WUBU FZCO | RISK DISCLOSURE STATEMENT | NOVEMBER 2025

 

 

 

 

 

 

 

 

THIS DOCUMENT IS FOR EXTERNAL USE AND SHALL BE PUBLISHED ON THE COMPANY’S WEBSITE

 

RISK DISCLOSURE STATEMENT

 

This Risk Disclosure Statement (“Statement”) intends to give an overview of the potential risks associated with virtual assets and the use of the services provided by WUBU FZCO (“Wubu”/ “Company”/ “we”/ “us”/ “our”) to users (“you”/ “your”). Wubu is licensed by the Dubai Virtual Assets Regulatory Authority (“VARA”) to undertake ‘Broker-Dealer Services’ (“Services”) and this Statement has been prepared in accordance with VARA’s licensing conditions as well as all applicable UAE regulations and guidance, the client agreement you execute with us (“Client Agreement”), and international best practices. Wubu’s [License number to be added] and [date to be inserted] Wubu may make amendments to this Statement, as may be deemed appropriate, necessary or if so, directed by the VARA and/or other concerned regulators.  

 

This Statement provides details of the material risks associated with using our Services but does not cover each and every risk or how they might impact you individually. There might be other risks we have not foreseen. The intent of this Statement is to emphasize the material risks tied to trading virtual assets and using our Services rather than diving into the technical and financial aspects of each risk and/or how such risks may impact your personal circumstances.

 

We urge you to read and comprehend this Statement before trading virtual assets or availing our Services. By engaging with our Services, you recognize and agree to the risks described in this Statement and any other risks linked to trading virtual assets. You are requested to evaluate these risks independently and make investment choices based on your analysis, resources, research, and experience. Any decision regarding investments or strategies is entirely your responsibility. Be aware that Wubu will not be accountable for any loss or damage, direct or indirect, resulting from the mentioned risks or related events.

 

 

You acknowledge and understand that we may experience circumstances beyond our reasonable control, including without limitation system interruptions or delays due to outages, power loss, telecommunications failure, disasters, act of God, cyberattacks, system malfunctions, third party service interruptions, regulatory actions or other events and that such interruptions or delays may affect our Services to you temporarily. We do not guarantee that our Services will be completely free from harm and uninterrupted and/or available at any particular time or that our Services will not be subject to unplanned service outages or network congestion. In the event of any disruptions, we retain the sole discretion to make appropriate modifications or adjustments to our Services. This can range from changing the payment terms to cancelling orders altogether. Further, during such suspensions, you may not be able to access your virtual assets. Our Client Agreement specifies the situations in which Services may be temporarily suspended. We shall have no liability whatsoever for any losses, damages, costs, or delays arising out of or in connection with circumstances beyond our reasonable control or from suspension, or interruption of our Services.

 

 

 

 

1.      Market condition risks: The valuation of virtual assets which are bought or sold by you may be influenced by market conditions, which may be either favorable or adverse. This means that the value of a virtual asset may fluctuate and may lose their value in full or in part.

 

2.      Divestment concerns: In some scenarios, virtual assets may pose challenges during divestment. For instance, some might lack liquidity, making them tough to sell, or might fetch a price lower than the acquisition cost when you aim to divest.

 

 

Upon opening an account with us, should any default event transpire, or should any act or omission by you result in an actual or potential breach of the Client Agreement, we reserve the right to close, terminate, suspend or modify any transaction or your account in accordance with the Client Agreement. Any charges or pending payments from you will be adjusted in accordance with the Client Agreement. 

 

 

1.       Virtual assets are not legal tenders: Virtual assets, often termed cryptocurrencies, digital assets, or digital currencies, are not considered official currencies (i.e. legal tender) in most jurisdictions. Their value isn’t backed by central banks or governments, leading to potential non-recognition and non-acceptance in various situations.

 

2.      Market risk and volatility: The value of virtual assets is influenced by broad market movements, external events and global economic changes, resulting in potential losses. Engaging in virtual asset trading exposes users to profound market risks, underpinned by erratic price volatility. Virtual assets are subject to extreme volatility at times to the extent that valuations can shift dramatically, and often suddenly, without any preceding indicators. Historical performance charts are not reliable yardsticks for forecasting future trends. Given the unpredictable nature, holding onto virtual assets demands vigilance. You should be cautious about holding virtual assets and are warned that you should pay close attention to your position and holdings, and how you may be impacted by sudden and adverse shifts in trading and other market activities. Investment in virtual assets could result in losses in parts or even entirety of investment. You should not invest funds that you are not prepared to lose in their entirety. Further, the price of virtual assets on one platform might differ considerably from another platform due to liquidity variances. While we make reasonable efforts to establish reliable pricing policies and practices, there can be unforeseen impacts on virtual asset values affecting the prices of our Services. You acknowledge and understand that we cannot guarantee that our provided price for any virtual asset or Services will always be better than prices on other exchanges or platforms.

 

3.       Irreversible transactions and limited legal recourse: Given the decentralized nature of virtual asset transactions, once executed, transactions cannot be reversed. To the extent that any of your virtual assets are incorrectly or fraudulently transferred, they are likely to be irretrievable. Furthermore, where virtual assets have been lost, stolen or destroyed under circumstances rendering a party liable to you, then you may have limited recourse against the responsible party.

 

4.      Transferability of virtual assets: There may be circumstances wherein you may not be able to transfer your virtual assets to external virtual asset wallets. These circumstances amongst others include: exceeding virtual asset transfer limits established for your account in accordance with our internal risk and anti-money laundering processes and policies; flagging of destination wallet addresses as tainted/suspicious wallet addresses; system maintenance; suspensions of trading/withdrawals in particular virtual assets required under applicable law by regulatory authorities or to protect the fair and orderly operation of the market; and other events out of our control.

 

5.       Delays in transactions and transfers: Transfer times for virtual assets can vary due to network congestion, technological issues, or other unforeseen delays. Further, virtual asset transfers are subjected to screening processes in line with the applicable regulatory standards and legislation. Certain patterns and sizes of transactions could be subject to enhanced scrutiny which could result in delays or rejection of the transfer request. This may impact your ability to transfer virtual assets in your account. 

 

6.        Liquidity risk: Selling virtual assets quickly without affecting their market price becomes challenging, especially in less liquid markets or during market disruptions. Thin investment markets can amplify volatility and heightened responsiveness to buying and selling pressures compared to more actively traded markets. Such illiquidity could potentially affect the ability to place orders, thus, potentially resulting in losses or delays in accessing funds.

 

7.       Liquidity slippage risk: While we make efforts to monitor and maintain liquidity of virtual assets in relation to which we provide Services, market conditions might create a lack of liquidity and devaluate the asset or cause a strong slippage on price when executing an order. You acknowledge and understand that price fluctuation occurring after you place an order can affect its execution price. Further, you acknowledge that limit orders will only be executed when the requested price is achieved rather than the published price. This means that there is a possibility that a limit order is only executed partially (or in certain extreme situations the order is not executed at all).

 

8.      Public record of transactions: Transactions involving virtual assets are recorded on public ledgers, which, while not directly linking identities, can lead to potential privacy concerns. In the past, flaws in the source code for virtual asset networks have exposed users’ personal information.

 

9.         Market manipulation and fraud risk: The virtual asset market, is susceptible to manipulative practices, fraudulent schemes and theft, which can distort prices and market integrity. The market is subject to an increased risk of fraud, including the potential for bucket shops, ponzi schemes and pump and dump schemes, among others. Such targeted schemes may result in the unrecoverable loss of virtual assets or a loss of part or all of your virtual assets, and you may not benefit from legal protections.

 

10.        Increased cyber-attack risk: Virtual asset platforms and wallets are enticing targets for hackers. Virtual assets, by their inherent nature, are especially susceptible to cyber threats. The digital space in which they operate makes them prime targets for various malevolent activities. Hackers and fraudulent entities often set their sights on these virtual assets, orchestrating sophisticated attacks. These can include inter-alia:

 

1. Distributed Denial of Service (“DDoS”): Overwhelming services by flooding them with information requests;
2. Sybil attacks: A malicious actor takes over multiple nodes in a network, essentially gaining undue influence;
3. Phishing: Deceptive attempts to gather sensitive data by impersonating trustworthy entities;
4. Social engineering: Manipulating individuals into divulging confidential information;
5. Hacking: Unauthorized intrusion into systems or networks;
6. Smurfing: Flooding networks with traffic by spoofing an IP address;
7. Malware: Malicious software designed to damage, disrupt or gain unauthorized access;
8. Majority-mining, consensus-based or other mining attacks: Exploiting the consensus mechanism of blockchain networks to gain control; and
9. Spoofing: Disguising communication from an unknown source as coming from a trusted one.

 

The decentralized and digital structure of virtual assets and the underlying distributed ledger technology amplifies the potential risks associated with cyber threats. If these attacks are successful, they could lead to significant losses, including the potential complete loss of your virtual assets. Moreover, legal protections may not apply to such targeted malicious acts.

 

11.      Account security risk: Failure to use robust security practices can render your accounts vulnerable. This includes risks from phishing, malware, and other malicious activities. Unauthorised access may be gained by third parties of your login credentials to gain access to your account, including through carelessness or forgetfulness by the account holder, or the third-party obtaining control over another device or account used by you in connection with any enhanced security measures enabled for your account. It is not possible to eliminate all security risks. You acknowledge and accept that you are responsible for keeping your account and log-in details safe, and you may be responsible for all the transactions conducted through your account, whether authorised by you or not. 

 

12.         Legal risk: The regulatory framework for virtual assets is evolving and can change without notice. Changes in laws and regulations by VARA and/or any relevant regulatory authority may materially affect the value, and use of virtual assets.

 

13.    Enforcement action: Regulatory bodies may take action against virtual asset platforms or users, leading to potential disruptions, losses, or legal consequences. In circumstances where there are regulatory interventions, changes to the legal landscape, or situations making our operations untenable or financially unviable in a particular jurisdiction, we may decide to halt our Services. This may result in you losing access to your account and may further result in the loss of any virtual assets stored or held on your account. 

 

14.      Third party risks and outages: Relying on third-party platforms or services introduces the risk of platform outages or malfunctions, which can impact the execution and placing orders or asset access. Third parties including payment service providers, liquidity providers, wallet service providers, IT service providers and banking partners may be involved in the provision of our Services. You may be subject to the terms and conditions of these third parties. You acknowledge and understand that you may suffer losses incurred from the actions or omissions of such third parties, including those engaged by or partnered with us for the provision of our own Services to you and those engaged by yourself and/or the buyer/seller as the case may be, for the use of our Services (e.g., the banking or wallet service providers).  While the performance of the providers engaged by us is monitored constantly, an outage at one of the Company’s partners could affect you in the short-term. To the extent legally permissible, we shall not be held responsible for any loss that these third parties may cause you when you are using our Services. 

 

15.       Information technology risk: There are risks associated with utilizing an internet-based system including, but not limited to, the failure of hardware, software, internet connection and malicious software introduction. We do not control signal power, reception, routing via the internet, configuration of your equipment or the reliability of your connection. Failure of the foregoing may result in your transaction either not being executed according to your instructions, or not executed at all, and/or failure and/or delay of electronic communications.

 

16.      No investment advice: While we provide a platform for virtual asset transactions, we do not offer investment advice. All investment decisions should be made based on personal research, risk tolerance, and financial situation. We provide execution-only services.  

 

17.      Taxation risks: The tax characterization of virtual assets is uncertain and you must seek your own tax advice in connection with acquisition, storage, transfer and use of any virtual asset, which may result in adverse tax consequences to you, including, without limitation, withholding taxes, transfer taxes, value added taxes, income taxes and similar taxes, levies, duties or other charges and tax reporting requirements. It is your responsibility to report and pay any taxes that may arise from transacting using our Services, and you acknowledge that we do not provide tax advice in relation to any transaction carried out using our Services. You are encouraged to seek independent legal and tax advice regarding the above and before making any virtual asset transaction.

 

18.       Unanticipated risks: The risks described herein are neither intended to be a comprehensive nor an exhaustive list of risk factors. You remain responsible for taking care to understand the technology, economic and legal nature of virtual assets and for carefully managing your exposure in accordance with that understanding and your risk appetite for innovative, volatile and speculative new technologies and virtual assets.

 

 

In accordance with applicable laws and regulations, Wubu has appointed the following two (2) Responsible Individuals to ensure compliance with Wubu’s legal and regulatory obligations:

 

Sr. No.	Name	Designation	E-mail
	Mr. Youcun Chen	Chief Financial Officer / Chief Operations Officer	tiger@wubu.com
	Mr. Tariq Abu Ragheb	Chief Executive Officer	tariq@wubu.com

 

 

Please read this Statement carefully.

Please note that the above listed risks are only indicative and not exhaustive.