CRITICAL NOTICE
Digital assets, blockchain technology, and cryptocurrency investments carry significant risks including the total loss of capital. NetworkCoin AI Inc does not provide financial, investment, tax, or legal advice. You are solely responsible for your decisions and their consequences.
Cryptocurrency Service - Risk Statement
Valid From: December 23, 2025
Please read the following risk warnings carefully before using the NetworkCoin AI Cryptocurrency Services.
This document provides you with information about the risks associated with using our Cryptocurrency Services and authorizing Cryptocurrency Transactions. NetworkCoin AI Inc is a registered Money Service Business (MSB) with FinCEN (Registration No. 31000295485053).
Due to the potential for losses, cryptocurrency investments are considered high-risk by financial regulators worldwide.
What are the key risks?
1. You could lose all the money you invest
- The performance of most cryptocurrencies can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in Coin AI or other cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime, and firm failure.
2. You should not expect to be protected if something goes wrong
- Digital assets are not insured by the FDIC, SIPC, or any government insurance scheme – in other words, cryptocurrency holdings are not recognized as the type of investment that federal insurance programs can protect.
- As a Money Service Business, NetworkCoin AI Inc is required to comply with federal AML/KYC regulations, but this does not provide protection for the value of your cryptocurrency holdings.
- You may have limited or no recourse if your cryptoassets are lost, stolen, or devalued.
3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks, or network congestion could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
- Blockchain transactions are typically irreversible once confirmed on the network.
4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
- Smart contracts, DeFi protocols, and blockchain technology require technical understanding. Errors in usage can result in permanent loss of funds.
5. Risks related to stablecoins and asset-backed tokens
When using our services, you may be exposed to stablecoins or asset-backed tokens. Such crypto assets carry additional specific risks:
- Issuers of stablecoins and/or asset-backed tokens use stabilization mechanisms to maintain a constant value relative to fiat currency or another asset. These mechanisms depend on the value of underlying assets, algorithm efficiency, and issuer transparency.
- You should not expect to be protected if the value of stablecoins or asset-backed tokens is not maintained by their respective issuers.
- You may not be able to redeem your stablecoins or asset-backed tokens at par value to their referenced fiat currency or asset.
- Stablecoin de-pegging events have occurred in the past and may occur again, resulting in significant losses.
6. Don't put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your investment portfolio in high-risk investments like cryptocurrency.
- Only invest money you can afford to lose completely without affecting your financial wellbeing.
1. General Investment Risks
High Volatility
Cryptocurrency prices can fluctuate dramatically within short periods. The value of Coin AI and other digital assets may increase or decrease by 50% or more in a single day. You may lose your entire investment.
No Guarantees of Return
Past performance does not indicate future results. We make no representations or guarantees regarding the future price, value, or utility of Coin AI or any other digital assets on our platform.
Total Loss of Capital
You should only invest what you can afford to lose completely. Cryptocurrency investments can result in total and permanent loss of your capital with no possibility of recovery.
2. Blockchain and Technology Risks
- Irreversible Transactions: Blockchain transactions cannot be reversed, cancelled, or refunded once confirmed
- Lost Private Keys: Loss of private keys or recovery phrases results in permanent loss of access to your digital assets
- Smart Contract Vulnerabilities: Smart contracts may contain bugs, vulnerabilities, or exploits that can result in loss of funds
- Network Attacks: The blockchain network may be subject to attacks including 51% attacks, denial of service, or other exploits
- Protocol Changes: Network upgrades, forks, or changes may affect asset value or functionality
- Technology Obsolescence: Technological advances may render current blockchain technology obsolete
3. Regulatory and Legal Risks
- Uncertain Regulatory Status: Cryptocurrency regulation is evolving and uncertain globally
- Legal Changes: New laws or regulations may restrict or prohibit cryptocurrency use, trading, or ownership
- Tax Obligations: You are responsible for understanding and complying with all tax obligations in your jurisdiction
- Geographic Restrictions: Services may not be available in certain jurisdictions due to legal or regulatory requirements
- Compliance Costs: Future regulatory compliance may impose significant costs or operational limitations
4. Market and Liquidity Risks
Limited Liquidity
There may be limited or no market for selling your digital assets. You may not be able to sell when desired or at acceptable prices.
Market Manipulation
Cryptocurrency markets may be subject to manipulation, wash trading, pump-and-dump schemes, and other fraudulent activities affecting prices.
No Market Makers
Unlike traditional securities, there are no market makers or guaranteed buyers for cryptocurrency assets.
5. Operational and Service Risks
- Service Interruptions: Our services may be unavailable due to maintenance, outages, or technical issues
- Third-Party Failures: We rely on third-party providers whose failures may affect our services
- Cybersecurity Threats: Hacking, phishing, malware, and other cybersecurity threats may compromise your account or assets
- Human Error: Errors in using services, sending transactions, or managing wallets can result in permanent loss
- No Insurance: Digital assets are not insured by government insurance schemes (e.g., FDIC, SIPC)
6. AI and Automated Services Risks
- AI Output Accuracy: AI-generated code, content, or recommendations may contain errors, inaccuracies, or security vulnerabilities
- No Code Guarantee: We do not guarantee the security, functionality, or fitness of AI-generated smart contracts or applications
- Testing Required: You must thoroughly test, audit, and review all AI-generated outputs before deployment or use
- Automated Decisions: Automated trading or transaction tools may execute unintended actions or may not perform as expected
7. No Financial Advice
NetworkCoin AI Inc does NOT provide:
- Investment advice or recommendations
- Financial planning or wealth management services
- Tax advice or tax planning services
- Legal advice or legal opinions
- Predictions about future prices or market movements
All information provided is for general informational purposes only. You should consult qualified professionals (financial advisors, tax specialists, legal counsel) before making any financial decisions.
8. Suitability and Sophistication
Cryptocurrency and blockchain services are suitable only for individuals who:
- Understand blockchain technology and cryptocurrency markets
- Can afford to lose their entire investment
- Have sufficient financial resources to bear substantial losses
- Do not need immediate liquidity or access to invested capital
- Can independently evaluate the risks and merits of cryptocurrency investments
9. Forward-Looking Statements
Any statements about future plans, developments, features, roadmaps, or timelines are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations. We undertake no obligation to update forward-looking statements.
10. No Responsibility for Losses
NetworkCoin AI Inc and its affiliates assume NO responsibility or liability for:
- Any financial losses resulting from your use of our services
- Losses due to market volatility or price changes
- Losses from lost, stolen, or compromised private keys or passwords
- Losses from smart contract bugs, exploits, or vulnerabilities
- Losses from third-party service failures or breaches
- Losses from regulatory changes or legal restrictions
- Any investment decisions you make based on information from our platform
11. Your Responsibilities
You acknowledge and agree that you are solely responsible for:
- Conducting your own research and due diligence
- Understanding the risks before using any services
- Securing your account, private keys, and recovery phrases
- Complying with all applicable laws and regulations
- Reporting and paying all applicable taxes
- Monitoring your transactions and account activity
- Seeking professional advice when needed
12. Acknowledgment and Acceptance
By using NetworkCoin AI services, you acknowledge that you have read, understood, and accepted all risks outlined in this Risk Warning. You confirm that you are solely responsible for evaluating and accepting these risks and that NetworkCoin AI Inc bears no responsibility for any losses you may incur.
IF YOU DO NOT UNDERSTAND OR ACCEPT THESE RISKS, DO NOT USE OUR SERVICES.
13. Contact Information
For questions about this Risk Warning or our services: