Risks of Virtual Currency Exchanges

The terms and conditions of use shown here (hereinafter referred to as the "Terms and Conditions") set forth the terms between CieloEX Limited (hereinafter referred to as the "Company") and users (hereinafter referred to as the "User" or "Users" depending upon context) of any services or features of Cielo(hereinafter referred to as the"Service"), which is provided by the Company.

In using the account creation service, the user understands all the risks described below and regards it as agreed. 

1.Risks regarding property

2.Risks regarding price fluctuation

3.Risks regarding business hours

4.Risks regarding network

5.Risks regarding the system

6.Risks regarding change in the conditions of exchange

7.Risks regarding change in tax service

8.Risks regarding bankruptcy

9.Other risks 

1.Risks regarding property 

Virtual Currency is a digital currency recorded over internet and do not have the actual currency. It will not be guaranteed its value by a specific person, and it does not necessarily have assets.

2.Risks regarding price fluctuation 

Virtual Currency market prices always fluctuate.

Virtual Currency exchanges may cause loss as the market price of the Virtual Currency being traded fluctuate and the price of the held Virtual Currency value falls below at the point of purchase.

Virtual Currency market prices changes according to demand-supply balance, prices, legal currencies, trends in other markets, natural disasters, war, politics, laws and tax system, situation in Virtual Currency, and other situations that may cause fluctuation and decline to cause market price to 0. Due to this fluctuation, there may be conditions of not being able to exchange as planned.

Please note that loss may occur depending on reasons affecting the market price, as a direct cause.

3.Risks regarding business hours

You cannot exchange or trade the Virtual Currency during out of Company's business hours (including the time of maintenance).

The Company will not hold responsibility in case of market price for Virtual Currency fluctuating widely and will influence user's holding assets.

4.Risks regarding the network

(1) In Virtual Currency, there will be certain time being hold for verification under blockchain. In addition to above verification, there will be confirmation by the Company for the purpose of preventing illegal transfers of profits. With the result, there might be cancel of transfer and not be able to show in the balance.

In addition, transferring Virtual Currency may be cancelled  if it takes time for technical processing in the network, or if it is not completed due to technical factors. When the transfer of the Virtual Currency is canceled, transactions will be retroactively invalidated.

Also, Virtual Currency  itself may be lost when issues occur in data, networks, etc. within transferring process.

(2) Note that in the event of a blockchain split such as a hard or soft fork etc., prices may drastically drop or transactions may be made invalid after the fact. Before or after a chain split, the Company may set out a period of time during which transactions including, but not limited to, payments, deposits, and withdrawals of virtual currencies cannot be performed.

In cases that include, but are not limited to, where the Company deems that the split will not be permanent or other situations arise, the Company may stop supporting the relevant Virtual Currency, in whole or in part.

(3) The Company reserves the right to, in the event of a chain split or other change to Virtual Currency specifications, an airdrop, etc., decide whether to support a given currency and the nature of the support therein.

The malicious implementation of 51% or more of the total computing power on the blockchain network of a Virtual Currency may result in risks such as: (1) the approval of fraudulent transactions; (2) the denial of legitimate transactions; (3) gaining a monopoly in mining.

5.Risks regarding the system

As a result of causes that include, but are not limited to, damage to the telecommunications networks, systems, and equipment used by the Company and customers, damage to a connection, natural disasters such as earthquakes, lightning, and fires, and cyber attacks etc., the electronic trading system may be rendered unusable temporarily, and transmission of customer orders may be delayed or fail to process, resulting in invalidation or completion in an unintended manner.

(2) There is a risk that your transactions may be affected due to system failures resulting from events such as changes in the external environment.

System failure is considered to have occurred when the Company determines that a clear failure has occurred in our system, and the User is either unable to place orders on the internet or is delayed in doing so, or otherwise not able. The cases regarding User's network connection failure will not be applicable to the Company's system failure.

(3) Regarding to loss (examples below) due to things such as emergency maintenance or system failure of our company's system, please note that we shall not take corrective actions on such errors because we are not able to determine the details of the original order which was attempted to be placed.

Ex: Order content that the user tried order was not ordered on the system and missed the opportunity to trade, missing the profit that would otherwise have been obtained.

(4)There may be a possibility that the order instruction by the User will be invalid due to the arrival delay to our system or not arrived, or the unintentional order promises or the intended order may not be decided.

Also, when the market price fluctuates rapidly, information on our system will be delayed and there may also be a possibility that a deviation may occur with the actual price of the market.

(5) There may be a possibility that our system calculates an abnormal Virtual Currency buy or sell price.

Please note that we reserve the right to render the listed price invalid and cancel transactions which have been completed in the event that the Company can reasonably determine that the listed price is, due to system abnormality or other causes, significantly different from the prevailing market price, incorrect, abnormal, or based on unfair valuations.

The Company waives all liability for compensation for damages sustained directly or indirectly from the above.  Please also note that we cannot accept any settlements out of court or the likes.

(6) There may be cases where a transaction does not complete as intended or completes in an unintended manner due to factors such as customer error when entering data and/or other causes. Please note that transactions may not complete as intended based on the type of order or market conditions. The Company waives all liability for damages sustained by a customer or a third party through the results of a trade.

(7) Login or other information (examples below) used to electronically authenticate on the electronic trading system that it is stolen, intercepted, or otherwise leaked, may result in damages or losses to customers in the event that it is used maliciously by a third party.

*Including, but is not limited to, e-mail addresses, login IDs, API keys, passwords, API secrets, private keys, and authentication codes, and the same when referred to by other names.

The Company waives all liability for damages sustained by customers due to cases that include, but are not limited to, improper management of user IDs and passwords, misuse, leak, and use or theft by third parties.

(8) The Company does not take any responsibility in the case you use an external  bank account or wallet linked to our system, you may not be able to access your Virtual Currency assets if you lose your private key or password.

6.Risks regarding change in the conditions of exchange

The Company may in the future alter rules associated with trading, including but not limited to fees and costs, per changes to the economy, society, laws, statutes and regulations, service changes, and other circumstances. For example, we may change the fee structure including fee rate, etc., but we do not take any responsibility for losses etc. which occurred directly or indirectly by the change.

7.Risks regarding change in tax service

Please note that possession or trade of Virtual Currencies may, due to future changes to laws, statutes, tax law, or government policy, be restricted or be less advantageous than at present.

The Company does not take responsibility for the tax liability, tax returns, or damage to customers or third parties in any case. Please consult with your local tax office or a qualified tax adviser for further details.

8.Risks regarding bankruptcy

There is a risk that we cannot continue our business due to events such as changes in the external environment. In the case that we cannot continue our business, all processes including the treatment of customers' assets shall be done according to insolvency law, corporation law, corporate rehabilitation law, civil rehabilitation law and other related laws.

9.Other risks

Trading may be restricted due to natural disasters, changes to governments, strikes, sudden changes to the Virtual Currency markets, closing of Virtual Currency markets, or force majeure. This process carries the risk of customers being subject to unexpected damage or losses.

CieloEX Limited does not take any responsibility for the risks described above. The above is not intended to indicate all potential risks associated with trading.