Risk Statement: Crypto-Asset Exchange Services

Prepared in accordance with the Rules on the Licensing of Crypto-Asset Service Providers, approved by Resolution No. 03-157 of the Board of the Bank of Lithuania of 17 December 2024, point 7.

UTRG UAB provides crypto-asset exchange services allowing clients to exchange fiat currency for E-Money Tokens (EMTs) and Other Crypto-Assets as defined in Article 3 of Regulation (EU) 2023/1114 (MiCA) as defined in Article 3 of Regulation (EU) 2023/1114 (MiCA). While we apply robust security, compliance, and operational safeguards to mitigate, though not eliminate, risk, clients should be aware of the specific risks inherent to these types of crypto-assets:

1. E-Money Tokens (EMTs)

E-Money Tokens are crypto-assets to maintain a stable value by referencing the value of a single official currency (e.g., EUR).
Despite their stability objective, EMTs are involved in the following risks:

• Issuer and counterparty risk: The stability and redemption of EMTs depend on the issuer’s ability to maintain adequate reserves and honour redemption requests as required under MiCA.
  
  
• Operational and custodial risk: Failures, cyberattacks, or insolvency of the issuer, custodian, or intermediary may affect access to or redemption of EMTs.
  
  
• Regulatory and legal risk: Changes in laws or supervisory actions may affect EMT issuance, redemption, or use within the EU or other jurisdictions.
  
  

2. Other Crypto-Assets

Other Crypto-Assets include crypto-assets that are not designed to maintain a stable value and may serve as payment tokens, utility tokens, or other forms of transferable digital value.
These assets involve higher risk due to:

• Market and price volatility: The value of such assets may fluctuate significantly and unpredictably, including potential loss of the entire amount invested.
  
  
• Liquidity risk: Certain crypto-assets may have limited market depth, making it difficult to convert them into fiat currency or other assets.
  
  
• Technological and cyber risk: Network disruptions, smart-contract failures, or malicious activities may result in loss or inaccessibility of assets.
  
  
• Legal and regulatory uncertainty: The legal treatment of these assets may vary across jurisdictions and is subject to evolving regulation.
  
  

Important Notice:
Crypto-assets are not covered by deposit-guarantee or investor-compensation schemes. Clients should only use funds they can afford to lose and carefully assess their understanding of each asset type and its risks before transacting.

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