Risk Disclosure

Trading and holding virtual currencies involve significant risks and may not be suitable for every investor.

Before opening an account with Coinbox, you must understand and accept the following risks:

1. Price Market Volatility

Digital asset prices are highly volatile and can rise or fall sharply within minutes. You may lose the entire amount of your investment.

2. Lack of Direct Supervision and Regulation

A significant portion of digital assets and blockchain networks are not supervised by any central bank or government (unlike Shekels and Dollars). Their value is derived from supply and demand, with no guarantees of stability similar to bank deposits.

3. Cyber and Information Security Risks

Despite the strong measures implemented by Coinbox (including Fireblocks integration), blockchain networks and private access tools (such as cold wallets) are exposed to cyber attacks, malicious third parties, and human error. Loss of access, passwords, or device backups may lead to a total and irreversible loss of funds.

4. Irreversible Transactions

Transactions on public blockchain networks cannot be reversed once executed. Sending digital assets to an incorrect address or via an unsupported network will, in the vast majority of cases, lead to their permanent loss with no ability for recovery by Coinbox.

5. Liquidity Risk

The liquidity of digital assets varies from coin to coin and may fall suddenly and sharply. There may be situations in which you cannot sell, buy, or convert your assets immediately, or at the market price you want, because there are not enough buyers or sellers in the market.

6. Regulatory and Tax Risk

The legal environment surrounding digital assets is changing and developing. Changes in legislation, regulatory guidance, or government decisions in Israel and abroad may restrict the use of digital assets or adversely affect their value. In addition, the obligation to report and to pay tax on profits from digital assets rests with you alone, in accordance with the tax laws that apply to you.

7. Custody and Counterparty Risk

Coinbox relies on custody providers to hold client assets. In the event of a technological failure, a breach of a provider, or the insolvency (bankruptcy) of one of these providers, there is a significant risk of partial or total loss of your assets, with no possibility of recovery.

8. Staking Risk

Participating in staking services exposes your assets to technological and network risks, including network penalties (slashing) that may be imposed if the network validator fails or acts maliciously, which may lead to the loss of the invested principal itself. In addition, assets committed to staking may be subject to lock-up periods, during which you cannot withdraw or trade them, even if there is a significant fall in market value.

9. No Deposit Insurance

Unlike fiat funds (such as Shekels or Dollars) held in a traditional bank account, which may benefit from government protections, digital assets held at Coinbox are not backed or protected by any government deposit insurance, or by any compensation fund of the Israel Securities Authority or a central bank.

10. The Product Is Not Suitable for Every Investor

Investing and trading in digital assets are considered to carry a very high level of risk and to be speculative. This activity is suitable only for investors with a high tolerance for risk, who are able to bear a potential loss of all invested funds without this materially harming their financial position.

This document does not exhaust all the risks involved in trading. Investment decisions are under your sole responsibility. Coinbox does not provide investment, tax, or legal advice.