Risk Disclosure

About

VEXK is a cryptocurrency exchange website that provides users with a platform for trading and investing in cryptocurrencies. This risk warning document is intended to inform users of the inherent risks associated with trading and investing in cryptocurrencies and the specific risks associated with using VEXK.

VEXK has established and implemented an Anti-Money Laundering, Combating the Financing of Terrorism, and Trade & Economic Sanctions Program (“AML/CFT/Sanctions Program” or “Program”) to ensure a robust and compliant virtual asset trading platform. VEXK wants to promote legal, transparent business activities and maintain a strong reputation among our customers, regulators, and the virtual asset industry.

Our Role and Activities

VEXK is a global cryptocurrency trading platform or marketplace, where traders can participate as buyers and sellers (commonly referred to as market makers and market takers). To be clear, buyers and sellers are trading with each other, not with VEXK; we are not a counterparty to the transactions. Our services are available through vexk.io, related application program interfaces and/or mobile applications, and through customer onboarding entities, including VEXK(incorporated in Vietnam).

Definitions of key terms

The following key terms are used in this document

Cryptocurrency: a digital or virtual currency that uses cryptography for security and operates independently of a central bank.

Exchange: A marketplace for buying and selling cryptocurrencies.

Investment: The act of buying cryptocurrency with the expectation of long-term price appreciation.

Trading: Buying and selling cryptocurrencies to make a profit.

General Risk Warning

Trading and investing in cryptocurrencies can involve significant risks, including but not limited to market volatility, liquidity risk, and security risk. The value of cryptocurrencies can change rapidly and unpredictably, and users may experience losses that exceed their initial investment. In addition, there may be negative consequences associated with trading and investing in cryptocurrencies, such as tax burdens and legal and regulatory issues. You should therefore carefully consider whether trading is suitable for you in light of your financial condition.

Cryptocurrency Risk Factors

The value of cryptocurrencies can be affected by a variety of factors, including technological advances, regulatory changes, and market sentiment. In addition, the use of the VEXK platform may involve risks such as price volatility and liquidity risk. Users should be aware of these risks before making any trading or investment decisions.

Trading Risks

Cryptocurrency trading may involve risks such as counterparty risk, market manipulation, and technical glitches. Users should carefully consider the risks associated with trading before making a decision and should diversify their investments to mitigate risks. Users should also familiarize themselves with trading best practices, such as setting stop-loss orders and conducting thorough research before trading.

Security Risks

Use of the VEXK Platform may involve security risks such as hacking and phishing attacks. While the Platform takes measures to protect user data and funds, users are also responsible for protecting their accounts and personal information. Users should take steps to mitigate security risks, such as using strong passwords, enabling two-factor authentication, and preventing phishing attempts.

Legal and Regulatory Risks

The legal and regulatory environment surrounding cryptocurrencies is complex and uncertain, and Users should be aware of the potential risks associated with this environment. Users are also responsible for complying with applicable laws and regulations and should be aware of the potential consequences of failure to do so.

We understand that regulatory bodies have taken a diverse approach to the laws and regulations regarding virtual assets. As a trading platform, we believe that all virtual assets available on vexk.io are an innovative alternative asset class; therefore, virtual assets should not be called currency or money.

Disclosure: Virtual assets are not fiat money nor fiat currency. Virtual assets are NOT backed by any government or central bank. We may at times have opinions of the different regulatory approaches taken by various government bodies; however, at all times, we will fully abide by the rules and regulations of the respective countries we operate in. We regularly communicate with regulators and the industry on the best approach to regulating virtual asset businesses. The risk of loss in trading or holding virtual assets can be substantial. You should carefully consider whether interacting, holding, or trading virtual assets is suitable for you in light of your financial condition.

We cooperate with governments and respect regulations and comply with applicable regulations. As good corporate citizens, we may be asked for information from law enforcement authorities and will assist if permissible by law as law enforcement conduct investigations to pursue and thwart illicit activity. What this also means is that our platform is intended for law-abiding customers. We welcome the opportunity to earn your business, and in return, we require that you act legally and properly on our platform.

AML/CTF Program

We have designed our Program to reasonably prevent money laundering and terrorist financing through a risk-based, multi-layer control system.

1. The first layer includes a stringent customer identification program, including verifying the identity of our customers, whether individuals or entities. In addition to obtaining identification documents, we obtain for non-natural persons their entities’ beneficial owners/natural persons consistent with international standards such as the Financial Action Task Force (FATF).
2. The second layer includes a risk-based system to warrant additional customer due diligence. To accomplish this, we screen our customers (including beneficial owners), United States Office of Foreign Assets Control (OFAC) Sanctions Lists, and the United Nation Security Council Sanctions List, among other government-provided lists of sanctioned individuals and entities. We also may screen against other lists on a discretionary basis to protect our reputation and customers.
3. The third layer includes ongoing monitoring for suspicious activity. If our Program suspects or has reason to suspect suspicious activities have occurred, we will file suspicious activities reports with local regulators. A suspicious transaction is often inconsistent with a customer’s known and legitimate business, or personal activities.

These are the primary components of our compliance program; however, the most important glue or connection to these layers are our leadership team and staff, including AML/Risk personnel that execute training, oversight, and sound compliance culture.

Risk Mitigation

Users can take steps to mitigate the risks associated with trading and invest in cryptocurrencies, such as conducting thorough research, diversifying their investments, and staying informed about industry news and developments. VEXK also provides resources such as educational materials and customer support services to help users manage their risks.

Risk Awareness

By using the VEXK Platform, Users acknowledge the risks associated with trading and investing in cryptocurrencies and the specific risks associated with using the VEXK Platform. Users should carefully consider these risks before making any trading or investment decisions.

Platform Liability Disclaimer

VEXK is not responsible for any losses or negative consequences of trading and investing in cryptocurrencies. Users are responsible for their own trading and investment decisions and should consult with a financial advisor or other professionals before making any decisions.

User Agreement

By using the VEXK platform, users agree to abide by the terms of this Risk Alert document and to be responsible for their own cryptocurrency trading and investment decisions.

Different Versions

This "Risk & Compliance Disclosure" may be posted in different languages. If there are any discrepancies, the English version shall prevail.