Risk disclosure for crypto-assets, trading and staking

This page describes risks in neutral terms. It is not a marketing communication and it is not investment advice. Start with the summary, then read the section for the product you use.

Summary of the main risks

Risks of buying and holding crypto-assets

Price volatility

The price of a crypto-asset can rise or fall by a large amount within hours, and past prices are no guide to future prices. Before buying Bitcoin on Bitpanda or any other asset, decide how much you could lose without hardship.

Liquidity

In fast or thin markets you may not be able to sell at the price you expect, and the gap between the buy and the sell price can widen.

Custody and counterparty

You buy from and sell to Bitpanda, not another customer, and Bitpanda holds the crypto-assets in your account. If Bitpanda failed or suffered a security incident, you could face delays or losses. See custody and protection schemes on the security page and the regulatory status of each company.

Transfers and networks

A transfer on a blockchain is final. Assets sent to a wrong address or over the wrong network are usually lost. Network fees and confirmation times change with demand and are outside Bitpanda's control.

Risks of active trading on Fusion

Fusion is an advanced trading platform, not an exchange: Bitpanda fills every order itself, as principal, and is your sole contractual counterparty. Depending on the order type, an order can execute at a price you did not expect when the market moves fast, or not execute at all.

The price Fusion shows is the best among the venues it aggregates, which is not necessarily the lowest price in the whole market. Orders placed through an API, an automated strategy or an AI tool are your orders and your responsibility. Bitpanda's own footnote says: "Bitpanda Fusion can lead to increased losses if market conditions change unexpectedly." Read how Fusion orders are executed and the fees that affect your return.

Risks of staking

Staking rewards are variable and not guaranteed. A fall in the price of the staked asset can outweigh the rewards you receive. Bitpanda's staking page names two further risks: losses from slashing or hacks, and a fall in the value of assets while they are staked. A network can also change its rules or its reward rate.

Staked assets on Bitpanda have no lock-in, with one exception: Ethereum (ETH), where leaving the stake takes time and the price can move while you wait. Read staking rewards, commission and lock-ups before you stake.

Risks of lending stablecoins (Earn on Stablecoins)

Earn on Stablecoins is not staking. Bitpanda describes it as an unregulated product of Bitpanda GmbH that is not classified as a regulated crypto-asset service under Regulation (EU) 2023/1114 (MiCAR). It is not a banking or deposit product, and no deposit protection applies.

• Ownership. Ownership of the stablecoins you commit passes to Bitpanda.
• Counterparty and insolvency. If Bitpanda could not meet its obligations, you could lose part or all of the amount.
• De-pegging. A stablecoin can lose its link to the currency it tracks.
• Redemption. A 14-day lock-in applies when you redeem.
• Rewards. Rewards are variable and can change at Bitpanda's discretion. They are not guaranteed.

What is not protected

• Crypto-assets. They are not bank deposits and are not covered by a deposit guarantee or investor compensation scheme.
• Market losses. Authorisation under MiCAR does not protect you against a fall in prices.
• Earn on Stablecoins. No deposit protection applies.
• Stocks, ETFs and metals. These are provided by other Bitpanda companies and have their own risk documents.

If you think you were treated unfairly, see how to complain. The Academy has guides that explain these risks in more depth.