It can be interesting to generate returns on your crypto through the Earn program, but it’s important to be aware of the associated risks.
With the Earn program, you lend your crypto to BLOX Earn. BLOX Earn aims to generate a higher return on the crypto you have lent to BLOX Earn than the return agreed with you. BLOX Earn does this, among other things, by making your crypto available to external parties. These activities carry risks. There is a chance that a third party may not be able to meet its obligations. In that case, you run the risk of losing (part of) your lent crypto. This is called credit risk.
BLOX Earn takes measures to limit this risk as much as possible through its risk management framework. For example, third parties are assessed for creditworthiness, and multiple specialized parties are used.
Note: the activities of BLOX Earn are not supervised by the AFM. The Earn program is also not covered by a deposit guarantee scheme or any other form of insurance. You are personally responsible for any losses.
Would you like to know more about the risks of Earn? Then take a look at the Earn terms and the risk disclaimer.