BEFORE USING ANY OF BLOCK EARNER’S SERVICES, YOU SHOULD ENSURE THAT YOU FULLY UNDERSTAND AND CAN AFFORD TO UNDERTAKE THE RISKS INVOLVED. THIS RISK DISCLOSURE LISTS SOME, BUT NOT ALL OF THE RISKS INVOLVED IN HOLDING, TRADING AND USING CRYPTO ASSETS GENERALLY, AND USING BLOCK EARNER’ SERVICES SPECIFICALLY.
THIS RISK DISCLOSURE IS INTENDED TO PROVIDE YOU WITH A GENERAL OUTLINE OF THE RISKS INVOLVED, BUT CAN NOT CAPTURE ALL SUCH RISKS. THE RISKS LISTED BELOW THEREFORE DO NOT CONSTITUTE AN EXHAUSTIVE LISTS, AND ADDITIONAL SIGNIFICANT RISKS MAY BE APPLICABLE. YOU SHOULD ALWAYS DO YOUR OWN RESEARCH!
Block Earner does not provide any legal, tax or financial advice and you are strongly advised to obtain independent legal, tax or financial advice prior to making any financial decision, including buying, trading, holding, or using crypto assets.
There are significant risks associated with crypto assets, and you are solely responsible to make sure you understand such risks and assess whether such risks are appropriate for you. Block Earner does not make any offers, recommendations, or invitations for you to deal in crypto assets or use any services, and does not take into account your personal circumstances, financial situation, needs or goals. Before making any financial decision, you should carefully assess your financial situation and capacity, and only use funds that you can afford to lose.
Before entering into any transaction, you should ensure that you understand and have made an independent assessment of the suitability and appropriateness of a transaction into which you are entering and the nature and extent of your exposure to risk of loss in light of your own objectives, financial and operational resources and other relevant circumstances.
Past performance is no guarantee of future results.
Risks Related to Crypto Assets Generally
Dealing in crypto assets can incur risk of financial loss. Crypto assets are by their nature highly volatile, and you should be aware that the risk of loss in trading, investing, or holding crypto assets can be substantial.
The value of crypto assets can be highly unpredictable, with significant price fluctuations within short periods of time and their value may not be guaranteed or backed by any government. The value of crypto assets can be affected by unpredictable events, including the performance of world markets, interest rates, changes in taxation on income and capital, foreign exchange rates, regulatory and legislative changes, technological developments, and market sentiment.
Crypto assets are not legal tender, and there is no guarantee that any person shall agree to accept them for their intended purpose at any time in the future. Market availability and liquidity may be limited or disrupted, and there can be no guarantee that you would be able to sell or exchange your crypto assets at any price.
The nature of crypto assets may entice an increased risk of fraud or cyber-attack, including rollback attacks or blockchain reorganizations. Crypto asset transactions are not reversible. Erroneous transactions may result in irreversible loss of your funds.
Where you hold crypto assets in your on-chain digital wallet, you must be very cautious in maintaining your private keys and backup phrase. Loss of private keys and backup phrases may result in irreversible loss of your funds. Due to the decentralized nature of blockchain, there is no central party which may restore your private keys, extract your funds or reimburse you for your losses.
Any third-party gaining access to your digital wallet can extract your funds, and you may not be able to identify or find such parties. Never provide any person with your wallet’s private keys or backup phrase. Once you send crypto assets to an address, there is risk that you may lose access to, and any claim on, those crypto assets either indefinitely or permanently because, for example, an address may have been entered incorrectly. Losses due to fraudulent or accidental transactions may not be recoverable. Crypto assets which are meant to mimic or follow the price of another asset (e.g., any fiat currency, commodity) may not always accurately reflect such prices, which can fluctuate above or below its intended value.
Crypto assets are largely unregulated in most parts of the world, and limited protection (if any) may be afforded to users in the event of loss. Crypto exchanges and service providers may not be subject to regulatory supervision.
Different jurisdictions may treat crypto assets differently, and the cross-border nature of the blockchain and of crypto assets may make them subject to the laws of various jurisdictions. You must always make sure that any use you make of any crypto asset is compliant with all applicable laws.
Different jurisdictions may impose specific tax rules and treatments to crypto assets. You must ensure you understand the tax implications of your activities, and always comply with all reporting and payment obligations applicable to you.
Blockchain technologies are susceptible to a wide variety of risks, from malicious attacks to technical difficulties and failures, which may result in loss of funds transacted or held over the blockchain, increased transaction costs or delays in execution.
Risks Related to Using Block Earner’ Services
Trading and holding Cryptocurrency has a high level of risk. The value of crypto assets can be highly unpredictable, with significant price fluctuations within short periods of time which may lead to significant losses. Block Earner currently takes advantage of a unique category of cryptocurrencies called "Stablecoins" (USDC). Though generally less volatile, Stablecoin categories of cryptocurrency carry risk and may lose some or total market value. You should only trade Cryptocurrency if you fully understand and agree to the risks.
When you purchase Cryptocurrency via Block Earner, you only hold the beneficial interest. Block Earner, or a 3rd party, will hold and secure the Cryptocurrency. If Block Earner, or the 3rd party becomes insolvent, or is subject to hacking or some other cyber security event, your Cryptocurrency may be at risk, and you may incur partial or total loss of your cryptocurrency.
Block Earner conducts in-depth due diligence reviews of any such third party or platform, including security, financial and credibility tests. However, Block Earner cannot guarantee that they shall not suffer any breaches, lose such assets or fail to return any assets to Block Earner, resulting in financial loss.
3. Insolvency risk
You do not maintain a legal interest in the Allocation or Cryptocurrency, and we do not hold Fiat currency in a trust account. Accordingly, if Block Earner becomes insolvent, you will be an unsecured creditor in relation to your Allocation, Cryptocurrency or Fiat currency held with us.
4. Complex tax advice risk
Buying, selling Cryptocurrencies for profit, and receiving a Return raises novel taxation issues. You will need to be prepared to talk to a tax adviser if you use our services. We suggest you seek independent taxation advice prior to purchasing Cryptocurrency or earning a Return.
5. Market Risk
The value of Crypto Assets fluctuates constantly. The value of Crypto Asset may decrease very significantly. Unlike currencies issued by governments and recognized as legal tender, Crypto Assets are backed and supported by technology and trust. There are no central banks or other authorities that can take corrective measures in order to protect the Virtual Asset’s value in a crisis. Use of services relating to Virtual Asset trading can lead to large and immediate financial losses. It follows that you should not hold value you cannot afford to lose in Crypto Assets.
6. Price Stability
Account balances held on the Block Earner Platform through Block Earner or directly or Third-Party Services are held in USDC. While USDC is a “stablecoin” designed to remain pegged in value to the U.S. Dollar, and backed by U.S. Dollar reserves, Block Earner does not control the issuance, redemption or backing of USDC and cannot guarantee that 1 USDC will always remain redeemable for 1 U.S. Dollar.
7. Regulatory Risk
The regulatory status of Stable Coins is unclear or unsettled in many jurisdictions including Australia. It is difficult to predict how or whether governmental authorities will regulate the Stable Coins. It is likewise difficult to predict how or whether any governmental authority may make changes to existing laws, regulations and/or rules that will affect any of the Stable Coins. Block Earner may cease offering Services in respect of any of the Stable Coins or prohibit use of the Services in or from certain jurisdictions in the event that governmental actions make it unlawful or commercially undesirable to continue to offer such Services in respect of any Stable Coins.
8. DeFi Smart Contract Risk
Smart contracts control yield farming and DeFi. One bug in the smart contracts can cause the price of a token to drop to zero. A malicious hacker can exploit that bug or security issue to manipulate the project for any possibility, including losing all your cryptocurrency assets in the pools affected.
9. FX Risk
Account balances held on the Block Earner Platform through Block Earner or directly or Third Party Services are held in USDC which is pegged to the USD$ at 1:1. When you deposit and /or withdraw your funds, the currency denomination is AUD$. The value of the Australian Dollar may fluctuate against the value of the US Dollar and this will impact your total balances in the Block Earner Yield Account.
10. Technology Risk
Block Earner may suffer technological difficulties which may prevent the access or use of your account or delay your transactions. Block Earner’ top priority is the security of its systems, crypto assets held by it and its users’ personal information. However, Block Earner (and third parties having authorized access or control over such assets) may suffer malicious attacks and security breaches, which may result in the compromise of such assets.
We try to ensure that the information on this site is correct, but we do not give any express or implied warranty as to its accuracy. We do not accept liability for any error or omission.
11. DeFi Smart Contract Risk
Smart contracts control yield farming and DeFi. One bug in the smart contracts can cause the price of a token to drop to zero. A malicious hacker can exploit that bug or security issue to manipulate the project for any possibility, including losing all your cryptocurrency assets in the pools affected. To manage this risk, Block Earner ensures that all 3rd parties it partners with should confirm that the smart contract has been audited, as a standard good Defi projects get smart contract audits.
Crypto assets are not legal tender, Block Earner is not a bank or depository institution, and your Block Earner account is not a deposit or savings account. Your deposited funds in your Block Earner account are not held by Block Earner as a custodian or fiduciary, are not insured by any private or governmental insurance plan (including the Financial Claims Scheme). and are not covered by any compensation scheme.
The Yield Block Earner pays users for are determined on a daily basis, based on a variety of considerations, including market conditions, demand and supply of a particular crypto asset, interest rates in the fiat markets and Block Earner’ own inventories and cost of capital. While Block Earner strives to maintain stable reward rates over time, any change in circumstances may bring about changes to such rates, and in some events the rates may drop to 0%. Users will be updated of any change to yield rates on a daily basis and may choose to discontinue using the service at any time.