Risk Disclosure (Last update 30 September 2024)
This risk disclosure document (this “Risk Disclosure Document”) has been prepared and approved by REAL EXCHANGE (REX) LTD (the “Company”) in line with the Chapter 3 of the Virtual Financial Assets Rulebook issued by the Malta Financial Services Authority (the “MFSA”) as applicable to the Company in the provision of VFA Services (as defined below).
Introduction
The Company is a private limited liability company incorporated and registered in Malta under company registration number C 88077.
The Company’s registered office is situated at LEVEL 2, FLAT 1, ST. JULIAN'S BUSINESS CENTRE, TRIQ ELIJA ZAMMIT, ST. JULIANS, STJ 3153, MALTA.
The link to the Company’s website is: kyrrex.mt/
Regulation
The Company is regulated by the MFSA and is subject to the laws of Malta.
The Company is licensed by the MFSA as a VFA service provider under the Virtual Financial Assets Act, Chapter 590 of the Laws of Malta (the “VFA Act”) and holds a Class 4 VFA Licence (the “Licence”).
The Company undertakes its business in relation to virtual financial assets (“VFAs”) in accordance with the Licence issued in its favour by the MFSA on the 8 th February 2022. A copy of the Licence is available upon request. You may also refer to the MFSA’s online financial services register for further detail.
Services Which May Be Offered
The Company is authorised to provide:
Custodian or Nominee services;
Operation of a VFA Exchange; and
VFA Transfer Services;
(individually, a “VFA Service” and, collectively, the “VFA Services”);
to experienced investors and non-experienced investors in relation to distribution ledger technology assets which have been determined to be VFAs in terms of the MFSA’s financial instrument test. For the avoidance of doubt, in terms of the VFA Act, a VFA is any form of digital medium recordation that is used as a digital medium of exchange, unit of account, or store of value, and that is not (i) electronic money, (ii) a financial instrument, or (iii) a virtual token.
The VFA Service(s) which will be provided to the client will be set out in the relevant client agreement which will be signed between the Company and the client prior to the provision of a VFA Service.
When engaged to provide the service of ‘Custodian or Nominee Services, the Company offers digital wallet services in respect of the VFA Exchange and custody/nominee services in order to facilitate and expedite the acquisitions and/or disposal of VFAs.
When engaged to provide the service of ‘Operation of a VFA Exchange’, the Company provides its clients with an order matching online platform that automatically, and according to pre-established non-discretionary criteria, matches a client’s trades with open orders from other clients.
Virtual Financial Asset Offered by Company
The Company shall be offering the following VFAs on its platform:
Bitcoin (BTC) – Bitcoin is a decentralised cryptocurrency that was launched back in January 2009. It can be defined as a peer-to-peer online currency, which essentially means that all transactions happen directly between equal and independent network participants, without the required intervention of an intermediary to permit or facilitate them. Moreover, Bitcoin was the first ever cryptocurrency that came into use and remains at the top of the cryptocurrency market with over a decade of existence.
Ethereum (ETH) - Ethereum is another type of decentralised open-source blockchain that features its own cryptocurrency called Ether. However, ETH has its own purpose, that being a global platform for decentralised applications. ETH allows users, world-wide, to write and run software that is resistant to censorship, downtime, and fraudulent activity, ultimately making the software more robust in nature. On the contrary to LTC, the Ethereum Network suffers from higher transaction costs, which in turn may lead to having scalability issues.
Litecoin (LTC) – Litecoin’s existence is based on the BTC protocol, however, differs slightly in its hashing algorithm, transaction time and a few other factors. Moreover, LTC differs from BTC as it has a shorter block time of only 2.5 minutes with lower transaction costs. This makes it more fit for purpose for smaller transactions. In fact, LTC was designed with the primary aim of being faster, more secure, and lower cost whilst also using the distinct properties of blockchain technologies.
TRON (TRX) – Tron is a blockchain-based operating system that tries to ensure technology is suitable for daily use, more specifically for content sharing and the entertainment industry. TRON attempts to differ itself from its competitors as it has positioned itself as an environment whereby content creators can position themselves and connect directly with their respective audience. The scope here is the elimination of centralised platforms and the reduction of commission fees to middle parties. In turn, reducing the cost for consumers.
Ripple (XRP) is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012. Ripple's main process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies.
Stellar (XLM) is cryptocurrency refers to a digital or virtual currency developed by Stellar Development Foundation. The organization's currency, which is called the lumen, is traded under the symbol XLM on various cryptocurrency exchanges. Lumens can be used by traders on the Stellar network, which is a blockchain-based distributed ledger network that connects banks, payments systems, and people to facilitate low-cost, cross-asset transfers of value, including payments.
Risk Disclosures
All financial transactions involve a degree of risk and may result in losses to the client’s capital. You should not enter into transactions unless you fully understand their nature, the risks associated with them and can bear any potential financial losses. In terms of R3-3.4.3.7.1. of Chapter 3 of the MFSA’s VFA Rulebook, the Company is required to appropriately warn clients of the risks associated with investing in VFAs.
The below list of risks is of a generic nature and is also intended to describe various risk factors associated with VFAs. This Risk Disclosure Document is not intended to provide an exhaustive list of risks (or other important factors) associated with an investment in a VFA, and hence there may be other considerations which should be taken into account before soliciting a VFA Service. You should therefore refrain from relying exclusively on the risk disclosures set out below as covering all possible risks and should always independently verify that the VFA Services or transactions are suitable for you (or, if applicable, your principal) in light of your specific circumstances.
You must make your own independent decision to access or use the VFA Services and should seek any advice that you consider necessary or desirable (including financial and/or legal advice) from independent advisors.