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Legal Disclosures
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Risk Disclosures
IT IS IMPORTANT YOU READ AND FULLY UNDERSTAND THE FOLLOWING RISKS ASSOCIATED WITH THE USE OF CRYPTO-ASSET SERVICES PROVIDED BY ORBITAL
Introduction
This Risk Disclosure applies to all clients when they use the services of any of Orbital Group's Service Providers and is intended to outline key risks associated with the crypto-asset services provided by the Service Providers, including custody and administration of crypto-assets, execution of orders for crypto-assets, exchange of crypto-assets for funds or other crypto-assets, and transfer services for crypto-assets. It also applies to the extent relevant to e-money and payment services.
This document is not exhaustive and does not cover all potential risks. Clients are responsible for evaluating whether the Services are appropriate for their business or financial needs. Terms not otherwise defined in this Risk Disclosure have the meanings given to them in the Master Services Agreement.
This Risk Disclosure takes into account, by analogy, the risk categories set out in Article 81(9) of Regulation (EU) 2023/1114 (MiCAR) and the Joint European Supervisory Authorities' warnings on crypto-assets.
1. Value Fluctuation and Loss
1.1.
The value of crypto-assets may fluctuate significantly. Prices can and do change rapidly due to market demand, market sentiment, regulatory developments, technological changes, or other factors.
1.2.
You may lose some or all of the value of crypto-assets held or transacted through the Services. There is a real possibility of total loss.
1.3.
Past performance or price stability of any crypto-asset does not guarantee future outcomes.
2. Liquidity Risk
2.1.
Crypto-assets may not be liquid. You may not be able to sell, exchange, or transfer crypto-assets at a desired time or price, or at all.
2.2.
Liquidity may be reduced or unavailable during periods of market stress, low trading volumes, or where third-party liquidity providers restrict or discontinue support for certain crypto-assets.
3. No Investor Compensation Scheme
3.1.
Crypto-assets are not covered by investor compensation schemes under Directive 97/9/EC of the European Parliament and of the Council. If the Service Provider or any third party in the service chain fails, you may have no recourse to an investor compensation scheme.
4. No Deposit Guarantee Scheme
4.1.
Crypto-assets are not covered by deposit guarantee schemes under Directive 2014/49/EU of the European Parliament and of the Council. This includes e-money tokens (EMTs) and other crypto-assets held through the Services.
4.2.
E-money balances held in e-money accounts with the Service Provider are subject to safeguarding requirements under the Payment Institutions and E-Money Institutions Act (PIEIA), but are not covered by deposit guarantee schemes.
5. Risks Specific to E-Money Tokens (EMTs) and Non-MiCAR-Compliant Crypto-Assets
5.1.
Certain crypto-assets supported by the Service Provider purport to maintain a stable value by referencing a fiat currency. MiCAR-compliant EMTs are issued by authorised entities and are subject to regulatory requirements, including reserves and redemption rights at par value.
5.2.
Non-MiCAR-compliant crypto-assets that reference a fiat currency (including USDT) are not issued by entities authorised under MiCAR. There is no regulatory guarantee that such assets can be redeemed at par value (1:1) against fiat currency. The reserve backing and redemption terms are determined solely by the issuer. Clients should consult the issuer's public disclosures for information on the asset's characteristics and risks.
5.3.
E-money tokens and other crypto-assets referencing a fiat currency may depeg or lose their intended stable value under market stress, in the event of issuer failure, or due to inadequate reserve backing.
6. Counterparty and Third-Party Risks
6.1.
The Service Provider relies on third-party providers, including banking partners, liquidity providers, custodial technology providers, and blockchain networks. Failures, insolvency, or operational disruption of these parties may result in delayed settlements, loss of access to funds or crypto-assets, or service interruptions.
6.2.
There is a risk that any counterparty in the crypto-asset service chain may lose your crypto-assets, become insolvent, or suffer security or contractual breaches. Depending on their regulatory status, legal protections available to you may be limited.
7. Regulatory and Legal Risks
7.1.
The regulatory framework for crypto-assets is evolving. Regulatory changes may restrict access to services, impact the availability of certain crypto-assets, require additional compliance obligations, or result in the discontinuation of support for certain crypto-assets.
7.2.
Not all crypto-assets are subject to the same level of regulatory protection. Crypto-assets that fall outside the scope of MiCAR or that are issued by non-authorised entities may offer limited or no regulatory protection.
8. Operational and Technology Risks
8.1.
The Services depend on complex technology systems that may experience downtime, software defects, or network failures.
8.2.
Blockchain infrastructure may be vulnerable to cyberattacks, consensus failures, forks, protocol changes, or network congestion. These events may disrupt services or impact the value or accessibility of crypto-assets.
8.3.
Crypto-asset transactions are typically irreversible once confirmed on the blockchain network. Errors in wallet addresses, network selection, or transaction amounts may result in permanent loss that cannot be recovered.
9. Transaction and Pricing Risks
9.1.
Transactions may be delayed due to network congestion, fail due to incorrect details, or be permanently recorded on public ledgers.
9.2.
Execution prices and fees may vary based on market conditions, liquidity availability, and the blockchain network used.
9.3.
For non-MiCAR-compliant crypto-assets, reduced liquidity from MiCAR-regulated venues may adversely affect pricing and execution quality.
10. Fraud, Scams and Market Manipulation
10.1.
The crypto-asset sector may be subject to fraudulent schemes, scams, misleading information, and market manipulation. Clients should exercise caution and conduct their own due diligence.
10.2.
The Service Provider does not provide investment advice or any form of financial advisory services.
11. Force Majeure
11.1.
Events outside the Service Provider's control, including regulatory actions, market disruptions, cyber incidents, or natural disasters, may lead to service interruptions or financial losses.
12. UK Specific Disclosure
12.1.
Crypto-asset products and services mentioned on this website are not authorised or regulated by the UK FCA. These investments lack the protections of FCA-regulated products. The information pertaining to crypto-asset products provided here is intended exclusively for eligible corporate clients outside the UK and high net worth companies who are exempt from the UK Financial Conduct Authority’s Financial Promotions Regime.
13. Client Responsibility
13.1.
You are responsible for understanding the risks of using the Services, conducting your own due diligence, and maintaining appropriate internal controls.
13.2.
You should only use funds and crypto-assets that you can afford to risk.
13.3.
By using the Services, you acknowledge that you understand the risks outlined in this Risk Disclosure, you accept responsibility for your use of the Services, and you have sufficient knowledge and experience to engage with these Services.
Resources & Support
Resources & Support
NB! Information provided on this website is intended to inform eligible corporate customers about Orbital’s services and does not constitute financial or investment advice. The availability of particular Orbital’s services is subject to jurisdictional and regulatory limitations. Orbital does not recommend buying or selling any particular digital assets and makes no representation on the suitability or reliability of any such asset. Cryptocurrencies are highly volatile and carry significant risks, including potential total loss. Stablecoins carry risks related to issuer solvency, reserve adequacy, and evolving regulatory frameworks.
Orbital is the trading name representing the Pay Perform group of traditional financial and digital asset service providers. Regulatory status of Orbital’s services differs per jurisdiction, and you may not be protected by government or regulatory protection schemes. Please see Legal Disclosures for more information or reach out to us at: hello@getorbital.com
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