This Risk Disclosure and Disclaimer should be read in conjunction with the JPMS Privacy Policy (the “Privacy Policy”). Unless otherwise defined herein, all defined terms used shall have the same meaning as as defined in the Privacy Policy. In short, we want you to understand the important risks and compliance matters when trading on JPMorgan JPMS.
Purpose: To maintain a sound and compliant global banking digital asset trading platform, we have established and implemented a comprehensive anti-money laundering, counter-terrorist financing, and trade and economic sanctions regime (the “AML/CFT/Sanctions Regime” or the “Regime”). We are committed to promoting lawful and transparent business activities and maintaining a strong reputation among users, regulators, and the digital asset industry.
Business Model: JPMorgan JPMS is a global banking digital asset trading platform or primary market where traders transact as buyers or sellers, commonly referred to as market makers and market takers. Generally, our services facilitate transactions matching users with the primary market; however, in certain instances, affiliates of JPMS may act as counterparties to trades executed on the JPMS platform. Users may access our services via the JPMS platform operated by JPMS.
Risk Disclosure: Trading involves risk. The risk of loss in trading or holding digital assets can be substantial. You should therefore carefully consider whether trading is suitable for you in light of your financial circumstances.
Regulatory Environment: We understand that regulators have adopted varied approaches to the laws and regulations governing digital assets, including some regulators defining or classifying digital assets as convertible virtual currencies (Financial Crimes Enforcement Network, U.S.) or virtual commodities (Hong Kong). As a trading platform, we consider digital assets offered on the JPMorgan JPMS platform to be an innovative alternative asset class; accordingly, digital assets should not be referred to as money or currency.
Risk Disclosure: Digital assets are not money or legal tender. Digital assets are not backed by any government or central bank. We may from time to time hold our own views on the regulatory approaches adopted by various government agencies; however, we will at all times fully comply with the rules and regulations of the countries in which we operate. We regularly engage with regulators and peers to discuss optimal approaches to regulating digital asset businesses. Furthermore, JPMS does not accept certain clients. We may not offer all services in all markets and jurisdictions, and may restrict or prohibit the use of all or part of our services in restricted areas.
We cooperate with governments, respect laws and regulations, and comply with applicable laws. As a responsible corporate citizen, law enforcement authorities may request information from us, and where permitted by law, we will assist law enforcement in investigations to trace and deter illegal activity. This also means the JPMorgan JPMS platform is only intended for law-abiding clients. We wish to provide you with services, and we also require that you act lawfully and in compliance with all applicable laws on the JPMorgan JPMS platform.
Our AML/CFT Regime: Through a risk-based, multi-tiered control system, we have designed our Regime to reasonably prevent money laundering and terrorist financing.
The first layer of the Regime includes rigorous user identification procedures, including verifying the identities of individual and corporate users. In addition to obtaining identity documents, we collect identification of beneficial owners/natural persons of the entity from non-natural person users in accordance with international standards such as those set by the Financial Action Task Force (FATF).
The second layer includes a risk-based system to ensure enhanced customer due diligence is performed. For this purpose, we screen users (including beneficial owners) against the sanctions lists of the Office of Foreign Assets Control (OFAC) of the United States, the United Nations Security Council sanctions lists, and lists of entities/persons designated by other governmental sanctions authorities. We may also screen against other lists as appropriate to protect our reputation and users.
The third layer includes ongoing monitoring for suspicious activity. If our system detects or has reason to suspect suspicious transaction activity, we will file a suspicious transaction activity report with the local regulatory authority. Typically, suspicious transactions are inconsistent with the user’s known legitimate business or personal activities.
The above are the main components of our compliance regime. However, the most critical link binding these multi-layered risk control systems is our leadership team and staff, including AML/risk compliance personnel who conduct training, oversight, and foster a strong compliance culture.
Risks and Specific Disclosures: Digital asset trading is considered high-risk. Digital assets are not backed by any government or central bank. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting with, holding, or trading digital assets is suitable for you in light of your financial circumstances.
Fees:
Trading Fees: Your trading fees are determined by your trading volume over the past 30 days. All trading volumes are converted to U.S. dollars using the exchange rate of the digital asset at the time of the transaction. Trades on non-USD base markets are also converted. Your 30-day trading volume is calculated daily at 00:00 (UTC+8).
All fees are charged in the asset you are purchasing. For example, if you trade JPMS/USD, fees are charged in USDT.
Additional Fees and Charges: JPMS offers multiple channels for deposit and withdrawal of digital assets.
Contact Information: If you have questions regarding our customer due diligence controls or require our assistance, please feel free to contact our 24/7 customer service representatives via support ticket or email.
Version: This Risk Disclosure and Disclaimer may be published in different languages. In the event of any discrepancy, the English version shall prevail.