General Risk Disclosure
The offering of cryptoassets in Spain is subject to the rules imposed by Circular 1/2022, dated 10 January, of the Comisión Nacional del Mercado de Valores (CNMV).
It is important to read and understand the risks of this investment which are explained in detail in this document.
Synergy Land is a product of Synergy Games S.L.
RISK WARNING FOR CRYPTOCURRENCIES
The trading of commodities and currencies involves a significant amount of risk. Prices can fluctuate on any given day. Because of such price fluctuations, you may gain or lose value of your assets at any given moment. Any currency may be subject to large swings in value and may even become absolutely worthless. There is always an inherent risk that losses will occur as a result of buying, selling or trading anything on the market.
Cryptocurrencies trading have specific risks, which are not shared with other official currencies, goods or commodities in a market.
Unlike most currencies, which are supported by government reserves or other legal entities, as well as commodities such as silver and gold, Cryptocurrencies are a "flat" currency, which is only backed by mathematics, technology and trust. The currency is absolutely decentralized, which means there is no authority that can take corrective measure to protect the Cryptocurrencies values in a crisis or issue more currencies .
Cryptocurrencies are an autonomous and mostly unregulated worldwide payment system. When using Cryptocurrencies traders put their trust in the digital, decentralized and mostly anonymous system, which relies on cryptography to maintain its integrity.
Cryptocurrencies trading are susceptible to irrational or rational bubbles or absolute loss of confidence, which could collapse demand/supply. Any actions, even remotely connected to cryptocurrencies can crash confidence in these currencies, such as unexpected changes imposed by the currency developers, a government crackdown, the creation of a superior competing Cryptocurrencies alternative, or even a deflation or inflation spiral. Confidence might also collapse because of various technical problems: if the anonymity of the system can be compromised, funds lost or stolen, or in the event that hackers or governments become able to prevent cryptocurrencies transactions from settling.
Every user has to carefully assess whether his/her financial situation and tolerance for risk is suitable for buying/selling/trading cryptocurrencies.
High-risk investment product
a. The value of investments and the return on investment may experience significant upward and downward fluctuations, and the entire amount invested may be lost.
b. Investments in early-stage projects involve a high level of risk, so it is necessary to properly understand their business model.
c. Cryptoassets within the scope of this Circular are not covered by customer protection mechanisms such as the Deposit Guarantee Fund or the Investor Guarantee Fund.
d. Cryptoasset prices are formed in the absence of mechanisms to ensure their proper price formation, such as those present in regulated securities markets.
e. Many cryptoassets may lack the liquidity needed to unwind an investment without significant losses, as their circulation among both retail and professional investors may be very limited.
Risks inherent in the technology
f. Distributed record-keeping technologies are still at an early stage of maturity, with many of these networks having been created only recently, so they may not be sufficiently tested and there may be significant flaws in their operation and security.
g. The recording of transactions in networks based on distributed log technologies works through consensus protocols that may be susceptible to attacks that attempt to modify this record and, in the event that these attacks are successful, there would be no alternative record to back up these transactions and therefore the balances corresponding to the public keys, and all the cryptoassets could be lost.
h. The anonymity facilities that cryptoassets can provide make them a target for cybercriminals, since in the event of stealing credentials or private keys they can transfer the cryptoassets to addresses that make their recovery difficult or impossible.
i. The safekeeping of cryptoassets is a very important responsibility as they can be lost in their entirety in the event of theft or loss of private keys. The entity performing the custody of the advertised cryptoassets, the country in which it performs the custody and the applicable legal framework shall be identified.
j. Acceptance of cryptoassets as a medium of exchange is still very limited and there is no legal obligation to accept them.
k. When the service provider is not located in an EU country, the resolution of any dispute could be costly and fall outside the jurisdiction of the Spanish authorities.
l. Where the investor does not hold the crypto-assets, being in the service provider’s wallets, and without access to the private keys of the wallets, this situation shall be indicated and the investor’s rights over these crypto-assets shall be described.