Cryptoassets

The offering of cryptoassets in Spain is subject to the rules imposed by Circular 1/2022, dated 10 January, of the Comisión Nacional del Mercado de Valores (CNMV).
It is important to read and understand the risks of this investment which are explained in detail in this document.
This is a product of G4AL Entertainment SL.

High-risk investment product

1. The value of investments and the return on investment may experience significant upward and downward fluctuations, and the entire amount invested may be lost.
2. Investments in early-stage projects involve a high level of risk, so it is necessary to properly understand their business model.
3. Crypto-assets within the scope of this Circular are not covered by customer protection mechanisms such as the Deposit Guarantee Fund or the Investor Guarantee Fund.
4. Crypto-asset prices are formed in the absence of mechanisms to ensure their proper price formation, such as those present in regulated securities markets.
5. Many cryptoassets may lack the liquidity needed to unwind an investment without significant losses, as their circulation among both retail and professional investors may be very limited.

Risks inherent in the technology

6. Distributed record-keeping technologies are still at an early stage of maturity, with many of these networks having been created only recently, so they may not be sufficiently tested and there may be significant flaws in their operation and security.
7. The recording of transactions in networks based on distributed log technologies works through consensus protocols that may be susceptible to attacks that attempt to modify this record and, in the event that these attacks are successful, there would be no alternative record to back up these transactions and therefore the balances corresponding to the public keys, and all the crypto-assets could be lost.
8. The anonymity facilities that cryptoassets can provide make them a target for cybercriminals, since in the event of stealing credentials or private keys they can transfer the cryptoassets to addresses that make their recovery difficult or impossible.
9. The safekeeping of crypto-assets is a very important responsibility as they can be lost in their entirety in the event of theft or loss of private keys. The custody in any case is carried out by the user or investor, who is the custodian of the electronic purse and its private keys.

Legal risks

10. The acceptance of crypto-assets as a medium of exchange is still very limited and there is no legal obligation to accept them.