MiCAR Risk Statement
This Ramp Network Risk Statement is presented to you, as a Ramp Network customer residing in the EEA and receiving services from Ramp Swaps (Ireland) Limited trading as Ramp Network.
This statement summarises certain key risks associated with crypto transactions and crypto services. The risks described here are not exhaustive. Before engaging in cryptoasset activity, you should consider whether these services are appropriate for you given your knowledge, experience, financial situation, objectives, and ability to bear loss — especially if the funds involved relate to retirement savings, loans, or emergency resources.
Ramp Network supports a range of cryptoassets, and details of assets currently supported for trading, transfer and custody can be found at: https://rampnetwork.com/
What are cryptoassets?
Cryptoassets are digital representations of value that can serve as a medium of exchange, unit of account, or store of value. Under EU law, they may be categorised as:
- E-money tokens (intended to maintain stable value relative to fiat currency)
- Asset-referenced tokens (backed by one or more reference assets)
- Other cryptoassets (including exchange tokens and utility tokens, often highly volatile)
E-money tokens and asset-referenced tokens aim to hold stable value, but stability is not guaranteed and de-pegging may occur. Other tokens may be far more volatile, with prices driven primarily by supply, demand, and speculation.
Cryptoassets rely on novel and complex technology. Failures, forks, software vulnerabilities, or operational issues can impact the value, usability, or integrity of these assets.
Key Risks of Trading or Holding Cryptoassets
You could lose all the money you invest
Cryptoassets are high-risk and extremely volatile. Their value can rise or fall quickly, sometimes without transparent mechanisms. You should be prepared for the possibility of losing the full amount you invest.
Additional risks — such as cyber-attacks, fraud, operational failures, or firm insolvency — may also lead to the loss of your assets.
If you stake cryptoassets, you may face slashing risk, meaning a portion of staked assets may be lost if a validator behaves incorrectly.
You may not be able to sell your crypto when you want to
Buying or selling cryptoassets may not always be possible due to:
- Limited liquidity
- Market volatility or suspended trading
- Outages, cyber-attacks, or network congestion
- Staking lock-up periods
- Restricted withdrawals during network events
- Price volatility at the moment orders execute
In adverse conditions, you may be unable to exit a position at a reasonable price — or at all.
Fraud and malicious activity
Cryptoassets are frequently targeted by scams, phishing, account takeovers, and other fraud schemes. While Ramp Network maintains robust security controls, no platform can eliminate fraud risk entirely.
Always verify who you are interacting with, safeguard your private keys and recovery information, and remain alert to suspicious activity.
Cryptoassets can be complex
Crypto services can be difficult to fully understand. Before buying or using cryptoassets, consider whether:
- You can afford to lose all invested funds
- You understand how the cryptoasset or service works
- You are comfortable taking on high risk
- You are able to securely manage your wallets and devices
If something sounds too good to be true, it probably is.
Don’t put all your eggs in one basket
Diversifying your investments helps reduce risk. Do not put all your money into a single cryptoasset or product. Only invest amounts you are prepared to lose.
Risks Associated with Specific Cryptoasset Types
Stablecoins
Stablecoins such as USDT or USDC aim to maintain a stable value relative to reserve assets (e.g., USD) but involve risks:
- Collateral risk: Reserve assets may fluctuate in value or be insufficient
- Redemption risk: Redemption processes may fail or be delayed
- FX risk: Depending on your base currency, exchange rate changes may affect value
- Counterparty risk: Stability depends on the issuer and third-party custodians
Stable value is not guaranteed.
Wrapped Tokens
Wrapped assets (e.g., wBTC, wETH) represent tokens bridged from another blockchain. They involve:
- Collateralisation risk
- Custodial insolvency or security risk
- Smart contract vulnerabilities
- Bridge and interoperability failures
- Price divergence from the underlying asset
Meme Tokens
Meme tokens, such as DOGE, involve heightened risks:
- Extreme price volatility driven by social media sentiment
- High exposure to manipulation (e.g., pump-and-dump schemes)
- Lack of transparency around development teams
- Emotional investment patterns leading to impulsive decisions
Additional Technical and Market Risks
Blockchain forks
A chain split (“fork”) may occur when network participants disagree on protocol changes. Forks may affect price, usability, or viability. Ramp Network may choose not to support assets created through a fork.
Cryptography vulnerabilities
Flaws in cryptoasset source code may be exploited, revealing data or enabling theft. Cryptographic assumptions may weaken over time.
Regulatory uncertainty
Cryptoasset regulation is evolving globally. Changes may limit trading, redemption, transfers, or custodial arrangements and may affect price or liquidity.
Systemic risk (51% attacks)
If an entity gains majority control of a blockchain’s computational power, double-spending or network disruption may occur.
Connectivity and system failures
Internet failures, hardware problems, or platform outages may prevent you from placing or executing transactions or transferring assets.
No Investor Compensation Scheme
Cryptoassets held with Ramp Network are not protected by investor compensation schemes typically available for traditional financial products.
Fees
Transaction fees apply to buying, selling, and trading cryptoassets. Fees may be fixed or percentage-based and may vary depending on transaction size and market conditions.
Final Notes
Crypto is innovative technology, but it carries significant risk. Only invest money you can afford to lose, remain vigilant against scams, and ensure you fully understand the assets and technologies you choose to engage with.