Legal

Please ensure you read the section on Beware of Scams and How to avoid scams. If you have read the above information and nd yourself in a similar situation, please let us know right away Beware of investment scams Every signi cant rise in the price of Bitcoin (aka “bull run”) has introduced many new companies and investors to the space. This has also introduced numerous types of investment scams that prey on unsuspecting investors. These types of scams come in a variety of ways but here are some of the most typical scams:

ICO (Initial Coin Offering)

Thousands of new blockchain-based companies enter the market each year with unique ideas and exciting projects. To raise money for their new company, they will often fundraise using an Initial Coin Offering (ICO). The company will accept Bitcoin or Ethereum as a deposit and in return, you’ll get their new crypto coin. Sometimes, these new companies have good intentions – other times, they are outright scams trying to steal your crypto.

The best way to avoid these scams is to perform your own due diligence by researching the company. This involves reading the white paper, reviewing the team and key board members, and reading forums on what others are saying about the company.

putting the company name + “scam” into your preferred search engine will often immediately tell you if the company is legitimate or not. Before transferring your crypto, it’s vital to learn as much about the company as possible to avoid getting nothing in return.

Cloud Mining

Another way investors get involved in cryptocurrencies is through mining. Instead of setting up the miner yourself, certain companies can offer users “cloud mining contracts” to rent some server space to mine coins for a set rate. You send the company bitcoin and inreturn you get a portion of the pro ts of the miner over time with the goal of earning back more than you invested.

Some cloud mining services make bold claims regarding their returns without being transparent about the true costs and diminishing returns. Some companies go as far as to guarantee returns. This is one of the most Warning on investment scam telltale signs that this is a scam. No company can guarantee a return when it comes to mining because of how complex and dynamic the mining business really is. Remember, if it sounds too good to be true then it most likely is.

Multi Level Marketing Companies

Often referred to as “MLM” or “ponzi”, these are simple but alarmingly effective scams that lure people in with the promise of extraordinary pro ts. They operate by taking money from new investors to pay previous investors. These companies often promise you returns based on the number of people you invite to join. They rely on recruiting as many people as possible in order to sustain the business, often growing virally and rapidly. Eventually they collapse when the founders run off with the funds after they have exhausted their amount of new clients coming in.

How to protect Yourself

Most of the time, you will nd that there is little to no information available on the company outside of their own website. It’s also often dif cult to nd reviews online. You should pay attention to the company’s ne print and ensure that their claims are feasible and not too good to be true.

Note: These are only a few of the most widely known investment scams found in the cryptocurrency industry.

If you need to report an incident or you have fallen victim to this type of scam, reach out to our Live Chat support or submit a request at info@cointik.comBeware of phishing scams While phishing scams come in many forms, the most common scenario occurs when a client uses a search engine to search the word “Cointik UAB”, clicks on the rst link they see and unknowingly enters their sign-in credentials into a fraudulent site pretending to be the actual Cointik UAB website. These sites will often look almost identical to the of cial Cointik UAB site, the most telling difference being that the URL (website address) is noticeably different from the of cial URL

Another method of phishing occurs when you receive an unsolicited email or text that asks you to click a link or sign-in to your account.

This could be a scammer impersonating Cointik UAB or another exchange or wallet provider. The links will lead to a website that looks almost identical to the actual exchange or wallet.

These links are malicious and will request that you enter your username and password or, in the case of a wallet, your 12 or 24 word seed phrase. Any information that you input will be recorded, sent to scammers, and be used against you to gain access to your accounts and steal your crypto.

It is important to be very careful and practice good habits to avoid falling victim to these scams.

How to protect yourself:

• Check the URL of the website you’re visiting to ensure it is the actual site. Ask yourself if the name of the business is spelled correctly. • Ensure the website’s URL begins with “https“. • Look for the closed lock icon 🔒 in the address bar. • Never click on the link found inside the email or text. • Never disclose your 12 or 24 wallet seed phrase online.• Bookmark the legitimate websites you visit often. We will never… • ask you for your username. Keep your username secret! • ask you for your passwords. Never give out your passwords to anyone who asks. • ask you to remove or change your security settings. • request access to your devices via remote desktop access software. Warning on investment scam • Always navigate to website Cointik UAB by either bookmarking or manually typing in your browser’s address bar. • Never click on links or search results that look like website Cointik UAB. • Triple-check that your are entering your sign-in credentials on website Cointik UAB and no other website that may look similar. Support To contact Cointik UAB Support, always bookmark or navigate to the website manually by typing info@cointik.com into your browser’s address bar. Never give out any information about your account unless you opened a ticket via this method. If you receive a Cointik UAB Support email from any other address besides info@cointik.com, please delete it and do not click on any links that may be provided, as they are not legitimately from Cointik UAB Support and should not be trusted.

Email

Be aware of man-in-the-middle attacks in which an attacker intercepts emails from one party and relays them with certain amendments to the other party who both believe they arecommunicating with each other directly. Adding pGp to your email is a good way to prevent this.

Note: We strongly recommend setting up an email account that you only use for cryptocurrency.

phone

cryptocurrency’s phone support is now offering both outbound and *inbound service. More phone support options means there will likely be more phone scammers trying to take advantage of unsuspecting clients.

cryptocurrency’s outbound phone support means you can request us to call you. We will never call you unless you contact us rst and request a callback. Additionally, you will receive an email from us con rming a speci ed time.

cryptocurrency’s inbound phone support means you can call us. Do not use search engines to locate our support phone number or the Cointik UAB website. We recommend you bookmark info@cointik.com and only use this link to navigate to our phone number, which will be found at the bottom of the page on our support center.

If you accidentally called or receive a call from a scam number, please create a support ticket and let us know as many details as possible regarding the call.

*We are currently in our beta testing phase for our inbound phone support which means this service is only being offered to a select amount of clients.

Warning on investment scam Social Media

Our social media team only provides general support and an option to escalate your ticket using an online form.If someone claiming to work for Cointik UAB contacts you on social media, never give them any information besides the ticket number of your issue.

Beware of crypto giveaway scams Giveaway scams are one of the most prevalent types of crypto scams. Often found on popular social media platforms such as Youtube or Twitter, these are a form of social engineering attack used to convince you to send crypto to scammers.

How do they work?

a hacker will compromise or impersonate a prominent public gure or company and claim to be giving away crypto. To participate in the crypto giveaway, you must rst send an amount of crypto to the address they advertise. In many cases they will promise to send back double what you send them.

Their goal is to rush you into a bad decision by making you think that you’re about to miss out on a huge opportunity. They will often specify the exact amount of cryptocurrency being given away, such as “10,000 BTC giveaway” and then use fake accounts to leave comments and make it look like people are actually receiving the crypto. people will have the fear of missing out (FOMO) and race to send crypto to the scammers before considering if the giveaway is real or not.

Twitter and Youtube Giveaways

On Twitter, the fake giveaway account will sometimes have a blue veri ed check mark, making it appear more legitimate. There will also be bots replying to the tweet claiming that the giveaway is real and that they just received free crypto. On Youtube, there is often a livestream video that showcases a celebrity or company representative talking about something completely unrelated to crypto. The comment section is full of bots claiming they received the giveaway. These are all tactics to help generate social ‘proof’ that the giveaway is legitimate.How to protect Yourself Warning on investment scam

Almost all types of crypto giveaways are scams. They all follow a similar pattern of pretending to be someone else, then asking you to send crypto before they send you more back. Educating yourself and being able to identify this type of crypto scam is the best way to protect yourself.

Remember, once crypto is sent to a “giveaway” address, it is gone forever. Crypto transactions are irreversible, meaning there is no way to get your crypto back. This makes these types of scams highly effective and often recurring.

Remember, if it sounds too good to be true then it most likely is. Think twice before sending your crypto and if you need to report an incident or you have fallen victim to this type of scam, reach out to our Live Chat support or submit a request at info@cointik.com Beware of unregulated broker scams

An unregulated broker scam involves an individual reaching out to you unsolicited and requesting to become your “investment advisor” or “”trader.” They will often guarantee pro ts and will request that you only fund your account with cryptocurrencies. Unregulated broker scams are a constant threat in the industry and with every one that gets shutdown a new one seems to pop up. Warning on investment scam Red Flags:

• Unsolicited cold calls, emails or social media private messages

• pressure to invest immediately

• Claiming to be part of a regulated or legitimate exchange

• Refer to themselves as an “investment advisor”, “broker” or “” account manager”• Provide “promotional” offers

• Offer “bonuses” to those who deposit larger amounts

• Do not allow you to fund your account directly. They will instruct you to create an account with a regulated exchange and transfer your crypto to their account.

• Demand you to pay a “tax”, “fee”, or “commission” to withdraw your pro ts

• Will require the use of Remote Access Software

• Unable to explain how they got your contact information. How to protect Yourself

The best way to protect yourself is to educate yourself on how they work. You should be cautious of too-good-to-be-true promotions and promises to get rich quick. Once you send crypto to the rm, there is no way of retrieving it unless they send it back, which is highly unlikely.

a checklist to avoid unregulated brokers:

• Stick with well-known and popular exchanges

• Use Trust pilot and other resources online to read reviews. put the company’s name + “scam” into Google to nd results regarding the company’s legitimacy

• Look out for complaints about not being able to withdraw funds

• Determine where the company is registered and if there are any reliable reviews con rming it’s the real address of the company

• Get information about fees and rates upfront and in writing

• Don’t feel pressured to transfer your crypto to the exchange

• Be extra cautious with people claiming to be “Blockchain

Recovery Experts” who claim they can retrieve your stolen fundsIf you need to report an incident or you have fallen victim to this type of scam, reach out to our Live Chat support or submit a request at info@cointik.com

Additional resources for reporting and learning about fraud:

https://www.ssa.gov/scam/

https://www.aarp.org/money/scams-fraud/info-2020/cryptocurrency- investments.html

Warning on investment scam

https://www.ftc.gov/imposter

https://ic3.gov/

https://www.consumer.ftc.gov/articles/what-know-about- cryptocurrency

https://www.fbi.gov/news/podcasts/inside-the-fbi-holiday- scams-120120

https://www.antifraudcentre-centreantifraude.ca/report-signalez- eng.htm

https://www.antifraudcentre-centreantifraude.ca/scams-fraudes/ victim-victime-eng.htm

https://eba.europa.eu/contacts/complaints/frauds-and-scams

Beware of romance or impersonation scams

a romance or impersonation scam is where a scammer pretends to be a well-known or trustworthy person in your life and tries to work an emotional angle to get you to send them cryptocurrency. This is a common scam and the impersonation can take many forms, both personal and impersonal.

Social Media

The most common impersonations are of high-pro le and famous people with a large social media presence. Generally, it will besomeone well known, wealthy, and usually a bit eccentric. The scammer will make an account identical to that of the famous person and then post a link or a video asking you to send your cryptocurrency to a speci c website where they will “double your funds with a giveaway”.

If someone wants to give you free money, what is stopping them from doing it? Nothing. There is no need to send someone money to get double or triple your money back. If a random postcard arrived saying “send me $1000 dollars and I’ll send you $2000 back” would you do it?

These are always fake and you should never engage with them. Relative Scam

Another common scenario is one where scammers pretend to be a distant relative or a lawyer claiming a relative of yours is in jail or legal trouble. In these cases, call your relative’s phone number and inquire as to the legitimacy of the call. If it’s a legal issue being presented to you, the fact that they are asking for payment in crypto should send up a huge red ag. Research the legal rm in question and verify their legitimacy by reading reviews and calling any phone numbers they have online. It is more than likely that it will be a scam.

Warning on investment scam

Romance Scams

Scammers will leverage the emotion of love to manipulate your feelings and force you to send them funds. These scammers are found on popular dating sites and apps and will never want to meet in person. They claim to be in the military, working overseas, performing distance work, or that they are just simply stuck in another place.

How to protect yourself

• Ask for a video call and see if the person is real or just a photo taken from another pro le.• Never give out nancial details and be careful with any details you provide. Has anyone ever asked what your mother’s maiden name is or the street you grew up on during a date? No, but those are common security questions for a bank’s website.

• If you notice a sense of urgency in their requests for details about you or a need for funds, this should be a red ag. It is advised you take your time to feel out this person’s intentions and whether they are legitimate or merely trying to scam you out of your crypto. If you need to report an incident or you have fallen victim to this type of scam, reach out to our Live Chat support or submit a request at info@cointik.com.

Beware of computer malware

Malware is malicious software designed speci cally to disrupt, damage, or gain unauthorized access to your computer. Every time you download a le or program or click a link on your computer, you put your computer at risk. You should always be vigilant with verifying the authenticity of any software you download onto your computer or any links you decide to click as the results can be disastrous for your digital life and crypto holdings. Your computer is weaker and more susceptible to a malware attack when it’s not up to date or if you download a malicious program.

Copy and paste Malware

This occurs after the malware has been downloaded onto your computer and you copy and paste a cryptocurrency address to send funds. The attacker will change your crypto address to the one that the malware owner controls. people often send crypto without double checking that the address is correct. Be sure to always double and triple check crypto addresses before sending. Run malware checks on your computer often and always keep your operating system up to date. Remember, once cryptocurrency is sent it is impossible to reverse the transaction for all practical purposes.

Ransom wareThese attacks are designed to steal and lock your les until you pay in cryptocurrency, at which point, in theory, you get your les back. Many times you will not get the les back or be able to recover your data. Additionally, there are places online where some ransom ware encryption keys have been released and you can get your data back for free. Other times, you won’t get anything back after paying and the scammers will just ask for more funds. If you need to report an incident or you have fallen victim to this type of scam, reach out to our Live Chat support or submit a request at info@cointik.com.

Trading of goods, real or virtual, which include virtual currencies (Cryptocurrencies), involves significant level of risk. Prices can fluctuate on any given day. Because of such price fluctuations, you may gain or lose value of your assets any moment. Currency may be subject to large swings in value and may even become worthless. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

(I) This Notice is directed towards all prospective Clients, and should be read carefully by all interested parties towards which it is directed. It should be noted that the Notice alone cannot and does not, contain nor explain all of the risks and practices involved when a Client is dealing in Exchanger Instruments. The purpose of this Notice is to explain, fairly, clearly and in general terms, the nature of the risks involved when dealing in Exchanger Instruments.

(II) The Client must acknowledge that Exchanging poses a great risk of incurring losses and damages, and the Client must accept that he is willing to undertake this risk.

(II) When the Client does not understand the risks involved in applying for an account with Exchanger or in making any individual order, the Client should seek advice and consultation from an independent Financial Advisor. If the Client continues to not understand the risks involved in trading in any Exchanger Instruments, the Client should not trade at all.

(III) Cryptocurrency transactions are irreversible. If you send Cryptocurrency to an incorrect address, or send the wrong amount, you cannot get it back. Cointik UAB will not be liable for executing a transaction if the instruction relates to an incorrect address. Before buying or selling Cryptocurrency, you should educate yourself about digital currencies. Buying and selling entails risks and could result in a complete loss of your funds. You should carefully overthink whether your financial situation and tolerance for risk is suitable for buying, selling or trading Cryptocurrency.

Operated by Cointik UAB

This Refund policy (the “Policy”) is deemed a binding agreement between the client and Cointik UAB (the “Company”), operating Website.

The digital currencies which are available for sale or purchase on the Website or currencies which are digitally transferred on each currency’s blockchain technology, in which transactions are transferred to a blockchain based wallet ID, each wallet ID is unique and generated for the own purpose of the Client.

The Company has no access to your wallet and as such could not facilitate any assistance with accessing the wallet of the user. Given these characteristics of the digital currencies market, you should be aware that the Company could not execute any refunds and once a transfer of the digital currency has been executed it shall be final and shall be transferred to the indicated wallet ID.

We ask you to maintain all of your wallet details secretly and to not give your personal wallet information to any third party.

In any case in which you will request to sell your digital currencies held on the Company’s platform, the Company shall be able to liquidate such currencies through the Services offered on the Website.

We wish to emphasize that the company accepts Fiat funds for the sole purpose of exchanging them to Crypto funds. If a client will want to get Fiat funds back, after the Fiat funds were exchanged to Crypto funds, the client will only be able to do so by selling/ exchanging the Crypto funds back to Fiat funds. This will only be possible, if the Crypto funds will still be in the client’s website wallet and not sent out.

For the time being, the Company may facilitate your request to liquidate your digital currencies for FIAT currencies in the EUR currency only and through the SEPA remittance system.

As a virtual currency registration holder, Cointik UAB (the: “Company“, payment license number 306774607) must identify, assess and understand the risks related to money laundering and terrorist financing. In addition, the Company reviews and examines each of its activities and applies measures to mitigate these risks. The applied measures by the Company are proportionate to the degree of identified risk. In the course of a risk-based approach, Cointik UAB assess the probability of the risks becoming real and the consequences of such an event. When assessing the probability, the possibility of the occurrence of the relevant circumstances must be taken into account, including the possibility of potential risks that may affect the activities of both the customer and the Company, and the possibility that the probability of the occurrence of this risk increases.

Cointik UAB is obligated to prepare a risk assessment in order to identify, assess and analyze the risks related to its clients activity in regard to money laundering and terrorist financing and financial sanctions.

This model for the identification and management of risks relating to the customer and its activities is prepared to apply the obligations arising from Law on the Prevention of Money Laundering and Financing of Terrorism of 1 March 2018. (Journal of Laws 2018, item 723 with later amendments), the International Sanctions Act and the Directive (EU) 2018/843 of the European Parliament and of the Council and includes:

• the model for the identification and management of the risks arising from the customer and their activities and the determination of the risk pro le of the customer;
• the model for the identification and management of the risks arising from the activities of Cointik UAB including the procedure of identification and management of the risks related to new and available technologies and services and products, including new or nontraditional sale channels and new or developing technologies.

Cointik UAB examines and classifies its customers based on the following three categories: the following three categories:

• A – Low risk (1 risk point)

No influential risk factors exist in any risk category, the customer itself and the customer’s activities are transparent and do not deviate from the usual activities, i.e. the activities of a reasonable and average person, in that eld of activity, and there is no suspicion that the risk factors as a whole could lead to the realisation of the risk of money laundering or terrorist financing.

• B – Medium risk (2 risk points)

One or several risk factors exist in the risk category that deviate from the usual activities of a person acting in that eld of activity, but the activity is still transparent and there is no suspicion that the risk factors as a whole could lead to the realisation of the risk of money laundering or terrorist financing.

• C – High risk (3 risk points)

There is one or more risk factors in the risk category which, taken as a whole, raise suspicions about the transparency of the person and their activities (including but not limited to: personal characteristics, jurisdiction and industry), which cause the person to deviate from persons normally acting in that eld of activity, and which make it at least possible that money laundering or terrorist financing is taking place. As part of its on-going monitoring activities, Cointik UAB performs all due diligence measures required by the regulatory authorities by which it is licensed by. The extent of the implementation of the measures depends on the nature of the specific business relationship or transaction or the level of risk of the person or customer participating in the transaction or act, i.e. the “know your customer” principle must be followed. When determining and de ning the risk levels of the customer or a person participating in the transaction, the Cointik UAB shall take into account, inter alia, the following risk categories.

Effect of wording in this section would be that kind that all private individual or private customer clients will fall within the medium group of companies – if it was an intention, then OK A. Low risk is when the customer is:

• a company listed on a regulated market, which is subject to disclosure obligations that establish requirements for ensuring sufficient transparency regarding the beneficial owner;
• a legal person governed by public law established in Lithuania;
• a governmental authority or another authority performing public functions in Lithuania or a contracting state of the European Economic Area;
• an institution of the European Union;
• a credit institution or financial institution acting on its own behalf or a credit institution or financial institution located in a contracting state of the European Economic Area or a third country, which in its country of location is subject to requirements equal to those established in Directive (EU) 2015/849 of the European Parliament and of the Council and subject to state supervision;

B. Usual risk is when:

• Cointik UAB sells any virtual currency to the customer and the customer pays for it through a payment account located in a credit institution, electronic money institution or payment institution established in Lithuania or in a contractual state of the European Economic Area.
• Cointik UAB provides the customer with a virtual currency wallet service and the customer keeps their virtual currency in the virtual currency wallet and makes virtual currency transfers to virtual currency wallets opened in an institution subject to requirements equivalent to RahaPTS;
• the total amount of incoming or outgoing payments related to business transactions or service contract in one calendar month does not exceed 10 000 euro.

C. High risk is when:

• Cointik UAB sells any virtual currency to the customer and the customer pays for it through a payment account located in a credit institution, electronic money institution or payment institution established outside of a contractual state of the European Economic Area.
• the customer sells virtual currency for money which promotes anonymity;
• Cointik UAB provides the customer with a virtual currency wallet service and the customer keeps their virtual currency in the virtual currency wallet and transfers virtual currencies to virtual currency wallets opened in an institution for which no requirements equivalent to RahaPTS have been established;
• Cointik UAB provides the customer with a virtual currency wallet service and the customer keeps the virtual currency of third parties in the virtual currency wallet;
• the total amount of incoming or outgoing payments related to business transactions or service contract exceeds 10 000 euro.

Given that money laundering, terrorist financing and support for criminal activities generally has a cause and is effective when dealing with larger amounts of money than usual, Cointik UAB shall, in addition to the due diligence measures set out in these guidelines, impose the following restrictions on the volume of business transactions:

• If the results of a customer risk analysis allows for the application of simplified customer due diligence measures, they may be applied to a customer whose total value of incoming or outgoing payments does not exceed 1000 euro per year, and the value of monthly payments does not exceed 500 euro;
• If the results of a customer risk analysis allows for the application of usual customer due diligence measures, they may be applied to a customer whose total value of incoming or outgoing payments does not exceed 10 000 euro;
• If the total value of incoming or outgoing payments in the course of a customer’s business relationship exceeds 10 000 euro, that customer shall always be subject to enhanced due diligence measures.

Cointik UAB does not enter into business relations with persons who are prohibited customers according to this Policy (and its appendices), laws, regulations (international, supranational, regional and national) and/or who are suspected by the Company of using or attempting to use its services for money laundering, tax evasion, terrorist financing or criminal schemes, but does not create additional barriers to the use of the services by clients for whom there are no such doubts. Cointik UAB shall avoid business relations in particular with the following categories of customers:

• It is not possible to identify the customer;
• It is not possible to apply the due diligence measures (CDD) to the customer for any reason;
• The customer is located in a high-risk third country as referred to in Directive (EU) 2015/849 of the European Parliament and of the Council;
• The customer (or its UBO) is a subject of the Polish, European Union or UN sanctions;
• The customer is a legal entity of any form whose structure of the management bodies and/or beneficial owners is confusing and the relevant data cannot be verified, including on the basis of the statement of the customer’s representative and/or internal or non-public documents provided by the customer;
• The ownership of the customer is related to bearer shares;
• The customer has previously been convicted of money laundering and terrorist financing or one of the predicated crimes (tax evasion, bribery/corruption or criminal activities that may be directly or indirectly linked to virtual currencies) or is under criminal proceedings and the Company has dound or was provided with information in this regard.

Cointik UAB has established a number of measures to verify the identity of a client. The client must provide Cointik UAB in a form notarised or certified by a notary or public authority. Alternatively, Cointik UAB may identify the Client on the basis of other information obtained from a credible and independent source, including electronic identification means and trust services for electronic transactions, using at least two different sources of data verification in such a case. Cointik UAB will mainly use two sources from the following list:

• The customer shall be interviewed by means of an information technology device established and implemented by the Company which is secure and does not allow data processing and which allows the transmission of a synchronized audio and video stream, in which the customer demonstrates their identity document and face in such a way that all the data is legible and a high quality photograph of the customer’s document and face can be taken. The aforementioned interview and the photos taken are recorded and kept.
• The customer shall transmit to the Company, through an information technology device established and put into use by it which is secure and does not allow data processing, images of their identity document and face in such a way that all the data is legible and a high quality photograph of the customer’s document and face can be taken. The aforementioned photos taken are recorded and kept.
• The customer delivers to the Company in a digital form a picture of the customer’s rent, utilities, gas, electricity, telephone or internet bill that has been paid for, through which it is possible to identify the customer’s personal data along with the address of residence;
• The customer delivers to the Company in a digital form a statement of their bank account, which is confirmed by the bank and from which the customer’s personal data with the address of residence can be seen;

The procedures containing additional details for the customer identification based on the information from other reliable and independent sources shall be established in the rules of procedure.

1. Bitcoin is a digital currency created in January 2009. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.

   There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments.

2. Etherium is an open source, public, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality. Ethereum was proposed in late 2013 by a cryptocurrency researcher and programmer. Development was funded by an online crowdsale that took place between July and August 2014. The system then went live on 30 July 2015, with 72 million coins “premined”.

This accounts for about 68 percent of the total circulating supply in 2019. «Ether» is a fundamental token for operation of Ethereum, which thereby provides a public distributed ledger for transactions. It is used to pay for gas, a unit of computation used in transactions and other state transitions. Mistakenly, this currency is also referred to as Ethereum.

It is listed under the ticker symbol ETH and traded on cryptocurrency exchanges, and the Greek uppercase Xi character (Ξ) is generally used for its currency symbol. It is also used to pay for transaction fees and computational services on the Ethereum network.

Liquidity on cryptocurrency exchanges is often low or volatile, thus making it difficult to exchange large amounts when needed. If a large buy or sell order appears on a centralized exchange’s order book, it is unlikely to get filled immediately at the price requested. The order may even be broken up into smaller orders at different prices, an unfavorable phenomenon called price slippage. OTC brokers eliminate slippage and provide liquidity to cryptocurrency markets by matching buyers and sellers through their developed networks at a mutually agreed-upon fixed price.

Many traders have expressed interest in the ability to make larger trades directly with a counterparty without having to go through the public order books.

OTC desks also provide anonymity that is often impossible to achieve on a centralized exchange. For example, if a large buy order of 1,500 BTC were placed on an exchange such as Coinbase, this could alert other traders and move the price of the asset. The anonymity of a large over-the-counter trade prevents such unwanted price movements.

Centralized exchanges also make it difficult to trade large amounts due to order limits or the lack of fiat on-ramps. OTC desks enable customizable direct trades between buyers and sellers, without the restrictions present on exchanges.

To make that possible, we would like to announce the launch of our new Over The Counter (OTC) Trading Desk for BTC (Bitcoin) and ETH (Ether). Through our OTC desk, traders will be able to access digital currency liquidity without affecting the exchange market price.

Our customers make deals for huge amounts of money, so we are responsible for them. To ensure maximum security, all the counterparties undergo the mandatory KYC procedure to make sure that all of our customers follow with AML rules.

Why would I use OTC trading instead of a crypto exchange? If you are seeking higher liquidity, combined with a decent level of anonymity, OTC trading might be an elegant solution for you.

Let’s imagine you are trying to sell a noticeable amount of altcoins you saved from the early crypto years. Most importantly, you would be seeking high liquidity for your assets. The experts agree that major exchanges usually have lower liquidity than what is ideal. This is why you might rather use OTC trading if you are looking to invest more.

The second key goal for a trader is to minimize the impact on the market as a consequence of a large deal. This point is relevant mostly for those who are looking to buy or sell thousands of bitcoins. If you apply to OTC trading, the transaction is performed directly and does not show up in order books, which is why it will not affect the price.

Moreover, if you are investing in a lot of bitcoin or any other crypto asset, you might want to protect your identity and keep the deal anonymous. In this case, skipping the services of major exchanges and purchasing the assets directly from a counterparty is a nice way to avoid unnecessary attention and keep the deal to yourself.

The Cointik UAB carries out the identification and examines the Partner with whom it enters commercial relations prior to the provision of any product or service or establishment of any business relationship, effectively preventing the legalization of proceeds from crime and the financing of terrorism.

The Cointik UAB has established a Know-Your-Client (KYC) procedures for OTC Trading to ensure that identification of all new and existing Partners was verified with a reasonable level of certainty. On the onboarding stage, mandatorily before the establishment of business relations and performing any transactions, Cointik UAB identifies its Partner by means of documents of evidentiary value and based on information obtained from reliable and independent sources.

On the onboarding stage, mandatorily before the establishment of business relations and performing any transactions, Cointik UAB mandatorily requires the OTC Partner to fill in and sign the developed onboarding form with the following information:

In order to clarify, check and verify the provided information regarding the client, The Cointik UAB requests the following documents together with the duly filled and signed OTC onboarding form:

• Certificate of Incorporation Recent Certificate of Good Standing/Recent Certificate of Incumbency
• Recent extract from the Companies register of the respective jurisdiction which contains share allotment details, management details and legal status of the company
• Articles of Association/Organization or Memorandum of Association VAT ID (if applicable)
• Shareholder Certificate/Register of Shareholders Certificate of appointment of Director/Register of Directors
• Copy of Business/Operating License/link to the license on the regulator’s website (if applicable)
• Organization Chart / Company Structure (Shareholders, etc.)
• Scanned Copy of Ultimate Beneficiary Owner(s)
• passport of: Director(s) and/or Authorized signatory(s)
• Copy of utility bill: Ultimate Beneficiary Owner (UBO)
• Bank reference Scanned copy of a bank statement and Scanned printout from Internet bank

Website :

1. URL
2. Test login (User/PW)

If company deems that sharing it is necessary to enforce the Terms of Service； In case of reasonable doubt regarding the Partner, discovered adverse media which may have a connection to a Partner and/or UBO/ Director of the Partner or any other grounded concern of necessity of receipt of the additional information in order to assess the risk score of Partner, The Cointik UAB shall demand that a Partner and/or UBO/ Director of the Partner to provide additional information/documents related to:

• business activity/business model and financial status of the Partner and/or UBO;
• detailed information and documental confirmation of the source of funds and actives;
• the purpose of establishment of the business relationship and the purpose of the transaction in question.

After receipt of the necessary information and documents, Cointik UAB proceeds to the onboarding decision stage.

Search and Onboarding Decision:

The Cointik UAB will examine the provided information and documents in order to Identify the Partner. The Cointik UAB will use reliable and objective documentation, data and information to identify and verify its Partner.

Identify the Ultimate Beneficial Owner of the Partner. The Cointik UAB will verify the identity of the ultimate beneficial owner of the Partner with whom it enters into commercial relations.

Identify the Source of Funds. The Cointik UAB will obtain the documental confirmation of the source of funds of the Partner.

Understand the purpose of establishment of Business Relationship. The Cointik UAB will obtain information on the purpose and intended nature of the business relationship After obtaining all the necessary documents and information, based on the risk assessment policy, available information and independent research via open sources performed by the CO and information service providers, The Cointik UAB shall categorize the Partner’s dossier in one of three risk categories: Low risk, Medium risk or High risk and proceed to establishing legal binding business relations.

The following risk categories are used to define the risk score of the Partner:

1. Customer risk;
2. Geographical risk;
3. Product risk;
4. Delivery.

channel risk.

Depending on the level of risk, Enhanced Due Diligence, allowed transaction limits, information update and transactions monitoring procedures will be applied to the Partner in future.

The “Company name” will monitor its Partners using PEP lists provided by data providers and applies EDD measures in case Partners are identified as PEPs, their family members or close associates.

The Company will perform screening against the following sanctions lists:

• UN Sanctions; EU Sanctions; Sanctions administered by the Office of Foreign Assets Control (“OFAC”); Sanctions imposed under the (Local jurisdiction sanctions act).

In case Partner’s dossier is categorized as Prohibited, the process of establishment of business relations is stopped and all the negotiations are ceased.

The Cointik UAB will not execute transactions to third-party’s beneficiaries.

In order to clarify and check the provided information regarding the Partner, Cointik UAB will carry out ongoing monitoring of Partner’s transactions.

The Cointik UAB will execute transactions according to earlier provided payment details and/or BTC addresses only. Any changes in payment details and/or destination/beneficiaries will be executed via beforehand notice to the Cointik UAB and further information update of the Partners dossier.

The first step in any OTC transaction is finding a counterparty for the trade. The next step is to negotiate the terms of the trade. If you’re looking to buy BTC, for example, you may wish to specify the following:

The amount of BTC you want to buy When you want the trade to take place Your desired price

The seller will then respond with their offer price for the transaction, which will often be expressed as a percentage above a leading exchange’s best available price – for example, Exchange ABC + 1%. Of course, the exact negotiation process will vary depending on whether you’re the buyer or the seller, the medium you’re using to arrange the trade, the size of the transaction and whether you have any leverage.

Once a price has been agreed upon, the buyer sends a bank transfer to the seller to cover the purchase price, and the seller sends the relevant amount of crypto coins or tokens to the buyer. Depending on where both parties involved in the trade reside, they may also need to complete KYC (Know Your Customer) due diligence on each other to make sure they satisfy legal requirements.

The Cointik UAB will conduct ongoing monitoring of business relationships with Partners, to ensure that the documents and information held are kept valid and up to date.

The Cointik UAB will conduct ongoing monitoring for all business relationships with Partners. This will be done on the same basis as the CDD conducted when the business relationship with the Partner was established and taking into account the level of risk involved.

The Cointik UAB particularly involves regularly reviewing and refreshing Company’s view of Partners dossier, their risk score, and whether anything is inconsistent with information previously held about the Partners. It can also include anything that appears to be a material change in the nature or purpose of the client’s business relationship with Cointik UAB.

The Cointik UAB will retain all records relevant to its AML Program including those related to Know-Your-Client (KYC) procedures, carried transactions and all business correspondence relating to business relationships with Partners, for a period of not less than five years after the termination of business relations.

Settlement risk – there is no guarantee the asset will be delivered, or cash will be paid. Coin transfer often happens much faster than the wire payment transfer (often by several hours). No custody solution – most OTC brokers don’t provide a custody solution (or provide a very limited service), which can increase settlement and operational risk. Multi- jurisdictional KYC issues – dealing with countries with poor.

1.1 This Privacy Policy explains how Cointik UAB uses client’s Personal Data (defined below) company provides access and utility through our digital asset exchange platform via software, API (application program interface), technologies, products and/or functionalities (“Service”). In the course of providing Service, to abide by the laws in the jurisdictions that the company operates, and to improve services, company needs to collect and maintain personal information about the client. As a rule, the company never discloses any personal information about our customers to any non- affiliated third parties, except as described below.

1.2 Company may update this Privacy Policy at any time by posting the amended version on this site including the effective date of the amended version.

1.3 Company communicates any material changes to this Privacy Policy via email: info@cointik.com.

2.1 Virtual Financial Asset As used herein, “Virtual Financial Asset”, also called “convertible virtual currency,” “cryptocurrency,” or “digital goods”, such as bitcoin or ether, which is based on the cryptographic protocol of a computer network that may be

2.1.1 Centralized or decentralized,

2.1.2 Closed or open-source, and:

2.1.3 Used as a medium of exchange and/or store of value.

2.1.3 Used as a medium of exchange and/or store of value.

3.1 Company collects, processes, and stores Personal Data collected from you via client’s use of the Service or where client has given consent

3.2 This Personal Data may include contact details, copies of identification documentation provided by client or derived from publicly accessible databases, government identification number as well as information relating to devices or internet service (such as an IP address and a MAC number). Company collects information provided during the onboarding process, which may be a completed, incomplete, or abandoned process.

3.3 Company collects, uses, stores, and transfers Personal Data, which may include the following:

3.3.1 Operating within the European Economic Area (“EEA”).

3.3.2 Company collects, stores, and processes personal information in accordance with the Best Practices of Data Collection in the EU, in addition to GDPR [General Data Protection Regulation- (EU) REGULATION 679/2016].

3.3.3 Types of client defined in APPENDIX A.

4.1 As outlined above, company may collect Personal Data from customers located in the EEA. To facilitate the services company provides to customers located in the EEA, company requests explicit consent for the transfer of Personal Data from the EEA to outside of the area. If client is an individual located in the EEA and declines to consent to such transfer, client will no longer be able to use company services.

4.2 Client will have the ability to withdraw digital assets; however, all other functionalities will be disabled.

5.1 Company uses Personal Data to communicate with the client and to administer, deliver, improve, and personalize the Service. Company might also generate generic data out of any Personal Data collected and use it for company purposes.

5.2 Company may also use such data to communicate with you in relation to other products or services offered by company and/or its partners. Company does not share Personal Data with third parties (other than partners in connection with their services) except where client have given consent and further detailed below.

We will only retain your personal data for as long as necessary to fulfil the purposes we collected it for (i.e. the ongoing service provision) and, thereafter, for the purpose of satisfying any legal, accounting, tax, KYC and AML, and reporting requirements or obligations to which we may be subject and/or to the extent that we may also need to retain your personal data to be able to assert, exercise or defend possible future legal claims against or otherwise involving you.

6.1 If company deems that sharing it is necessary to enforce the Terms of Service；

6.2 To comply with government agencies, including regulators, law enforcement and/or justice departments；

6.3 To third parties who provide services to the company (such as administration or technical services)；

6.4 in connection with the sale or transfer of our business or any part thereof.

6.5 Additionally, company has implemented international standards to prevent money laundering, terrorist financing and circumventing trade and economic sanctions and will implement final Virtual Financial Asset rules and regulations when effective, which will likely require us to undertake due diligence on our customers.

6.6 This may include the use of third-party data and service providers which we will cross-reference with your personal information.

7.1 The data that company collects from the client may be transferred to, and stored at, a destination outside of the EU.

7.2 It may also be processed by staff operating outside of the EU who work for the company or for one of company suppliers. By submitting client personal data, client agrees to this transfer, storing or processing, except customers located in the EEA, as detailed above.

All information you provide to us is stored on company and/or third party cloud servers.

7.3 All information you provide to us is stored on company and/or third-party cloud servers.

8.1 Client has the right to obtain a copy of Personal Data upon request and ascertain whether the information company holds about client is accurate and up-to-date.

8.2 If any of the Personal Data is inaccurate, client may request to update the information. Client may also request to delete Personal Data, with exception that the company may refuse client deletion request in certain circumstances, such as compliance with law or legal purposes. For data access, correction, or deletion requests, please contact company.

8.3 In response to data access, correction, or deletion request, company will verify the requesting party’s identity to ensure that he or she is legally entitled to make such request. While company aims to respond to these requests free of charge, company reserve the right to charge client a reasonable fee should the request be repetitive or onerous.

9.1 Company may communicate company news, promotions, and information relating to our products and services provided. Company may share Personal Data with third parties to help with marketing and promotional projects, or sending marketing communications. By using our services, client accepts this Privacy Policy and agrees to receive such marketing communications.

9.2 Customers can opt out from these marketing communications at any moment. If you do not want to receive these communications, please send an our email: info@cointik.com.

9.3 For product related communications, such as policy/terms updates and operational notifications, client will not be able to opt out of receiving such information.

Company endeavors to protect clients from unauthorized access, alteration, disclosure, or destruction of Personal Data that the company collects and stores. Company take various measures to ensure information security, including encryption of the communications with SSL; required two-factor authentication for all sessions; periodic review of our Personal Data collection, storage, and processing practices; and restricted access to client’s Personal Data on a need-to-know bases for our employees and vendors who are subject to strict contractual confidentiality obligations.

If client has any questions about this Privacy Policy or the use of Personal Data, please contact the company by sending to our email info@cointik.com with the subject “PRIVACY REQUEST”.

Any changes made to company Privacy Policy in the future will be posted on this company website and, when appropriate, company will notify client by email: info@cointik.com.

Definition of Clients

1. Individual clients:
   • Email address
   • Mobile phone number
   • Full legal name (including former name, and names in local language)
   • Nationality
   • Passport number, or any government issued ID number Date of birth (“DOB”)
   • Proof of identity (e.g. passport, driver’s license, or government- issued ID)
   • Residential address
   • Proof of residency
   • Additional Personal Data or documentation at the discretion of our Compliance Team
2. Corporate clients:
   • Corporate legal name (including the legal name in local language)
   • Incorporation/registration Information
   • Full legal name of all beneficial owners, directors, and legal representatives
   • Address (principal place of business and/or other physical locations)
   • Proof of legal existence
   • Description of the business
   • Percentage of ownership for Individual/corporate owners
   • Contact information of owners, principals, and executive management (as applicable)
   • Proof of identity (e.g., passport, driver’s license, or government- issued ID) for significant individual beneficial owner of the institutional customer entity
   • Personal Data for each entity’s significant beneficial owner of the institutional customer entity (see the “Individual Customer” section above for details on what Personal Data we collect for individuals) Source of wealth
   • Amount of bitcoin or other digital assets projected to be injected