The risk disclosure document outlines various risks associated with trading digital assets.
Bitvavo Risk Disclosure StatementĀ |
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Version of: 15 July 2025 |
Introduction |
Bitvavo B.V. (āBitvavoā) is a private limited liability company, incorporated in the Netherlands (registration number chamber of commerce 68743424), whose registered office is Keizersgracht 281, 1013ED Amsterdam, the Netherlands.Ā Bitvavo is licensed by the Dutch Authority for Financial Markets (Autoriteit FinanciĆ«le Markten- AFM) as a crypto asset service provider under Regulation (EU) 2023/1114 on markets in crypto-assets, as amended or supplemented from time to time (MiCA) and is, among others, permitted to provide the service of āoperation of a trading platform for crypto assets.Ā Bitvavo Custody B.V. (āBitvavo Custodyā), is a private limited liability company, incorporated in the Netherlands (registration number chamber of commerce 80118844), whose registered office is Keizersgracht 281, 1013ED Amsterdam, the Netherlands.Ā The services provided by Bitvavo and Bitvavo Custody are governed under the user agreement ( the User Agreement). Bitvavo Custody is a party to the User Agreement only in relation to the Lending Service, if any. The use of the Bitvavo Services and Bitvavo Trading Platform, and trading Digital Assets may carry risks that are beyond Bitvavo's control,Ā and Bitvavo and Bitvavo Custody are not liable for such risks.This Risk Disclosure Statement sets out a non-exhaustive list of these risks. Other risks that are not mentioned herein and that are specific to a particular Digital Asset may also apply. Those will be set out inĀ the respective white paper associated with the relevant Digital Asset, if available. For Digital Assets that are available for trading on the Bitvavo Trading Platform from time to time, these white papers are referenced on the Bitvavo Trading Platform and/or Bitvavo Environment. This Annex should not be regarded as a comprehensive disclosure of all risks related to trading or investment in Digital Assets. It is important for the User to carefully evaluate whether investing in Digital Assets and using any Services is suitable for their tolerance, investment goals, financial and tax circumstances, personal and legal conditions, and any other relevant factors. This risk disclosure statement, which includes some of the most principal risks of using the Services, may be helpful for that assessment. Capitalized terms used and not otherwise defined are defined in the User Agreement. This Risk Disclosure Statement is drawn up in English as well as other language versions. In case of any discrepancy the English language version prevails. |
1. Market Risk Every investment involves opportunities and risks. The value of Digital Assets may fluctuate significantly. There is an inherent risk that a User will incur material losses if a User trades Digital Assets and Bitvavo provides related Services to the User. Past performance of certain Digital Assets does not indicate future results. Such investment is only suitable for Users, who can bear a loss of the entire invested capital and should not be considered as or entered into with the expectation of a stable source of income. This means that the User should assess, for each and any of the Services they consider, whether the related risk is appropriate for their financial situation, risk appetite and other personal circumstances. 1.1. Liquidity Risk Some Digital Assets may have low liquidity and this may effect timely execution of Orders at desired prices or lead to partial execution. Illiquid markets can result in wider spreads and higher trading costs.Volatility in illiquid markets tend to be higher due to less liquid order books.Ā 1.2. De-pegging RiskĀ Certain Digital Assets refer to other fiat currencies and asset types and intend to maintain a stable value (generally referred to as stablecoins). The value of such Digital Assets may, however, decrease when the Digital Assets lose their 1-1 peg due to market conditions, failures or insolvency of the Issuers or loss of reserve assets, regulatory actions, and the User may incur partial or material losses. 1.3. Slippage RiskĀ Market Orders may execute at a price different from the price that is indicated due to high volatility, limited liquidity, or execution delays. 1.4 Currency Risk USD coins are also offered on Bitvavo Trading Platform and this may lead to a currency conversion risk for the Users where base currency is EUR.Ā 1.5. Concentration Risk Events that could have an impact on a Digital Asset may have a substantial impact on portfolio concentrated on that Digital Asset.Ā |
2. Risks inherent to crypto technology and designĀ Digital Assets are not backed by governments, or by commodities such as gold. There is no central bank that can take corrective measures to protect the value of Digital Assets in a crisis, such as issuing more Digital Assets. Instead, Digital Assets are autonomous and largely unregulated on blockchain networks. This means that the User should be prepared to trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity. User must be aware of the risks associated with technology, including (but not limited to) failures in hardware, software, and internet connectivity, malicious software or cyber-attacks, third parties gaining unauthorised access to information and/or assets (including their Digital Assets), failures or outages in blockchain networks, and other forms of attacks. This also means Bitvavo may not have control over, or liability for, the delivery, quality, safety, legality or any other aspect of the Digital Assets for which Bitvavo offers Services to User. In case of any systemic failure, this could result in a loss of User's Digital Assets. |
3. Systemic RiskĀ The crypto-asset ecosystem is interconnected, with certain participants such as trading platforms, stablecoin issuers, custodians, and liquidity providers playing central roles. A failure or insolvency of one major participantāsuch as a widely used exchange, stablecoin issuer, or custodianāmay trigger cascading failures or a broad loss of trust in the market. This could affect the liquidity, pricing, or accessibility of a wide range of Digital Assets, even those not directly linked to the failing participant. Bitvavo cannot prevent or mitigate such ecosystem-wide risks and may also be affected through shared infrastructure, counterparties, or market dependencies. Users should be aware that systemic risks may result in disruptions to Services, temporary inaccessibility of assets, or sudden changes in asset values. |
4. Regulatory and Jurisdictional Risk It is possible that statutory or regulatory changes have material effects on the current setup of the Bitvavo Trading Platform. Statutory or regulatory changes may also result in substantial modifications to any Digital Assets. Bitvavo cannot guarantee that certain regulatory or legal changes may not result in the limitation or termination of certain Services on the Bitvavo Trading Platform. |
5. Tax Risks The purchase, sale, exchange or holding of Digital Assets available may trigger tax consequences for User. While several countries have already implemented specific tax regulations for Digital Assets, further changes and/or additional tax regulations are to be expected. Bitvavo may under certain circumstances (now and/or in the future) be required to deduct withholding tax. Withheld tax amounts are remitted to the tax authorities, and Bitvavo will be unable to refund these amounts. Bitvavo will report information with respect to transactions made by User and/or Digital Assets held by User to one or more tax authorities to the extent such reporting is required by applicable law. Bitvavo shall deduct and withhold tax on User's transactions to the extent such withholding is required by applicable law. Bitvavo may collect tax documents or certificates regarding User's status as a taxpayer, as well as User's tax identification number or similar information, as required by applicable law. Users should conduct their own assessment of their tax situation concerning Digital Assets and consult their tax advisor before making any decisions with respect to investing in Digital Assets. |
6. Risk of Software Weakness The technology of Digital Assets and platforms such as smart contract systems and other related technologies, as well as their underlying technical concepts and theories are still in an early development stage, are unproven and beyond Bitvavo's control. There is an inherent risk that the technology could contain weaknesses, vulnerabilities or bugs. These could cause, for example, the complete loss of any Digital Assets, even if the software and systems deployed by Bitvavo are functioning as intended. Many of these technologies and software applications required for the sale, transfer or holding of Digital Assets are neither released by a software manufacturer nor certified by a central entity such meaning no single party may be held liable for such potential defects. Bitvavo uses and displays customary security certificates issued by third parties (certificate authorities) which are widely regarded as enhancing security. Ultimately, however, Bitvavo cannot guarantee the validity or accuracy of these certificates on the Bitvavo Trading Platform. Always keeping the Bitvavo App, internet browser and the underlying operating systems up to date can mitigate certain risks and vulnerabilities. |
7. Risk of theft and internet vulnerability The software applications and/or other technology components that support the Bitvavo Trading Platform and Services may be exposed to electronic or physical attacks that could result in the irreversible theft or loss of Digital Assets or the theft or loss of personal data. |
8. Risk of eliminating the benefits of 2FA Bitvavo strongly recommends that the User uses 2FA. Please note however, that the safety benefit of using 2FA is effectively reduced or eliminated if both factors can be accessed with the same credentials or devices. |
9. Risk of weak login credentials and risk of losing login credentials. If User does not use 2FA in cases provided for by Bitvavo, any person with knowledge of User's password and e-mail address may be able to access User's Account and User's Digital Assets held in custody by Bitvavo and may place Orders in User's name. The password User chooses when registering an Account (as amended from time to time) may be subject to attacks, even if it is unique and only known to User. The risk is greater if the password is weak (in length and/or complexity) and/or if the password contains personal details (for example User's name, date of birth or place of residence) and/or words included in a dictionary. Bitvavo recommends that User always chooses a strong and unique password (that is not used with any other service provider) and that User uses the 2FA. While stronger passwords are statistically (far) less likely to be successfully retrieved by an attacker, no password is fully safe. The indicator for the password strength of their password is calculated from general parameters, and does not verify whether User's password may contain any of User's personal details or words included in a dictionary. This should be regarded as a guideline only. |
10. Risk of phishing and/or social engineering SMS and e-mail services are vulnerable to spoofing and phishing attacks. User should always log into User's Account to review any transactions or required actions if they have any uncertainty regarding the authenticity of any communication or notice. Phishing attacks often occur despite SMS or e-mail or equivalent services, via search engines or ads in search engines, or other fraudulent links. While Bitvavo strongly recommends participating in the 2FA, the 2FA cannot prevent successful phishing and/or social engineering attacks if User's credentials including the 2FA are disclosed in such an attack. Phishing or social engineering may result in the theft or loss of the User's Digital Assets. |
11. Trading Services Digital Assets are volatile assets and may be susceptible to irrational and/or rational bubbles or loss of confidence, which could collapse demand relative to supply and vice versa. This means that User may incur a material and even a full loss when investing in these assets. This risk also exists when trading stablecoins. When User trades and places a Market Order on the Bitvavo Trading Platform, the execution price may differ significantly from the price indicated to User on the Bitvavo Trading Platform. This relates to a change in price between the time of the Order from User and the actual execution of the Order, which is generally referred to as āslippageā. An Order from User always remains subject to sufficient liquidity on the Bitvavo Trading Platform, which means that some Orders may not be instantly executed and that the execution may take some time or not occur at all during periods of high volatility and/or low liquidity. This could result in a less favourable price than anticipated, or even a failure to execute the transaction at User's desired price. Additionally, illiquid markets have an increased risk of loss because they can experience higher volatility. There is no guarantee that the markets for any Digital Assets allow Users to obtain or liquidate positions at prices acceptable to them or will be even active and liquid at the time they would like to execute their investment decisions. |
12. Bitvavo Trading Platform and Trading Risks During periods of high trading volume, illiquidity and/or volatility, interruptions and/or errors in trading may occur. This could result in limitations of the Services, including the inability to place or execute Orders. This may result in Orders or transactions being delayed, not executed at all, or executed at unfavorable prices. Additionally, we may correct any errors, for example by amending or cancelling executed Orders, which may be to your advantage or disadvantage. This may result in unexpected financial losses or missed trading opportunities. |
13. Price Guarantee Service If User has opted-in for Price Guarantee Service, User will be offered a guaranteed price which can be accepted before execution. However, User may not always be offered a guaranteed price for a given Digital Asset on the Bitvavo Trading Platform through the Price Guarantee Service. This is contingent on various factors, including volatility and liquidity at a given time in a given market, as a result of which Orders may take longer to execute, or not execute at all. If Bitvavo is unable to provide User with a Guaranteed Price Service, or if a Price Guarantee Order cannot be executed at the guaranteed price, Bitvavo will notify User accordingly. When User accepts a guaranteed price offer for their Order, User does not incur any market risk on their Order for a short period of time between User's acceptance of the price and the execution of User's Order on the RfQ segment of the Bitvavo Trading Platform. However, to account for any unforeseen price fluctuations during this time period, the guaranteed price offer may contain a charge which will be included in the market price for the Digital Asset pertaining to User's Order. If, during the short period after User submitted their Order, the market price for User's Order changes in User's favour, User's Order will nevertheless be executed against the guaranteed price that User accepted. If User would not have submitted their Order under the Price Guarantee Service, the market price on the CLOB might have been better than the guaranteed price offered under the Price Guarantee Service.Ā Currently, the only market maker available on the RFQ segment of Bitvavo Trading Platform which responds to Price Guarantee Orders is Inveniam B.V.. Inveniam B.V. is a company affiliated with Bitvavo. The User should note that the nature of group company relationship could give rise to potential conflicts of interest Bitvavo endeavors to mitigate risks associated with Inveniam B.V. being the sole market maker on the RFQ segment and strives to ensure transparent, fair and competitive markets in Digital Assets.Ā Further details on the conflicts of interest could be found in the Conflict of Interest Disclosure Statement.Ā Ā |
14. No Advice The fact that Digital Assets are available for trading on the Bitvavo Trading Platform constitutes neither a recommendation to enter into a particular transaction nor a representation that a Digital Asset is suitable or appropriate for User. Any information Bitvavo provides to User on the Website and/or the Bitvavo Environment or otherwise is not intended and should not be construed as investment, financial, trading, legal, regulatory tax or accounting advice. It is indicative only, may contain third-party content, and is subject to change without notice. While we endeavour to keep information shown on the Website and/or the Bitvavo Environment as accurate as possible, there is a risk that it may still be incomplete, outdated, or inaccurate. User is solely responsible for any investment decisions, including decisions not to trade, and for assessing the relevance, accuracy, adequacy, and reliability of any information we provide on the Bitvavo Trading Platform and/or the Bitvavo Environment or otherwise. |
15. Custody Services To improve the security of any Digital Assets that User deposits, the Foundation may store Digital Assets in cold wallets, also known as offline storage or cold storage, certain of which are offered by third-party custody providers. This complete isolation from online networks is the defining feature of cold wallets, designed to provide maximum security for storing Digital Assets. This may lead to a delay in the withdrawal of a Digital Asset by User. Additionally, Bitvavo has no influence on the functionality, security, availability, and/or continuity of third-party custody providerās services and shall not be liable for any incidents that result in loss of Digital Assets or access to Digital Assets that are not attributable to Bitvavo. User's Accounts (including any Assets from time to time), are not guaranteed or insured against losses. |
16. Transfer Services Any transfer of a Digital Asset requires factual information from the User, and may result in a loss of that asset if that information is inaccurate. This stems from the nature of the blockchain, which essentially results in the fact that transactions cannot be reverted. It is User's responsibility to verify any contemplated transfer for accuracy at the risk of loss of User's Assets. |
17. Recurring Buy Through the Recurrent Buy feature Bitvavo offers the optionality to periodically invest a fixed amount on an automated basis in selected Digital Assets. The main feature of Recurring Buy is that User invests consistently a fixed amount in Digital Assets on a monthly basis, regardless of the price of the relevant Digital Assets at the time of their monthly investment. This approach may reduce the risk of market timing which may potentially result in an average purchase price that is less sensitive to short-term volatility over the long term. However, this approach may also result in lower returns in comparison to a lump sum investment, if markets go up consistently in the middle to long term. |
18. Staking Service If User has opted-in for Staking Service, Bitvavo may stake eligible Digital Assets held with the Foundation as a validator or delegator in a third-party proof-of-stake blockchain protocol or network. The Staking Service is dependent on the functioning of underlying decentralized blockchain protocols. These protocols are maintained and regulated by specialized third parties. This means that Bitvavo cannot retrieve, recover or salvage any lost Digital Assets if the protocols that hold these Digital Assets malfunction, are disturbed or cease to exist entirely. Any rewards for the Staking Service may differ from time to time. There is a risk that the reward will decrease after User has opted-in for the Staking Service. Staking Digital Assets involves certain risks, including, but not limited to:
Most Staking Digital Assets are staked on platforms in native Proof-of-Stake (PoS) and only a small portion of these Digital Assets are staked via smart contracts. Smart contract staking involves staking Digital Assets via smart contract directly. While this offers rewards, it also carries risks like potential bugs or vulnerabilities in the contract which would create security risks, as well as risks arising from the changes in the underlying protocol. To manage these risks we carefully assess all protocols before supporting them. Bitvavo determines which validator to use and the Users do not participate in validator selection or governance of the Digital Assets.Ā For further detail on risks associated with Staking, please refer to our Staking Risk Disclosure available on our webpage and app.Ā |
19. Lending Service If User has opted-in for the Lending Service, Bitvavo Custody may borrow eligible Digital Assets and lend them onward to parties that provide liquidity to the Bitvavo Trading Platform. Bitvavo Custody takes various risk mitigating measures, which include evaluating the creditworthiness of such borrowers, requiring them to provide sufficient collateral, continuous monitoring to detect early signs of default or insolvency, loan book diversification and establishing procedures for asset recovery in case of default or insolvency. Despite these safeguards, borrowers may still default on their loans from Bitvavo Custody. Although losses resulting from such default will not be allocated to opted-in Users, they run a residual credit risk exposure to Bitvavo Custody to whom they have lent Digital Assets. Consequently they may lose part of their Lending Digital Assets and/or Lending Rewards in case Bitvavo Custody is unable to recover these Digital Assets under the relevant loan agreement with such borrower and subsequently becomes insolvent. The above means that User is subject to a counterparty risk at the level of Bitvavo Custody. Under the Lending Service rewards are not guaranteed and they may differ from time to time. There is a risk that the reward will decrease after User has opted in for the Lending Service. For calculation of the rewards please refer toĀ our Pricing Policy.Ā For further detail on risks associated with Lending, please refer to our Lending Risk Disclosure available on our webpage and app.Ā |
20. API By using the API, User may authorize third parties through API keys to interface with User's Account. These third parties may not be affiliated with, or approved by, Bitvavo. Before User authorizes any such third party, it is important that the User conducts adequate due diligence to verify whether this party is sufficiently trustworthy, only grant the least necessary permissions for User's API keys and always use the IP whitelist feature to restrict access. Use of the API is for User's own risk and Bitvavo shall not be liable for any financial loss, including but not limited to loss of Digital Assets, resulting from the use of the API. If User shares their private API keys with third parties, such parties or their IT or automated trading systems (for instance where third parties offer the use of automated trading bots on the API) may interact with the Bitvavo Trading Platform on their behalf in a way that User did not agree and/or anticipate. Bitvavo may consider any instruction signed by User's private key on the API as being valid and binding until User or any party timely notifies Bitvavo of a breach or irregularity with User's private API keys. |
21. Operational Risk Bitvavo strives to ensure uptime and platform performance. However, during periods of market stress, technical issues may arise. These include downtime or service disruption, which can block deposits, withdrawals, or trading; delayed order execution, especially for Market Orders during volatility; mismatched prices due to latency or liquidity gaps. Bitvavo may cancel or adjust executed transactions as per the Trading Rules. These may result in missed trading opportunities or unexpected losses. |
22. Credit Risk Users are exposed to credit risk when counterparties fail to meet their obligations. This includes other Users, Bitvavo Custody, or external institutions holding funds within the Foundation on Userās behalf. Bitvavo Custody For services like Lending or for delayed settlement, Users bear the credit risk of Bitvavo Custody. If Bitvavo Custody defaults, Users may lose some or all assets or rewards. Counterparty Risk Counterparties may fail to return borrowed assets or settle obligations. Bitvavo does not guarantee third-party performance unless explicitly stated. Credit Institutions Fiat money held with third-party credit institutions is subject to credit risk of such parties. While these are regulated, there may still be default risk, particularly for losses especially exceeding insured limits or falling outside protection schemes. No Guarantee Schemes The Services provided under the User Agreement are not subject to or covered by any deposit guarantee or investor protection schemes. Users bear the full risk unless stated otherwise. |
Version of:Ā 01 June 2025
This policy (the āRisk Disclosure Statementā) is part of theĀ Bitvavo User Agreement. The definitions used but not defined herein are defined in the User Agreement.
This statement is drawn up in English as well as other language versions. In case of any discrepancy the English language version prevails.
User uses the Services entirely at their own risk. By accepting the User Agreement, User also accepts and consents to the risks as included in this Risk Disclosure Statement. This Risk Disclosure Statement includes some of the most principal risks of using the Services, but it cannot and does not include all risks involved in using the Services.
Volatility
1. Due to the volatile nature of Digital Assets prices, User can incur a substantial and even a full loss of Funds by buying and trading Digital Assets. User must carefully consider whether trading Digital Assets is suitable for Userās risk tolerance and financial position. User should not use Funds for the Services that User is not prepared to lose entirely.
2. Note that this risk also exists in relation to so-called āstablecoinsā, i.e. Digital Assets the purpose of which is that these hold a constant and generally 1:1 exchange rate or āpegā with traditional fiat currency. This peg may i.a. be achieved by means of a counterparty committing to exchange the stablecoin for fiat currency or by an algorithm functioning on the blockchain. There is no guarantee that stablecoins maintain this peg and multiple stablecoins have lost this peg in the past. This may in the future and has in the past led to a full or partial loss of funds by holders of stablecoins. The peg may be lost due to a wide range of reasons, including failure of an essential counterparty or failure of the functionality of an essential algorithm. Stablecoins are issued and their functionality is operated and maintained by third parties, over which Bitvavo has no influence. There is generally very little or no recourse in case of a loss of a peg in relation to a stablecoin.
3. The execution price of a Market Order may differ significantly from the indicated price. This may be due to a change in price between the time of the Order being initiated by User and the execution of the Order (i.e. 'slippage').Ā Especially during periods of high volume, illiquidity, fast movement or volatility, any Digital Assets traded on the Platform may be executed at a different rate than indicated via the Services at the time of Users Order.
4. When User submits instructions to buy or sell Digital Assets through the Price Guarantee Service, its Price Guarantee Request is placed on a segment of the Bitvavo Trading Platform separate from the central limit order book and is executed against the counterpart whose quote in response to the User's Price Guarantee Request is accepted.Ā Ā This enables Bitvavo to provide the User a guaranteed price for a pre-set amount of time.Ā As a result of this, the price is not formed within a free market, as is the case on the Bitvavo Trading Platform, but set by Bitvavo itself.Ā As a result of this, Price Guarantee Requests may be executedĀ above market prices, leading to lower profits or higher losses for User.Ā
5. Markets for Digital Assets have varying degrees of liquidity. Some are quite liquid while others may be āilliquidā, which means there can be a scarcity of Users who are willing to trade at any one time. Thinly traded or illiquid markets have potential increased risk of loss because they can experience high volatility of prices and in such markets market participants may find it impossible to liquidate market positions except at very unfavorable prices. There is no guarantee that the markets for any Digital Asset allow you to establish or liquidate positions at favorable prices or will be even active and liquid when desired.Ā Certain limitations may exist on how Users can trade, or on the markets in which they can trade. Bitvavo may require the User to agree to the Lending Service for the Digital Assets acquired in such trade, exposing such Users to the risks connected to the Lending Service (see below).
6. Limit Orders may be taker Orders, while User expected it to be a maker Order, leading to higher fees for User. This is due to the fact that other limit Orders may have been placed in the order book very briefly prior to the limit Order of User being placed. This may lead to limit Order of User being executed against a better price than User had included in its limit Order.
Account security
7. Digital Asset platforms and associated accounts are targeted frequently by hackers and individuals seeking unauthorized access to User Funds. This may well lead to User Funds being irretrievably lost. It is Userās sole responsibility to safeguard its account, as included in the User Agreement. Aside from choosing a strong password Bitvavo highly recommends that each User activates two factor authentication ("2FA") and enables the anti-phishing functionality provided by Bitvavo.
Human Errors
8. Transferring or depositing Digital Assets is prone to several human errors. As examples, User may transfer their Digital Assets to a wrong wallet address or use the wrong blockchain. Due to the nature of the protocols underlying Services, such erroneous transactions cannot be reverted. It is Userās sole responsibility to ensure any transactions are error-free.
Functioning of the Platform
9. Especially during periods of high volume and high volatility, access to and functioning ofĀ the Platform may become degraded. This could result in limitations on access to Userās Account and any of the Services, including the inability to initiate or complete transactions. This may also lead to support response time delays. Especially during these times Digital Asset rates displayed on the Platform might differ from the rates at which orders are executed.
Storage and custody
10. Although Bitvavo and the Foundation will take reasonable measures to secure the Bitvavo Digital Asset Wallets and the Bitvavo E-Token Wallets, they cannot guarantee full security. Any defects or breaches can lead to a full loss of Funds. Use of the Bitvavo Digital Asset Wallet is at the risk of User.
11. The Foundation may hold Euro funds for Users in euro denominated bank accounts and in the form of safe, liquid and low-risk assets, in line with generally accepted rules and standards. In case of default of a bank holding such Euro funds, this may lead to a full loss of Userās Funds. Userās Euro funds that are held in such safe, liquid and low-risk assets are at risk of a default of the relevant asset counterparty or counterparties and at the risk of these assets not being able to be sold at short term in case of exceptionally high withdrawal volumes.
12. For security and efficiency purposes, the Foundation and Bitvavo may store Digital Assets with third party custody providers, over which they do not have any control. In case of default, technical failure or a security failure by a third party custody provider, this may lead to a full loss of Userās Funds.
13. Bitvavo and Bitvavo Custody do not provide a checking, savings or other type of account that is covered by any deposit guarantee or insurance against losses.
API
14. By using the API (as included in the User Agreement), User may allow third parties to interface with its Account and Bitvavoās Services. It is important that User researches and trusts such third parties. Providing such access may lead to unwanted or erroneous interactions in relation to Userās Account, which could lead to e.g. loss of funds or loss of functionality of Userās Account or the Services. Such third parties are not in any way vetted or approved by Bitvavo. Use of the API and third partiesā services interacting with the API is at Userās own risk.
Price Guarantee
15. Due to the nature of the Service, Price Guarantee Requests may take longer to execute, or not execute at all. As a result, User might not be able to trade assets at the moment of its choosing and suffer losses or missed opportunities.
Staking
16. Bitvavo may stake the Staking Digital Assets held with the Foundation as a validator or delegator in a third party proof-of-stake blockchain protocol or network. Such networks may be inconsistent in the amount of rewards they pay out and might even provide no rewards at all.Ā
17. Staking is dependent on the functioning of underlying decentralized blockchain protocols. These protocols are maintained and regulated by third parties and thus out of Bitvavoās reach and influence. This means that Bitvavo cannot retrieve, recover or salvage any lost Funds if the protocols that hold Userās Funds malfunction, are disturbed or cease to exist entirely. User may lose all or part of its Funds by way of such blockchain protocol (functioning properly and following its programmed rules) āslashingā, a blockchain mechanism by which part or all of staked assets are destroyed or otherwise taken away from the staking person, Staking Digital Assets, due to circumstances beyond control of User and of Bitvavo or its affiliates. User may lose all or part of its Funds as a result of a malfunction within such blockchain protocol. If such losses occur, Bitvavo or any affiliates may not be able to return Funds to User. Also, if User opted-in to the Staking Service, Bitvavo or any affiliates shall have no obligation to do so.
18. A.Ā Staking Reward rates may differ from time to time. There is a risk that the rate will decrease after User has opted in for the Staking Service.
18. B.Ā Some Digital Asset networks require that Staked Digital Assets are locked (restricted from sale or transfer) for a period of time while staking. This is particularly the case for Staked Digital Assets where User previously signed up to receive higher Staking Rewards in return for locking its Staked Assets for a fixed period of time. During the aforementioned lock-up period and/or any time need to complete the unstaking process, User may not be able to sell or transfer the Staked Digital Assets, and suffer losses or missed opportunities.
Lending Service
19. Bitvavo Custody may borrow the current and future Digital Assets from a User that opted-in for the Lending Service and lend it onward to third party Lending Partners at its full discretion. Bitvavo manages the Lending Service risks through various risk management practices, which include evaluating a Lending Partnerās creditworthiness, requiring Lending Partners to provide sufficient collateral, continuous monitoring to detect early signs of default or insolvency, loan book diversification and establishing procedures for asset recovery in case of default or insolvency. Regardless, Lending Partners may default and not be able to return part or all Lending Digital Assets and Lending Rewards due. Bitvavo and Bitvavo Custody have excluded all liability for returning the Lending Digital Assets and Lending Rewards and may not provide compensation in such case. The Lending Partners are not always required to post full collateral to Bitvavo Custody. Thus, a default of a Lending Partner will lead to loss of the Lending Digital Assets and Lending Rewards of a User.Ā
20. The Lending Digital Assets may have a lower value at the time of repayment than at the time of the transfer.Ā
21. Lending Rewards rates may differ from time to time. There is a risk that the rate decreases after User has opted in for the Lending Service.
22. Regulatory changes or uncertainties may impact the legality or viability of the Lending Service, which could lead to the Lending Service being discontinued.
Decentralized Protocols
23. Unlike most currencies or assets that are backed by governments or other legal entities or by other commodities such as gold or silver, Digital Assets are a unique type of asset, based on technology and rule-based cooperation. There is no central bank or other third party that can take corrective measures to protect the value of a Digital Asset.Ā
24. Bitvavo does not have control over, or liability for, the delivery, quality, safety, legality or any other aspect of the Digital Assets that you may purchase, hold or sell using the Services. Bitvavo does not own or control any of the underlying software protocols which govern the operation of the Digital Assets supported by the Bitvavo Service. These underlying protocols may change or cease functioning without advance notice, which may lead to a full loss of Digital Assets or the value thereof.
25. Due to the nature of blockchain technology and the underlying protocols thereof, any Digital Assets stored or traded on the platform may be irretrievably lost, corrupted, erased, either temporarily or indefinitely.
Legal uncertainty
26. The market, technology and legal framework for Digital Assets is new and uncertain. Bitvavoās Services operate in a partly regulated field of law. The Service may be subject to changes or even termination as laws and regulations develop.Ā
27. The legal classification of (certain) Digital Assets may not be clear and may vary under the laws of different jurisdictions throughout the world. How a Digital Asset qualifies legally and what consequences this has to a Userās rights to the Funds may vary per jurisdiction.Ā
28. The legality of the Services in a specific jurisdiction may be uncertain. User is responsible for knowing and understanding how Digital Assets and the Services to these Digital assets will be addressed, regulated and taxed under the laws as applicable to User.
Information errors
29. Materials provided on the Website, the Bitvavo Platform or otherwise by Bitvavo are purely for informational purposes and may change without notice. Bitvavo may provide third party content. Any information provided may be misleading, incomplete or erroneous. User is always solely responsible for assessing the relevance, accuracy, adequacy, and reliability of any materials provided.Ā
Tax risks
30. The current tax treatment of the Services has not been conclusively clarified and may also depend on the individual tax treatment of a User. It cannot be ruled out that the tax authorities and courts may adjust or change previous tax assessments on the treatment of income related to the Services.
Risk Disclosure StatementĀ |
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Version of: 06 October 2025 |
Introduction |
Bitvavo B.V. (āBitvavoā) is a private limited liability company, incorporated in the Netherlands (registration number chamber of commerce 68743424), whose registered office is Keizersgracht 281, 1016ED Amsterdam, the Netherlands.Ā Bitvavo is licensed by the Dutch Authority for Financial Markets (Autoriteit FinanciĆ«le Markten- AFM,) under the registration number 41000010, as a crypto asset service provider under Regulation (EU) 2023/1114 on markets in crypto-assets, as amended or supplemented from time to time (MiCA) and is, among others, permitted to provide the service of operation of a trading platform for crypto assets.Ā Bitvavo Custody B.V. (āBitvavo Custodyā) is a private limited liability company, incorporated in the Netherlands (registration number chamber of commerce 80118844), whose registered office is Keizersgracht 281, 1016ED Amsterdam, the Netherlands.Ā The services provided by Bitvavo and Bitvavo Custody are governed under the user agreement ( the User Agreement). Bitvavo Custody is a party to the User Agreement only in relation to the Lending Service and Margin Trading Facility, if any. Bitvavo Custody is not an entity regulated by MiCA or any other European sectoral legislation, it is not a crypto asset service provider and it is not subject to the supervision of the AFM or any other authority. For the avoidance of doubt the Lending Services, Margin Trading Facility, Price Guarantee Service and the Staking Services are not regulated under MiCA and other European sectoral legislation.Ā This would mean that the Users may not be afforded the same level of rights and protections under MiCA when using these Services.Ā The use of the Bitvavo Services and Bitvavo Trading Platform, and trading Digital Assets may carry risks that are beyond Bitvavo's control, and Bitvavo and Bitvavo Custody are not liable for such risks. This Risk Disclosure Statement sets out a non-exhaustive list of these risks. Other risks that are not mentioned herein and that are specific to a particular Digital Asset may also apply. Those will be set out inĀ the respective white paper associated with the relevant Digital Asset, if available. For Digital Assets that are available for trading on the Bitvavo Trading Platform from time to time, these white papers are referenced on the Bitvavo Trading Platform and/or Bitvavo Environment. This Annex should not be regarded as a comprehensive disclosure of all risks related to trading or investment in Digital Assets. It is important for the User to carefully evaluate whether investing in Digital Assets and using any Services is suitable for their tolerance, investment goals, financial and tax circumstances, personal and legal conditions, and any other relevant factors. This Risk Disclosure Statement, which includes some of the most principal risks of using the Services, may be helpful for that assessment. Capitalized terms used and not otherwise defined are defined in the User Agreement. This Risk Disclosure Statement is drawn up in English as well as other language versions. In case of any discrepancy the English language version prevails. |
1. Market Risk Every investment involves opportunities and risks. The value of Digital Assets may fluctuate significantly. There is an inherent risk that a User will incur material losses if a User trades Digital Assets and Bitvavo provides related Services to the User. Past performance of certain Digital Assets does not indicate future results. Such investment is only suitable for Users, who can bear a loss of the entire invested capital and should not be considered as or entered into with the expectation of a stable source of income. This means that the User should assess, for each and any of the Services they consider, whether the related risk is appropriate for their financial situation, risk appetite and other personal circumstances. 1.1. Liquidity Risk Some Digital Assets may have low liquidity and this may affect timely execution of Orders at desired prices or lead to partial execution. Illiquid markets can result in wider spreads and higher trading costs. Volatility in illiquid markets tend to be higher due to less liquid order books.Ā 1.2. De-pegging RiskĀ Certain Digital Assets refer to other fiat currencies and asset types and intend to maintain a stable value (generally referred to as stablecoins). The value of such Digital Assets may, however, decrease when the Digital Assets lose their 1-1 peg due to market conditions, failures or insolvency of the Issuers or loss of reserve assets, regulatory actions, and the User may incur partial or material losses. 1.3. Slippage Risk Market Orders may execute at a price different from the price that is indicated due to high volatility, limited liquidity, or execution delays. 1.4 Currency Risk USD coins are also offered on Bitvavo Trading Platform and this may lead to a currency conversion risk for the Users where base currency is EUR.Ā 1.5. Concentration Risk Events that could have an impact on a Digital Asset may have a substantial impact on portfolio concentrated on that Digital Asset.Ā |
2. Systemic RiskĀ The crypto-asset ecosystem is interconnected, with certain participants such as trading platforms, stablecoin issuers, custodians, and liquidity providers playing central roles. A failure or insolvency of one major participantāsuch as a widely used exchange, stablecoin issuer, or custodianāmay trigger cascading failures or a broad loss of trust in the market. This could affect the liquidity, pricing, or accessibility of a wide range of Digital Assets, even those not directly linked to the failing participant. Bitvavo cannot prevent or mitigate such ecosystem-wide risks and may also be affected through shared infrastructure, counterparties, or market dependencies. Users should be aware that systemic risks may result in disruptions to Services, temporary inaccessibility of assets, or sudden changes in asset values. |
3. Regulatory and Jurisdictional Risk It is possible that statutory or regulatory changes have material effects on the current setup of the Bitvavo Trading Platform. Statutory or regulatory changes may also result in substantial modifications to any Digital Assets. Bitvavo cannot guarantee that certain regulatory or legal changes may not result in the limitation or termination of certain Services on the Bitvavo Trading Platform. |
4. Tax Risks The purchase, sale, exchange or holding of Digital Assets available may trigger tax consequences for User. While several countries have already implemented specific tax regulations for Digital Assets, further changes and/or additional tax regulations are to be expected. Bitvavo may under certain circumstances (now and/or in the future) be required to deduct withholding tax. Withheld tax amounts are remitted to the tax authorities, and Bitvavo will be unable to refund these amounts. Bitvavo will report information with respect to transactions made by User and/or Digital Assets held by User to one or more tax authorities to the extent such reporting is required by applicable law. Bitvavo shall deduct and withhold tax on User's transactions to the extent such withholding is required by applicable law. Bitvavo may collect tax documents or certificates regarding User's status as a taxpayer, as well as User's tax identification number or similar information, as required by applicable law. Users should conduct their own assessment of their tax situation concerning Digital Assets and consult their tax advisor before making any decisions with respect to investing in Digital Assets. |
5. Risks inherent to crypto technology and designĀ Digital Assets are not backed by governments, or by commodities such as gold. There is no central bank that can take corrective measures to protect the value of Digital Assets in a crisis, such as issuing more Digital Assets. Instead, Digital Assets are autonomous and largely unregulated on blockchain networks. This means that the User should be prepared to trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity. User must be aware of the risks associated with technology, including (but not limited to) failures in hardware, software, and internet connectivity, malicious software or cyber-attacks, third parties gaining unauthorised access to information and/or assets (including their Digital Assets), failures or outages in blockchain networks, and other forms of attacks. This also means Bitvavo may not have control over, or liability for, the delivery, quality, safety, legality or any other aspect of the Digital Assets for which Bitvavo offers Services to User. In case of any systemic failure, this could result in a loss of User's Digital Assets. |
6. Risk of Software Weakness The technology of Digital Assets and platforms such as smart contract systems and other related technologies, as well as their underlying technical concepts and theories are still in an early development stage, are unproven and beyond Bitvavo's control. There is an inherent risk that the technology could contain weaknesses, vulnerabilities or bugs. These could cause, for example, the complete loss of any Digital Assets, even if the software and systems deployed by Bitvavo are functioning as intended. Many of these technologies and software applications required for the sale, transfer or holding of Digital Assets are neither released by a software manufacturer nor certified by a central entity such meaning no single party may be held liable for such potential defects. Bitvavo uses and displays customary security certificates issued by third parties (certificate authorities) which are widely regarded as enhancing security. Ultimately, however, Bitvavo cannot guarantee the validity or accuracy of these certificates on the Bitvavo Trading Platform. Always keeping the Bitvavo App, internet browser and the underlying operating systems up to date can mitigate certain risks and vulnerabilities. |
7. Risk of theft and internet vulnerability The software applications and/or other technology components that support the Bitvavo Trading Platform and Services may be exposed to electronic or physical attacks that could result in the irreversible theft or loss of Digital Assets or the theft or loss of personal data. |
8. Risk of eliminating the benefits of 2FA Bitvavo strongly recommends that the User uses 2FA. Please note however, that the safety benefit of using 2FA is effectively reduced or eliminated if both factors can be accessed with the same credentials or devices. |
9. Risk of weak login credentials and risk of losing login credentials If User does not use 2FA in cases provided for by Bitvavo, any person with knowledge of User's password and e-mail address may be able to access User's Account and User's Digital Assets held in custody by Bitvavo and may place Orders in User's name. The password User chooses when registering an Account (as amended from time to time) may be subject to attacks, even if it is unique and only known to User. The risk is greater if the password is weak (in length and/or complexity) and/or if the password contains personal details (for example User's name, date of birth or place of residence) and/or words included in a dictionary. Bitvavo recommends that User always chooses a strong and unique password (that is not used with any other service provider) and that User uses the 2FA. While stronger passwords are statistically (far) less likely to be successfully retrieved by an attacker, no password is fully safe. The indicator for the password strength of their password is calculated from general parameters, and does not verify whether User's password may contain any of User's personal details or words included in a dictionary. This should be regarded as a guideline only. |
10. Risk of phishing and/or social engineering SMS and e-mail services are vulnerable to spoofing and phishing attacks. User should always log into User's Account to review any transactions or required actions if they have any uncertainty regarding the authenticity of any communication or notice. Phishing attacks often occur despite SMS or e-mail or equivalent services, via search engines or ads in search engines, or other fraudulent links. While Bitvavo strongly recommends participating in the 2FA, the 2FA cannot prevent successful phishing and/or social engineering attacks if User's credentials including the 2FA are disclosed in such an attack. Phishing or social engineering may result in the theft or loss of the User's Digital Assets. |
11. Operational RiskĀ Bitvavo strives to ensure uptime and platform performance. However, during periods of market stress, technical issues may arise. These include downtime or service disruption, which can block deposits, withdrawals, or trading; delayed order execution, especially for Market Orders during volatility; mismatched prices due to latency or liquidity gaps. Bitvavo may cancel or adjust executed transactions as per the Trading Rules. These may result in missed trading opportunities or unexpected losses. |
12. Credit Risk Users are exposed to credit risk when counterparties fail to meet their obligations. This includes other Users, Bitvavo Custody, or external institutions holding funds within the Foundation on Userās behalf. Bitvavo Custody For services like Lending or for delayed settlement, Users bear the credit risk of Bitvavo Custody. If Bitvavo Custody defaults, Users may lose some or all assets or rewards. Counterparty Risk Counterparties may fail to return borrowed assets or settle obligations. Bitvavo does not guarantee third-party performance unless explicitly stated. Credit Institutions Fiat money held with third-party credit institutions is subject to credit risk of such parties. While these are regulated, there may still be default risk, particularly for losses especially exceeding insured limits or falling outside protection schemes. No Guarantee Schemes The Services provided under the User Agreement are not subject to or covered by any deposit guarantee or investor protection schemes. Users bear the full risk unless stated otherwise. |
13. Trading Services Digital Assets are volatile assets and may be susceptible to irrational and/or rational bubbles or loss of confidence, which could collapse demand relative to supply and vice versa. This means that User may incur a material and even a full loss when investing in these assets. This risk also exists when trading stablecoins. When User trades and places a Market Order on the Bitvavo Trading Platform, the execution price may differ significantly from the price indicated to User on the Bitvavo Trading Platform. This relates to a change in price between the time of the Order from User and the actual execution of the Order, which is generally referred to as āslippageā. An Order from User always remains subject to sufficient liquidity on the Bitvavo Trading Platform, which means that some Orders may not be instantly executed and that the execution may take some time or not occur at all during periods of high volatility and/or low liquidity. This could result in a less favourable price than anticipated, or even a failure to execute the transaction at User's desired price. Additionally, illiquid markets have an increased risk of loss because they can experience higher volatility. There is no guarantee that the markets for any Digital Assets allow Users to obtain or liquidate positions at prices acceptable to them or will be even active and liquid at the time they would like to execute their investment decisions. |
14. Bitvavo Trading Platform and Trading Risks During periods of high trading volume, illiquidity and/or volatility, interruptions and/or errors in trading may occur. This could result in limitations of the Services, including the inability to place or execute Orders. This may result in Orders or transactions being delayed, not executed at all, or executed at unfavorable prices. Additionally, we may correct any errors, for example by amending or cancelling executed Orders, which may be to the Userās advantage or disadvantage. This may result in unexpected financial losses or missed trading opportunities. |
15. Margin Trading FacilityĀ If User has opted in for the Margin Trading Facility, Bitvavo enables the User to open short positions by borrowing Digital Assets from Bitvavo Custody B.V., secured with fiat collateral (EUR) committed by the User. Margin Trading carries significantly higher risks than spot trading and may result in rapid and substantial losses. The Margin Trading Facility is provided on an isolated margin basis, where each position is margined separately. Users should carefully consider whether Margin Trading is suitable for their financial situation, risk appetite, and trading experience. By using the Margin Trading Facility, User acknowledges and accepts the following risks, among others: Leverage and Short Selling Risk Margin Trading involves borrowing Digital Assets to sell them in anticipation of a price decline. While this may generate profits in falling markets, it exposes the User to unlimited theoretical losses if the price of the borrowed asset rises. Leverage magnifies the profit-and-loss profile of a position: for example, with 5x leverage, a 1% adverse move in the market can result in a 5% loss on the leveraged position value. Conversely, favorable price moves are also magnified. This multiplier effect means that small market changes can quickly erode collateral and lead to liquidation. Users remain fully liable for any resulting negative balances. Collateral Commitment and Isolation Risk Fiat collateral (EUR) is transferred from the Userās Spot Account into a dedicated Margin Account and locked for the duration of the position. The proceeds from the short sale are also retained in the Margin Account and form part of the collateral securing the position. Collateral committed to one position cannot be used to cover another. Health Ratio and Liquidation Risk The Margin Trading Service continuously monitors the Userās position via a Health Ratio (HR).ā If the HR falls below the threshold set and communicated to the Users by Bitvavo, the position is liquidated without prior notice. Liquidation may occur at unfavorable prices during periods of high volatility or limited liquidity. A liquidation fee applies as set out in the User Agreement. Borrowing Costs and Interest Accrual Borrowed assets incur interest, accruing hourly at the applicable rate published on the Bitvavo Website and App. Interest compounds over time and increases the Userās outstanding obligations. Extended holding periods can materially increase the cost of a position and accelerate liquidation risk. Market Volatility and Execution Risk Short positions are particularly sensitive to sudden price increases (āshort squeezesā), which can cause rapid losses and trigger liquidation. Execution of Market Orders may result in slippage, partial execution, or failure to execute during periods of high volatility or illiquidity. Bitvavo cannot guarantee that orders will execute at anticipated prices. System and Operational Risk Technical disruptions, downtime, or delays in Bitvavoās systems may prevent Users from adjusting positions, depositing collateral, or closing positions in time to avoid liquidation. Bitvavo may correct or cancel orders as provided under the Trading Rules. Users bear the risk of missed trading opportunities or unexpected losses resulting from such events. No Guarantee of Profitability Margin Trading is speculative in nature and is not suitable for all Users. There is no guarantee that Users will achieve profits or recover losses. Users should only engage in Margin Trading if they fully understand the mechanics of short selling, leverage, and liquidations, and are willing and able to bear the associated risks. |
16. Price Guarantee Service If User has opted-in for Price Guarantee Service, User will be offered a guaranteed price which can be accepted before execution. However, User may not always be offered a guaranteed price for a given Digital Asset on the Bitvavo Trading Platform through the Price Guarantee Service. This is contingent on various factors, including volatility and liquidity at a given time in a given market, as a result of which Orders may take longer to execute, or not execute at all. If Bitvavo is unable to provide User with a Guaranteed Price Service, or if a Price Guarantee Order cannot be executed at the guaranteed price, Bitvavo will notify User accordingly. When User accepts a guaranteed price offer for their Order, User does not incur any market risk on their Order for a short period of time between User's acceptance of the price and the execution of User's Order on the RfQ segment of the Bitvavo Trading Platform. However, to account for any unforeseen price fluctuations during this time period, the guaranteed price offer may contain a charge which will be included in the market price for the Digital Asset pertaining to User's Order. If, during the short period after User submitted their Order, the market price for User's Order changes in User's favour, User's Order will nevertheless be executed against the guaranteed price that User accepted. If User had not submitted their Order under the Price Guarantee Service, the market price on the CLOB might have been better than the guaranteed price offered under the Price Guarantee Service.Ā Currently, the only market maker available on the RfQ segment of Bitvavo Trading Platform which responds to Price Guarantee Orders is Inveniam B.V. Inveniam B.V. is a company affiliated with Bitvavo. The User should note that the nature of group company relationship could give rise to potential conflicts of interest, Bitvavo endeavors to mitigate risks associated with Inveniam B.V. being the sole market maker on the RfQ segment and strives to ensure transparent, fair and competitive markets in Digital Assets.Ā Further details on the conflicts of interest could be found in the Conflict of Interest Disclosure Statement.Ā Ā |
17. No Advice The fact that Digital Assets are available for trading on the Bitvavo Trading Platform constitutes neither a recommendation to enter into a particular transaction nor a representation that a Digital Asset is suitable or appropriate for User. Any information Bitvavo provides to User on the Website and/or the Bitvavo Environment or otherwise is not intended and should not be construed as investment, financial, trading, legal, regulatory tax or accounting advice. It is indicative only, may contain third-party content, and is subject to change without notice. While we endeavour to keep information shown on the Website and/or the Bitvavo Environment as accurate as possible, there is a risk that it may still be incomplete, outdated, or inaccurate. User is solely responsible for any investment decisions, including decisions not to trade, and for assessing the relevance, accuracy, adequacy, and reliability of any information we provide on the Bitvavo Trading Platform and/or the Bitvavo Environment or otherwise. |
18. Custody Services To improve the security of any Digital Assets that User deposits, the Foundation may store Digital Assets in cold wallets, also known as offline storage or cold storage, certain of which are offered by third-party custody providers. This complete isolation from online networks is the defining feature of cold wallets, designed to provide maximum security for storing Digital Assets. This may lead to a delay in the withdrawal of a Digital Asset by User. Additionally, Bitvavo has no influence on the functionality, security, availability, and/or continuity of third-party custody providerās services and shall not be liable for any incidents that result in loss of Digital Assets or access to Digital Assets that are not attributable to Bitvavo. User's Accounts (including any Digital Assets from time to time), are not guaranteed or insured against losses. |
19. Transfer Services Any transfer of a Digital Asset requires factual information from the User, and may result in a loss of that asset if that information is inaccurate. This stems from the nature of the blockchain, which essentially results in the fact that transactions cannot be reverted. It is User's responsibility to verify any contemplated transfer for accuracy at the risk of loss of User's Digital Assets. |
20. Staking Service If User has opted in for Staking Service, Bitvavo may stake eligible Digital Assets held with the Foundation as a validator or delegator in a third-party proof-of-stake blockchain protocol or network. The Staking Service is dependent on the functioning of underlying decentralized blockchain protocols. These protocols are maintained and regulated by specialized third parties. This means that Bitvavo cannot retrieve, recover or salvage any lost Digital Assets if the protocols that hold these Digital Assets malfunction, are disturbed or cease to exist entirely. Any rewards for the Staking Service may differ from time to time. There is a risk that the reward will decrease after User has opted in for the Staking Service. Staking Digital Assets involves certain risks, including, but not limited to:
Most Staking Digital Assets are staked on platforms in native Proof-of-Stake (PoS) and only a small portion of these Digital Assets are staked via smart contracts. Smart contract staking involves staking Digital Assets via smart contract directly. While this offers rewards, it also carries risks like potential bugs or vulnerabilities in the contract which would create security risks, as well as risks arising from the changes in the underlying protocol. To manage these risks we carefully assess all protocols before supporting them. Bitvavo determines which validator to use and the Users do not participate in validator selection or governance of the Digital Assets.Ā For further detail on risks associated with Staking, please refer to our Staking Risk Disclosure available on our Website and App.Ā |
21. Lending Service If User has opted in for the Lending Service, Bitvavo Custody may borrow eligible Digital Assets and lend them onward to other Users. Bitvavo Custody takes various risk mitigating measures, which include requiring them to provide sufficient collateral, continuous monitoring to detect early signs of default or insolvency, loan book diversification and establishing procedures for asset recovery in case of default or insolvency. Despite these safeguards, borrowers may still default on their loans from Bitvavo Custody. Although losses resulting from such default will not be allocated to opted-in Users, they run a residual credit risk exposure to Bitvavo Custody to whom they have lent Digital Assets. Consequently they may lose part of their Lending Digital Assets and/or Lending Rewards in case Bitvavo Custody is unable to recover these Digital Assets under the relevant loan agreement with such borrower and subsequently becomes insolvent. The above means that User is subject to a counterparty risk at the level of Bitvavo Custody. Under the Lending Service rewards are not guaranteed and they may differ from time to time. There is a risk that the reward will decrease after User has opted in for the Lending Service. For calculation of the rewards please refer toĀ our Pricing Policy. For further detail on risks associated with Lending, please refer to our Lending Risk Disclosure available on our Website and App.Ā |
22. API By using the API, User may authorize third parties through API keys to interface with User's Account. These third parties may not be affiliated with, or approved by, Bitvavo. Before User authorizes any such third party, it is important that the User conducts adequate due diligence to verify whether this party is sufficiently trustworthy, only grants the least necessary permissions for User's API keys and always uses the IP whitelist feature to restrict access. Use of the API is for User's own risk and Bitvavo shall not be liable for any financial loss, including but not limited to loss of Digital Assets, resulting from the use of the API. If User shares their private API keys with third parties, such parties or their IT or automated trading systems (for instance where third parties offer the use of automated trading bots on the API) may interact with the Bitvavo Trading Platform on their behalf in a way that User did not agree to and/or anticipate. Bitvavo may consider any instruction signed by User's private key on the API as being valid and binding until User or any party timely notifies Bitvavo of a breach or irregularity with User's private API keys. |
23. Recurring Buy Through the Recurrent Buy feature Bitvavo offers the optionality to periodically invest a fixed amount on an automated basis in selected Digital Assets. The main feature of Recurring Buy is that User invests consistently a fixed amount in Digital Assets on a monthly basis, regardless of the price of the relevant Digital Assets at the time of their monthly investment. This approach may reduce the risk of market timing which may potentially result in an average purchase price that is less sensitive to short-term volatility over the long term. However, this approach may also result in lower returns in comparison to a lump sum investment, if markets go up consistently in the middle to long term. |
Bitvavo B.V.
Trading digital assets involves significant risks. Digital assets are highly volatile and you may lose some or all of your investment. The information on this page does not constitute advice, and should not be relied upon as such. Bitvavo is authorized as a crypto-asset service provider under Regulation (EU) 2023/1114 (MiCA) by the Autoriteit Financiƫle Markten (AFM), Vijzelgracht 50, 1017 HS Amsterdam. More info can be found in our Risk Disclosure.
Bitvavo is registered at the Dutch Chamber of Commerce, number 68743424.