Cryptocurrency Investment Risk Disclosure
Effective Date: November 2023
Partnership Established: Bitstamp – November 2023
Platform: IRAfi Crypto
At IRA Financial, we are committed to transparency, education, and compliance in every aspect of our service. This disclosure outlines the risks associated with investing in cryptocurrencies through our IRAfi Crypto platform, which enables individuals to invest in digital assets using self-directed retirement accounts.
Risk Acknowledgement
Investing in cryptocurrencies involves significant risk and may not be suitable for all investors.
You should carefully consider whether investing in digital assets is appropriate for your retirement strategy, financial situation, and risk tolerance.
Key Risks
1. Volatility and Loss of Value
Cryptocurrencies such as Bitcoin and Ethereum are highly volatile. Prices can fluctuate significantly in short timeframes. You may lose some or all of your investment.
2. Regulatory Uncertainty
The legal and regulatory treatment of cryptocurrencies may vary across jurisdictions and can change rapidly. Future regulations could materially affect the value, use, or legality of your assets.
3. Technology Risk
Digital asset transactions rely on blockchain technology. Risks include software bugs, hacking, network failures, and irreversible transactions.
4. Market and Liquidity Risk
Crypto markets can be illiquid or subject to manipulation, which may affect your ability to buy or sell assets at favorable prices.
5. Security and Custody Risk
Although we partner with Bitstamp, a regulated exchange established in 2011, there is still risk of theft, unauthorized access, or custodial failure. You are reliant on third-party systems for asset security.
6. No FDIC or SIPC Insurance
Cryptocurrency holdings are not protected by the FDIC or SIPC. Digital assets do not have government-backed insurance coverage.
7. Tax and Compliance Risk
Improper management of digital assets within an IRA may result in tax penalties or disqualification. You are responsible for understanding and following IRS rules.
Platform Compliance
- IRA Financial provides no investment advice or guarantees.
- All trades must be initiated by the account holder.
- KYC and AML standards are strictly enforced.
- Trading occurs via Bitstamp, a registered and regulated cryptocurrency exchange.
Important Disclaimers
- IRA Financial acts as a passive custodian and does not endorse or recommend specific cryptocurrencies.
- IRAfi Crypto is a self-directed platform. Clients assume full responsibility for investment decisions.
- We recommend speaking with a qualified financial or tax advisor before investing.
Legal Resources
Bing Advertising Compliance Statement
“Advertisers must clearly disclose the risks of investing in virtual currencies in either the ad or the landing page, and must not represent virtual currency as a risk-free investment.” – Microsoft Advertising Policy
Contact Information
For questions or compliance concerns, contact our team at info@irafinancial.com or schedule a consultation.
