Updated on: 15 October 2024
Policy Statement
1.1 Lexim Trading DMCC (“Lexim”) is a Virtual Asset Service Provider (“VASP”) incorporated in the Dubai Multi Commodities Centre (“DMCC”) and regulated by the Dubai Virtual Asset Regulatory Authority (“VARA”) as a virtual asset broker-dealer. Lexim is committed to providing a secure and transparent platform for virtual asset activities. As part of its commitment to transparency and client education, Lexim seeks to ensure its clients are well informed about the potential risks associated with virtual asset services. This Risk Disclosure Statement is published according to the VARA Market Conduct Rulebook and describes the material risks clients should be aware of when engaging in virtual asset transactions.
1.2 This Risk Disclosure Statement should be read along with Lexim’s Terms of Use. It does not include a complete statement of all risks involved in virtual asset trading.
Risk Disclosures
2.1 Virtual assets are not legal tender and are not backed by the government of the United Arab Emirates (“UAE”) or any other sovereign authority.
2.2 Regulatory and/or legislative changes at the national and international levels may adversely affect the value, transfer, exchange, or use of virtual assets.
2.3 Any transaction in virtual assets may be irreversible, and losses due to fraudulent or accidental transactions may not be recoverable.
2.4 Some virtual asset transactions may be deemed to have been made when recorded on a public ledger, which is not necessarily the date or time that the client initiated the transaction.
2.5 Virtual assets may not always be liquid. Under certain market conditions, it may be difficult to liquidate a position quickly or at a reasonable price.
2.6 Some virtual asset transactions are not private and may be recorded on public distributed ledgers.
2.7 The value of virtual assets may be derived from the continued willingness of market participants to exchange fiat currency for virtual assets. Should the market for a particular virtual asset reduce substantially or disappear entirely, this may result in the temporary or permanent loss of value of a particular virtual asset.
2.8 Virtual assets may lose their value significantly, in part or in full, due to the extreme volatility and unpredictability of their price relative to fiat currency.
2.9 Virtual assets may be subject to fraud, manipulation, and theft, including through hacks and other targeted schemes and may not benefit from legal protections or any form of insurance. The inherent nature of virtual assets may lead to an increased risk of fraud or cyber-attacks.
2.10 Owners of virtual assets may lose all or part of the money they invest and will not always benefit from any form of financial or legal protection.
2.11 Transacting and investing in virtual assets come with several risks, including volatile market price swings or flash crashes, market manipulation, and cyber security risks. In addition, markets and exchanges dealing in such virtual assets are not regulated with the same level of controls or customer protections available in equity, option, futures, or foreign exchange investing.
2.12 The nature of virtual assets means that any technological difficulties experienced by Lexim may prevent the access or use of the client’s virtual assets. These risks and the possible limitations of Lexim’s platform owing to these risks have been outlined in more detail in Lexim’s Terms of Use.
