Bitcoin Central Inc. Risk Warning
The trading of goods and products, real or virtual, as well as virtual currencies
involves significant risk. Prices can and do fluctuate on any given day. Due to
such price fluctuations, you may increase or lose value in your assets at any
given moment. Any currency - virtual or not - may be subject to large swings in
value and may even become worthless. There is an inherent risk that losses will
occur as a result of buying, selling or trading anything on a market.
Bitcoin trading also has special risks not generally shared with official currencies
or goods or commodities in a market. Unlike most currencies, which are backed
by governments or other legal entities, or by commodities such as gold or silver,
Bitcoin is a unique kind of "fiat" currency, backed by technology and trust. There
is no central bank that can take corrective measure to protect the value of
Bitcoins in a crisis or issue more currency.
Instead, Bitcoin is an as-yet autonomous and largely unregulated worldwide
system of currency firms and individuals. Traders put their trust in a digital,
decentralized and partially anonymous system that relies on peer-to-peer
networking and cryptography to maintain its integrity.
Bitcoin trading is probably susceptible to irrational (or rational) bubbles or loss of
confidence, which could collapse demand relative to supply. For example,
confidence might collapse in Bitcoin because of unexpected changes imposed by
the software developers or others, a government crackdown, the creation of
superior competing alternative currencies, or a deflationary or inflationary spiral.
Confidence might also collapse because of technical problems: if the anonymity
of the system is compromised, if money is lost or stolen, or if hackers or
governments are able to prevent any transactions from settling.
There may be additional risks that we have not foreseen or identified in our
Terms of Use.
You should carefully assess whether your financial situation and tolerance for risk
is suitable for buying, selling or trading Bitcoins.
Please be careful in all handling of your digital assets and handle them as
you would cash. Any mention of illegal activity will result in the termination
of your transaction and account.
Your signature verifies that you have read and understand this Risk
Warning.