General Risk Notice

Coinmotion Oy · Published in the Help Center · Last updated 18 September 2026

1. Introduction

This risk notice provides a general overview of the risks associated with cryptocurrencies in general and with the use of the cryptocurrency services offered by Coinmotion. The risk notice supplements and illustrates – it does not replace or amend – the risks described in the risk notices of Coinmotion's general Terms of Service and the terms of the individual services. We recommend that you familiarise yourself carefully with these terms before using the services.

This risk notice is not exhaustive. Cryptocurrencies and cryptocurrency services may also involve risks other than those specifically mentioned here, including risks that cannot be foreseen. This document does not constitute investment, tax or legal advice. Always make your investment decisions based on your own financial situation, objectives and risk tolerance. It is essential for an investor to recognise what kinds of risks are associated with investing and what the consequences of those risks materialising may be for their own finances.

2. Risks Related to Cryptocurrencies

Cryptocurrencies are inherently considered a high-risk asset class. The use of cryptocurrencies and cryptocurrency services involves a significant risk that the capital invested is lost in part or in full.

Below we present the most significant risks associated with cryptocurrencies. The list is not exhaustive, and cryptocurrencies may involve many other risks not mentioned above, as well as risks that are not foreseeable.

2.1 Price volatility

The value of cryptocurrencies can change, rise and fall rapidly. A sharp increase in value may be followed by an equally sharp decline, and there is no certainty that the price will ever return to its previous level. Even if a cryptocurrency has previously recovered from a large decline, past performance does not guarantee future gains in value.

The effect of a loss can be illustrated with a simple example: if the value of a €1,000 investment falls by 50%, €500 remains. For the value of the investment to return to €1,000, it must then rise by 100%. The larger the decline, the larger the subsequent rise required to return to the starting level, and an investor should also be prepared for the possibility that the value of the investment never recovers.

2.2 Security risks

For example, hacking or other security breaches can lead to the loss of funds. This concerns both threats directed at the service provider and the subcontractors it uses, and threats directed at the customer's own accounts and devices.

You can reduce the security risk to your own accounts and devices, for example, by using strong and unique passwords and two-factor authentication, keeping software up to date, and always carefully checking the website address before logging in.

2.3 Regulatory risks

Changes in regulation may have a negative impact on cryptocurrencies. The EU's MiCA Regulation has increased the requirements imposed on cryptocurrency service providers and issuers of cryptocurrencies, and its objectives include clarifying the rules of the market and improving investor protection.

However, regulation does not remove the risks associated with investing in cryptocurrencies, nor does it guarantee the preservation of the capital invested. The fact that Coinmotion is an entity supervised by the Financial Supervisory Authority (Finanssivalvonta) does not mean that investing in cryptocurrencies is low-risk, or that the value of a cryptocurrency will be preserved or increase. Nor does an authorisation mean that every cryptocurrency offered through the service is suitable for every customer – responsibility for the investment decision always remains with the customer.

2.4 Taxation

The tax treatment of cryptocurrencies varies between countries and is generally, in part, unclear, and the tax treatment may also change as regulation or its interpretation changes. These factors may lead to unexpected tax consequences. Taxable events arise, for example, when you exchange a cryptocurrency for euros, for another cryptocurrency, or use it to pay for purchases.

Responsibility for determining the tax treatment of crypto transactions, reporting them to the tax authority and paying the taxes always rests with the customer. Coinmotion does not provide tax advice, and Coinmotion's communications should not be understood as such. Up-to-date guidance on the taxation of cryptocurrencies should be checked with the Finnish Tax Administration (see the Finnish Tax Administration's in-depth guidance on the taxation of crypto-assets; note that you should confirm that the version of the guidance is still current).

2.5 Liquidity risks

If a cryptocurrency has only a few buyers and sellers, you may not be able to sell your investment quickly at the price you want. This is called liquidity risk. Insufficient liquidity can lead to difficulty trading in cryptocurrencies, or even make trading impossible altogether. Liquidity risk can be particularly pronounced, for example, in the case of new cryptocurrencies, those with a small market capitalisation, or those that are otherwise less actively traded, for which buyers may not be found at the desired price when you want to sell.

2.6 Counterparty and credit risks

If a counterparty of Coinmotion – for example an outsourcing partner, a subcontractor, or another third party whose services Coinmotion uses in providing its services – fails to meet its obligations or becomes insolvent, there is a risk that the customer's funds are at risk and/or that significant delays occur in the provision of the service. More detailed information on service-specific counterparty risks is described later under "Special Risks Related to Coinmotion's Services".

2.7 Market risks

Changes in market conditions can lead to a decrease in the value of cryptocurrencies. Because cryptocurrency markets operate 24 hours a day, seven days a week, every day of the year, market conditions can change at any time – including when you yourself are not monitoring the situation.

2.8 Operational risks

Blockchain technology and decentralised finance (DeFi) are inherently prone to vulnerabilities. These arise, for example, from consensus mechanisms, challenges in network interoperability, and the nature of open-source platforms. Such vulnerabilities can lead to the loss of funds or delays in the provision of the service.

3. Different Types of Cryptocurrencies and Their Specific Risks

There are significant differences between different cryptocurrencies and types of cryptocurrencies, for example in terms of liquidity, volatility and historical performance. The risk profile of a cryptocurrency that has been established for a long time and is widely traded differs substantially from the risks of a small token, a new project, or a so-called meme coin. However, a large market capitalisation, a long operating history or a well-known name do not make a cryptocurrency risk-free – the prices of even established cryptocurrencies can fluctuate strongly and suddenly.

Coinmotion does not classify or label individual cryptocurrencies as "low-risk" or otherwise safe based on their market capitalisation, age or popularity. The market capitalisation and year of launch of each cryptocurrency can be checked in the Crypto section of Coinmotion's website, but no unambiguous conclusions about a cryptocurrency's level of risk can be drawn from these figures alone.

Below, cryptocurrencies are divided into different categories based on their practical nature and the specific risks associated with them. This section provides general information on different types of cryptocurrencies and the specific risks associated with them. Cryptocurrencies and cryptocurrency services may also involve risks other than those specifically mentioned here.

The categorisation and the risk descriptions that follow have been prepared to support the customer's understanding, and they do not constitute an exhaustive list of the threats present on the market relating to technology, regulation or market dynamics.

3.1 Established cryptocurrencies (e.g. Bitcoin, Ethereum)

Established cryptocurrencies typically have the longest operating history and the largest market capitalisation. They have historical price data available over a longer period, and they are the most widely traded, which generally means higher liquidity – they are typically easier to buy and sell without a single trade having a significant effect on the market price.

The extent to which a cryptocurrency is established can be assessed, for example, on the basis of its market capitalisation and year of launch. This information is readily available in the Crypto section of Coinmotion's website for each cryptocurrency. However, it should be noted that no unambiguous conclusions about a cryptocurrency's degree of establishment or the risks associated with it can be drawn from these figures alone.

Despite their established position and higher liquidity, established cryptocurrencies are subject to the same significant risks that are typical of cryptocurrencies in general. Their prices can fluctuate strongly and suddenly, for example due to market sentiment, macroeconomic factors and regulatory news. In addition, technology risks related to the underlying blockchain networks, such as software bugs, network congestion or issues related to upgrades, can also affect the use and value of established cryptocurrencies.

3.2 Stable currencies (stablecoins)

Stable currencies, or stablecoins, are cryptocurrencies whose value is intended to be stabilised by referencing some other value, right, or a combination of these. The value of stablecoins, such as asset-referenced tokens (ART) and e-money tokens (EMT) as defined under the MiCA Regulation, is intended to be pegged to a traditional currency (such as the euro or the US dollar), another asset, or a combination of these. Their purpose is to maintain a stable value and to serve as a means of exchange or a store of value in the crypto markets.

Issuer and counterparty risk: the holder of a stablecoin is dependent on the solvency of the issuer and the sufficiency of the reserves backing it. If the issuer runs into financial difficulties or the reserves have not been managed appropriately, the stablecoin may lose its value peg ("depegging"). So-called algorithmic stablecoins may also lose their stability due to software bugs or attacks targeting them (e.g. Terra Luna).
Regulatory and compliance risk: not all stablecoins are approved under the MiCA Regulation. The issuer of an e-money token (EMT) must hold an authorisation as a credit institution or an e-money institution, and the issuer of an asset-referenced token (ART) must hold a separate authorisation granted by the competent authority, as well as an approved crypto-asset white paper. If the issuer does not hold such an authorisation granted within the EU, a cryptocurrency service provider cannot lawfully offer that stablecoin to customers in the EU, regardless of the stablecoin's technical features or popularity. Changes relating to the issuer's authorisation – for example, the revocation of the authorisation, or the fact that an authorisation has never been applied for or granted – can therefore directly affect whether the token can be offered, custodied, or traded within the EU.

3.3 Meme coins and lower-liquidity cryptocurrencies (e.g. Dogecoin, Pepe)

Meme coins are cryptocurrencies that often originate from internet phenomena, popular culture, or community meme culture. They may have no technological or economic purpose whatsoever, and their value is based mainly on social media visibility, community hype, and speculation.

Extremely high volatility and speculation risk: the prices of meme coins can rise or collapse extremely quickly, even within hours. They are extremely susceptible to communications from social media influencers and coordinated trading (so-called "pump and dump" schemes).
High liquidity risk: meme coins and other similar cryptocurrencies often have poor liquidity. This means that buyers may not be found at the desired price when an investor wants to sell their holdings, which can lead to significant losses.

3.4 Utility tokens and governance tokens

Utility tokens give their holder access to a specific blockchain-based service or product. Governance tokens, in turn, grant voting rights in the decision-making of a particular decentralised application or protocol.

Project-specific and platform risk (project risk): the value of these tokens is directly linked to the success and usage rate of the underlying service, platform or protocol. If development of the project stalls, the application loses its users, or a competing technology replaces it, the value of the token can fall significantly or lose its value entirely.
Smart contract risk: many utility and governance tokens operate on smart contracts. Vulnerabilities or programming errors in the code can expose the system to security breaches and lead to the loss of funds.

3.5 New cryptocurrencies and small-market-capitalisation projects

New cryptocurrencies with a short operating history and small market capitalisation are constantly entering the market. No longer-term historical price data is available for them, which makes assessing their future development particularly difficult.

High failure risk and misconduct: the failure rate of new projects is extremely high. The market also features misconduct and scams, such as the so-called "rug pull" phenomenon, in which the project's developers abandon the project and make off with the funds.
Significant liquidity risk: trading volumes for new cryptocurrencies can be extremely small, which makes selling them or converting them into traditional currency slow or impossible without a substantial drop in price.

4. Special Risks Related to Coinmotion's Services

In addition to the general risks described above, Coinmotion's individual services involve specific risks characteristic of them. A more detailed, contractually binding description of these is given in the terms of each respective service; the description below summarises the most essential of them.

4.1 Standard cryptocurrency services – custody, exchange and transfer

Coinmotion's standard cryptocurrency services include the Custody Service, the Exchange Service and the Transfer Service. In these services, Coinmotion holds and administers the customer's cryptocurrencies directly in the Crypto-Asset Account, and the customer can, if they wish, transfer their cryptocurrencies to an External Wallet in accordance with the terms of the Transfer Service.

These services are subject to the general cryptocurrency risks described above. In addition, the following practical risks should be noted:

Only supported cryptocurrencies: the Crypto-Asset Account can only be used to hold, receive or store cryptocurrencies that are supported by the service at any given time. If you deposit cryptocurrencies that are not supported by the service into the Crypto-Asset Account, there is a significant risk that you will lose the deposited amount in its entirety.
Currency exchange risk: Coinmotion's platform operates in euros. Amounts shown in other currencies (e.g. Swedish kronor) are indicative and are based on the exchange rate in effect at the given time. The customer bears full responsibility for the costs and exchange rate fluctuations associated with currency exchange.
Market disruptions: in the event of a market disruption, Coinmotion has the right to suspend access to the cryptocurrency services or to prevent actions carried out through them. Market prices following such an event may differ significantly from the prices preceding the event.

4.2 Expansion Service

Cryptocurrencies offered through the Expansion Service are held and administered with the assistance of Coinmotion's outsourcing partner (see the Expansion Service Terms for more detail), in a separate Expansion Service account, which is a different account from the customer's Crypto-Asset Account. At the time this risk notice was prepared (see the date at the beginning of the document), these cryptocurrencies cannot be transferred to an External Wallet or to the standard Custody Service. In the app and on the website, cryptocurrencies within the Expansion Service are marked with an asterisk (*).

In addition to the general risks of cryptocurrencies, the Expansion Service is considered a high-risk service, the main risks of which include:

Counterparty and credit risks: if the outsourcing partner or its counterparty becomes insolvent or encounters other problems, there is a risk that the customer's funds will be lost in whole or in part and/or that significant delays may occur in the provision of the service.
Liquidity risks: cryptocurrencies offered through the Expansion Service may be less liquid than standard cryptocurrencies, which heightens the risk that they may be difficult to trade.
Market risks: changes in market conditions can lead to a decrease in the value of cryptocurrencies, and because the markets operate around the clock, conditions can change at any time.
Operational risks: the inherent vulnerabilities associated with blockchain technology and DeFi can lead to losses or delays.

Because of these inherent risks, the use of the Expansion Service involves a significant risk of capital loss, and the capital invested may also be lost in its entirety.

4.3 Staking (Expansion Staking)

Expansion Staking allows the staking of cryptocurrencies held within the Expansion Service. The customer's cryptocurrencies are locked into staking for the duration of the Staking Period, and Coinmotion uses independent subcontractors to carry out the service.

In addition to the general risks of cryptocurrencies, Expansion Staking is considered a high-risk service, the main risks of which include:

Blockchain risks: blockchain technology is based on decentralised decision-making, and the rules of the cryptocurrencies being staked may change during the Staking Period without any action by Coinmotion, which may affect the value of the cryptocurrencies or lead to the interruption of the service during the Staking Period.
Legal risks: the legal status of staking services is not currently fully established, and changes in legislation or regulatory interpretation may affect the ability to offer the service.
Counterparty and credit risks: if the subcontractor or its counterparty becomes insolvent or ceases to fulfil its obligations, there is a risk that the customer's funds will be lost in whole or in part and/or that significant delays may occur in the provision of the service.
Market risks: changes in market conditions can lead to a decrease in the value of cryptocurrencies, and because the markets operate around the clock, conditions can change at any time.
Operational risks: staking often requires more complex arrangements than standard exchange services, which may cause losses or delays for the customer.
Slashing risks: using proof-of-stake cryptocurrencies for staking requires committing funds to a blockchain or a third-party service for the validation of network transactions. If an error or malicious activity occurs in the validation process, the resulting slashing penalty may reduce the stake, or the stake may be lost in its entirety.
Smart contract risks: proof-of-stake protocols rely on smart contracts, and vulnerabilities or errors in their code can lead to the loss of funds. Smart contracts are immutable, which means such errors may not be able to be corrected afterwards, if at all.

Please also note in practice that cryptocurrencies that have been staked remain locked for the duration of the Staking Period and cannot be sold or transferred until they have been released from staking (also taking into account possible activation and exit queues); that the reward percentage is based on prevailing market conditions at any given time, and Coinmotion cannot guarantee a fixed reward percentage, meaning the percentage originally shown may differ from the reward actually realised; and that if a slashing penalty is imposed on the stake or the reward, the loss may remain the customer's responsibility – Coinmotion will not compensate for a loss caused by a slashing penalty, unless it was caused by Coinmotion's gross negligence or wilful misconduct.

Because of the inherent risks associated with staking and cryptocurrencies, the use of staking involves a significant risk of capital loss, which, if realised, may lead to the loss of the entire staked amount as well as the expected reward.

Coinmotion also offers the so-called Manual Staking service in connection with the OTC Service, for staking the customer's own cryptocurrencies. The specific features and risks of Manual Staking are described later, in the section concerning the OTC Service.

4.4 OTC Service

In the OTC Service, Coinmotion forwards the customer's order to a suitable counterparty using subcontractor services, so that the trade takes place outside a trading platform ("over-the-counter"). Cryptocurrencies acquired through the OTC Service are held in a separate OTC Custody Account, generally using subcontractor services.

In addition to the general risks of cryptocurrencies, the OTC Service is considered a high-risk service, the main risks of which include:

Counterparty and credit risks: if a subcontractor, a counterparty, or the counterparty of a subcontractor becomes insolvent, there is a risk that the customer's funds will be lost in whole or in part and/or that significant delays may occur in the provision of the service.
Liquidity risks: the cryptocurrencies offered may be less liquid than established cryptocurrencies, which may mean that a suitable counterparty for the trade agreement cannot be found.
Market risks: changes in market conditions can lead to a decrease in the value of cryptocurrencies, and because the markets operate around the clock, conditions can change at any time.
Operational risks: the inherent vulnerabilities associated with blockchain technology and DeFi can lead to losses and delays.

Please also note in practice that the prices given by Coinmotion in the OTC Service are indicative, and because the trade agreement is always concluded with the counterparty at the price determined by the counterparty, the price actually realised may differ significantly from the indicative price given; that, as a general rule, the trade agreement is binding and irrevocable once concluded (with the exception of fill-or-kill orders); and that Coinmotion may discontinue offering the OTC Service for a particular cryptocurrency – in certain situations (e.g. for reasons attributable to a subcontractor) this may occur without prior notice, in which case the customer's unused cryptocurrencies may be automatically converted into fiat funds.

Because of the inherent risks associated with the OTC Service and cryptocurrencies in general, using the service involves a significant risk of capital loss, and the capital invested may also be lost in its entirety.

4.5 Manual Staking (the OTC Desk's staking service)

Manual Staking is a service offered in connection with the OTC Service, through which a customer can stake their own cryptocurrencies held in their standard Crypto-Asset Account – unlike in Expansion Staking, where the cryptocurrencies being staked have been acquired through the Expansion Service. Coinmotion uses independent subcontractors to carry out Manual Staking.

Manual Staking is subject to the same risks as Expansion Staking described above: blockchain risks, legal risks, counterparty and credit risks, market risks, operational risks, slashing risks and smart contract risks. In addition to these, the following should be noted in practice:

Queues: Manual Staking may involve activation and exit queues, during which no reward accrues. Coinmotion aims to keep queues as short as possible but cannot eliminate them entirely.
Slashing liability: as in Expansion Staking, a loss arising from a possible slashing penalty may remain the customer's responsibility, unless it was caused by Coinmotion's gross negligence or wilful misconduct.

Because of the inherent risks associated with Manual Staking and cryptocurrencies in general, the use of the service involves a significant risk of capital loss, which, if realised, may lead to the loss of the entire staked amount as well as the expected reward.

5. Your Own Actions as an Investor – How to Recognise and Manage Risks

The risk associated with cryptocurrencies cannot be removed entirely, but it can be managed through your own choices. Only invest an amount that your finances can withstand losing, and keep cryptocurrencies as a reasonable portion of a diversified investment portfolio.

5.1 Your own investment decisions can increase risk

Hasty decisions: a rapidly rising price can create a feeling that you need to get in immediately, and, correspondingly, in a falling market, investments may be sold hastily. Make decisions based on a plan drawn up in advance, not out of haste or market hype.
Excessive concentration: the larger the share of your wealth you tie up in cryptocurrencies, or particularly in a specific cryptocurrency, the greater the risk becomes. It is not advisable to build your entire investment plan around a single asset class.
Investing with borrowed money and leverage: debt and its interest must be repaid regardless of how the investment's value develops. Leverage (gearing an investment with debt) multiplies potential losses.
Continuous trading: constantly buying and selling without a clear plan increases costs, the number of taxable events, and the risk of mistakes. For example, the Monthly Savings feature automates purchases for a chosen amount, which reduces the significance of any single point in time at which a purchase is made.

5.2 Your own crypto wallet transfers responsibility to you

If you transfer cryptocurrencies from Coinmotion to your own external wallet, your dependence on the service provider decreases, but responsibility for the security of the funds transfers entirely to you.

A private key or recovery phrase is the key to your funds. If it is lost, you may not be able to get your funds back. If the information ends up with another person, they may be able to gain control of the funds.
Never give your recovery phrase or private key to anyone – not to another person, a customer service representative, or an online service. Coinmotion will never ask for them.
Crypto transfers generally cannot be reversed. Always carefully check the receiving address and the network being used before confirming a transfer, and consider making a small test transfer before a larger one.

5.3 Beware of scams

Scams related to cryptocurrencies often use the same methods as other investment and online scams: websites designed to look genuine, impersonation of a well-known company or person, fabricated return figures, and pressure to act quickly. Be especially cautious if you are contacted by an unknown party, exceptionally large and guaranteed returns are promised, or you are pressured to pay additional amounts, for example for "taxes" or "processing fees," in order to release your funds.

We have compiled the most common cases and warning signs in our guide to cryptocurrency scams.

6. Frequently Asked Questions

How large a proportion of my investments can be in cryptocurrencies?
There is no single proportion that suits everyone. A suitable amount depends on your income, other wealth, investment horizon, and how large a decline in value you can withstand without it affecting your everyday life.

Can I lose all the money I have invested?
Yes. A cryptocurrency can lose its entire value, and in the case of a scam or a lost recovery phrase, the funds usually cannot be recovered.

Does MiCA regulation protect my investment?
Regulation imposes requirements on service providers, for example in relation to the safekeeping of customer funds and disclosure. However, it does not protect against the risks generally associated with investing in cryptocurrencies, such as a decline in the value of a cryptocurrency.

Do I have to pay tax on cryptocurrencies if I haven't withdrawn any euros to my account?
A taxable event also arises when you exchange a cryptocurrency for another cryptocurrency or use it to pay for purchases. Check the up-to-date guidance from the Finnish Tax Administration.

Is my own wallet safer than custody by the service provider?
Your own wallet removes dependence on the service provider, but transfers the entire responsibility to you. A lost private key or recovery phrase usually means the permanent loss of the funds.

7. Important to Know

This risk notice is not exhaustive and does not replace the Terms of Service or the service-specific terms. Cryptocurrencies and Coinmotion's services may also involve risks other than those mentioned here, as well as risks that cannot be foreseen.

This document does not constitute investment, tax or legal advice. Always make investment decisions based on your own financial situation, objectives and risk tolerance.