Risks
Safello aims to provide a highly trustworthy and safe service in the crypto-exchange industry. However, buying and selling cryptocurrencies is associated with risks and is not suitable for all consumers. Customers shall understand, evaluate and build knowledge about the risks associated with cryptocurrencies. We want to inform our customers of the risks associated with cryptocurrencies, the main risks related to cryptocurrencies and our services are listed below (the list does not purport to be exhaustive in relation to all risks that may exist).
I.
Buying and selling cryptocurrencies is highly speculative and subject to a high price volatility. There is a risk that a customer may lose all or part of its investment in cryptocurrencies.
II.
Cryptocurrencies and the pricing of such are by their nature not guaranteed by any organization or state and cryptocurrencies may therefore not be considered as a monetary asset. Cryptographic units of value are not legally currencies and are accepted only in a few jurisdictions and only by some market participants as a means of payment. Consequently, cryptocurrencies have a very limited usage as a means of payment, and the high price volatility increases the risk that a customer may lose all or part of its investment in cryptocurrencies.
III.
Since the services are internet-based, there is a risk of hacking, internet vulnerability, theft and other cyber related crime towards property. Safello encourages its customers to take necessary precautions to mitigate such risks on their end by ensuring due care when using the services, following Safello’s instructions carefully and building knowledge regarding these risks. To mitigate the risk of unauthorized use of your Safello account, you are not allowed to use the services by using third party service providers or by accepting support from any third party. Third parties could impersonate Safello’s support personnel, and customers shall therefore only use Safello’s customer service which you can reach here. You may only use the services through Safello’s channels, being Safello’s mobile app, web app and widget, acting only by your own will and for your own benefit. By not adhering to our Terms of Service, you increase the risk of becoming a victim of third-party fraud. To prevent customers from becoming victims of fraud methods known to Safello, Safello has compiled a list of such in this FAQ collection.
IV.
Buying and selling cryptocurrencies is, as mentioned above, subject to high price volatility. The price volatility in combination with the time it takes to process and execute a transaction result in an exchange rate risk, implying that a transaction may be subject to an exchange rate which significantly deviates from the estimated exchange rate indicated in the channel when initiating the transaction. You can find further information regarding the applicable exchange rate for your transaction here.
V.
Customers shall inform themselves of the relevant tax consequences related to buying, selling, owning and transacting in cryptocurrency in their jurisdiction. You might review for example the section on cryptocurrencies from the Swedish Tax Agency (Sw. Skatteverket) by following this link.
VI.
There are regulatory risks since the Internet and cryptocurrencies have worldwide coverage but cryptocurrencies are not allowed in all jurisdictions. Therefore, customers shall keep themselves informed about regulatory and legal changes which may impact their ownership and ability to dispose of their cryptocurrency.
VII.
Customers shall be aware of the transmission risks of the Internet. The internet-based trading system implies risks related to for example the failure of hardware, software, and internet connections which may lead to communication failures, disruptions, errors, distortions or delays during the use of services.
VIII.
Transactions of cryptocurrencies which have been registered on the blockchain are irreversible and can only be refunded by the receiving party, consequently transactions carried out by Safello on behalf of a customer which have been registered in such a way cannot be reversed or cancelled.