Risk Disclosure

Last updated: January 1, 2025

⚠️ IMPORTANT: Please read this entire document before using BMX. Digital assets involve significant risks.

NOT INVESTMENT ADVICE

BMX does not provide investment, financial, legal, or tax advice. Nothing on this platform should be construed as a recommendation to buy, sell, or hold any digital asset. You should consult with qualified professionals before making any financial decisions.

1. Market Risks

  • Volatility: Artist token prices can fluctuate dramatically. You may lose some or all of your purchase amount.
  • Liquidity: There may not be buyers when you want to sell. Tokens may become illiquid.
  • No Guaranteed Returns: Past performance does not indicate future results. There is no guarantee of profit.
  • Market Manipulation: Digital asset markets may be subject to manipulation.

2. Technology Risks

  • Blockchain Risks: The Our internal ledger and Bitcoin settlement rails may experience scheduled maintenance or downtime.
  • Smart Contract Risks: Code may contain bugs or vulnerabilities.
  • Platform Risks: BMX may experience downtime, security breaches, or technical failures.
  • Loss of Access: If you lose your credentials, recovery may be impossible.

3. Regulatory Risks

  • Legal Uncertainty: Cryptocurrency and digital asset regulations are evolving and vary by jurisdiction.
  • Regulatory Changes: New laws or regulations may adversely affect the platform or your assets.
  • Tax Implications: You are responsible for understanding and complying with tax obligations.

4. Artist-Specific Risks

  • Career Risk: An artist's career may decline, affecting token value.
  • Reputation Risk: Negative publicity about an artist may impact their token.
  • Abandonment: Artists may abandon their token project.
  • No Obligations: Artists are not obligated to provide ongoing value to token holders.

5. Custody Risks

  • Custodial Model: BMX uses a custodial wallet system. Your assets are held in our custody.
  • Platform Risk: If BMX experiences financial difficulties, your BMEX balance and tokenised positions may be at risk.
  • Security Breaches: Despite our security measures, breaches may occur.

6. Only Risk What You Can Afford to Lose

You should only use funds that you can afford to lose entirely. Do not use funds needed for essential expenses, emergency savings, or retirement. Digital asset purchases should be considered speculative and high-risk.

Acknowledgment

By using BMX, you acknowledge that you have read and understood this Risk Disclosure, that you accept all associated risks, and that you are solely responsible for your own financial decisions.