Loan Risk Warning
We urge you to read the list of risks below and consider them before committing to any CEX.IO lending product.
The following risk warnings are not intended to be a complete list of all possible risks associated with taking out a loan via CEX.IO.
If you are in any doubt about the action you should take, you should seek the advice of your solicitor, accountant or other professional adviser.
Loan issues that should be considered by you before a loan application:
- Declined application. Submitting a loan application is not a guarantee that you will receive any funds.
- Default on a loan. It is possible to default on a loan. By entering into a lending agreement, you are putting your assets at risk should you default on your loan. Loans are secured by collateral. If you do not make loan repayments in accordance with the loan terms and conditions provided to you, your collateral may be at risk of liquidation, and/or all of the funds you have borrowed may become repayable immediately.
- Loss of capital. You may lose capital. It is possible that a significant fall in the value of your crypto collateral may lead to complete liquidation of that collateral.
- Financial Services Compensation Scheme. Loans through CEX.IO are not covered by the Financial Services Compensation Scheme.
- Tax responsibility. You are responsible for paying your own tax liabilities arising in respect of any loan you take.
There is a risk that the CEX.IO loan platform could fail. If this were to happen, the negative consequences for borrowers may be as follows:
- CEX.IO may not be able to carry out automatic liquidation in time if it is suddenly needed due to changes in cryptocurrency prices.
- Borrowers may not be able to pay their loan obligations on time.
- Borrowers may not be able to add more collateral to active loans.
- Borrowers may not be able to take out new loans.
- Borrowers may not be able to log in to their personal CEX.IO accounts.
- The risk that the borrowers’ accounts may be hacked. CEX.IO follows the highest security standards and practices and takes maximum precautions to ensure the security of borrowers’ funds and data. However, it is borrowers’ responsibility to take the necessary security steps to keep their account details safe and not to share those details with anyone to avoid unauthorized access and possible loss of funds.
Information contained on our website is not intended to constitute an offer and does not constitute a personal recommendation and/or financial advice.