Risk Disclosure Statements
KUTURK CRYPTO ASSET TRADING PLATFORM INC.
GENERAL RISK DISCLOSURE FORM
1.Purpose
This General Risk Disclosure Form (“Form”); is prepared to inform customers (“Customer”) who will use the services (“Services”) provided on the crypto asset trading platform (“Platform”) offered by Kuturk Crypto Asset Trading Platform (“KuCoin TR”) about the risks they may encounter regarding the use of the Services before executing transactions and to ensure that Customers are informed about the risks during the process of forming the intention to sign the Framework Customer Agreement (“Framework Agreement”).
2.Scope
We explicitly state that the risks mentioned in this Form, prepared based on Annex 1 of the III-35/B.1 Communiqué on the Principles of Establishment and Activity of Crypto Asset Service Providers (“Activity Principles Communiqué”), do not cover all possibilities and are not listed in any order of priority. Therefore, it is important to carefully identify the risks related to the transaction you will make and to evaluate whether trading on the Platform is suitable for you.
You can access a copy of this Form electronically and in accordance with the relevant legislation from KuCoin TR’s website at https://www.kucoin.tr/.
3.Warning
Before deciding to make a transaction on the Platform, it is important to fully understand the relevant risks and to have sufficient financial resources and financial literacy to take these risks. Before executing any transaction related to crypto assets, we recommend that you ensure you are not under the influence of individuals who may have manipulated you considering your own financial interests. Additionally, considering that environmental services related to crypto assets (for example, investment advisory services) may require the license and permission of the relevant authorities; it is important not to receive any advice or guidance from individuals who do not have legal authority.
This Form will be considered as part of the contractual relationship between the parties - as an annex to the Framework Agreement - if the Customer accepts the Framework Agreement. Therefore, it is essential to review and read this Form before signing the Framework Agreement. If you sign the Framework Agreement, it will be assumed that you have read, understood, and accepted the content of this Form and the risks specified in the Form.
4.General Risks
4.1 Crypto assets are more volatile compared to traditional financial instruments.
4.2 Regulations made by the public do not mean that crypto assets are accepted and approved as a secure financial instrument.
4.3 Transfers related to crypto assets may be irreversible due to the nature of the technology used.
4.4 Crypto assets have their own unique risks, and there is a risk of loss as well as the possibility of profit from these transactions.
4.5 It is not possible to provide guarantees or commitments regarding the prices at which transactions will take place.
4.6 Crypto assets are stored in a digital environment and may be exposed to technological risks.
4.7 Crypto assets are not subject to the investor compensation provisions regulated in Article 82 of the Capital Markets Law.
5.Transaction and Investment Risks
5.1 All risks related to access to and use of the Platform and Services provided by KuCoin TR belong to the Customer. Crypto assets differ from traditional risks associated with national currencies, commodities, securities, or other financial instruments, presenting their own unique risks. For this reason, it is advised that the Customer understands, researches, and acts with knowledge of the legal, economic, and tax characteristics of crypto assets and their status under the legislation. In this context, before performing any transaction related to a specific crypto asset, it is recommended to critically examine who the teams issuing the crypto asset are and the prospectus prepared by these teams (“whitepaper”). Additionally, if necessary, it is also suggested to seek opinions from individuals and institutions that are experts in the field and have no legal obstacles to providing services in this context. The Customer undertakes that the responsibility for conducting the necessary examinations lies with them.
5.2 Transactions made with crypto assets carry a significant risk of loss or damage. The Services provided, which include all kinds of business and transactions related to crypto assets, may involve high risks. In this regard, the transactions that the Customer will carry out may not be suitable for their financial profiles. The Customer may earn profits from trading transactions in crypto assets, but may also incur losses and, as a result, lose all of their assets. Therefore, you need to carefully assess whether such transactions are suitable for you, taking into account your personal circumstances, investment goals, and financial situation. In this context, it is also important to consider the following matters.
5.3 You risk completely losing all crypto assets or amounts that you have transferred to your KuCoin TR account and that are in your account. Because the transaction prices of crypto assets can exhibit high volatility in the short term. Again, crypto asset prices may significantly decrease due to various factors such as the emergence of illegal activities, market manipulation, information abuse, changes in the fundamental characteristics of crypto assets, and attacks defined in this Form. Market conditions that develop beyond KuCoin TR's control may also lead to price fluctuations.
5.4 Under certain market conditions, the buying and selling of crypto assets can become significantly difficult or may not be possible at all. In particular, the lack of sufficient liquidity in the market can prevent orders from being executed or may result in larger price deviations than expected. KuCoin TR does not provide any guarantees regarding the liquidity, transferability, or accessibility of any crypto asset and does not accept responsibility in this regard.
5.5 The Customer is advised to research and identify the risks associated with the relevant crypto asset before executing any transactions, and then to conduct analysis activities regarding the effects of the identified risks. In this context, conducting research is at the Customer's discretion.
5.6 There are risks such as the termination of the network where some crypto assets are traded, the withdrawal of developers from the project, the withdrawal of validators from the network, the depreciation of crypto assets, and the prohibition, imposition of measures, or obstruction of crypto assets or transactions related to them by the government or any official, administrative authority or legal entities.
5.7 Most crypto assets do not have real value and their prices are shaped according to the state of the market. This situation can lead to significant price fluctuations and the complete loss of your investment.
5.8 Crypto asset markets can be exposed to manipulative practices or fake trading volumes. To avoid such risks, you need to act carefully.
5.9 This Form provides the Customer with general information about the risks related to products and services by KuCoin TR. However, this Form does not include all risks related to the subject, specific and subjective risks (for example, risks that may arise from transactions or risks related to the Customer's person). Moreover, the crypto asset ecosystem is evolving and changing every day. Therefore, risks not covered by this Form may have emerged or may emerge later.
6.Technological and Operational Risks
6.1 Crypto asset transfer transactions are irreversible and cannot be undone once executed. Therefore, it is the Customer's responsibility to verify the accuracy of the wallet address to which the transfer will be made. All responsibility arising from the fulfillment of the orders given by the Customer and any errors and inaccuracies contained in these orders belongs solely to the Customer.
6.2 KuCoin TR shall not be liable under any circumstances for any communication errors, technical malfunctions, or connection issues that may arise during transactions conducted through the Platform. The Customer agrees to use the Platform at their own risk, taking all these risks into account.
6.3 The customer is responsible for the security of their wallet, personal key, and account; the customer must securely protect the password and/or other information used to access their wallet.
6.4 Unexpected losses may occur due to coding errors or security vulnerabilities in the smart contracts associated with crypto assets. The integrity of these contracts is not guaranteed by our side.
6.5 Forks or updates in blockchain networks may affect the value and functionality of crypto assets. KuCoin TR is not obligated to support these changes.
6.6 In blockchain networks, information manipulations and cyber attacks, such as a 51% attack, may occur, resulting in various losses and value declines in the crypto assets owned by customers. KuCoin TR has no control or authority over the mentioned blockchain networks; therefore, KuCoin TR will not be liable in the event of the specified risks materializing.
6.7 Various airdrop activities, also known as free token and crypto asset distribution, which are not directly carried out by KuCoin TR, can be used for malicious purposes such as market manipulation or to carry out illegal activities like fraud and money laundering. Therefore, it is advised that customers be cautious regarding these activities. KuCoin TR does not accept any responsibility regarding these activities of third parties over which it has no control.
6.8 Due to the internet-based nature of the Platform and Services, the use of this Platform or Services involves various technical and operational risks, including failures that may occur in hardware, software, or internet connections. System errors may occur while transactions are being made on the Platform and/or our applications. The customer is aware of the risk that their orders may be delayed, postponed, not executed in a timely manner, or deemed invalid due to a system-related failure. The customer should consider that they may encounter a wide range of risks that may arise during the use of an internet-based system. These risks may relate to failures in hardware, software, or internet connections. In this context, without being exhaustive, to raise customer awareness, some examples of risks the customer may face include: infection by malware; unauthorized access by third parties to the customer's information and digital assets; cyber attacks; data breaches and losses; AI-based attacks; social engineering attacks; errors related to the crypto asset network; computer viruses; communication interruptions; system failures and delays. Additionally, other malware threats that could harm the customer or their devices, such as spyware, trojans, distributed denial-of-service ("DDoS") attacks, worms, and phishing, may also arise. Such risks are changing every day with evolving technology and can take on different forms. The customer should ensure that the hardware, software, internet connection, and other environmental elements they use are free from risks. The customer acknowledges that such systemic disruptions may lead to interruptions in transaction processes, communication errors, data corruption, delays, or misdirection, and that KuCoin TR has no responsibility in these matters.
7.Risks Related to Crypto Assets
7.1 Crypto asset markets have variable liquidity levels. While some are quite liquid, others have lower trading volumes. In markets with low liquidity, price volatility may be higher. KuCoin TR does not make any commitment or guarantee regarding the buying and selling of a crypto asset that can be traded on the Platform.
7.2 Due to the constantly volatile nature of crypto asset markets, we advise Customers to trade on the Platform in a manner proportional to their risk appetite, financial information, and investment experience.
7.3 KuCoin TR's decision to provide support related to the transfer, storage, or trading of any crypto asset does not mean that KuCoin TR has approved or disapproved of the mentioned crypto asset. Additionally, this decision does not imply any meaning regarding the security, integrity, or functionality of the relevant crypto asset. The risks related to crypto assets and crypto asset trading are entirely the responsibility of the Customer.
7.4 Any crypto asset, the software, networks, protocols, systems, and other technologies used for the issuance, use, transfer, cancellation, or trading of the crypto asset may be vulnerable to attacks on their security, integrity, or functionality. This situation may cause the crypto asset to not function as expected or to completely lose its functionality.
7.5 Any crypto asset may be canceled, lost, or may experience a loss of value in its trading price due to reasons such as attacks, functional changes, structural transformations, operational disruptions, or not functioning as expected. KuCoin TR will not be responsible for such situations occurring in the relevant crypto asset, even if it is a crypto asset it supports.
8.Risks Related to Legal Regulations
8.4 If the laws of the Republic of Turkey make it illegal to provide Services related to any crypto asset, KuCoin TR may restrict or completely stop the use of Services related to the said crypto asset. Furthermore, if the applicable laws in the Republic of Turkey prohibit the use of Services, the Customer acknowledges and declares that they will not be able to use the Services.
8.5 Due to the regulations regarding crypto assets in the legislation of the Republic of Turkey being relatively new, legal regulations and regulations in this area are being changed and developed every day. Accordingly, the practices, decisions, and opinions of the relevant judicial authorities and administrative authorities are also subject to continuous change. These issues may also trigger price fluctuations in crypto asset markets. KuCoin TR has no responsibility for any losses and damages incurred by the Customer due to compliance with changes in regulations related to crypto assets or new decisions, practices, or opinions from relevant judicial and administrative authorities that arise in this area.
8.6 If there is reasonable suspicion that you have engaged in suspicious activity, acted contrary to the laws or the Framework Agreement, or for justifiable reasons; KuCoin TR may partially or completely freeze your account for a specified or unspecified period, may partially and/or completely block transfers in your account, may close your account, and may suspend the use of your account by applying measures to your cash or crypto assets in your account.
8.7 The Customer may be required to pay various taxes related to the transactions they perform; the Customer is responsible for making these tax payments. The obligation regarding the relevant payments is solely the Customer's responsibility.
9.Other Risks
9.1 Some matters regarding the provision of Services may be delegated to third-party service providers. Risks arising from the failure of these individuals to fulfill their obligations fully and properly are the responsibility of the Customer, and KuCoin TR has no liability for any damages that may arise in this regard.
9.2 According to the legal regulations and regulations in Turkish Law regarding cryptocurrency trading platforms; certain amounts of crypto assets belonging to Customers must be stored and held at the custodian institution with which KuCoin TR has an agreement, and the Customers' cash assets must be stored in a bank account opened in the name of KuCoin TR. The Customer acknowledges and declares that they are aware of this matter and that due to the activities and transactions of the custodian institution where the Customer's assets are stored and held (such as the custodian institution losing the wallet keys or the bank going bankrupt), there may be damages and losses regarding the assets they own, and that KuCoin TR will not have any liability in this regard.
9.3 KuCoin TR has no control or responsibility over the delivery, quality, security, legal status, or any other aspect of any crypto asset you purchase from another customer or sell to another customer through the Services provided by KuCoin TR. Additionally, KuCoin TR has no responsibility regarding whether a customer will complete the transactions they have committed to, whether they will perform the transaction on time, or whether they have the authority to carry out the transaction. As a result of the transactions you perform through the Services; KuCoin TR does not provide any guarantee for the compensation of damages you may incur due to other customers, and KuCoin TR has no obligation to compensate the Customer.
9.4 Prices in the cryptocurrency markets are determined solely based on supply and demand, and these prices are formed freely. However, the formation of these prices may not always be based on a rational justification. It is not possible to guarantee a specific price or outcome for any transaction. You may incur unexpected losses due to irrational price movements of some crypto assets. The risks specified in this Form may lead to the loss of cryptocurrencies, partial or total loss of their value, inability to access cryptocurrencies or transfer assets, inability to transact with cryptocurrencies, inability to benefit from special advantages, accesses, or benefits offered to other cryptocurrency holders by the Customer, or other financial losses of the Customer. The Customer acknowledges and declares these risks and that KuCoin TR will not bear any responsibility for such risks. Additionally, the Customer acknowledges and declares that no responsibility will be attributed to KuCoin TR and its board members, employees, representatives, and contractors regarding these risks.
9.5 Unless explicitly stated otherwise; KuCoin TR will not be liable for damages that may arise due to market conditions, technical errors, regulatory changes, customer errors, or actions of third parties.
9.6 Our fees and commissions are specified on the Platform's website and applications. Please obtain information about all applicable costs and fees before making transactions on the Platform.
9.7 Cryptocurrency asset transfers are non-refundable, and the fees to be paid by the Customer for transactions on the Platform are also non-refundable.
9.8 The opinions, news, research, analyses, prices, or other information available on the Platform are presented as general market commentary and do not constitute investment advice. It is advised that the Customer does not make transactions based on any content provided on the Platform.
I acknowledge that I have read and understood all the above matters; I sign this "General Risk Disclosure Form" as a result of my free will, reserving my rights to claim and sue for any damages that may arise due to the fault or negligence of KuCoin TR during the implementation of these principles, and I confirm that I have signed the Framework Agreement thereafter and received a copy of this Form or that I have been provided access to this Form electronically.