LEGAL / RISK
RISK DISCLOSURE
LAST UPDATED: JUNE 1, 2025 · 1817168 AB LTD · ALBERTA, CANADA
⚠ HIGH RISK WARNING — PLEASE READ CAREFULLY
Trading digital assets involves substantial risk of loss. Digital assets are highly speculative and volatile. You should never trade with funds you cannot afford to lose entirely. KaraFx does not provide investment advice. Nothing on this platform constitutes financial, legal, or tax advice.
SPECIFIC RISK FACTORS
1. PRICE VOLATILITY
Digital assets can experience extreme price swings — including losses of 50%, 80%, or 100% of value — over short periods. Market movements can be triggered by regulatory announcements, exchange failures, macroeconomic events, or large holder ("whale") activity. Past performance does not predict future results.
2. SMART CONTRACT RISK
All trades executed through KaraFx interact with third-party smart contracts (Uniswap V2 and similar protocols). Smart contracts may contain undiscovered bugs, vulnerabilities, or be subject to exploits. A smart contract failure could result in permanent, irreversible loss of all assets involved in a transaction. KaraFx has not audited these contracts.
3. IRREVERSIBILITY OF TRANSACTIONS
Blockchain transactions are permanent and irreversible once confirmed. If you send assets to the wrong address, approve an incorrect transaction, or are subject to a phishing attack, your assets cannot be recovered. KaraFx has no ability to reverse, cancel, or modify any on-chain transaction.
4. WALLET AND KEY SECURITY
You are solely responsible for the security of your private keys and seed phrase. If your wallet is compromised, your assets can be drained permanently. Never share your seed phrase with anyone — including anyone claiming to represent KaraFx. We will never ask for your private keys.
5. LIQUIDITY RISK
Some token pairs may have very low liquidity, resulting in high price impact (slippage) when trading. In low-liquidity conditions, you may receive significantly less than the quoted amount. KaraFx always displays estimated price impact — exercise caution on trades with high price impact warnings.
6. REGULATORY RISK
The regulatory status of digital assets varies by jurisdiction and is rapidly evolving. Regulatory changes could restrict or prohibit your ability to use KaraFx or hold certain digital assets. It is your responsibility to understand and comply with all laws applicable to your use of digital assets in your jurisdiction.
7. NETWORK AND GAS FEES
Blockchain transactions require gas fees paid in the network's native currency (e.g., ETH). Gas fees can spike dramatically during periods of network congestion. A failed transaction may still consume gas fees. Gas fees are non-refundable.
8. COUNTERPARTY AND PROTOCOL RISK
KaraFx routes trades through decentralized protocols. These protocols are governed by decentralized communities and can be modified, deprecated, or attacked. The underlying protocol may change its fee structure or routing logic without notice.
9. ORACLE AND PRICE FEED RISK
Price data displayed on KaraFx is sourced from third-party APIs and may be delayed, inaccurate, or temporarily unavailable. Do not rely solely on displayed prices for trading decisions. Always verify prices across multiple sources.
10. INTERFACE AND TECHNOLOGY RISK
KaraFx may experience downtime, bugs, or technical failures. During an outage, you may not be able to access the interface to manage open positions. You should always be able to interact directly with the underlying smart contracts through blockchain explorers if the interface is unavailable.
ACKNOWLEDGMENT
By using KaraFx, you acknowledge that you have read and understood this Risk Disclosure in full. You accept all risks associated with the use of the KaraFx interface and decentralized finance protocols. If you do not understand or accept these risks, do not use KaraFx.