LAST UPDATED: Mar 19, 2025
Introduction
Investing in cryptocurrencies involves significant risk. Before using Stack it Ai, carefully consider your financial situation, objectives, and risk tolerance. Always seek professional advice as needed.
Market Risks
- Cryptocurrency prices are highly volatile and can experience rapid fluctuations, potentially resulting in significant losses.
- Liquidity risks may limit your ability to buy or sell cryptocurrencies quickly at a fair market price.
- External economic, political, or market factors can adversely affect the value of crypto assets.
Borrowing and Leverage Risks
- Borrowing against crypto assets involves risk, including the possibility of forced liquidation if the collateral value falls below the loan’s required threshold.
- Using leverage to invest amplifies both potential gains and losses. Significant market downturns can lead to accelerated and severe losses.
- Users should regularly monitor their loan-to-value (LTV) ratios and make adjustments to maintain healthy collateral positions.
Technology Risks
- Blockchain networks may suffer from downtime, forks, or technical issues, potentially disrupting the ability to access or transact with your crypto assets.
- Smart contracts, even if audited, could contain unforeseen vulnerabilities or bugs leading to potential loss of funds or other disruptions.
- Cybersecurity threats, hacks, or phishing attacks could compromise private keys or wallets, resulting in permanent loss of funds.
Regulatory Risks
- Cryptocurrency and decentralized finance regulations are evolving rapidly and unpredictably, potentially affecting the legality, availability, and operational capabilities of Stack it Ai’s services.
- Regulatory changes could impose restrictions, taxes, or additional compliance requirements, potentially limiting access or usage.
Automation and User-Set Preferences
- Stack it Ai employs automation based on pre-established strategies and preferences agreed upon by the customer. These automations do not involve discretionary AI decision-making but follow predetermined rules and settings.
- Users have full control to review, adjust, or disable automated settings at any time. Users are responsible for understanding and managing their chosen settings to match their risk tolerance.
- Automation may act unexpectedly during extreme market volatility, and users should periodically review their settings and strategies to align with their current investment objectives.
Tax and Legal Risks
- Cryptocurrency transactions and lending activities may result in significant tax implications, varying by jurisdiction. Users should consult with a tax advisor to understand specific obligations.
- Stack it Ai does not offer tax, legal, or investment advice. Always seek professional advice tailored to your personal financial circumstances and legal environment.
Custody and Self-Custody Risks
- Stack it Ai operates on a self-custody model. Users retain sole responsibility for securing their crypto wallets, private keys, and recovery phrases.
- Losing access to wallets or private keys can result in irreversible asset loss. It is crucial to adopt strong security measures, backups, and secure storage solutions.
Operational Risks
- Service interruptions, technical failures, or maintenance downtime may temporarily limit your ability to access or manage your investments.
- Third-party providers, such as blockchain nodes, wallet providers, or liquidity sources, may experience operational issues outside of Stack it Ai’s control.
No Guarantees
- Investment strategies, including automation provided by Stack it Ai, carry inherent risks. Past performance or hypothetical projections do not guarantee future outcomes.
- Users should independently evaluate risks, strategies, and settings regularly to ensure alignment with their evolving investment goals and risk tolerance.
By using Stack it Ai, users acknowledge they have read, understand, and accept the above risks.