Risk Disclosure | Bitlok DEX

Effective Date: April 2, 2026

Bitlok DEX ("Bitlok", "we", "us", or "our") is a decentralized exchange (DEX) platform that provides both same-chain swaps (on Binance Smart Chain via PancakeSwap) and cross-chain swaps (between different blockchain networks including TRON, BSC, and other supported chains). 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 or through our relayer system for cross-chain operations.

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

Bitlok DEX offers two types of swaps: Same-Chain Swaps (token swaps within the same blockchain network using PancakeSwap) and Cross-Chain Swaps (token swaps between different blockchain networks through our relayer system). While we aim to provide a seamless interface for both services, 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, regulatory changes, and additional complexities specific to cross-chain operations.

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

5. 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. Cross-Chain Swap Specific Risks

Cross-chain swaps on Bitlok DEX involve additional complexities and risks beyond same-chain swaps. When you use our cross-chain feature, you are interacting with multiple blockchain networks simultaneously.

  • Bridge Smart Contract Risks: Cross-chain swaps rely on bridge smart contracts to facilitate token transfers between different networks. These contracts may contain vulnerabilities that could result in loss of funds. Bridge protocols have been targeted by exploits in the past.
  • Relayer Risks: Our cross-chain swaps utilize a relayer system to facilitate transactions between chains. The relayer operates independently and may experience delays, technical issues, or temporary unavailability. We cannot guarantee the relayer will always be operational.
  • Transaction Timing: Cross-chain swaps take significantly longer than same-chain swaps. You may need to wait from several minutes to hours for your transaction to complete on both the source and destination chains. During high congestion, delays can be extended significantly.
  • Multi-Network Gas Fees: Cross-chain swaps require gas fees on multiple networks (source chain and destination chain). You must ensure you have sufficient tokens on both chains to cover respective gas fees. Failure to do so may result in failed transactions and lost funds.
  • Slippage and Rate Changes: Cross-chain rates are calculated at the time of deposit. Due to the time required for cross-chain execution, price slippage may occur. You may receive less than the initially displayed rate due to market volatility during the processing period.
  • Network Confirmation Requirements: Different blockchains have different confirmation requirements. Your transaction may require multiple confirmations on the source chain before the relayer processes it, and additional confirmations on the destination chain before you receive funds.
  • Wrong Address Risk: Cross-chain swaps require generating deposit addresses on different networks. Sending funds to an incorrect or incompatible address may result in permanent loss of funds. Always verify the generated address matches the expected network.
  • Token Compatibility: Not all tokens are supported for cross-chain swaps. Some tokens may have different standards or configurations across chains. Attempting to swap unsupported tokens may result in loss of funds.
  • Irreversibility: Once a cross-chain transaction is initiated and confirmed on the source blockchain, it cannot be reversed. If you send funds to an incorrect address or select the wrong destination chain, recovery is not possible.

4. Technical and Security Risks

  • Smart Contract Risks: Smart contracts (ours, PancakeSwap's, and bridge protocols) 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, TRON, or other network congestion, forks, or outages can delay or prevent swaps. We do not control any blockchain 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, bridge protocols, and multiple blockchain networks for core functionality. Changes or issues in these protocols affect our Services.

5. 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.

6. Operational Risks

  • Service Interruptions: We may perform maintenance or updates, temporarily suspending Services. Cross-chain services may be more prone to interruptions due to dependencies on multiple networks.
  • Force Majeure: Events beyond our control (e.g., cyberattacks, natural disasters, blockchain network failures) may disrupt Services.
  • Third-Party Dependencies: Reliance on PancakeSwap, bridge protocols, relayers, BSC, TRON, and other blockchain networks may introduce risks if they fail.
  • Relayer Operational Risks: Our cross-chain relayer requires operational maintenance. Temporary relayer downtime may delay or prevent cross-chain swaps from completing.

7. 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.

8. 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.

9. 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.

10. 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: April 2, 2026