Risk Disclosure Policy for Crypto ETF Index

Risk Disclosure Policy for Crypto ETF Index

Last Updated: May 16, 2025

Crypto ETF Index ("we," "us," or "our") operates a website at CryptoETFIndex.com  ("Website") that provides real-time data, performance metrics, and tracking tools for cryptocurrency exchange-traded funds (ETFs) and related assets, including but not limited to the S&P 500 Index, Nasdaq Crypto Index, Grayscale Bitcoin Trust, and various cryptocurrencies. This Risk Disclosure Policy ("Policy") is designed to inform you ("User," "you," or "your") of the risks associated with accessing and using the Website and its data, which is provided for informational purposes only.

This Policy complies with applicable Texas state laws, including the Texas Securities Act and Texas Deceptive Trade Practices-Consumer Protection Act (DTPA), and U.S. federal laws, including regulations enforced by the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC). By using the Website, you acknowledge and accept these risks. If you do not agree, please do not use the Website.

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1. Purpose of This Policy

The Website provides data through a public dashboard, user-authenticated tracking features, and real-time updates via WebSocket connections. This data is not intended to constitute financial, investment, trading, tax, legal, or other professional advice. This Policy outlines the inherent risks of using the Website’s data, including financial, operational, and regulatory risks, to ensure transparency and compliance with Texas and U.S. laws.

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2. General Financial Risks

a. Volatility of Cryptocurrencies and ETFs

Cryptocurrencies (e.g., Bitcoin, Ethereum, Solana) and cryptocurrency-related ETFs (e.g., Grayscale Bitcoin Trust, Hashdex Nasdaq Crypto Index ETF) are highly volatile financial instruments. Their prices can fluctuate significantly within short periods due to market sentiment, regulatory changes, technological developments, or other factors. You acknowledge that:

- The value of assets displayed on the Website may change rapidly, resulting in significant financial losses if used for investment decisions.

- Historical performance data (e.g., top performers for today, week, or 30 days) is not indicative of future results.

- Tracking assets on the user dashboard does not guarantee profits or mitigate losses.

b. No Financial Advice

The Website’s data, including ticker updates, dropdown selections, and tracked asset information, is for informational purposes only. We are not registered financial advisors, investment advisors, or broker-dealers under the Texas Securities Act, Securities Act of 1933, or Investment Advisers Act of 1940. You should consult a qualified financial advisor or professional before making any investment or trading decisions. Reliance on Website data for financial decisions is at your sole risk.

c. Investment Risks

Investing in cryptocurrencies or ETFs involves substantial risks, including but not limited to:

- Total Loss of Capital: You may lose your entire investment due to market declines or asset devaluation.

- Liquidity Risks: Some assets may have limited liquidity, making it difficult to buy or sell at desired prices.

- Market Manipulation: Cryptocurrency markets may be subject to manipulation, such as pump-and-dump schemes or insider trading.

- Counterparty Risks: ETFs may involve risks related to the issuer’s financial stability or operational failures.

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3. Data-Related Risks

a. Data Accuracy and Timeliness

While we strive to provide accurate and up-to-date data, the following risks apply:

- Data Errors: Data sourced from third-party APIs or our backend (https://crypto-etf-backend.onrender.com) may contain inaccuracies, omissions, or errors.

- Caching Delays: The Website caches data for 5 minutes to optimize performance, meaning displayed data (e.g., market capitalization, percentage changes) may not reflect real-time market conditions.

- Third-Party Reliance: We rely on external providers for ETF and cryptocurrency data. We are not responsible for their accuracy, availability, or timeliness.

- Technical Issues: WebSocket updates or API calls may experience delays, interruptions, or failures due to server issues, network congestion, or other technical problems.

You acknowledge that relying on potentially outdated or inaccurate data may lead to poor financial decisions, and we are not liable for resulting losses.

b. Data Interpretation

The Website’s data, such as performance metrics (e.g., “Top 10 Performing Today”) or market capitalization, is presented in a summarized format (e.g., sorted by market cap, limited to 10 items). Misinterpreting this data, such as assuming it represents a comprehensive market analysis, may lead to flawed decisions. You are responsible for conducting your own research and analysis.

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4. Regulatory and Legal Risks

a. Regulatory Uncertainty

Cryptocurrencies and crypto-related ETFs operate in a rapidly evolving regulatory environment. Key risks include:

- U.S. Federal Regulations: The SEC, CFTC, and Financial Crimes Enforcement Network (FinCEN) may impose new regulations affecting cryptocurrency markets, potentially impacting asset values or ETF operations.

- Texas Regulations: The Texas State Securities Board regulates securities and may classify certain cryptocurrencies or ETFs as securities, subjecting them to additional oversight.

- Tax Implications: Cryptocurrency transactions may have complex tax consequences under Internal Revenue Service (IRS) rules. You are responsible for complying with tax obligations.

- International Regulations: If you access the Website from outside the U.S., foreign regulations may apply, potentially restricting your ability to trade or hold certain assets.

Regulatory changes may lead to market disruptions, asset devaluation, or legal penalties, and we are not liable for such outcomes.

b. Compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) Laws

While the Website does not facilitate trading, users tracking assets must comply with applicable Bank Secrecy Act (BSA) and USA PATRIOT Act requirements if they engage in transactions elsewhere. We may share user data with authorities if required by law, as outlined in our Privacy Policy [insert link].

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5. Operational and Technical Risks

a. Website Availability

The Website may experience downtime, interruptions, or errors due to:

- Scheduled maintenance or unscheduled outages.

- Third-party service failures (e.g., Render hosting, API providers).

- Cyberattacks, such as hacking or distributed denial-of-service (DDoS) attacks.

We are not liable for losses resulting from inability to access the Website or its data.

b. Security Risks

Despite our security measures (e.g., encrypted passwords, JWT tokens, HTTPS/WSS connections), no online platform is immune to cyber threats. Risks include:

- Unauthorized Access: Hackers may attempt to access your account or data. You are responsible for securing your credentials.

- Data Breaches: A breach of our systems or third-party providers could expose user information.

- Phishing: Malicious actors may impersonate the Website to steal your credentials.

We implement reasonable security practices, but you acknowledge that using the Website involves inherent cybersecurity risks.

c. User Errors

Errors in using the Website, such as selecting incorrect assets to track or misinterpreting data, are your responsibility. We are not liable for losses caused by user mistakes.

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6. Third-Party Service Risks

The Website relies on third-party services, including:

- Backend Hosting: https://crypto-etf-backend.onrender.com for data processing and WebSocket updates.

- APIs: External providers for ETF and cryptocurrency data.

- Google Fonts: For typography.

- Socket.IO: For real-time updates.

These services may:

- Experience outages or delays, impacting data availability.

- Change terms or discontinue services, affecting Website functionality.

- Introduce errors or inaccuracies in data.

We are not responsible for the performance, reliability, or security of third-party services, and you assume all risks associated with their use.

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7. Compliance with Texas and U.S. Laws

This Policy is designed to meet regulatory requirements, including:

a. Texas Laws

- Texas Securities Act: We disclose that we are not a registered investment advisor or broker-dealer and that our data is not investment advice, protecting against claims of unauthorized securities activities.

- Texas Deceptive Trade Practices-Consumer Protection Act (DTPA): We provide clear, transparent disclosures to avoid misleading users about the risks of using our data, ensuring compliance with consumer protection standards.

- Texas Data Privacy and Security Act (TDPSA): We align with data transparency requirements by disclosing how data is sourced, cached, and used.

b. U.S. Federal Laws

- Securities Act of 1933 and Securities Exchange Act of 1934: We clarify that the Website does not offer securities or facilitate trading, and we disclose risks to avoid misrepresenting our services as investment-related.

- Commodity Exchange Act: For cryptocurrencies classified as commodities (e.g., Bitcoin), we highlight market and regulatory risks, per CFTC guidance.

- Federal Trade Commission (FTC) Act: We ensure transparency and avoid deceptive practices by clearly stating data limitations and risks.

- Children’s Online Privacy Protection Act (COPPA): The Website is not intended for users under 13, and we do not knowingly collect their data, reducing risks associated with underage users.

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8. User Responsibilities

By using the Website, you agree to:

- Use the data solely for informational purposes and not for trading or investment without professional advice.

- Conduct your own due diligence before making financial decisions.

- Comply with all applicable Texas, U.S. federal, and international laws, including securities, tax, and AML/KYC regulations.

- Secure your account credentials and report unauthorized access immediately to [insert contact email].

- Accept all risks outlined in this Policy, including financial losses, data inaccuracies, and regulatory changes.

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9. Limitation of Liability

To the maximum extent permitted by Texas and U.S. federal law, Crypto ETF Index, its affiliates, officers, directors, employees, and agents shall not be liable for any direct, indirect, incidental, special, consequential, or punitive damages arising from:

- Your use of or reliance on the Website’s data.

- Financial losses due to market volatility, data inaccuracies, or investment decisions.

- Interruptions, errors, or security breaches affecting the Website.

- Regulatory or legal consequences of your actions.

Our total liability shall not exceed $100 USD or the amount you paid us (if any) in the twelve (12) months preceding the claim, per the Texas DTPA and common law principles.

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10. No Guarantee of Outcomes

Tracking assets, viewing performance metrics, or using any Website feature does not guarantee financial gains or protection against losses. The Website’s tools (e.g., user dashboard, ticker updates) are provided as is, with no warranty of fitness for any particular purpose, as stated in our Terms of Service [insert link].

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11. Changes to This Policy

We may update this Policy to reflect changes in our practices, market conditions, or legal requirements. We will notify you of material changes by posting the updated Policy on the Website or, for significant changes, by email (if you have an account). The “Last Updated” date indicates when the Policy was last revised. Your continued use of the Website after changes constitutes acceptance of the updated Policy.

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12. Contact Information

If you have questions or concerns about this Policy, please contact us at:

- Email: [insert contact email]

- Mailing Address: [insert business address, if applicable]

- Website: [insert contact form URL, if applicable]

We will respond to inquiries within a reasonable timeframe, typically within 5 business days.

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13. Additional Disclosures

a. No Endorsement

The inclusion of specific ETFs or cryptocurrencies (e.g., Bitwise 10 Crypto Index, Crypto20) does not constitute an endorsement or recommendation. These are provided for informational purposes only.

b. International Users

If you access the Website from outside the U.S., you are responsible for complying with local laws. Cryptocurrency regulations vary widely, and some jurisdictions may restrict access to certain assets.

c. Dispute Resolution

Any disputes related to this Policy are subject to the arbitration and jurisdiction provisions in our Terms of Service [insert link], which require binding arbitration in Austin, Texas, under American Arbitration Association (AAA) rules.

d. Accessibility

We are committed to making this Policy accessible. If you require it in an alternative format (e.g., large print or audio), contact us at [insert contact email].