EU - Risk Disclosure

Last updated: March 16, 2026

Last Updated: February 2026

Important Warning

The purchase, sale, custody, transparency and any other operation with crypto-assets entails a substantial risk of loss. The volatility of the crypto-asset market can result in the total loss of its value in legal tender. You must carefully consider whether trading and investing in crypto-assets are appropriate for you, taking into account your financial situation, investment objectives and risk tolerance.

This page is aimed at providing you with an overview of some of the types of risks involved with investing in crypto assets, but does not identify each and every possible risk. It is always important to be aware of the fact that there are risks involved in trading crypto assets. Please consider carefully if you are prepared to and can afford to run these risks, or any other risks that you believe may arise. Crossmint encourages all customers to conduct their own research before purchasing in a crypto asset. Crossmint also encourages you to transact in fully MiCA-compliant crypto-assets only.

Please read this information carefully before completing your transaction with Crossmint so that you are aware of the following types of risk.

General Market and Asset Risks

  • Price Volatility: The value of crypto-assets is volatile and can fluctuate unpredictably. A crypto-asset may lose its value partially or totally in a very short period. Factors such as supply and demand, technological adoption, regulatory news, and media opinions can drastically impact its price.

  • Liquidity Risk: The liquidity of a crypto-asset can vary significantly. The ability to buy or sell a crypto-asset depends on the availability of an active market. In times of low liquidity, you may not be able to sell your assets or may be forced to do so at a significantly lower price.

  • No Guarantee: Crypto-assets are not legal tender. They are not backed by a central bank, nor are they covered by deposit guarantee or investor compensation schemes, such as those provided by the Credit Institutions Deposit Guarantee Fund. This means that, in the event of insolvency of the issuers, you could lose the entirety of the value of your crypto-assets.

Technological and Security Risks

  • Fraud and Cybersecurity Risk: Crypto-assets are digital assets, which makes them vulnerable to cyberattacks, fraud, phishing, malware, spoofing attacks, social engineering and other security threats. Important: Blockchain transactions are generally irreversible. Once you send crypto assets to an address, it is typically impossible to recover them if sent in error or to a fraudulent address.

  • Technology Failure: The operation of crypto-assets is based on complex technologies. A failure in hardware, software, internet networks, blockchain protocols, or other technological infrastructures could cause a loss or a delay in the ability to transfer, sell, or spend your assets.

  • Network Congestion and Order Delay Risks: Crossmint uses good faith efforts to fulfill customer orders when they are placed. However, from time to time, it may be necessary for Crossmint to delay fulfillment of an order until the relevant network can process the order. Crossmint does not have any control over transaction times for a crypto asset network (i.e. the blockchain) and there may be instances where transaction times take longer than usual. While Crossmint strives to provide timely service, these network-level factors are outside our control and may result in delays in completing your transaction.

Regulatory and Compliance Risks

  • Regulatory Risk (MiCA): The regulatory framework for crypto-assets in Europe, such as the MiCA Regulation, is constantly evolving. Changes in laws, directives, or regulatory policies could affect the viability, price, and liquidity of crypto-assets or limit the availability of certain services.

  • Non-MiCA Compliant Crypto-assets: Some crypto-assets available on the market may not fully comply with the requirements of the MiCA Regulation. Trading this type of asset could entail a greater risk, particularly with regard to transparency, disclosures, and the possibility of future sale. Crossmint encourages you to trade only fully compliant crypto-assets and reminds you that trading non-compliant crypto-assets may present you with increased risk.

  • AML/CTF Risk E-money token wallets or transactions could be used for money laundering or terrorist financing purposes.

  • E-money tokens Risks (MiCA): While e-money tokens seek to maintain a stable value, not all issuers have the necessary authorization under MiCA. If a e-money token issuer does not obtain the appropriate authorization, the assets may present a greater risk in terms of redemption, stability, liquidity and transparency.  Crossmint encourages you to only trade e-money tokens with issuers authorised under MiCA. To verify whether an issuer is authorised, you can review the regularly updated ESMA registers, which are available here. The main risks associated with e-money tokens are the following:

  1. Financial & Solvency Risks The Issuer could go bankrupt due to its own insolvency or the failure of banks holding its reserves, potentially affecting users' ability to redeem e-money tokens.

  2. Redemption Risk In periods of exceptionally high redemption demand, reserves may not be sufficiently liquid to fulfill all requests on time, as they may include assets that are not immediately saleable.

  3. Dual-Issuer Risk If e-money token usage shifts significantly towards the EEA, the co-issuer may be unable to rebalance reserves to the Issuer, impairing its capacity to cover redemptions.

  4. Third-Party Risk The Issuer relies on banks and other service providers for key operations. Any failure by these parties could disrupt the issuance, management or redemption of e-money tokens. Additionally, third parties may support e-money tokens on their platforms without the Issuer's approval, and the Issuer bears no responsibility for issues arising on those platforms.

Specific Service Risks

  • Unauthorised Transfer Transactions: the following typologies cover operations in which a fraudster issues or modifies a crypto-asset transfer order without the user's authorisation, having fraudulently obtained sensitive information or access to the custodied wallet: a) Signing Key and Session Key Compromise: Theft of smart account proprietary keys, session keys or delegated signing keys; attacks on key rotation mechanisms; b) Bundler/Relayer Compromise: Malicious bundler executing unauthorised UserOperations; mempool manipulation; selective censorship of legitimate operations; compromise of relay infrastructure; c) Malicious Paymaster: Paymaster contract with hidden logic executing additional transfers or draining funds as undisclosed fees; d) Smart Contract Approvals and Permissions: Malicious approvals enabling unauthorised fund transfers; unlimited allowances; delegate call permissions to unaudited contracts; installation of malicious modules gaining smart account control; e) Governance Mechanism Compromise: Theft of upgrade authority; malicious contract upgrades introducing backdoors; unauthorised multi-sig threshold changes; timelock manipulation; f) Social Recovery/Guardian Compromise: Compromise of guardian keys; malicious guardian initiating unauthorised recovery; guardian collusion; g) Smart Contract Vulnerabilities: Bugs enabling fund drainage; reentrancy attacks; access control failures; signature replay attacks; h) Order Modification by Fraudster: Interception or modification of a legitimate transfer order prior to on-chain execution, including UserOperation tampering, exploitation of callback functions, and bundler/relayer man-in-the-middle attacks.

  • Custody: If you use Crossmint's custodial wallet service, we maintain control of the private keys. However, access to your account still depends on your login credentials and security measures. Although Crossmint adopts robust measures, the nature of the risk cannot be completely eliminated.

Additional Considerations

  • Tax Implications: Crypto asset transactions may have tax implications. You are responsible for understanding and complying with applicable tax laws in your jurisdiction.

  • No Insurance: Unlike traditional bank deposits, crypto assets held in wallets are typically not insured by government deposit insurance schemes.

  • Irreversible Transactions: Most blockchain transactions cannot be reversed, cancelled, or refunded once confirmed on the network.

  • Making Informed Decisions: Before engaging in crypto asset transactions, Crossmint recommends that you:

  1. Educate Yourself: Understand how crypto assets and blockchain technology work

  2. Assess Your Risk Tolerance: Only invest what you can afford to lose

  3. Research Thoroughly: Investigate the crypto assets you're considering

  4. Start Small: Consider beginning with smaller transactions to familiarize yourself with the process

  5. Seek Professional Advice: Consult with financial, legal, or tax advisors as appropriate

  6. Stay Informed: Keep up to date with developments in the crypto asset space

Crossmint does not offer investment advice. The information provided is for informational purposes only and should not be the basis for any investment decision. By using Crossmint 'ss services, you acknowledge and accept the risks inherent in the crypto-asset market and assume full responsibility for the transaction decisions you make.

Contact Us

If you have questions about these risks or need assistance:

This risk disclosure is subject to change. We will notify you of material changes and update the "Last Updated" date at the top of this page. By using Crossmint's services, you acknowledge that you have read and understood these risk disclosures.