risk of losing the finance provided by you. Similarly, using financing to enter a trading agreement means that you accept the risk of not being able to repay that financing (e.g., if the market price of the Digital Token you purchased with the financing falls). Participants should know all of the terms of any contracts they agreed on and how their trading strategies, other markets, and risk factors may affect their financing obligations.