Risk Disclosure | Bitlok DEX

Effective Date: October 10, 2025

Bitlok DEX ("Bitlok", "we", "us", or "our") is a decentralized exchange (DEX) platform built on the Binance Smart Chain (BSC) that provides a user interface for swapping tokens using PancakeSwap liquidity. As a non-custodial service provider based in India, we facilitate access to blockchain-based swap services but do not hold, manage, or custody user funds, private keys, or assets. All transactions occur directly on the blockchain via smart contracts.

Cryptocurrency trading, including token swaps on our platform, involves significant risks. This Risk Disclosure outlines key risks associated with using the Services. By accessing or using Bitlok DEX, you acknowledge that you understand these risks and agree to them. You should carefully review this disclosure before using our Services and consult with a qualified financial advisor if needed. We do not provide investment advice, and this disclosure does not constitute such advice.

For further details, refer to our Terms of Use and Privacy Policy.

1. Introduction to Risks

Token swapping on Bitlok DEX involves interacting with decentralized protocols like PancakeSwap on the BSC network. While we aim to provide a seamless interface, users are solely responsible for their actions and must be aware of the inherent risks of blockchain and cryptocurrency trading. These risks include financial loss, technical failures, and regulatory changes.

As a service provider, we do not guarantee the security, availability, or performance of the underlying blockchain or third-party protocols. Users should only use funds they can afford to lose.

2. Financial and Market Risks

  • Price Volatility: Cryptocurrency prices are highly volatile. A swap executed at a certain rate may result in significant gains or losses due to market fluctuations between initiation and confirmation.
  • Slippage and Impermanent Loss: Swaps may incur slippage (difference between expected and executed price) due to liquidity pool dynamics. Users may receive less than expected or face impermanent loss in liquidity provision.
  • Liquidity Risks: Low liquidity in token pairs can lead to high slippage or failed swaps. We do not control or guarantee liquidity levels in PancakeSwap pools.
  • Gas Fees: BSC network gas fees (paid in BNB) can vary. High fees during congestion may make swaps uneconomical.
  • Irreversible Transactions: Once a swap is confirmed on the blockchain, it cannot be reversed. You are responsible for verifying all details before signing.

3. Technical and Security Risks

  • Smart Contract Risks: Smart contracts (ours and PancakeSwap's) may contain bugs or vulnerabilities. While we use audited protocols, no system is foolproof. We are not liable for losses due to contract failures.
  • Network Risks: BSC network congestion, forks, or outages can delay or prevent swaps. We do not control the BSC network.
  • Wallet Security: You are responsible for securing your wallet and private keys. We are not liable for losses from phishing, malware, or unauthorized access.
  • Platform Risks: Our website may experience downtime or errors. We strive for reliability but provide no guarantees.
  • Third-Party Risks: We rely on PancakeSwap and BSC for core functionality. Changes or issues in these protocols affect our Services.

4. Regulatory and Legal Risks

  • Regulatory Uncertainty: Cryptocurrency regulations in India are evolving (e.g., under RBI guidelines and SEBI oversight). Future laws may impact the Services or require changes. We may suspend or modify Services to comply.
  • Tax Implications: Swaps may be taxable under Indian tax laws (e.g., Income Tax Act, 1961). You are responsible for reporting and paying taxes on gains.
  • Compliance: We comply with Indian laws (e.g., PMLA, 2002) but do not perform KYC/AML checks. Users must ensure compliance.
  • Jurisdictional Restrictions: Services may be restricted in certain regions. It is your responsibility to ensure legality in your jurisdiction.

5. Operational Risks

  • Service Interruptions: We may perform maintenance or updates, temporarily suspending Services.
  • Force Majeure: Events beyond our control (e.g., cyberattacks, natural disasters) may disrupt Services.
  • Third-Party Dependencies: Reliance on PancakeSwap, BSC, and wallets may introduce risks if they fail.

6. Limitation of Liability

To the maximum extent permitted by Indian law, we disclaim all warranties, express or implied. We are not liable for any indirect, incidental, special, or consequential damages arising from your use of the Services, including lost profits or data. Our total liability shall not exceed INR 1,000.

You acknowledge that cryptocurrency trading involves high risk, and we do not guarantee returns or protection against losses.

7. Indemnification

You agree to indemnify and hold us harmless from any claims, losses, or damages arising from your use of the Services, violation of these Terms, or infringement of third-party rights.

8. Disclaimer

Bitlok DEX is a tool for accessing blockchain services. It is not financial advice. Past performance does not indicate future results. Consult a professional advisor before trading.

9. Governing Law

These Terms are governed by the laws of India. Disputes shall be resolved in the courts of India. You consent to the exclusive jurisdiction of these courts.

10. Contact Us

For questions, email support@bitlokswap.com.

Last Updated: October 10, 2025