Legal
Risk Disclosure
This Risk Disclosure is intended to help you understand the risks associated with buying, holding, and using Bitcoin through Bitsimple. Cryptoassets are high-risk and speculative, and you may lose some or all of the money you contribute.
Warning: Bitcoin is volatile and not regulated in the same way as traditional financial products. You should carefully consider whether you can afford to take the risk of losing your money.
1. Market risk and volatility
The price of Bitcoin can change rapidly and unpredictably due to market demand, speculation, regulatory developments, technological changes, macroeconomic factors, and sentiment.
Past performance is not a reliable indicator of future results. The value of your Bitcoin holdings may fall below the amount you paid, and losses can occur over short or long periods.
2. Lack of regulatory protection
Cryptoassets are generally not covered by the Financial Services Compensation Scheme (FSCS) or similar investor protection schemes. If something goes wrong, you may not be able to recover your funds.
Regulatory treatment of cryptoassets may change in the future, which could affect the availability, legality, or value of Bitcoin or services like Bitsimple.
3. Liquidity, execution, and settlement risk
Bitcoin purchases depend on external payment providers, banking rails, and crypto exchanges. Delays, outages, or failures in these systems may result in:
- Contributions executing later than scheduled.
- Purchases completing at prices that differ from indicative or expected prices.
- Temporary inability to buy, transfer, or access Bitcoin.
Market liquidity can vary, particularly during periods of high volatility, which may impact execution prices.
4. Counterparty and third-party risk
Bitsimple relies on third-party providers for payments, identity verification, execution, and custody. If a third party becomes insolvent, experiences operational issues, or fails to perform, this may affect your ability to use the Service or access your Bitcoin.
While we conduct due diligence on partners, we cannot eliminate all third-party risk.
5. Technology and security risk
Bitcoin operates on decentralised blockchain technology. Risks include software bugs, network congestion, protocol changes, and potential attacks on the network.
Although we apply security measures such as encryption, access controls, and monitoring, no system is completely secure. Cyber attacks, human error, or technical failures may occur.
6. Wallet, custody, and transfer risk
If Bitcoin is transferred to a wallet address you control, you are responsible for safeguarding private keys and recovery information. Loss of access may be permanent.
Crypto transactions are generally irreversible. Sending Bitcoin to an incorrect address, incompatible network, or unsupported wallet may result in permanent loss.
7. Operational risk
Operational risks include failures of internal processes, people, systems, or external events such as outages, natural disasters, or changes in law.
While we maintain safeguards to reduce these risks, they cannot be fully eliminated.
8. Tax risk
Tax treatment of Bitcoin varies by jurisdiction and may change. You are responsible for understanding and meeting your tax obligations arising from buying, holding, or disposing of Bitcoin. We do not provide tax advice.
9. No investment advice
Bitsimple does not provide investment, financial, or legal advice. Any information we provide is general and for informational purposes only. You make your own decisions and bear full responsibility for the outcomes.
10. Suitability and affordability
You should only use Bitsimple if you understand the risks of cryptoassets and can afford to lose the money you contribute without affecting your financial wellbeing.
Acknowledgement
By using Bitsimple, you acknowledge that you have read, understood, and accepted the risks described in this Risk Disclosure.