COBS 17.6.2.

The risks to be disclosed pursuant to Rule 17.6.1 include, but are not limited to, the following—

(a) Virtual Assets not being legal tender or backed by a government;
(b) the value, or process for valuation, of Virtual Assets, including the risk of a Virtual Asset having no value;
(c) the volatility and unpredictability of the price of Virtual Asset relative to Fiat Currencies;
(d) that trading in Virtual Assets may be susceptible to irrational market forces;
(e) that the nature of Virtual Assets may lead to an increased risk of Financial Crime;
(f) that the nature of Virtual Assets may lead to an increased risk of cyber-attack;
(g) there being limited or, in some cases, no mechanism for the recovery of lost or stolen Virtual Assets;
(h) the risks of Virtual Assets being transacted via new technologies, (including distributed ledger technologies ('DLT')) with regard to, among other things, anonymity, irreversibility of transactions, accidental transactions, transaction recording, and settlement;
(i) that there is no assurance that a Person who accepts a Virtual Asset as payment today will continue to do so in the future;
(j) that the nature of Virtual Assets means that technological difficulties experienced by the Authorised Person may prevent the access or use of a Client's Virtual Assets;
(k) any links to Virtual Assets related activity outside ADGM, which may be unregulated or subject to limited regulation; and
(l) any regulatory changes or actions by the Regulator or Non-ADGM Regulator that may adversely affect the use, transfer, exchange, and value of a Virtual Asset.
Amended on (24 February, 2020).