Risk Disclosure

Important risk information relating to digital assets, stablecoins, blockchain transactions, custody operations, and regulatory uncertainty.

Home Legal & Regulatory Status Terms of Use Privacy Policy Risk Disclosure Compliance

This page is provided for general website disclosure purposes only and does not replace a signed client agreement, custody agreement, service order, legal advice, tax advice, investment advice, or regulatory advice.

1. Digital Asset Risk

Digital assets involve significant risks, including price volatility, market disruption, liquidity limitations, technical failures, private-key risk, smart-contract risk, blockchain network risk, regulatory uncertainty, cybersecurity events, and potential loss of assets.

2. Stablecoin Risk

Stablecoins, including USDT and USDC, may be subject to issuer risk, reserve risk, redemption limitations, depegging events, network delays, transaction freezes, regulatory action, counterparty risk, and blockchain congestion.

3. Blockchain Transaction Risk

Blockchain transactions may be irreversible. Incorrect wallet addresses, wrong network selection, unsupported assets, compromised wallets, or mistaken transaction instructions can result in permanent loss.

4. Custody and Operational Risk

Custody operations depend on secure processes, technology, approvals, internal controls, counterparties, networks, and service providers. No custody framework can eliminate all risk.

5. Regulatory Risk

Digital asset laws and regulations may change quickly. Regulatory developments may affect asset availability, service availability, onboarding requirements, transaction processing, reporting obligations, and client eligibility.

6. No Investment Recommendation

Covalent Custody does not recommend that any person buy, sell, hold, trade, or transfer any digital asset through this website. Any digital asset decision should be made with independent professional advice.

7. Client Responsibility

Clients are responsible for understanding their own legal, tax, accounting, regulatory, and operational obligations before engaging in digital asset activity.

Effective date: May 17, 2026