Risk Disclosure Statement

Last Updated: Apr 1, 2024


This “Risk Disclosure Statement” provides you with information about some of the risks associated with using the services offered by Cube in Australia. “Cube” as used herein means Cube Group, Inc. and/or its wholly-owned subsidiaries (“Cube,” “we,” “our,” or “us”) in connection with the https://www.cube.exchange website (the “Site”) and any other website that we own or control and which posts or links to this Risk Disclosure Statement, our mobile application (“App”) and our related products and services (collectively, the “Services”). We refer to all of the websites and our App as the “Platform.” You understand and acknowledge that each of the risks described herein has the potential to negatively impact the value of your assets and your experience on Cube.

General Terms of Service

Please note that the information presented in this Risk Disclosure Statement is not exhaustive and does not encompass all the risks you should consider before trading or holding digital currencies, tokens, crypto (collectively “Virtual Currency Assets”). It is essential that you independently assess and decide whether trading or holding of Virtual Currency Assets is suitable for you depending upon your financial circumstances, resources and risk tolerance. It is recommended to seek any necessary advice, including financial and/or legal guidance, from independent advisors. Furthermore, this Risk Disclosure Statement is a supplement to but does not replace the Terms of Service, the Official Litepaper, and Legal documents provided on the Cube Site in addition to all laws and regulations in your jurisdiction. Any terms not explicitly defined in this Risk Disclosure Statement will carry the same meanings ascribed to them in the Terms of Service and Rules.

Updates to This Risk Disclosure Statement

We may update this Risk Disclosure Statement based upon a variety of developments, including evolving laws, regulations and industry standards, or as we may make changes to our Platform. We will post changes to our Risk Disclosure Statement on this page and encourage you to review our Risk Disclosure Statement when you use our Site to stay informed about any updates regarding Cube. Furthermore, it is imperative and your responsibility to stay up to date on any updates to the laws, regulations, and industry standards regarding Virtual Currency Assets. Updates may be made to our Site and this Risk Disclosure Statement periodically.

Operational and Technology Statement

Operational risks, such as technical failures, technology changes, hardware or software issues, or security breaches, could impact Cube's performance or user experience. While Cube utilizes state-of-the-art multi-party compute (MPC) protocols and off-chain matching engines to enhance security and performance, operational risks can still occur. The underlying blockchain technology powering cryptocurrencies is rapidly evolving and still relatively novel. As a continually developing space, there are unique technological risks that could impact the functionality and economic value proposition of crypto assets over time. A core operational risk is the importance of safeguarding the private cryptographic keys required to access and transfer cryptocurrencies on the blockchain. The loss, theft, or destruction of these private keys could result in irreversible losses of the associated cryptocurrency holdings. The future governance models, functional utilities, and value persistence of cryptocurrencies remain uncertain as the technology continues to evolve. Investors must be cognizant that operational events, technological changes, or developments in the broader blockchain ecosystem could impact the attributes and worth of crypto asset holdings.

Cube may, from time to time, perform routine and non-routine maintenance on the Platform. This may lead to lack of access to the Platform and interrupt user access. Additionally, there are inherent risks when utilizing websites and mobile applications and the Platform may experience downtime, which is a risk associated with technology.

While Cube utilizes advanced security protocols like multi-party computation (MPC) and off-chain matching engines to enhance protection and performance, the nascent nature of this technology inevitably carries residual operational hazards. Technical failures, hardware/software issues, and security breaches are all possibilities that could disrupt services and negatively impact the user experience. Cube is committed to robust security practices, but the pioneering and rapidly advancing nature of this field presents inherent technological risks that prudent investors should acknowledge and research on their own accord.

Application Programming Interface (“APIs”) Risk

The use of APIs involves various risks, including but not limited to technological risks, operational risks, security risks, and legal and regulatory risks. These risks are outlined in this Risk Disclosure Statement generally, however, we still advise familiarizing yourself with the various risks associated with APIs. Technological risks include potential system failures, network disruptions, software defects, and other technological malfunctions that could lead to the unavailability or improper functioning of the APIs. Operational risks involve potential human errors, process failures, inadequate procedures, or external events that could disrupt the operation of the APIs. Security risks encompass unauthorized access, data breaches, malicious attacks, and other security threats that could compromise the confidentiality, integrity, or availability of the APIs or the data transmitted through them. Legal and regulatory risks pertain to what might be viewed as potential violations of applicable laws, regulations, or contractual obligations, as well as changes in the legal or regulatory environment that could impact the use or provision of the APIs.

Volatility and Liquidity Statement (Market Risk)

Virtual Currency Asset markets are always evolving and highly volatile, and new developments in the space pose their own unique risks given the market’s sensitivity and constant evolution. Therefore these developments may induce large fluctuations in trading volumes and prices. Given the relatively nascent state of these markets, significant changes in market sentiment driven by events such as adverse media reports or commentary from influential individuals can trigger substantial price swings. Additionally, the introduction of new technologies may further fluctuate the market causing active participants to be aware of the changing landscape. Cryptocurrency prices on our Platform have exhibited high volatility, influenced by factors including liquidity levels, activity driven by speculation on future appreciation, shifts in investor confidence, operational disruptions at exchanges, and competition from emerging cryptocurrencies and it is at your own risk that you engage with volatile assets.

Furthermore, the prices of cryptocurrencies can ultimately be determined by global supply and demand. Reduced demand can quickly translate into depressed prices across the crypto asset class. Investors must be cognizant that cryptocurrencies may not maintain their purchasing power value long-term, and there are no guarantees about the continued growth of mainstream acceptance as a payment method or for any other use case. The liquidity landscape is also fragmented, with cryptocurrencies traded across numerous exchanges and over-the-counter venues globally, each with its own pricing mechanisms and order books. This dispersed liquidity poses challenges for market participants aiming to efficiently exit positions, particularly during periods of market stress. Certain cryptocurrency addresses holding large portions of the outstanding supply could further contribute to volatility if they choose to divest their holdings. Thus, it is always important to remember to be vigilant in managing your position and to monitor the market, which you do at your own risk.

Regulatory Risk

Given the various regulatory landscapes impacting cryptocurrency, it is imperative to stay up to date on the constant compliance changes. Regulatory changes in the space may impact Cube's operations. While Cube is committed to regulatory compliance, unforeseen regulatory developments could impact the Platform's ability to provide specific Services or operate in certain jurisdictions while remaining in compliance with the rapidly evolving regulations. New laws and regulations may be promulgated that apply to blockchain technology, digital assets, and related exchanges like Cube. This includes potential requirements to limit the availability of certain Services or contracts, restrict users based on location, or even cease operating in certain jurisdictions if the regulatory burden becomes commercially unsustainable or legally prohibited. Regulatory actions classifying digital assets or derivatives as regulated financial instruments could also negatively affect the pricing and liquidity for these products on Cube's Platform. As the regulatory environment develops, Cube may face compliance obligations that constrain its ability to provide Services as seamlessly as current conditions allow.

As a user of Cube’s Platform it is ultimately your responsibility to make sure that you comply with any and all local regulations, directives, restrictions and laws in your place(s) of residence before using our Platform. We do not permit the use of our Platform by Users from a jurisdiction in which the use of our services is not permitted (including, without limitation, “Restricted Jurisdictions”). We are not offering or soliciting the use of our Platform to any person located in any Restricted Jurisdiction or any other jurisdiction in which the specific use of our Platform is not authorized or is otherwise prohibited by local laws.

Cybersecurity Risks

Cube is committed to safeguarding the Platform and diligently monitoring cybersecurity risks. The cryptocurrency ecosystem faces heightened cybersecurity threats due to the digital nature of these assets and platforms. Malicious actors may attempt to disrupt Cube's trading Platform and services through various attack vectors like malware, denial of service, account takeovers, or spoofed transactions. With our reliance on computer systems and technologies, we are potentially susceptible to operational and information security breaches that could corrupt data, cause downtime, or even result in the loss of customer assets. Cyber incidents can stem from deliberate attacks by bad actors aiming to gain unauthorized access and misappropriate assets or data. However, unintentional events like software vulnerabilities can also open the door to security compromises. In addition to direct threats targeting Cube, cyber failures or breaches impacting our critical third-party vendors and service providers could also negatively impact our Platform's security and operations. Even seemingly minor cybersecurity events in the crypto space have demonstrated the potential to trigger immediate, irreversible losses for market participants and downward pricing pressure on affected cryptocurrencies. Maintaining robust cybersecurity practices and safeguarding access credentials is crucial, but some residual risk always remains. You are responsible for keeping your login information and any two-factor authentication tools secure and ensuring the integrity of the systems you use to access our Platform. While we take cybersecurity extremely seriously, the elevated cyber risks intrinsic to this industry can never be completely eliminated. Careful security diligence and prudent risk management are essential when operating in this landscape. In addition, cryptocurrency markets, including cryptocurrency projects and the prices of related cryptocurrencies, are susceptible to negative impacts from fraudulent actors and other similar events. For example, project teams may misappropriate project assets, trusted service providers to a project or protocol may abuse that trust, and major market participants may experience financial or other distress that has the result of a direct or indirect market impact. You understand, acknowledge, and accept these categories of risks.

Transaction Fees and Risks

Cube Exchange implements trading fees determined by a proportion of the order size and trade size : maker or taker. Fees are paid in the receiving asset, recorded on CubeNet when your trade is matched, and automatically deducted from your MPC Vault at the time of net settlement of your match trade. Please review the Cube Exchange Fee Schedule to understand the procedure and associated risks.

Trading Risks

Trading on the Cube Platform, like other digital asset exchanges, exposes users to market risks, including price volatility, liquidity issues, and market manipulation. Users should be aware of these risks when trading and manage their exposure accordingly. Cube aims to mitigate these risks by incentivizing market makers, offering multi-chain support, and implementing transparent liquidation standards. Cube provides tools for convenience and facilitation of trading. In no way are these tools or the Platform designed to guarantee a profit. On the contrary, it is not unusual for activity on Platform to result in a loss, therefore in addition to reviewing this Risk Disclosure Statement, Cube encourages you to review all necessary Legal information, the Cube Exchange Fee Schedule, and stay up to date with trading laws and regulations.

In addition, trading on the Cube Platform, like any other digital asset exchange, exposes users to market risks, including price volatility, slippage, execution risk, liquidity issues, and the possibility of misconduct by market participants (e.g., spoofing, wash trading, manipulation, and other forms of disruptive trading, including on platforms other than Cube). Users should be aware of these risks when trading and manage their exposure accordingly. Cube aims to mitigate these risks by incentivizing market makers, offering multi-chain support, requiring adherence to its trade conduct policy, and implementing transparent liquidation standards.

Cube’s Trade Conduct Policy

Cube prohibits trading misconduct, including spoofing, wash trading, false trading, manipulation, and any other form of recklessness, fraud, and disruptive and disorderly trading. By transacting on Cube, you agree to be bound by this prohibition, and you agree and understand that Cube has the ability, in its sole discretion, to monitor and review your trading in order to determine whether you are in compliance. You also agree, as a term and condition of accessing the Services, to respond promptly to any requests from Cube regarding your trading activity, including request for information and requests for documents. Failure to comply with this trade conduct policy could result in disciplinary outcomes, up to and including the suspension of your account, penalties, and referral of your activity by Cube to relevant governmental authorities.

Engage on the Cube Platform At Your Own Risk; Markets & Risk; Features and Functionality, Including Order Types and Algos

Although Cube addresses many of the challenges associated with traditional centralized exchanges and decentralized platforms, users should still be aware of the potential risks involved. By understanding these risks and employing sound risk management practices, users can make informed decisions when participating in trading and other activities on the Platform.

By accepting Cube’s Terms of Service and engaging in activity on the Cube Platform, you agree and understand that, while Cube provides certain user features and functionalities as a convenience, including, for example, a range of order types and algorithmic development and deployment tools, no such features or functionality do or can guarantee a trading profit or guarantee against a trading loss. Any and all activities undertaken by you on Cube, and your use or non-use of any Cube features and functionality, is undertaken at your own risk and in your own discretion. You acknowledge and agree that you have no right to claim that the use or non-use of any such features or functionality resulted in Cube causing you a loss or depriving you of a profit.

The latest Risk Disclosure Statement changes were made on Apr 1, 2024