Purpose
Ensure material virtual-asset risks and operational limitations are disclosed clearly and with appropriate prominence.
Steps
| # | Action | Details | Evidence |
|---|---|---|---|
| 1 | Identify material risks | Identify material risks for the product, service, audience, channel and intended action | Product and audience risk assessment |
| 2 | Include applicable risk statements | Include applicable volatility, loss-of-capital, regulatory-change, technology, access and AML/CTF monitoring statements | Approved risk and limitation statements |
| 3 | Explain service review and restriction scenarios | Explain where onboarding, transactions, withdrawals, transfers or functionality may require additional review, information, delay, restriction, refusal, blocking or lawful reporting | Service-specific disclosure assessment |
| 4 | Ensure prominence of risk warnings | Present risk warnings at least as prominently as benefits or promotional claims and do not bury them in footnotes | Prominence and readability check |
| 5 | Avoid misleading wording | Avoid wording that implies automatic acceptance, guaranteed timelines, unconditional service access, fixed returns or certain transaction outcomes | Prominence and readability check |
| 6 | Coordinate advice-related disclosures | For advice-related communications, coordinate suitability, client-understanding and loss-bearing-capacity disclosures with the applicable service controls | Service-specific disclosure assessment |
| 7 | Verify disclosure accuracy | Verify that disclosures remain accurate for the offered service and current legal and operating conditions | Approved risk and limitation statements |
| 8 | Record selected disclosures and rationale | Record the selected disclosures and rationale in the approval package | Approval rationale |
Mandatory Risk Statements (Section 4 of the Approved Manual)
Risk warnings are not optional — they are mandatory and must be visible in all marketing and client materials. The following standard statements must be included where applicable:
- Volatility: “The value of virtual assets may rise or fall quickly.”
- Loss of Capital: “You could lose your entire investment.”
- Regulatory Changes: “Rules and laws may change, affecting your holdings.”
- Technology Risks: “Hacking, system failures, or loss of access may lead to total loss.”
- AML/CTF Monitoring: “Transactions may be monitored and reported under Curaçao law.”
Best Practice
- Always place risk warnings in the same font size as promotional claims.
- Avoid burying risks in footnotes.
Service Limitation Disclosures
Bitkaya should disclose, where relevant and appropriate to the context, that services, onboarding, transactions, withdrawals, transfers, or account functionality may be subject to legal, regulatory, sanctions, safeguarding, fraud prevention, or compliance controls. Such controls may result in additional review, delays, restrictions, refusal, or reporting where required by law.
Advice-Related Disclosures (Article 63 LvT VAD)
When giving advice, Bitkaya must check if the client understands the risks and can bear losses. Suitability and loss-bearing-capacity disclosures must be coordinated with the applicable service controls.
Records
- Product and audience risk assessment
- Approved risk and limitation statements
- Prominence and readability check
- Service-specific disclosure assessment
- Approval rationale
Relationships
- Policy: POL-COMM-001 Client Communication and Promotion Compliance Manual
- Process: PRC-CPO-001 Client Protection and Operations
- Control: CTRL-COMM-003 Ensure Material Risks and Service Limitations Are Prominent
History
- 2026-07-26: Created from sections 2, 4-6 and 10 of the approved COMM Manual.