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Digital Asset Risks

Risks to know before transacting in digital assets

This Risk Disclosure summarises the principal risks associated with Digital Assets that you may interact with through the Spike App. It is not a complete statement of all risks. Please read it carefully before submitting Instructions involving Digital Assets.

Spike does not provide financial advice. You should obtain independent professional advice before making decisions about Digital Assets.

The price of Digital Assets can change significantly, often in a short period. The value of Digital Assets you hold or transact in can fall as well as rise, and you may lose some or all of the amounts involved. Past performance is not a reliable indicator of future performance.

Once a Digital Asset transaction is recorded on a Distributed Ledger, it cannot generally be reversed. There is no chargeback mechanism. Errors in Address, network selection, or amount may result in permanent loss of value. You are responsible for verifying every Instruction before you submit it.

Where a Service Provider custodies your Digital Assets, the security of your assets depends on the Service Provider’s systems, controls, and solvency. A failure, breach, insolvency, or wrongful conduct of a Service Provider may result in the loss or unavailability of your assets.

Where you self-custody through a Linked Wallet, you are solely responsible for the safekeeping of your private keys and seed phrases. Spike does not at any time hold or have access to your private keys or seed phrases. Loss, theft, or compromise of your private keys or seed phrases may result in permanent loss of the Digital Assets in your wallet, and Spike cannot recover them.

Many Digital Asset transactions interact with smart contracts. Smart contracts may contain bugs, vulnerabilities, or design flaws that result in loss of value. Smart contracts may be exploited, paused, upgraded, or deprecated by their developers in ways outside Spike’s control.

Distributed Ledgers, blockchain networks, and the wider digital-asset ecosystem may experience congestion, forks, reorganisations, validator failures, attacks, or other disruptions. Network fees may rise sharply. Transactions may be delayed or, in extreme cases, become invalid.

Stablecoins are designed to maintain a stable value relative to a reference asset (typically a fiat currency). However, stablecoins are subject to issuer risk, reserve risk, depegging risk, and regulatory risk. There is no guarantee that a stablecoin will maintain its peg in all market conditions or at all.

The legal and regulatory treatment of Digital Assets is evolving and varies by jurisdiction. Future legal or regulatory changes may make Digital Asset activities unlawful, more costly, or impractical, and may affect the availability of Service Providers, the operation of networks, and the value of your Digital Assets.

The tax treatment of Digital Assets is complex and depends on your personal circumstances and the jurisdictions in which you are taxable. You are responsible for assessing and meeting your tax obligations.

Digital Asset users are frequent targets of phishing, social engineering, malware, fake apps, and impersonation. Spike will never ask you for your private keys, seed phrases, or full wallet credentials. If you receive a request that appears to come from Spike but asks for those details, treat it as a fraud attempt and report it through our support channels.

Digital Assets held with Service Providers are typically not protected by deposit-protection schemes (such as the Financial Services Compensation Scheme in the United Kingdom). If a Service Provider becomes insolvent, you may not be able to recover all or any of your assets.

By submitting an Instruction involving Digital Assets through the Spike App you confirm that:

  1. you have read and understood this Risk Disclosure;
  2. you accept the risks described;
  3. you are responsible for the management and safekeeping of your Digital Assets and your wallet credentials; and
  4. Spike does not provide financial advice and is not responsible for the value, performance, or outcome of any Digital Asset transaction.