Risk Warning & Legal Disclaimers - Bitcompare
IMPORTANT: Please Read This Risk Warning Carefully Before Using Our Services

Risk Warning & Legal Disclaimers

Document Version: 2.0.0

Effective Date: May 23, 2025

Last Updated: May 23, 2025

Jurisdiction: Singapore (Primary), with International Application

LEGAL ENTITY INFORMATION:

Bitcompare and all associated services ("Services") are owned and operated by:

Blue Venture Studios Pte Ltd

UEN: 202410003N

Registered Office: 68 Circular Road, #02-01, Singapore 049422

Data Protection Officer: dpo@bitcompare.net

By accessing or using our Services, you acknowledge that you have read, understood, and agree to be bound by this Risk Warning and all Legal Disclaimers contained herein.

If you do not agree with any part of these warnings or disclaimers, you must immediately cease using our Services.

1. General Cryptocurrency Risks

1.1 Extreme Volatility HIGH RISK

Cryptocurrency markets exhibit extreme price volatility that can result in:

  • Total loss of invested capital within minutes or hours
  • Price swings exceeding 50% in a single day
  • Liquidity crises preventing exit from positions
  • Cascade liquidations and flash crashes
  • Market manipulation by large holders ("whales")

1.2 Total Loss Risk HIGH RISK

You may lose all funds invested in cryptocurrencies. Cryptocurrencies may become worthless. There is no guarantee that any cryptocurrency will maintain any value whatsoever.

1.3 No Regulatory Protection

Unlike traditional financial markets, cryptocurrency investments typically have:

  • No deposit insurance or investor protection schemes
  • No central authority to reverse transactions
  • No guaranteed recourse for fraud or theft
  • Limited or no regulatory oversight in many jurisdictions

2. Regulatory & Compliance Risks

2.1 Jurisdictional Variations HIGH RISK

Important: Cryptocurrency regulations vary dramatically by jurisdiction. Activities that are legal in one country may be criminal offenses in another. You are solely responsible for:

  • Determining the legality of cryptocurrency activities in your jurisdiction
  • Complying with all applicable laws and regulations
  • Understanding tax obligations in your jurisdiction
  • Obtaining necessary licenses or permissions

2.2 Prohibited Territories

Our Services are not available to residents, citizens, or entities located in:

  • Countries subject to UN, US, EU, UK, or Singapore sanctions
  • Jurisdictions where cryptocurrency services are prohibited
  • Specifically restricted territories as updated on our website

2.3 Regulatory Changes

Regulatory frameworks for cryptocurrencies are rapidly evolving. Future regulatory actions may:

  • Ban or restrict cryptocurrency trading or ownership
  • Impose punitive taxation
  • Require licensing or registration
  • Result in criminal prosecution for past activities
  • Force closure of exchanges or services

2.4 Anti-Money Laundering (AML) & Know Your Customer (KYC)

We reserve the right to:

  • Implement KYC/AML procedures at any time
  • Report suspicious activities to authorities
  • Freeze or terminate accounts suspected of illicit activity
  • Share user information with law enforcement when required

3. Financial & Market Risks

3.1 No Investment Advice

We do not provide investment, financial, tax, or legal advice.

All information provided through our Services is for informational purposes only and should not be construed as:

  • Investment recommendations or advice
  • Financial planning guidance
  • Tax preparation or advice
  • Legal counsel or opinions
  • Trading signals or strategies

You must consult qualified professionals before making any financial decisions.

3.2 Market Risks

Cryptocurrency markets are subject to:

  • Liquidity Risk: Inability to buy or sell at desired prices
  • Counterparty Risk: Exchange insolvencies, hacks, or fraud
  • Market Manipulation: Pump and dump schemes, wash trading, spoofing
  • Stablecoin Risk: Depegging, reserve inadequacy, regulatory actions
  • DeFi Protocol Risk: Smart contract bugs, rug pulls, governance attacks
  • Impermanent Loss: Losses from providing liquidity
  • MEV Risk: Front-running and sandwich attacks

3.3 Leverage & Margin Risks HIGH RISK

If our Services display information about leveraged trading or margin products:

  • Losses can exceed initial investment
  • Forced liquidations can occur rapidly
  • Interest charges compound losses
  • Not suitable for retail investors

4. Technology & Security Risks

4.1 Blockchain Technology Risks

Blockchain technologies carry inherent risks including:

  • 51% Attacks: Network takeover by malicious miners
  • Hard Forks: Chain splits creating competing versions
  • Protocol Changes: Updates that may affect functionality or value
  • Consensus Failures: Network disagreements causing instability
  • Scalability Issues: High fees and slow transactions during congestion

4.2 Smart Contract Risks HIGH RISK

Smart contracts may contain:

  • Undetected bugs or vulnerabilities
  • Malicious code or backdoors
  • Upgrade mechanisms that change functionality
  • Admin keys allowing fund seizure
  • Composability risks from interacting protocols

4.3 Security Risks

You are solely responsible for your security:

  • Private key management and storage
  • Seed phrase protection
  • Account credentials
  • Two-factor authentication setup
  • Device and network security
  • Phishing and social engineering protection

Lost private keys or compromised security cannot be recovered. We have no ability to restore access to lost funds.

4.4 Platform & Software Risks

Our Services may experience:

  • Unplanned outages or maintenance
  • Software bugs or errors
  • Data breaches or hacks
  • DDoS attacks
  • Third-party service failures

5. Data Accuracy & Third-Party Risks

5.1 No Warranty of Accuracy

5.2 Third-Party Data Sources

We aggregate data from multiple third-party sources. We:

  • Do not control or verify third-party data
  • Cannot guarantee data accuracy or availability
  • Are not responsible for third-party errors or omissions
  • May experience delays in data updates
  • Cannot prevent data manipulation by sources

5.3 Exchange & Platform Risks

Information about exchanges and platforms is subject to:

  • Sudden insolvency or bankruptcy
  • Regulatory shutdown
  • Hacks or security breaches
  • Fund freezes or seizures
  • Exit scams or fraud

6. Tax Software & Compliance Risks

6.1 Tax Calculation Disclaimer

Our tax software is not a substitute for professional tax advice.

Tax calculations provided by our software:

  • May contain errors or inaccuracies
  • May not reflect current tax law
  • Cannot account for all individual circumstances
  • Do not constitute tax advice or filing
  • Should be verified by a qualified tax professional

6.2 User Tax Responsibilities

You are solely responsible for:

  • Determining your tax obligations
  • Accurately reporting cryptocurrency transactions
  • Maintaining proper records
  • Filing required tax returns
  • Paying all taxes due
  • Responding to tax authority inquiries

6.3 Tax Authority Risks

Tax authorities may:

  • Audit your cryptocurrency activities
  • Impose penalties for non-compliance
  • Pursue criminal prosecution for tax evasion
  • Change tax treatment retroactively
  • Require disclosure of all cryptocurrency holdings

7.1 No Warranties

7.2 Limitation of Liability

7.3 Indemnification

7.4 No Fiduciary Duty

We do not owe you any fiduciary duties, which means we do not act in your best interest and are not required to prioritize your interests over our own.

7.5 Force Majeure

We shall not be liable for any failure or delay in performance due to circumstances beyond our reasonable control, including but not limited to acts of God, natural disasters, war, terrorism, riots, embargoes, acts of civil or military authorities, fire, floods, earthquakes, accidents, strikes, or shortages of transportation facilities, fuel, energy, labor, or materials.

8. User Obligations & Restrictions

8.1 Eligibility Requirements

By using our Services, you represent and warrant that:

  • You are at least 18 years of age (or the age of majority in your jurisdiction)
  • You have full legal capacity to enter into binding agreements
  • You are not located in a prohibited or restricted jurisdiction
  • You are not on any sanctions or prohibited persons list
  • Your use complies with all applicable laws and regulations

8.2 Prohibited Activities

You agree not to use our Services for:

  • Any illegal or fraudulent activities
  • Money laundering or terrorist financing
  • Tax evasion or avoidance schemes
  • Market manipulation or insider trading
  • Circumventing sanctions or embargoes
  • Hacking, phishing, or cyberattacks
  • Distributing malware or harmful code
  • Violating intellectual property rights
  • Harassment, defamation, or abuse

8.3 Your Responsibilities

You are solely responsible for:

  • Conducting your own research and due diligence
  • Understanding the risks involved
  • Seeking professional advice when needed
  • Maintaining accurate records
  • Protecting your account security
  • Backing up your data

9. Dispute Resolution & Governing Law

9.1 Governing Law

9.2 Arbitration Agreement

9.3 Injunctive Relief Exception

Notwithstanding the arbitration agreement, either party may seek injunctive or other equitable relief in any court of competent jurisdiction to prevent irreparable harm or preserve the status quo.

9.4 Time Limitation

Any claim or cause of action arising from your use of the Services must be filed within one (1) year after such claim or cause of action arose, or it shall be forever barred.

10. Regional Specific Warnings

10.1 United States Residents

Additional warnings for US residents:

  • Cryptocurrencies may be securities subject to federal securities laws
  • State-specific regulations may apply (e.g., New York BitLicense)
  • IRS treats cryptocurrencies as property for tax purposes
  • FinCEN regulations may apply to certain activities
  • CFTC has jurisdiction over certain cryptocurrency derivatives

10.2 European Union Residents

Additional notices for EU residents:

  • MiCA (Markets in Crypto-Assets) regulations may apply
  • GDPR rights apply to personal data processing
  • Right of withdrawal may be limited for digital content
  • Consumer protection laws of your member state apply
  • VAT may apply to certain cryptocurrency transactions

10.3 United Kingdom Residents

FCA Warning: Cryptocurrencies are not regulated by the FCA. If you buy cryptocurrencies, you are not protected by the Financial Services Compensation Scheme or the Financial Ombudsman Service.

10.4 Singapore Residents

MAS Notice: Digital payment token services are regulated under the Payment Services Act 2019. Please note that we do not provide digital payment token services and are not licensed by MAS. Our services are limited to information aggregation only.

11. Additional Legal Terms

11.1 Intellectual Property

All content, trademarks, service marks, logos, and intellectual property displayed on our Services are the property of Blue Venture Studios Pte Ltd or third parties. You may not use, copy, reproduce, or distribute any content without written permission.

11.2 Privacy & Data Protection

Your use of our Services is also governed by our Privacy Policy. We may collect, use, and share your data as described in our Privacy Policy. You consent to such collection and use.

11.3 Modifications to Terms

We reserve the right to modify these Risk Warnings and Terms at any time. Changes become effective immediately upon posting. Your continued use constitutes acceptance of modified terms.

11.4 Severability

If any provision of these terms is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

11.5 Entire Agreement

These Risk Warnings, together with our Terms of Service and Privacy Policy, constitute the entire agreement between you and Blue Venture Studios Pte Ltd regarding the use of our Services.

11.6 Waiver

Our failure to enforce any right or provision shall not constitute a waiver of such right or provision.

11.7 Assignment

You may not assign or transfer your rights under these terms without our written consent. We may assign our rights to any successor or acquirer.

11.8 Translation

If these Risk Warnings are translated into other languages, the English version shall prevail in case of any discrepancy.

12. Fraud & Scam Warnings

12.1 Common Cryptocurrency Scams

Be aware of these common scams:

  • Phishing: Fake websites and emails impersonating legitimate services
  • Ponzi/Pyramid Schemes: Promises of guaranteed returns
  • Pump and Dump: Coordinated price manipulation
  • Fake ICOs/Token Sales: Non-existent projects seeking funding
  • Impersonation: Scammers posing as support staff or celebrities
  • Romance Scams: Emotional manipulation for cryptocurrency
  • Ransomware: Malware demanding cryptocurrency payment

12.2 Security Best Practices

Always:

  • Verify website URLs carefully
  • Use hardware wallets for large amounts
  • Enable 2FA on all accounts
  • Keep software updated
  • Be suspicious of unsolicited offers
  • Research projects thoroughly before investing

13. Beta Features & Experimental Tools

13.1 Beta Software Risks

Features marked as "Beta," "Alpha," "Preview," or "Experimental":

  • May contain serious bugs or errors
  • May cause data loss or corruption
  • May be discontinued without notice
  • Are provided without any warranty whatsoever
  • Should not be relied upon for important decisions

Use beta features at your own risk.

14. Decentralized Finance (DeFi) Specific Risks

14.1 Smart Contract Risks HIGH RISK

DeFi protocols involve unique risks:

  • Code Vulnerabilities: Bugs can result in total loss of funds
  • Composability Risk: Failures can cascade across protocols
  • Oracle Risk: Price feed manipulation or failure
  • Governance Attacks: Hostile takeovers of protocols
  • Rug Pulls: Developers draining protocol funds

14.2 Yield & Staking Risks

Displayed yields and staking returns:

  • Are not guaranteed and can change dramatically
  • May be unsustainable or fraudulent
  • Often involve lockup periods with no exit
  • May result in impermanent loss
  • Could involve slashing penalties

Contact Information

Legal & Compliance

Blue Venture Studios Pte Ltd
68 Circular Road, #02-01
Singapore 049422
Email: legal@bitcompare.net

Data Protection Officer

Email: dpo@bitcompare.net

For Risk-Related Inquiries:
Email: risk@bitcompare.net