Cryptocurrencies are unregulated in the UK. Cryptocurrency profits may be subject to Capital Gains Tax. The value of investments is variable and can go down as well as up.
Compound is a decentralised lending platform on the Ethereum network.
In a nutshell, users deposit assets with Compound to earn interest, while others can borrow those assets by paying interest. It functions in a similar manner to a bank, but with an automated protocol replacing the branches, infrastructure and authority of traditional banks.
Lending pools are created for each asset, with interest rates determined on a supply-demand basis. If people want to borrow a scarce asset, the interest rate goes up. If there’s more supply than demand, the interest rate goes down.
When a lender contributes tokens to a pool, they receive an equivalent amount of cTokens in return (i.e. cETH, cUSDT). Borrowers must collateralise their position
COMP is the governance token for the Compound protocol. Holders of the token can vote on changes to the protocol. COMP is distributed to both borrowers and lenders as an extra incentive to keep the platform’s money markets active.
CoinJar’s digital currency exchange services are operated by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).
Like all investments, cryptoassets carry risk. Due to the potential volatility of the cryptoasset markets, the value of your investments may fall significantly and lead to total loss. Cryptoassets are complex and are unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits.
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