Risk Warning – BITX, S.L.

Purpose of this warning

BITX, S.L. ("BITX") provides a single service: the exchange of crypto-assets for funds, and of funds for crypto-assets, in which BITX acts as the Client's counterparty on its own account. Before using that service you should read this warning, which BITX publishes in accordance with Regulation (EU) 2023/1114 (MiCA). It does not replace your own assessment of whether dealing in crypto-assets is appropriate for you, and it is not advice.

BITX, S.L. is in the process of being entered in the CNMV register of crypto-asset service providers under Regulation (EU) 2023/1114 (MiCA). Information on BITX's regulatory status is kept up to date on this website.

1. You may lose the entire amount you exchange

The prices of crypto-assets are highly volatile. They can rise or fall sharply within minutes, including between the time you request a quote and the time a transaction settles, and they can fall to zero. There is no guarantee that you will be able to sell a crypto-asset at the price you paid for it, or at any price. You should only exchange funds for crypto-assets if you can afford to lose them in full.

2. Crypto-assets are not deposits and are not guaranteed

Crypto-assets are not money issued by a central bank or a public authority. They are not deposits and are not covered by any deposit guarantee scheme or investor compensation scheme. This also applies to e-money tokens such as USDC and EURC: their value and your ability to redeem them depend on their issuer, on the reserves the issuer holds and on the issuer's compliance with its own obligations. BITX is not the issuer of any crypto-asset and gives no guarantee regarding its value or redeemability.

3. Transactions on distributed ledgers cannot be reversed

Once crypto-assets have been sent to an address on a distributed ledger, the transaction cannot be cancelled or reversed by BITX or by anyone else. If you provide an incorrect address, an address on the wrong network or an address you do not control, the crypto-assets may be irretrievably lost. BITX delivers crypto-assets only to the wallet address you have designated and that BITX has verified; you are solely responsible for the accuracy of that address and network.

4. You are responsible for your own wallet

BITX does not hold crypto-assets on your behalf and does not provide custody. The crypto-assets you receive from BITX are delivered to a wallet that you control or that a third-party provider holds for you. If you lose the private keys or recovery phrase of your wallet, or if they are stolen, your crypto-assets will be lost and BITX cannot recover them. BITX never asks for your private keys, recovery phrase, passwords or authentication codes.

5. Fraud, impersonation and cyberattacks

Crypto-assets are a frequent target of fraud. Criminals impersonate service providers, including BITX, to obtain payments or crypto-assets. BITX communicates only from e-mail addresses under the domain bitx.es and through the channels it has agreed with you in writing, and never changes its bank details or receiving addresses through unverified messages. Treat any request to send funds or crypto-assets elsewhere as a fraud attempt and confirm it with BITX through a separate channel. Your own e-mail accounts, messaging accounts and devices may also be compromised; you are responsible for their security.

6. Technology and network risks

Distributed ledger networks may suffer congestion, outages, protocol changes, forks or attacks. These events may delay the settlement of a transaction, increase its cost or, in extreme cases, affect the crypto-assets themselves. The software, protocols and networks on which crypto-assets rely are developed and operated by third parties over whom BITX has no control.

7. Liquidity and settlement risks

Settlement of an exchange depends on banks, payment institutions, liquidity venues and distributed ledger networks that BITX does not control. The unavailability of any of them may delay the execution or settlement of a transaction. BITX does not execute a purchase until your funds have been received and reconciled, and does not pay out the proceeds of a sale until the crypto-assets you deliver have been confirmed on the network and the required checks have been completed. There may be periods during which BITX is unable to quote or to execute transactions in a given crypto-asset.

8. BITX acts as your counterparty

BITX is the counterparty to every exchange and earns a margin that is included in the price it quotes you. BITX does not act as your agent and does not owe you best execution; the price quoted by BITX may be higher or lower than prices available elsewhere. The method used by BITX to determine its prices is described in its Pricing Policy, published on this website. BITX does not provide investment, legal or tax advice, and any market information it may share with you is for information only.

9. Legal, regulatory and tax risks

The legal and regulatory treatment of crypto-assets in the European Union and elsewhere is evolving. Changes in law, in regulatory practice or in the status of a crypto-asset or of its issuer may affect your ability to hold, use or exchange crypto-assets, their value, or the services that BITX is able to provide. Transactions in crypto-assets may give rise to tax obligations in your jurisdiction of residence, and crypto-asset service providers are subject to tax reporting obligations in respect of their clients. You are responsible for determining and meeting your own tax obligations.

10. Limited recourse

Crypto-assets are not protected by the safeguards that apply to bank deposits or to financial instruments. If BITX were to become insolvent, or if a crypto-asset or its issuer were to fail, you may have limited or no recourse. BITX keeps the funds you transfer for a purchase in a segregated account with a credit institution until the purchase is settled, but it does not hold crypto-assets for you at any time.

If you do not understand or do not accept these risks, you should not use BITX's services. For any question, contact BITX at legal@bitx.es before requesting a quote.