Risk Disclosure

THE DISTRIBUTED LEDGER TECHNOLOGY (DLT) COINS AND TOKENS THAT ARE REFERENCED ON THIS SITE ARE CURRENTLY UNREGULATED FORMS OF VALUE EXCHANGE UNDER ANY FINANICAL SERVICES LAWS AND ARE NOT CURRENTLY PERCEIVED AS REPRSENTING ‘TRANSFERRABLE SECURITIES’ OR OTHER ‘FINANCIAL INSTRUMENTS’. HOWEVER, SATO EXCHANGE HAS IMPLEMENTED A NUMBER OF RULES APPLICABLE TO ANY COINS AND TOKENS LISTED ON SATO EXCHANGE TO PROVIDE A HIGH LEVEL OF INDUSTRY STANDARDS FOR THE PURCHASE OR EXCHANGE OF COINS AND TOKENS. LAWS AND REGULATORY INTERPRETATION DO HOWEVER VARY BY JURISDICTION.

BUYING COINS AND TOKENS INVOLVES MANY DIFFERENT RISKS, COINS AND TOKENS OFTEN INVOLVE THE USE OF EXPERIMENTAL SOFTWARE, TECHNOLOGIES AND EVEN BUSINESS MODELS THAT MAY NOT COME TO FRUITION OR ACHIEVE THE OBJECTIVES SPECIFIED IN THE INFORMATION PROVIDED TO INVESTORS. THERE IS ALSO A RISK OF ILLIQUIDITY. COINS AND TOKENS LISTED ON SATO EXCHANGE ARE NOT INTENDED TO REPRESENT SECURITIES OR FINANCIAL INSTRUMENTS.

THE SATO EXCHANGE IS TARGETED EXCLUSIVELY AT INVESTORS WHO ARE SUFFICIENTLY SOPHISTICATED TO UNDERSTAND THE VARIOUS RISKS AND MAKE THEIR OWN DECISIONS BASED ON THEIR RISK APPETITE. SATO EXCHANGE MAY PUBLISH AND MAINTAIN A NON-EXHAUSTIVE LIST OF POTENTIAL RISK FACTORS (RISK FACTORS) ASSOCIATED WITH THE PRODUCTS AND SERVICES AVAILABLE ON THE SITE AND YOU ARE DEEMED TO HAVE REVIEWED ANY SUCH RISK FACTORS AND CONSIDERED THEM WHEN USING THE SITE AND ASSOCIATED PRODUCTS AND SERVICES.

INVESTORS SHOULD BE AWARE THAT THE MARKETS FOR COINS AND TOKENS ARE SUBJECT TO VERY SIGNIFICANT VOLATILITY. THESE FLUCTUATIONS MAY INCREASE OR DECREASE THE VALUE OF YOUR ASSETS AT ANY GIVEN MOMENT AND IN SOME CASE ANY SPECIFIC COIN OR TOKEN MAY EVEN BECOME WORTHLESS. THERE IS A RISK THAT SIGNIFICANT LOSSES WILL ARISE TO INVESTORS AS A RESULT OF VOLATILITY AND SPECULATION. USERS MUST ENSURE THAT THEY TAKE ALL THESE RISK FACTORS INTO ACCOUNT WHEN DECIDING ON THE AMOUNT THEY WISH TO PURCHASE AND THE FREQUENCY WITH WHICH THEY WISH TO TRADE. IF YOU FEEL UNCOMFORTABLE WITH THE RISKS OR YOUR ACCOUNT POSITION THEN YOU NEED TO REDUCE OR EVEN ELIMINATE YOUR EXPOSURE TO BUYING OR TRADING COINS AND TOKENS.

COINS AND TOKENS ARE ALSO NOT NORMALLY BACKED BY ANY GOVERNMENTAL BODY, LEGAL ENTITIES OR BY REAL ASSETS. THIS MEANS THEY MAY NOT HAVE ANY REDEMPTION VALUE AND THEIR TRADING IS NOT SUPERVISED. COINS AND TOKENS ARE BACKED BY TECHNOLOGY AND THE TRUST OF INVESTORS IN TECHNOLOGY TO CREATE SUITABLE TRUSTLESS PROTOCOLS TO MANAGE TRANSACTIONAL INFORMATION. THERE IS NO CENTRAL BANK OR REGULATOR THAT WILL TAKE CORRECTIVE MEASURE IN THE EVENT OF A FAILURE OF A COIN OR TOKEN OR THE WIDER MARKET. IN ADDITION, THERE IS NO PUBLIC INSURANCE OR ASSET GUARANTEE SCHEME THAT WILL PROTECT YOU FROM ANY LOSSES INCLUDING FROM UNAUTHORIZED USE OF YOUR COINS AND TOKENS AND FROM CYBERCRIME AND IN ADDITION IT MAY NOT BE POSSIBLE OR COMMERCIALLY FEASIBLE FOR US TO OBTAIN PRIVATE INSURANCE TO SEEK OR MITIGATE OUR AND YOUR RISKS.

THE ABOVE RISK FACTORS ARE NOT INTENDED TO BE A CONCLUSIVE LIST OF RISKS THAT ARE APPLICABLE TO BUYING, SELLING AND TRADING COINS AND TOKENS. YOU REMAIN RESPONSIBLE FOR TAKING CARE TO UNDERSTAND THE TECHNOLOGICAL, ECONOMIC AND LEGAL NATURE OF COINS AND TOKENS AND FOR CAREFULLY MANAGING YOUR EXPOSURE IN ACCORDANCE WITH THAT UNDERSTANDING AND YOUR RISK APPETITE FOR INNOVATIVE, VOLATILE AND SPECULATIVE NEW TECHNOLOGIES AND ASSETS.

OUR PAYMENT SERVICE PROVIDERS HAVE NO INVOLVEMENT IN THE PURCHASE, SALE OR EXCHANGE OF COINS AND TOKENS AND ARE ONLY INVOLVED IN THE TRANSFER AND SAFEGUARDING OF OUR AND OUR CLIENT’S FIAT CURRENCIES.