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Risk Warning

Last Updated: 13 February 2026

 

IMPORTANT NOTICE

Crypto-asset services are high-risk. The value of your crypto-assets may go down as well as up. You could lose your entire capital. Crypto-assets are not covered by the Deposit Guarantee Schemes or Investor Compensation Schemes.

Specifically, the Bulgarian Deposit Insurance Fund (BDIF) or the Estonian Guarantee Fund (Tagatisfond) does not cover services provided by Q500 Europe EOOD or Q500 Estonia OÜ, respectively.

This website and Bitpace’s products and services are for wholesale customers, businesses, or merchants only. We do not serve retail clients, retail holders, end customers, end users, or consumers. If you are a retail client, retail holder, or an end-customer/end-user of a merchant, these standard terms and conditions do not apply to you. Please refer to your agreement with the merchant instead.

Please read this Risk Warning, Standard Terms and Privacy Policy carefully.

The information contained within this Risk Warning does not constitute financial or any other form of advice. Engagement with crypto-assets is undertaken at your own sole risk.

If anything is unclear, please contact our customer support team available at [email protected].

 

Status Statement

  • “Bitpace”, “we”, “us”, or “our” refers to (each):
  • Q500 Europe EOOD, a private limited company, incorporated in Bulgaria (company number UIC 206635600) with registered address at Evropark building, 40 Tsarigradsko Shose Blvd., 2nd floor, 1750 Sofia, Bulgaria;  registered as a virtual assets service provider (“VASP) in the interim register kept by the Bulgarian Financial Supervision Commission (FSC) under § 5, par. 3 of the Bulgarian Markets in Crypto-assets Act;
  • Q500 Estonia OÜ, a private limited company, incorporated in Estonia (registry code 16564979) with registered office at Maakri tn 19/2, Tallinn 10145, Estonia; registered as a VASP by the Financial Intelligence Unit (FIU) in Estonia, licence number FVT000552.

Status under MiCA: Transitional Period Bitpace is currently operating under the transitional “grandfathering” period as allowed by Regulation (EU) 2023/1114 on Markets in Crypto-Assets (“MiCA). During this transitional period, clients may not fully benefit from all the protections and organisational safeguards provided by MiCA until Q500 Europe EOOD or Q500 Estonia OÜ is granted full MiCA authorisation.

General

Please read this Risk Warning (which also includes some statements and disclosures) carefully. We reserve the right to amend, supplement or replace this Risk Warning at any time and at our sole discretion. This Risk Warning will remain in effect until a more recent version is released and published on www.bitpace.com. Any terms not defined herein shall have the meaning ascribed in our Standard Terms. This Risk Warning does not disclose all of the risks and other significant aspects of dealing with crypto-assets or our services.

Additional warnings, statements, and disclosures may be covered on our website, in the Standard Terms, in accompanying documents, in-product, or similar.

For reference, the preceding iteration of this Risk Warning was published on this website on January 16, 2024.

Please note that although we do not provide crypto-asset services to retail clients, retail holders, or consumers, we consider it important to emphasise to our website visitors and our wholesale clients or merchants the risks highlighted in this Risk Warning.

This Risk Warning is not intended to override any other prescribed or applicable risk warning(s) or the agreements we have in place with you, nor the terms of any transaction you enter into with us, but to supplement them.

Accounts with Bitpace are not deposit or investment accounts. Bitpace is not an investment firm, bank, credit, trust, fiat payments service provider, or electronic money institution.

Please consider that our customers’ accounts are not protected by the BDIF or the Estonian Guarantee Fund.

The services provided by Bitpace are unlikely to be appropriate for merchants who:

  • Do not understand the impact of and risks associated with crypto-assets;
  • Do not have a high-risk tolerance;
  • Cannot afford to lose the money they are transacting with; or
  • Do not already have a diversified investment portfolio or savings.

We have set out below some of the key factors and risks you should take into account before engaging in business activity with Bitpace. However, this brief document does not disclose all the risks associated with crypto-assets and using Bitpace. If you engage with Bitpace, you should always keep these risk factors in mind and ensure you have sufficient financial resources to bear such risk when engaging in business activities with us. You should always monitor your transactions with us carefully.

If anything herein is unclear, please contact our Customer Support team available at [email protected].

No Advice. No Reliance

Bitpace is not acting as a financial adviser or fiduciary (or in any similar capacity), nor have we assumed any duty or responsibility to make or give any investment advice or recommendations. Bitpace is not a financial adviser, nor is Bitpace aware of your current financial position/situation, intentions, or objectives. Thus, you should carefully consider whether transacting or holding crypto-assets is suitable for you, considering your financial standing/conditions.
This Risk Warning does not constitute tax, legal, accounting or advice of any other kind. It does not exclude any mandatory obligations we owe you under any applicable law, rule or regulation. If you are unsure about any of the content of this Risk Warning, you should seek independent advice.

Any opinions, news, research, analyses, indicative prices or other information contained within Bitpace or any promotional material is provided as general market commentary and does not constitute investment advice. Bitpace will not accept liability for any loss or damage, including, without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

Unless (i) we agree or notify you otherwise, or (ii) it is required by law or regulation that we act as agent when we transact with you, we act on an arm’s length basis as principal. We expect you to evaluate the appropriateness or suitability of any transaction based on the facts and circumstances relevant to you and your assessment of any transaction’s merits.

If Bitpace express any views or suggestions, whether or not at your request, Bitpace will not assume any responsibility for any transaction which may be made by us following such views and suggestions, and no communication (written or oral) received from Bitpace will be deemed to be an assurance or guarantee as to the expected results of such transaction.
All public communications and promotional materials relating to our crypto-asset services must be fair, clear, and not misleading, and consistent with the information contained in our legal documents.

Warning about crypto-assets

Bitpace is issuing this Risk Warning to highlight possible risks our customers may face when holding or transacting (e.g., buying, selling, exchanging, ordering,  transferring, storing ) crypto-assets via Bitpace. It must be noted that past returns are not indicative of future results.

When holding or transacting in crypto-assets, their specific characteristics should be taken into consideration. It is the client’s responsibility to familiarise themselves with the ownership, business model, transparency, and public perception of the exchanges, platforms, or service providers that they consider using.

The risk of loss in holding or transacting crypto-assets can be substantial – you can lose all your investment. Do not use fiat funds or other assets to exchange into crypto-assets that you cannot afford to lose.

Before investing in crypto-assets or using our services, it is crucial to understand and carefully consider the risks involved. The following points outline important risk factors to take into account (not intended to act as an exhaustive list):

Market Volatility Risk:

  • The market for crypto-assets is still new and uncertain.
  • As with other assets, the value of crypto-assets may fluctuate rapidly and can even become valueless (zero). The value of crypto-assets may drop sharply and permanently. Such volatility can result in significant gains or losses. It is essential to be prepared for the possibility of substantial financial losses, including the complete loss of your investment.
  • The price and liquidity of crypto-assets have fluctuated widely in the past and may do so again in the future.
  • Holding or transacting in crypto-assets poses a significant risk of losing invested amounts, which may occur within a very short time frame due to a sudden adverse price movement.
  • Unlike payments into a traditional bank or a fiat-currency-denominated payment account, there is no assurance that the value of crypto-assets will remain largely stable.

Liquidity Risk:

  • Markets for crypto-assets have varying degrees of liquidity. Some are quite liquid, while others may be thinner. Thin markets can amplify volatility.
  • There is never a guarantee that there will be an active market for one to sell, buy, or trade crypto-assets or products derived from or ancillary to them.
  • Any crypto-asset market may abruptly appear and vanish. It may not be possible to liquidate your crypto-assets.

Lack of or Fragmented Regulation:

  • The price feed is not subject to any regulatory supervision. Crypto-assets are not issued or guaranteed by a central bank and may be traded on non-regulated decentralised digital exchanges or exchange platforms. Accordingly, the price formation and price movements of crypto-assets depend solely on the internal rules of the digital exchange or platform, which may be subject to change at any point in time and without notice. This often leads to very high volatility.
  • Fragmented regulatory oversight across jurisdictions implies that these assets do not benefit from the same safeguards and protections as traditional financial products. Consequently, investing in crypto-assets carries inherent risks and uncertainties.
  • No specific regulatory protections exist that would cover you for losses if, for instance, we go out of business. There is no specific regulatory protection (for example, through a deposit guarantee scheme) that covers losses arising from funds or crypto-assets held by us.
  • Crypto-assets as such are not recognised as financial instruments, and in case we are unable to meet our obligations to our customers (as mentioned above), our customers will NOT be compensated by the BDIF or the Estonian Guarantee Fund, as these do not apply to our service.
  • If a digital exchange or trading platform suspends operations, there may be price gaps, which can lead to significant gains or losses. If (when) trading does not resume, the entire investment will be lost.
  • No protection when using crypto-assets as a means of payment. When paying for goods and services using crypto-assets, there is no coverage of any refund rights under the laws applicable in Bitpace’s registered places of business, as those offered for transfers from conventional banks or other payment accounts. Unauthorised or incorrect debits from a digital wallet cannot, therefore, usually be reversed. Acceptance of crypto-assets by retailers is also not permanently guaranteed and is at their discretion and/or under contractual agreements, which may cease at any time without prior notice or any grace period thereof.

Exchange, Trading and Settlement Risks:

  • Having crypto-assets with any third party in a custodial relationship has attendant risks. These risks include security breaches, the risk of contractual breach(es), and the risk of loss.
  • Traders in any crypto-asset market are warned that they should pay close attention to their positions and holdings, and to how sudden and adverse shifts in trading and other market activities may impact them.
  • Although Bitpace operates in a capacity which attempts to optimise settlement times for its clients, Bitpace makes absolutely no guarantee on the settlement times of crypto-assets and/or fiat funds.

Risk of Market Manipulation:

  • The decentralised and still considerably unregulated nature of the crypto-assets market makes it susceptible to manipulation and fraudulent activities (e.g., pump-and-dump schemes).
  • It is important to recognise that such practices can lead to sudden and significant price movements, potentially negatively impacting your investments.

Technological Risks:

  • Crypto-assets rely on complex technology infrastructure, including blockchain networks and digital wallets. These technologies are subject to various risks, such as hacking, system failures, and security breaches. The loss of private keys or passwords may result in the permanent loss of your assets. Additionally, malicious actors may employ malware and phishing attacks to target individuals involved in the crypto space.
  • Crypto-assets may be stolen from your digital wallet. Digital wallets have a public key and a private key (or password), allowing access to them. Those digital wallets are not impervious to hackers, and like conventional wallets, crypto-assets may, therefore, be stolen from the digital wallet and most likely remain unrecoverable. Furthermore, if the digital wallet’s private key or password is lost, the stored crypto-assets may be lost forever.

Legal and Tax Implications:

  • The legal status of crypto-assets may be uncertain, meaning the legality of holding or transacting them is not always clear and varies by jurisdiction. Whether and how one or more crypto-assets constitute property, assets, or rights of any kind related to them may also seem unclear.
  • The legal and tax status of crypto-assets also varies across jurisdictions and is subject to ongoing changes. It is important to be aware of the potential legal and tax implications (such as value-added tax or capital gains tax) associated with holding or trading crypto-assets. Independent legal and tax advice should be sought to ensure compliance with applicable laws in your jurisdiction.

Limited Recourse:

  • Crypto-asset transactions may not provide the same dispute-resolution mechanisms as traditional financial services.
  • In the event of a complaint or dispute, you may have limited or no recourse to seek resolution or compensation.

Online Systems and Operational Risks

Using Bitpace for crypto-asset services may differ from other service providers, websites, or electronic trading platforms, as well as from trading in conventional or open markets. You are exposed to risks associated with the system, including failures of hardware and software, and downtime of your individual systems and the communications infrastructure (for example, Internet connection interruptions) you use to connect to our website, APIs, Apps, platforms, and sandbox environment.
Our website, APIs, Apps, platforms, and sandbox environment are provided “as is” and “as available” as set out in our Standard Terms.

Operational risks related to Bitpace are inherent in every transaction, account or use of our website, sandbox environment and/or services. Disruptions in Bitpace’s operational processes, such as communications, computers, networks, or external factors, may cause access disruptions, delays in connection, account operations, or the execution and settlement of transactions. Bitpace does not accept or bear any liability whatsoever concerning its operational processes, except to the extent the failure was caused by Bitpace’s gross negligence, wilful default or fraud.

Safeguarding your Account

Security is pivotal for Bitpace, and we follow strict security practices. Nevertheless, our security may not work without the most essential ingredient: you. Therefore, you also need to take certain precautions to ensure that you and your duly authorised representatives or authorised users are the only ones with access to the respective Bitpace account
Scammers may use various methods to gain access to your account and carry out unauthorised transactions, such as phishing, malware, and identity theft.

IMPORTANT: Bitpace and none of our employees, representatives, or affiliates will ever call, email, SMS/instant message you to ask for your password and/or 2FA code. If anyone contacts you claiming to represent Bitpace and requests this information, you should end the communication and contact us at [email protected].

In safeguarding your account with Bitpace, you should take measures, such as (but not limited to):

  • Using a strong, unique password.
  • When available, enabling two-factor authentication (2FA).
  • Protecting your email account.
  • Not sharing sensitive information.
  • Checking the URL of the page when you enter your account information (ensuring that you are on www.bitpace.com).
  • Locking your device(s), email and account when not in use by you.

If you believe your account has been compromised, please let us know immediately by contacting us at [email protected]. Please be aware that Bitpace cannot be held responsible for the loss of crypto-assets or fiat funds if you have fallen victim to any phishing, scam, or other fraudulent attacks, as set out in our Standard Terms. However, we will do everything we can to assist you.

Irreversible Transactions

Blockchain transactions are irreversible in nature, and it is impossible for us to reverse a transaction once it has been initiated. Blockchain transactions are designed to be permanent and irreversible once confirmed because they are recorded on a distributed, immutable ledger. Thus, once a transaction is validated by the network, it cannot be altered or reversed by any party, including the sender, the recipient, or a centralised entity such as a bank.
Please note that when we follow your instructions to deliver the crypto-assets to the wallet address specified to us, which is outside our systems, we do not have any control over that wallet address or its respective blockchain network. Wallet address’ public keys do not bear the owner’s name. The losses associated with it will be borne by you.

Risks of Fraud

We take fraud very seriously and are committed to supporting the fight against financial crime. We do not promote transactions towards third parties. We have developed and are following our policies and procedures to prevent fraud, and although we provide a safe environment, such as transactions performed in a 3D secure environment, as well as and when possible – checks we execute to ensure that the recipient’s wallet address does not appear suspicious or flagged as a scam or fraudulently used, we cannot guarantee that you may not fall prey to fraudsters. The losses associated with such a situation will be borne by you.
Fraudsters are counting on you not to investigate before investing or making a purchase or payment, so fend them off by doing your own digging, as it is your own responsibility to take the time to do independent research (for instance, check if the service provider has the relevant authorisation and it is not a clone firm). Unsolicited emails, message board postings, and company news releases should never be the sole basis for your investment decisions. Understand a company’s business and its products or services before investing. Look for the company’s financial statements. Spend some time checking out the person touting the investment before you invest – even if you already know the person socially. Be especially careful if you receive an unsolicited pitch for investing in a crypto-asset or see that an asset is praised online, yet you cannot find current financial information about it from independent sources. Protect yourself online, as online and social marketing sites offer a wealth of opportunities for fraudsters. Never be rushed into a purchase; read reviews of the site you are shopping on and take time to check throughout the process. Scammers often use pressure tactics while pretending to be a trusted authority or company.

Get acquainted with different types of fraud and red flags that may signal investment fraud, such as but not limited to (a) if it sounds too good to be true, it is; (b) watch for “phantom riches”; (c) guaranteed returns; (d) beware of the “halo” effect; (e) watch out for pitches that stress how “everyone is buying”; (f) pressure to send crypto-assets right now.

Order Execution

Please be aware that any specific instructions from a client may prevent Bitpace from taking the steps that we have designed and implemented in our Order Execution Policy to obtain the best possible result for the execution of such a client’s orders in respect of the elements covered by those instructions.

Conflicts of Interest

Bitpace is committed to upholding a high level of integrity and adhering to best practices and requirements published by relevant industry groups and regulatory bodies. Nonetheless, our interests may conflict with yours.
We regularly monitor conflicts of interest (inherent in our business model, our customers’ interests, and our business performance toward an acceptable return), with active management oversight, including escalation and resolution channels. Refer to our Conflicts of Interest Disclosure.

Pricing Factors

The prices we quote should be considered indicative unless you have been informed that the price is firm. Unless we have informed you otherwise, any price we quote to you is an all-in price. It may differ from the price at which we may be able to transact, or have transacted, with other counterparties.
Our pricing varies by counterparties and is determined at our discretion, taking into account factors and pricing inputs we deem appropriate.

Information Handling

Protecting the confidentiality and security of our dealings with you and your information is integral to how we do business. We have policies and controls that are designed to protect your confidential information. Our personnel may have access to and use information, including but not limited to your transactions. We aim to restrict access to your information to employees who have a “need to know” to perform their duties and carry out the purpose for which the information is provided.
We may utilise third-party vendors, for example, for data storage, for screen checks, and for security. Third parties must enter into confidentiality agreements with us and keep any information we disclose to them confidential. We may also share your information with authorities as required by applicable laws and regulations.

The handling of personal data is addressed in our Standard Terms and Privacy Policy.