Second, the Safe-mail.net system is "an IP trap." Our anonymous friend indicates that your IP address is linked to your e-mail account. The user agreement indicates that it is a violation of the user agreement to employ an anonymous proxy or otherwise attempt to mask your true IP address. So, while no identifying information (name, address, phone) is requested when you set up an account, your IP address may be traced to your physical location, or at least to your specific Internet Service Provider, even if dynamic IP addresses are used. Thus, your location and possibly your identity would be exposed. Also, IP addresses are not stripped from e-mails you send from your Safe-mail account, so your recipients see this information. (And, of course, you may be tempted to identify yourself to your correspondents within your purportedly encrypted e-mails.)
Third, Safe-mail.net makes the usual disclosure that they may disclose your account activity, stored e-mails, and other information upon court order or law enforcement request. They make the unusual variation of this disclosure by stating that they may disclose these things whenever it is in their interest to do so. This vague contract clause should scare anyone who thinks about it even briefly. Given that Barak.net.il is licensed by the Israeli government, it would seem quite likely that the Israeli government could command that the data from all Safe-mail.net accounts be provided to the government, and it would clearly be in the best interests of Barak.net.il and conceivably, by extension, Safe-mail.net to make such disclosure. Then it would seem to become a question of whether you have reason to trust the Israeli government.