Last Updated: December 10, 2024
1. INTRODUCTION
Aegis Vault Ltd. (“Company,” “we,” “our,” or “us”), a company incorporated under the laws of the British Virgin Islands with registration number 2163500, is committed to ensuring transparency in all aspects of our operations. This Risk Disclosure Statement (“Statement”) outlines potential risks associated with our products and services.
2. JURISDICTIONAL RESTRICTIONS
2.1 Service Restrictions
Our services are not available to:
a) United States Restricted Persons:
- Residents of the United States of America
- Citizens of the United States of America
- Persons located in the United States of America
- Entities incorporated or organized under US laws
- Persons subject to US jurisdiction
b) Sanctions Restricted Persons:
- Residents of comprehensively sanctioned jurisdictions:
- Cuba
- Iran
- North Korea
- Syria
- The Crimea, Donetsk, and Luhansk regions
- Russia and Belarus (subject to applicable sanctions programs)
- Persons listed on restricted party lists:
- US Treasury OFAC’s SDN List
- UN Security Council Consolidated List
- EU Consolidated Financial Sanctions List
- UK HM Treasury Consolidated List
2.2 Legal Framework
We operate under:
- BVI Financial Services Commission regulations
- International financial standards
- Applicable local laws
- Global sanctions requirements
- Anti-money laundering regulations
- Counter-terrorist financing rules
3. GENERAL RISKS
3.1 Market Risk
- High cryptocurrency volatility
- Sudden price movements
- Market manipulation risks
- Unpredictable market conditions
- Global economic impacts
- Correlation with traditional markets
- Geopolitical event impacts
- Market sentiment shifts
3.2 Liquidity Risk
- Limited market liquidity
- Difficulty in asset conversion
- Price impact on large trades
- Market depth variations
- Exchange liquidity constraints
- Market maker dependencies
- Cross-exchange liquidity
- Emergency market conditions
3.3 Regulatory Risk
- Evolving regulatory landscape
- Cross-border compliance challenges
- Regulatory enforcement actions
- Policy changes impact
- New regulatory requirements
- International regulatory coordination
- Licensing requirements
- Operational restrictions
4. OPERATIONAL RISKS
4.1 Technology and Security
- Smart contract vulnerabilities
- Blockchain network risks
- Cybersecurity threats
- Technical failures
- Infrastructure vulnerabilities
- Third-party dependencies
- System integration risks
- Data security concerns
4.2 Protocol Risks
- Smart contract errors
- Protocol upgrades impact
- Governance decisions
- Technical dependencies
- Cross-chain bridge risks
- Oracle failures
- Consensus mechanisms
- Network congestion
4.3 Custodial Risk
- Third-party custodian risks
- Asset security concerns
- Operational disruptions
- Recovery procedures
- Cold storage risks
- Key management
- Insurance limitations
- Counterparty risks
5. EMERGING RISKS
5.1 DeFi-Specific Risks
- Smart contract interactions
- Protocol composability
- Yield farming risks
- Impermanent loss
- Flash loan attacks
- MEV exposure
- Governance attacks
- Economic design flaws
5.2 Technological Risks
- Zero-day exploits
- Quantum computing threats
- Network scalability
- Infrastructure failures
- Protocol upgrades
- Technical obsolescence
- Integration failures
- API vulnerabilities
5.3 Environmental Risks
- Energy consumption concerns
- Regulatory pressure
- Sustainability requirements
- Carbon footprint
- Environmental regulations
- Green technology transition
- Stakeholder pressure
- Reputation impact
6. FINANCIAL RISKS
6.1 Investment Risk
- Total loss possibility
- No guaranteed returns
- Market fluctuations
- Performance variability
- Capital loss risk
- Counterparty default
- Collateral risks
- Valuation uncertainty
6.2 Trading Risks
- Execution risks
- Slippage impact
- Order book depth
- Network congestion
- Front-running
- Market manipulation
- Technical analysis limitations
- Trading system failures
7. PLATFORM SPECIFIC RISKS
7.1 Token Risks
- AEG token volatility
- Governance participation
- Token utility changes
- Market dynamics
- Staking risks
- Distribution changes
- Voting power concentration
- Token economics
7.2 Protocol Interaction
- Smart contract interaction
- Cross-chain risks
- Protocol dependencies
- Technical complexity
- Integration failures
- Update impacts
- Composability risks
- Technical debt
8. LEGAL AND COMPLIANCE
8.1 Regulatory Compliance
- Varying jurisdictional requirements
- Regulatory uncertainty
- Compliance obligations
- Legal framework changes
- International sanctions
- Licensing requirements
- Reporting obligations
- Data protection laws
8.2 Tax Considerations
- Tax liability uncertainty
- Reporting requirements
- Cross-border implications
- Tax law changes
- DeFi taxation
- Staking tax treatment
- NFT tax implications
- International tax compliance
9. RISK MITIGATION
9.1 Company Measures
We implement:
- Security protocols
- Risk monitoring
- Compliance procedures
- Regular audits
- Insurance coverage
- Emergency procedures
- Business continuity plans
- Incident response protocols
9.2 User Guidelines
We recommend:
- Portfolio diversification
- Risk management
- Regular monitoring
- Informed decisions
- Security best practices
- Due diligence
- Position sizing
- Regular portfolio review
10. DISCLAIMERS
10.1 No Guarantees
We do not guarantee:
- Investment performance
- Platform availability
- Market conditions
- Trading outcomes
- Protocol security
- Third-party services
- Future developments
- Regulatory status
10.2 Limitation of Liability
- No liability for losses
- No trading advice
- No fiduciary duty
- No representations
- Force majeure events
- Technical failures
- Market conditions
- User errors