Risk Warning Requirements

Definition ∞ Risk warning requirements are mandatory disclosures designed to inform individuals about the potential dangers and uncertainties associated with financial products or services. These warnings ensure that consumers are aware of possible losses or adverse outcomes before making investment decisions. They are a critical tool for promoting informed consent and responsible market participation. Adherence to these requirements is legally enforced.
Context ∞ In the digital asset sector, risk warning requirements are becoming increasingly stringent. News reports frequently highlight regulatory bodies mandating clear and prominent warnings for cryptocurrency advertisements and investment platforms. These efforts aim to educate investors about the high volatility and speculative nature of digital assets, mitigating potential consumer detriment.