Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Risk Summary

Estimated reading time
2 min

Crypto assets offered by Socios.com are not sold or intended to be held as investments. If you intend to purchase them as an investment you should be aware that due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?

1. You could lose all the money you invest

  • The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
  • The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

2. You should not expect to be protected if something goes wrong

  • The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime – in other words, this type of investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here.
  • The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here

3. You may not be able to sell your investment when you want to

  • There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
  • Operational failings such as technology outages, cyber-attacks and commingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.

4. Specific Fan Token risks

  • Supply and demand (Up and Down Risk): The value of Fan Tokens might be subject to change based on supply and demand conditions which might be influenced by different crypto market factors.
  • Heart Over Head (Feelings Risk): Emotional responses to a team’s performance could lead fans to make decisions that aren’t the best for their money.
  • Hard to Sell (Liquidity Risk): Fan Tokens might not be easy to sell or swap for other things, which can be a problem when you want to get rid of them.

5. Decentralised exchange trading risks

  • For token swaps Socios.com is solely providing the interface to Kayen Swap, an independent third-party decentralised exchange (“DEX”), and is not involved with the exchange of any crypto assets. All swap transactions are made on the blockchain using the self-custodial wallet connected to your Socios.com account and are made on your own accord after having done your own research.
  • Third-Party Risk – The DEX is not affiliated with Socios.com. Socios.com is not responsible for any transactions, security, or performance of the DEX.
  • Irreversible Transactions – Transactions on the DEX are executed via smart contracts and are permanent and irreversible. Ensure all details are correct before proceeding.
  • Market & Liquidity Risk – The availability and pricing of tokens on the DEX depend on market conditions. You may experience high volatility or low liquidity, impacting your ability to buy or sell tokens at your desired price.
  • Security Risk – Decentralised platforms are subject to smart contract vulnerabilities, hacks, and exploits. Socios.com does not guarantee the safety of your funds once transferred to the DEX.
  • No Customer Support – Socios.com does not provide assistance for issues arising from third-party DEX transactions.

6. Stake and Earn Feature risks

  • Users who use the Stake and Earn Feature will have their Fan Tokens tied up for the duration of the Staking Period. This means they won’t be able to sell or transfer their Fan Tokens during this time, even if they want to do so, but they can still continue using them on the App to access the different App Features.
 

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about cryptoassets, visit the FCA’s website here.

© Copyright 2018 – 2024. All rights reserved. Mediarex Enterprises Limited and its subsidiaries.

All images relating to the app on the site are for information purposes and may not reflect the final graphics of the product Fan Tokens are a type of utility token.

Before using crypto-assets (tokens), consider that: a) their value can go down or up; b) they are not regulated in most countries; c) you may have to pay taxes on any profits made from their sale.

Socios Services Baltics UAB, registered in Lithuania with entity code 306098470, operates the Socios.com app and is a registered virtual asset service provider, whilst Socios Technologies AG, registered in Switzerland, with registration number CHE-219.335.797 is the issuer of the Fan Tokens.

Due to UK regulatory updates on crypto asset marketing, we’ve made some changes to our website and promotions. Although Fan Tokens are sold for their utility, the new regulations governing the promotion of crypto assets in the UK require that we provide risk warnings when promoting investment activity in Fan Tokens.

Download app

Available for iOS & Android

Scan QR to download.

Download our app directly to your phone.