Effective Date : April 28, 2019
Last updated: December 31, 2022
These policies ensure that your use of AKA Blockchains’ services aligns with compliance requirements and responsible practices.
By accessing or using our services, you acknowledge and accept the risks and obligations outlined below.
1. What We Do and Why This Matters
AKA Blockchains provides custodial services and insights to help members manage and understand digital assets responsibly. Our goal is to offer a structured, long-term approach to digital asset management while empowering members with the knowledge needed to navigate the complexities of the space.
General Disclaimer
- Our services and insights are provided for informational purposes only and are not financial, legal, or investment advice.
- Members should consult with qualified professionals before making financial or investment decisions.
- By using our services, members acknowledge that they are solely responsible for their financial decisions.
What Our Custodial Solutions Cover
- We securely manage digital assets during the agreed custodial service period, using structured strategies to maximize their potential.
- Our custodial services are designed for members seeking a hands-off, long-term approach to digital asset management.
- These services are offered at no direct cost to members; the only “price” is time and patience.
- We employ advanced strategies, such as tax-loss harvesting, to enhance the long-term value of your digital assets.
- While most custodial solutions will conclude by December 2024, the four-year service period provides flexibility for unforeseen circumstances.
What the Redemption Program Covers
- Once the custodial service ends, we begin the redemption program, designed to securely and efficiently return digital assets to members.
- This program operates on a structured timeline to ensure compliance with EU regulations and proper reporting.
- While most redemptions will conclude by December 2028, the four-year redemption period provides flexibility for unforeseen circumstances.
Why This Matters
- Our model offers a unique opportunity for members to benefit from professional management of digital assets in a compliant and secure manner.
- It ensures members avoid common pitfalls of self-management, such as losing private keys, tax inefficiencies, or emotional trading decisions.
- We help members avoid costly mistakes, such as:
- Selling early or at market bottoms, then buying back when prices are high.
- Incurring unnecessary tax liabilities by not using tax-loss harvesting strategies.
- By trusting our process, members mitigate the emotional turmoil caused by market volatility and benefit from strategic, long-term planning.
- This approach minimizes complexity, allows us to implement advanced strategies like tax-loss harvesting, and provides the potential for asset growth over time.
- However, members must also understand the associated limitations, such as liquidity restrictions and digital asset transfer policies, as outlined in our important disclosures.
By engaging with AKA Blockchains’ custodial services and redemption program, members agree to the outlined terms and responsibilities. This ensures a smooth and transparent process that protects everyone involved.
2. How We Manage Your Digital Assets
At AKA Blockchains, we take a structured, professional approach to managing your digital assets during the custodial service period. Our goal is to ensure secure storage, sustainable growth, and compliance with evolving regulatory standards while minimizing risks.
Secure Custody
- Your digital assets are held securely using state-of-the-art custodial solutions, ensuring protection from unauthorized access or theft.
- We follow strict protocols to manage private keys and ensure the safety of all assets under our care.
- Our custodial systems are designed to meet compliance standards, even ahead of EU regulations expected by 2026.
Professional Management
- During the custodial service period, AKA Blockchains implements strategies to maximize the potential of your digital assets, including:
- Tax-Loss Harvesting: Strategically realizing capital losses on specific trades to offset taxable gains and optimize your tax position.
- Futures Trading: Leveraging futures markets as a tool to hedge volatility and secure opportunities for long-term growth.
- Rebalancing: Periodically adjusting asset allocations to align with market conditions and strategic objectives.
- These strategies are designed to balance long-term growth with risk management, offering members a structured and disciplined approach to digital asset management.
- While we aim for sustainable growth, it is important to note that there is potential for both gains and losses due to the inherent volatility of digital assets. Members are made fully aware of these risks when joining our program.
- Our approach ensures that members benefit from professional-grade techniques typically unavailable to individual investors.
Transparent Operations
- We operate with full transparency, providing members with a publicly accessible blockchain address where all transactions can be viewed in real time.
- Each member is entitled to an annual report summarizing custodial activities and the performance of their assets. Additional reports, such as quarterly updates, are available through our membership options due to the costs involved in their preparation.
- While the trades we execute on exchanges are private, all other custodial activities are recorded on the blockchain for clear documentation and public accessibility.
- In certain cases, members may have access to view-only wallets, allowing them to monitor balances directly from their phones or online platforms.
What You Need to Know
- The custodial service period ends after four years, concluding by December 2024. After this, the redemption program begins, focusing on securely returning digital assets to members.
- Once the custodial period concludes, we work to move digital assets off exchanges and into wallets in preparation for the redemption phase.
- This transition is carefully managed to account for market conditions, regulatory requirements, and other important factors, ensuring a smooth and efficient return process.
- Members must understand that this is a high-quality, cost-effective service. No direct fees are charged, but the process requires time and patience.
By trusting AKA Blockchains to manage your digital assets, you benefit from professional oversight, security, transparency, and long-term planning. This ensures your assets are handled responsibly and in alignment with your financial goals, while keeping the process as efficient and cost-effective as possible.
3. How You Get Your Digital Assets Back
The redemption program begins after the custodial service period ends. Its purpose is to securely and efficiently return your digital assets while adhering to regulatory requirements and ensuring market conditions are favorable. This structured approach ensures a smooth process for all members.
Redemption Timeline
- The redemption program starts once the custodial service concludes, which for most members will be by December 2024.
- The program is designed to operate over a four-year period, with most redemptions expected to be completed by December 2028.
- While we aim to process redemptions as quickly as possible, the structured timeline accounts for regulatory, operational, and market factors to ensure compliance and efficiency.
Preparation for Redemption
- Once the custodial service ends, we transition your digital assets off exchanges and into secure wallets in preparation for redemption.
- This phase includes verifying all transaction histories, ensuring compliance with EU regulations, and preparing documentation for members.
- Members will be notified when their assets are ready for transfer, and all redemptions will be conducted in a calm and orderly manner.
Redemption Process
- When your digital assets are ready for transfer, you will receive instructions on how to provide the necessary wallet information.
- It is your responsibility to ensure the accuracy of your wallet address, as errors may result in the permanent loss of assets.
- Transfers are conducted securely and documented on the blockchain to ensure transparency and accountability.
What You Need to Know
- The redemption process is methodical and designed to ensure all members receive their assets safely and efficiently.
- Members must understand that digital asset transfers are subject to market conditions, regulatory compliance, and operational constraints.
- While this is a free service, it requires time to execute properly. Members are encouraged to be patient during the process.
Client Action Required
- Verify your contact information and wallet address.
- Complete KYC/KYB verification (instructions will be sent in a separate email).
- Ensure readiness to receive digital assets or euros.
Redemption Tiers
We offer three options based on your preferences:
- Standard (Free): Completion within 24–48 months.
- Priority (10% Fee): Completion within 12–24 months.
- Expedited (25% Fee): Completion within 3–12 months.
Should you choose Priority or Expedited redemption, further instructions will follow.
4. What You’re Responsible For
As a member of AKA Blockchains, it is important to understand and fulfill your responsibilities to ensure the smooth operation of our custodial and redemption services. By agreeing to our terms, you acknowledge the following:
Your Obligations
- Provide accurate and up-to-date contact and wallet information at all times.
- Complete any required KYC/KYB verification promptly when requested.
- Understand that digital assets are inherently volatile, and you bear the risks of potential gains or losses during the custodial period.
- Review all communications from AKA Blockchains to stay informed about timelines and updates.
Accuracy and Accountability
- Ensure that wallet addresses provided for redemption are correct. Errors in wallet addresses may lead to the permanent loss of assets, and AKA Blockchains cannot be held responsible for such losses.
- Verify all reports and documentation provided to you and inform us of any discrepancies within the specified timeline.
Patience and Trust in the Process
- Understand that our services are designed for long-term value creation and may require significant time to execute properly.
- Trust that our structured process, while methodical, prioritizes security, compliance, and asset growth.
By meeting these responsibilities, you help ensure the effectiveness and integrity of the custodial and redemption services provided by AKA Blockchains.
5. Risks You Need to Know About
Engaging with digital assets comes with inherent risks that members must understand before participating in AKA Blockchains’ custodial and redemption services. By using our services, you acknowledge and accept the following risks:
Market Volatility
- Digital assets, including cryptocurrencies, are highly speculative and subject to extreme price fluctuations.
- Market conditions can change rapidly, and past performance is not indicative of future results.
- You may experience both significant gains and losses during the custodial service period.
Market and Strategy Risks
- Tax-Loss Harvesting: While this strategy can optimize tax outcomes, it may not be suitable for all members depending on their jurisdiction or individual tax situation. Members are responsible for consulting with a tax professional to understand their obligations.
- Futures Trading: Although futures can help manage volatility, they carry higher risks, including leverage exposure and market timing challenges. These risks are carefully managed by AKA Blockchains but may still impact overall performance.
- Rebalancing Risks: Adjusting asset allocations may involve selling assets during unfavorable market conditions, which could affect short-term outcomes.
Regulatory Risks
- Digital assets operate in an evolving regulatory environment. Changes in laws or regulations may impact how your assets are managed or redeemed.
- AKA Blockchains complies with current EU regulations and aims to stay ahead of future standards, but external regulatory changes are beyond our control.
Operational Risks
- While we use state-of-the-art security measures, no system is completely immune to technical failures, cyberattacks, or human errors.
- We take every precaution to minimize these risks, but members must acknowledge that operational risks exist.
Liquidity and Transfer Restrictions
- Digital asset transfers during the custodial period are restricted to allow us to execute long-term strategies effectively.
- Liquidity may be limited during the redemption program due to market conditions and compliance requirements.
By participating in AKA Blockchains’ services, you accept these risks and agree to proceed with full awareness of the potential challenges and rewards associated with digital asset ownership.
6. How We Follow the Rules
AKA Blockchains is committed to compliance with legal and regulatory frameworks, ensuring that our custodial and redemption services operate responsibly and transparently. We adhere to best practices and stay ahead of evolving regulations to protect your assets and ensure a secure process.
Compliance with EU Regulations
- We comply with all applicable EU laws governing digital assets, including custody, reporting, etc.
- Our procedures are designed to align with regulations expected to take effect in 2026, ensuring our operations remain compliant in the long term.
Transparent Operations
- We provide members with a publicly accessible blockchain address to view transactions in real time.
- Annual reports summarizing custodial activities are made available to all members, with additional reporting options offered through our membership services.
Proactive Risk Management
- We continuously monitor regulatory developments and adapt our processes to meet or exceed compliance standards.
- By implementing advanced security measures, we mitigate risks related to digital asset management, ensuring your assets remain protected.
By choosing AKA Blockchains, you benefit from our dedication to compliance, security, and transparency. Our proactive approach ensures that your digital assets are managed responsibly within a robust legal framework.
7. Important Things You Need to Remember
Think of this process like baking a cake. We’ve carefully measured and mixed all the ingredients—your digital assets, our strategies, and compliance measures. Now, the cake is in the oven, rising steadily. If you open the oven too early, poke at the batter, or try to eat the cake before it’s fully baked, you risk ending up with less than nothing.
Trust the process. We’ve designed it with the long-term in mind, and every step is meant to ensure your digital assets grow and are returned to you securely and in compliance with regulations. Patience is key to getting the best outcome.
We’ll keep you informed via email as the process moves forward. Rest assured, we are committed to transparency and professionalism every step of the way.