1Bitcoin.ca Platform Risk Statement

Last updated: August 11th, 2025

OVERVIEW

This 1Bitcoin.ca Platform Risk Statement (“Risk Statement”) applies to the use of the 1Bitcoin.ca Bitcoin trading platform (the “Platform”) and is incorporated into our Terms and Conditions. By using the Platform or any related services (“Services”), you acknowledge that buying, selling, and holding Bitcoin involves significant risks, and you agree to assume full responsibility for these risks.

PLAIN-LANGUAGE RISK WARNING

Bitcoin is a volatile digital commodity. Its price can change rapidly, and you may lose the entire amount you spend. Transactions are final once broadcast to the Bitcoin network — they cannot be reversed or recovered.

1Bitcoin.ca is a non-custodial platform. We do not hold or store Bitcoin for you after settlement. Once delivered to the wallet address you provide, you are solely responsible for its safekeeping. If you lose access to your wallet or private keys, your Bitcoin may be permanently lost.

RISKS ASSOCIATED WITH YOUR ACCOUNT

  1. Suitability – Bitcoin trading is not suitable for everyone. You should carefully consider your financial situation, knowledge, and risk tolerance before purchasing Bitcoin. You should not trade with funds you cannot afford to lose, including retirement savings, mortgages, emergency funds, or other essential reserves.
  2. No Custody or Interest – 1Bitcoin.ca does not function as a bank or financial institution. We do not provide custody services or interest-bearing accounts.
  3. CAD Funds Handling – Any Canadian dollars (CAD) you send to us are held temporarily for the sole purpose of completing your Bitcoin purchase. CAD funds are converted into vouchers redeemable exclusively for Bitcoin and cannot be withdrawn in CAD after conversion.
  4. Transaction Finality – Bitcoin transactions are irreversible once broadcast to the network. If you provide an incorrect wallet address or your wallet is compromised, we cannot recover your Bitcoin.
  5. Security of Your Wallet – You are responsible for protecting your wallet, private keys, and any backup phrases. Loss of these means permanent loss of your Bitcoin. Beware of phishing attacks, malware, and other cyber threats targeting Bitcoin owners.
  6. Technology Risks – Using an internet-based platform involves risks, including potential failures of hardware, software, or internet connectivity. 1Bitcoin.ca is not responsible for losses caused by service interruptions or communication failures.

GENERAL RISKS ASSOCIATED WITH BITCOIN

  1. Volatility & Liquidity – Bitcoin prices can rise or fall sharply within short timeframes. Market liquidity can vary, which may make buying or selling more difficult.
  2. Not Legal Tender – Bitcoin is not issued or backed by a government or central bank. It is not legal tender in Canada and does not carry the protections of a bank deposit.
  3. Value Depends on Market Participants – Bitcoin’s value is determined solely by supply and demand. A loss of market confidence could cause a significant drop in price.
  4. Short History Risk – Bitcoin’s history as a traded asset is relatively short, and future developments in technology or markets could affect its viability or value.
  5. Blockchain Forks – Bitcoin’s open-source code allows for network “forks” that may result in new digital assets. 1Bitcoin.ca may not support assets from such forks — you may need to manage these independently.
  6. Code Defects & Quantum Risk – Software bugs or future advances in computing (such as quantum computing) could compromise Bitcoin’s security.
  7. Cybersecurity Risk – Bitcoin’s digital nature makes it a target for hacking and fraud. A security breach affecting your wallet or third-party services you use could result in total loss of your Bitcoin.
  8. Concentration & Network Attacks – Large Bitcoin holders or a “51% attack” could impact the network’s stability and reduce trust in Bitcoin.

REGULATORY RISKS ASSOCIATED WITH BITCOIN

  1. Regulatory Changes – New laws or regulations may impact the legality, transferability, or value of Bitcoin. These changes can occur suddenly and without notice.
  2. Canadian Treatment of Bitcoin – The Government of Canada, through the Canada Revenue Agency (CRA), treats Bitcoin as a commodity for tax purposes. 1Bitcoin.ca is registered with FINTRAC as a Money Services Business (MSB #M21226416).
  3. Reclassification Risk – If Bitcoin is reclassified as a security or derivative in Canada, 1Bitcoin.ca may be required to cease offering Bitcoin transactions, and you would need to arrange independent storage or sale of your holdings.

NO GUARANTEE

1Bitcoin.ca does not guarantee the future value, stability, or usability of Bitcoin. You may lose the entire amount you invest.

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