Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
| For the purposes of this article, Stablecoins include, but are not limited to, Tether (USDT-ERC20), Tether (USDT-TRC20) or USDC (ERC20). |
1. Platform's Role and Services
It's important to understand Paybis.com's function in your stablecoin investments. While Paybis facilitates the purchase and sale of Stablecoins, it does not provide personalized investment advice or guarantee returns on the funds you invest.
2. Client’s Rights and Obligations
As an investor, you retain full legal and beneficial ownership of your Stablecoins only if they are stored in a wallet under your own control (this includes Paybis Wallets). Any Stablecoins transferred outside of Paybis are your own responsibility and you cannot claim them from Paybis if they were transferred out.
3. Risk of Total Investment Loss
Although stablecoins are designed to be more stable compared to other cryptocurrencies, investing in them still carries risks, including the possibility of total loss of your investment. These risks arise from a variety of factors, including regulatory shifts that could affect the legal standing or operations of stablecoins, systemic issues within the stablecoin's underlying technology, the possibility of the issuer defaulting on their obligations, and broader market conditions that could impact the value of stablecoins.
4. Complexity of Investments
Stablecoins require an understanding of their underlying mechanisms (e.g., collateral types) and the blockchain technology. Their stability mechanisms and the legal structure around them add layers of complexity compared to traditional and other crypto investments.
5. Market Stability
Stablecoins aim for reduced volatility by being backed by reserves, such as fiat currencies, commodities, or other cryptocurrencies. However, market conditions, regulatory changes, and the performance of reserve assets can still significantly affect their value.
6. Operational Risks and Financial Crime
Like other digital assets, Stablecoin investments are susceptible to operational risks, including cyber threats and financial crimes. Paybis.com implements measures to mitigate these risks, but investors should remain vigilant.
7. Business Insolvency Risks
If Paybis.com faces insolvency, it could affect the management and accessibility of your Stablecoin investments. Understanding these implications and having a backup plan is advisable.
8. Liquidity and Selling Challenges
Market conditions and operational issues on Paybis.com can affect the liquidity of stablecoins, making it harder to buy or sell them quickly at stable prices. It's crucial to understand these potential selling challenges, especially during periods of market downturns or liquidity crises.
9. Regulated Status and Implications
Paybis.com is registered as a Virtual Asset Service Provider (VASP) in Poland. Although Paybis follows the financial promotions regime set by the FCA, it's not authorized or registered by the FCA. Compliance with these regimes does not eliminate the risks associated with Stablecoin investments.
10. Financial Ombudsman Service and FSCS Protection
Investments in Stablecoins via Paybis.com are not protected by the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS). While complaints about Paybis's conduct can be lodged with the FOS, there is no coverage for poor investment performance or investment loss.
11. Investment Comparability
Stablecoins offer a different risk-return profile from mainstream investments like securities. They carry unique risks and respond differently to market dynamics. Understanding these distinctions is essential for informed investment decisions.
12. Benefits of Diversification
Diversifying your investment portfolio can help manage risks. Limiting investments in cryptoassets, including Stablecoins, to a maximum of 10% of your net assets can help in reducing risk and achieving a balanced investment strategy.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Investors are advised to conduct their own research and consult with financial experts before making any investment decisions.