This disclosure is provided in alignment with EU Regulation 2023/1114 (MiCA) guidelines and formally outlines the material risks associated with blockchain systems and tokenisation frameworks.
1. General Risk Warning
Blockchain technology, digital assets, and tokenised representations involve substantial risk. The user acknowledges the possibility of losing some or all of the value associated with these assets.
2. No Guarantees
Cuandeoro expressly provides no guarantees regarding returns, yields, liquidity, price stability, or secondary market access. Historical performance is entirely distinct from and does not indicate future outcomes.
3. Technological Risk
Blockchain networks are inherently susceptible to bugs, exploits, severe network congestion, protocol modifications (hard forks), and smart contract vulnerabilities, which may lead to irreversible financial loss or critical operational delays.
4. Non-Custodial Risk
Cuandeoro operates purely as an infrastructure layer and does not hold assets or private keys. The loss of your private cryptographic keys, seed phrase, or wallet access results in the absolute and permanent loss of your digital assets.
5. Regulatory Risk
The legal status of cryptocurrencies and tokenised assets is evolving globally. Imminent regulatory actions, changes in legislation, or central bank policies could drastically restrict usage, impact market availability, or necessitate an immediate restructuring of the provided services.
6. Market and Liquidity Risk
Tokenised real-world assets are fundamentally illiquid and may suffer from limited, insufficient, or completely nonexistent secondary market depth. Additionally, digital asset prices are subject to extreme volatility and potential market manipulation risks.
6A. Stablecoin Issuer Risk (EURC)
EURC is exclusively issued and governed by Circle Internet Financial, LLC, an entity possessing both the technical authority and legal mandate to freeze specific EURC addresses acting upon law enforcement requests. While Cuandeoro has no capability to freeze any user funds, the issuer (Circle) retains this centralized power. The user explicitly acknowledges this counterparty and centralized stablecoin risk.
7. Real-World Asset (RWA) Risk
The process of tokenisation serves only as a digital representation layer and does not absolve the underlying asset from its intrinsic risks. These include latent legal defects, substantial valuation uncertainties, physical degradation, counterparty failure, and complex jurisdictional enforcement challenges.
8. Requirement for Independent Advice
Users should not base financial or investment decisions solely on materials provided by Cuandeoro. We strongly recommend obtaining independent professional legal, financial and tax advice before entering into any transaction.
9. Limitation of Responsibility
Cuandeoro categorically disclaims and bears no liability for capital losses arising from erroneous user actions, vulnerabilities in third-party platforms, external protocol failures, or unforeseen force majeure events.
10. Formal Acknowledgement
By accessing and utilizing Cuandeoro’s technological infrastructure, the user formally acknowledges a comprehensive understanding of these stipulated risks, accepts unmitigated personal responsibility for their transactional actions, and chooses to engage strictly at their own risk.
11. No deposit guarantee or investor compensation
The crypto-assets used in the operations (including stablecoins) are not covered by deposit guarantee schemes or by investor compensation schemes. A loss of value or the inability to recover funds does not give the right to compensation from any public or private protection scheme.
12. Environmental impact of the consensus mechanism
Transactions are settled on the Stellar network, which uses the Stellar Consensus Protocol (federated Byzantine agreement), a consensus mechanism without proof-of-work mining and with reduced energy consumption per transaction. This disclosure is published for informational purposes in accordance with Article 66(5) of Regulation (EU) 2023/1114 (MiCA).