RISK DISCLOSURE & WARNING NOTICE
Paliton s.r.o.
Last updated: 02.12.2025
1. Purpose of This Risk Disclosure
This Risk Disclosure is designed to help you understand the significant risks associated with virtual assets and the use of services provided by Paliton s.r.o. (“Paliton”, “we”, “us”).
Virtual asset markets are inherently volatile, operate in rapidly evolving technological environments, and may expose you to financial loss.
By using our platform, you acknowledge that you are solely responsible for evaluating and managing these risks.
Nothing in this document constitutes investment advice, financial guidance, or a recommendation to engage in any transaction. You should carefully consider your experience, financial circumstances, and risk tolerance before using Paliton’s Services.
2. High Volatility of Virtual Asset Prices
Virtual assets can experience dramatic and unpredictable price changes in very short time periods.
Prices may rise or fall without clear explanation, and losses may occur rapidly.
Factors influencing volatility include:
• market speculation and sentiment;
• global economic or political events;
• announcements by governments or regulators;
• liquidity fluctuations and market depth;
• technological issues affecting blockchain networks.
You should never trade or purchase virtual assets with funds you cannot afford to lose.
3. Irreversible Nature of Blockchain Transactions
Blockchain transactions, once executed, cannot be reversed. If you send virtual assets to an incorrect
or incompatible address, lose access to your wallet, or authorise an unintended transfer, such as errors are permanent.
You, as the Client, are responsible for ensuring:
• accuracy of the destination wallet address,
• correct network selection,
• proper handling of your private keys or wallet credentials.
Losses caused by user mistakes, compromised devices, or external manipulation cannot be recovered by Paliton.
4. Regulatory and Legal Risks
The regulatory environment governing virtual assets is still evolving. Legislative changes may affect the classification, treatment, taxation, or availability of services.
Possible consequences include:
• new restrictions on use or exchange of certain coins;
• obligations to undergo additional verification or provide further documentation;
• delays in transaction processing:
• suspension or discontinuation of certain services or features;
limitations on access for users from specific jurisdictions.
You are responsible for ensuring that your use of virtual assets complies with all applicable laws in your country of residence.
5. Technological, Cybersecurity and Operational Risks
Virtual assets rely on complex technology, distributed networks, cryptographic protocols and third- party infrastructure.
These systems may fail or behave unpredictably due to circumstances beyond Paliton’s control.
Risks include:
blockchain congestion, network delays, or transaction failures;
• smart contract vulnerabilities, protocol flaws, or chain reorganizations;
• cyberattacks targeting wallets, exchanges, networks, or service providers;
• hacking, malware, phishing, identity theft or social engineering;
• hardware failures, software bugs, or service interruptions.
Although Paliton implements strong security controls, no system can be completely immune to technological failure or external attacks.
6. Liquidity Risk
Some virtual assets may have low liquidity. As a result:
• it may be difficult or impossible to convert them into fiat or other virtual assets at a desired price;
• large orders may significantly impact market prices;
• The market may become unavailable during periods of high demand or volatility.
7. Risk of Fraud, Scams and Manipulation
Virtual asset environments attract increased criminal activity, including:
• fraudulent investment schemes;
• impersonation and phishing attempts;
• fake wallet applications or malware;
• pump-and-dump schemes;
• social engineering campaigns.
You must exercise caution, verify sources, and protect your personal information.
Paliton will never request your private keys, wallet seed phrases, or passwords.
8. Taxation Risk
Gains derived from virtual asset transactions may be subject to taxation under the laws of your
jurisdiction.
It is your responsibility to:
• determine whether tax obligations apply to your activity;
• report earnings and losses to relevant tax authorities.
Paliton does not provide tax advice and does not guarantee the tax treatment of any transaction.
9. No Guarantee of Value, Profit
Virtual assets have no guaranteed intrinsic value. Their price is determined solely by market demand.
You understand and accept that:
•You may lose the full value of your assets.
• Past performance of crypto is not a reliable indicator of future positive results.
10. Acknowledgement of Risk and Personal Responsibility
By using Paliton’s Services, you confirm that:
• You understand the characteristics and risks of virtual assets.
•You accept full responsibility for your decisions and outcomes.
• You have the necessary knowledge and risk tolerance for virtual asset transactions.
• You will not hold Paliton responsible for losses unless mandated by applicable law.
• You are aware that Paliton does not guarantee profit, stability, or accuracy of prices.
Use of virtual assets should be approached cautiously and with an understanding that losses are possible – including complete loss of value.