RISK DISCLOSURE STATEMENT
(Annex to the Investment Advisory Agreement)
1. PURPOSE AND SCOPE
1.1. This document is intended to inform the Client about the inherent risks associated with transactions involving crypto-assets, the use of DeFi Protocols, and other instruments of the digital economy, as well as to record the Advisor’s disclaimer of any guarantees of profitability, capital preservation, or achievement of investment results. The document confirms that the Client is aware of such risks, consciously accepts them, and understands that all decisions regarding the execution of transactions and the selection of strategies are made independently by the Client.
1.2. Capitalized terms shall have the meanings assigned to them in the Investment Advisory Agreement. This document constitutes an integral part of that Agreement and shall be applied together with it. In the event of any inconsistency between the provisions of this document and the Investment Advisory Agreement, the terms of the Investment Advisory Agreement shall prevail.
1.3 The Advisor’s services are of an exclusively analytical and advisory nature, do not constitute discretionary portfolio management, custodial, brokerage, or any other activity involving the disposition of the Client’s assets, and do not imply any guaranteed financial result. Any information provided by the Advisor shall not be construed as an individualized investment recommendation within the meaning of securities market legislation or similar provisions applicable in other jurisdictions.
2. RISKS ASSOCIATED WITH TRANSACTIONS INVOLVING CRYPTO-ASSETS AND THE USE OF DEFI PROTOCOLS
2.1. This Section is intended to inform the Client of the inherent risks associated with transactions in the crypto-asset market, as well as with the use of DeFi Protocols. The risks listed below represent general categories of potential adverse consequences that may arise when investing in digital assets. The list is not exhaustive, and such risks may materialize simultaneously, amplifying one another’s impact. The Advisor is not able to predict, control, or eliminate these risks, and their occurrence does not depend on the quality of the recommendations provided.
2.2. Market Risks. The value of crypto-assets is subject to high volatility: prices may fluctuate significantly over short periods of time due to changes in supply and demand, news flow, macroeconomic factors, and actions of major market participants. Such fluctuations may result in either substantial gains or losses, including the complete loss of the invested capital.
2.3. Liquidity and Execution Risks. On certain platforms or during specific periods, there may be insufficient counter-orders, making it impossible to execute transactions promptly at the desired price. In addition, trades may be executed only partially or at prices deviating from expectations due to changing market conditions or technical limitations of trading systems.
2.4. Valuation and Settlement Risks. Since crypto-assets are traded across numerous independent platforms, price data may vary. Quotation sources are updated with delays, and methods of calculating profit and loss (PnL) may yield different results. As a result, the actual return may differ from preliminary calculations. In addition, the final outcome is affected by exchange fees, network charges, and the speed of transaction confirmations.
2.5. Technological Risks of DeFi Protocols:
- Smart contracts may contain programming errors or vulnerabilities, the exploitation of which by third parties may result in the loss of assets.
- Protocols may be governed by a community or a limited group of administrators who are entitled to modify operating conditions, suspend, or terminate the protocol without the Client’s consent.
- Failures of price oracles, attacks on mechanisms for extracting maximal value (MEV), and other technical factors may affect the accuracy of calculations and the stability of the protocol.
- The use of bridges and cross-chain mechanisms entails the risk of loss or delay of funds during transfers between networks.
- Hard forks and other blockchain updates may alter the rules of asset circulation and affect their value.
2.6. Risks Related to the Use of Derivative Instruments and Leverage. The use of borrowed funds or margin trading increases both potential profits and the magnitude of possible losses. In the event of sharp market movements, positions may be closed automatically without prior notice, which may result in the complete loss of posted collateral and additional costs.
2.7. Risks Related to Stablecoins. Stablecoins may deviate from their declared value benchmark. Issuers are entitled to modify redemption procedures or reserve structures and, in certain cases, to suspend operations or block specific addresses. Algorithmic stabilization mechanisms do not guarantee the maintenance of the peg under stress scenarios, which may lead to significant losses.
2.8. Risks Related to Centralized Services. Exchanges, custodial, and other platforms may temporarily or permanently suspend operations, modify service rules, restrict access to assets, or be subject to hacks, technical failures, or bankruptcy. The Advisor bears no responsibility for the actions of such third parties or the consequences of their decisions.
2.9. Legal and Tax Risks. The legal framework governing the circulation of crypto-assets and DeFi instruments is still evolving. Changes in legislation, administrative practice, and regulatory approaches may affect the legality, procedures for use, and taxation of such assets. The Client’s tax obligations depend on the Client’s status and jurisdiction and must be assessed independently by the Client.
2.10. The Client confirms that they are aware of the above-mentioned risks, understand their possible consequences, including the complete loss of invested funds, and fully accept them. The Advisor does not guarantee the identification of all potential threats and bears no responsibility for their occurrence.
3. ABSENCE OF PROFIT GUARANTEES AND RISK WARNING
3.1. The Advisor operates exclusively in the format of providing analytical and advisory information. None of the services, materials, analytical reviews, strategies, forecasts, or assessments provided by the Advisor contain or may be regarded as a guarantee of capital preservation, profit generation, achievement of a specific rate of return, limitation of losses, or attainment of any other financial results.
3.2. Any quantitative benchmarks, target indicators, scenario models, examples of historical performance, as well as illustrative results, are provided solely for illustrative purposes and are intended to explain the principles underlying certain strategies. They do not take into account all market factors and do not constitute a promise, offer, or obligation on the part of the Advisor to achieve similar results in the future.
3.3. The Client’s actual performance and losses may differ significantly from those anticipated due to market conditions, technical factors, individual decisions of the Client, and other circumstances beyond the Advisor’s control. The Client acknowledges that past performance is not indicative of future results.
3.4. The Advisor bears no responsibility for any discrepancy between actual results and the forecasts, scenarios, or models set out in analytical materials, nor for any loss of profit, indirect losses, or reduction in asset value caused by market or technological changes, or by actions of third parties or regulators.
3.5. The Client confirms that investment decisions are made independently, based on their own understanding of market conditions, acceptable risk level, and investment objectives. The Advisor does not assume any fiduciary duties and does not act as a trustee or discretionary manager of the Client’s assets.
4. CLIENT’S ACKNOWLEDGMENTS AND REPRESENTATIONS REGARDING THE ACCEPTANCE OF RISKS
4.1. The Client confirms that, prior to receiving the Advisor’s services, they have reviewed this Risk Disclosure Statement, understand its provisions, and acknowledge that transactions involving crypto-assets and the use of DeFi Protocols are associated with a heightened level of uncertainty and risk, including the possibility of a complete loss of invested funds.
4.2. The Client acknowledges that:
- They possess sufficient knowledge and understanding of the principles of functioning of the crypto market, decentralized protocols, and related instruments;
- They are capable of independently assessing the proposed strategies, their potential profitability, and level of risk;
- If necessary, they are entitled to seek advice from independent financial, tax, and legal advisors for additional clarification, doing so on their own initiative and at their own risk.
4.3. The Client confirms that all investment decisions are made independently, without any coercion, influence, or interference from the Advisor, based on their own investment objectives, strategy, and acceptable risk level. The Advisor does not make decisions on behalf of the Client, does not dispose of the Client’s assets, and does not exercise discretionary or fiduciary management.
4.4. The Client acknowledges and agrees that the materials, forecasts, models, reports, and recommendations provided by the Advisor are of an exclusively informational and analytical nature, do not constitute an individualized investment recommendation, an offer to purchase or sell any asset, and do not contain any guarantee of achieving a certain rate of return or preserving capital.
4.5. The Client accepts and fully understands that the actual results of their activities may differ from projected outcomes due to market fluctuations, technological failures, actions of third parties, changes in the regulatory environment, tax consequences, and other circumstances beyond the Advisor’s control.
4.6. The Client confirms that they accept all of the above-mentioned risks in full, bear personal responsibility for the results of their decisions, and undertake not to make any claims against the Advisor in connection with losses arising from the realization of market, technological, legal, or other risks described in this document.
4.7. The Client confirms that they act as an independent investor and acknowledge that the Advisor does not verify or assess the Client’s qualification, investment experience, or financial sophistication. The services provided are of a general analytical and educational nature and do not constitute individualized investment advice. The Client assumes full responsibility for ensuring that participation in the Service is suitable for their experience, knowledge, and financial capacity. The Advisor shall not be liable for any losses or misunderstandings arising from the Client’s lack of experience, qualification, or comprehension of the risks involved in virtual asset markets.
5. PRIORITY OF THIS RISK DISCLOSURE STATEMENT
5.1. This Risk Disclosure Statement constitutes an integral part of the Investment Advisory Agreement and shall be applied together with it. In the event of any discrepancies or inconsistencies between the provisions of this document and other sources of information, including oral explanations, correspondence, advertising materials, presentations, analytical reports, demonstrative calculations, marketing publications, or other accompanying materials, the provisions of the Investment Advisory Agreement and this Risk Disclosure Statement shall prevail.
5.2. The Client acknowledges and confirms that any oral comments, examples, forecasts, or assessments provided by the Advisor during consultations, meetings, demonstrations, or correspondence are of an exclusively explanatory and illustrative nature and do not amend, supplement, or replace the written terms contained in the Investment Advisory Agreement and this document.
5.3. The Client’s confirmation of having received, reviewed, and understood this Risk Disclosure Statement is a mandatory condition for the commencement of the Advisor’s services and the provision of recommendations. In the absence of such confirmation, the Advisor is entitled to refuse the provision of services until written consent from the Client to the terms of this document is obtained.
5.4. In the event of any disagreement regarding the content or interpretation of provisions communicated orally, through correspondence, or marketing materials, the parties acknowledge that the decisive and governing source shall be the text of the Investment Advisory Agreement and this Risk Disclosure Statement signed by the Client.
6. ACCEPTANCE AND ACKNOWLEDGMENT
6.1. The Client confirms that they have carefully reviewed the provisions of this Risk Disclosure Statement, fully understand the terms set out herein, as well as the nature and extent of the risks associated with transactions involving crypto-assets and the use of DeFi Protocols, including the possibility of a complete loss of invested capital.
6.2. By signing the Investment Advisory Agreement, the Client confirms that they consciously, voluntarily, and fully agree with all provisions of this document and undertake to comply with them.
1.1. This document is intended to inform the Client about the inherent risks associated with transactions involving crypto-assets, the use of DeFi Protocols, and other instruments of the digital economy, as well as to record the Advisor’s disclaimer of any guarantees of profitability, capital preservation, or achievement of investment results. The document confirms that the Client is aware of such risks, consciously accepts them, and understands that all decisions regarding the execution of transactions and the selection of strategies are made independently by the Client.
1.2. Capitalized terms shall have the meanings assigned to them in the Investment Advisory Agreement. This document constitutes an integral part of that Agreement and shall be applied together with it. In the event of any inconsistency between the provisions of this document and the Investment Advisory Agreement, the terms of the Investment Advisory Agreement shall prevail.
1.3 The Advisor’s services are of an exclusively analytical and advisory nature, do not constitute discretionary portfolio management, custodial, brokerage, or any other activity involving the disposition of the Client’s assets, and do not imply any guaranteed financial result. Any information provided by the Advisor shall not be construed as an individualized investment recommendation within the meaning of securities market legislation or similar provisions applicable in other jurisdictions.
2. RISKS ASSOCIATED WITH TRANSACTIONS INVOLVING CRYPTO-ASSETS AND THE USE OF DEFI PROTOCOLS
2.1. This Section is intended to inform the Client of the inherent risks associated with transactions in the crypto-asset market, as well as with the use of DeFi Protocols. The risks listed below represent general categories of potential adverse consequences that may arise when investing in digital assets. The list is not exhaustive, and such risks may materialize simultaneously, amplifying one another’s impact. The Advisor is not able to predict, control, or eliminate these risks, and their occurrence does not depend on the quality of the recommendations provided.
2.2. Market Risks. The value of crypto-assets is subject to high volatility: prices may fluctuate significantly over short periods of time due to changes in supply and demand, news flow, macroeconomic factors, and actions of major market participants. Such fluctuations may result in either substantial gains or losses, including the complete loss of the invested capital.
2.3. Liquidity and Execution Risks. On certain platforms or during specific periods, there may be insufficient counter-orders, making it impossible to execute transactions promptly at the desired price. In addition, trades may be executed only partially or at prices deviating from expectations due to changing market conditions or technical limitations of trading systems.
2.4. Valuation and Settlement Risks. Since crypto-assets are traded across numerous independent platforms, price data may vary. Quotation sources are updated with delays, and methods of calculating profit and loss (PnL) may yield different results. As a result, the actual return may differ from preliminary calculations. In addition, the final outcome is affected by exchange fees, network charges, and the speed of transaction confirmations.
2.5. Technological Risks of DeFi Protocols:
- Smart contracts may contain programming errors or vulnerabilities, the exploitation of which by third parties may result in the loss of assets.
- Protocols may be governed by a community or a limited group of administrators who are entitled to modify operating conditions, suspend, or terminate the protocol without the Client’s consent.
- Failures of price oracles, attacks on mechanisms for extracting maximal value (MEV), and other technical factors may affect the accuracy of calculations and the stability of the protocol.
- The use of bridges and cross-chain mechanisms entails the risk of loss or delay of funds during transfers between networks.
- Hard forks and other blockchain updates may alter the rules of asset circulation and affect their value.
2.6. Risks Related to the Use of Derivative Instruments and Leverage. The use of borrowed funds or margin trading increases both potential profits and the magnitude of possible losses. In the event of sharp market movements, positions may be closed automatically without prior notice, which may result in the complete loss of posted collateral and additional costs.
2.7. Risks Related to Stablecoins. Stablecoins may deviate from their declared value benchmark. Issuers are entitled to modify redemption procedures or reserve structures and, in certain cases, to suspend operations or block specific addresses. Algorithmic stabilization mechanisms do not guarantee the maintenance of the peg under stress scenarios, which may lead to significant losses.
2.8. Risks Related to Centralized Services. Exchanges, custodial, and other platforms may temporarily or permanently suspend operations, modify service rules, restrict access to assets, or be subject to hacks, technical failures, or bankruptcy. The Advisor bears no responsibility for the actions of such third parties or the consequences of their decisions.
2.9. Legal and Tax Risks. The legal framework governing the circulation of crypto-assets and DeFi instruments is still evolving. Changes in legislation, administrative practice, and regulatory approaches may affect the legality, procedures for use, and taxation of such assets. The Client’s tax obligations depend on the Client’s status and jurisdiction and must be assessed independently by the Client.
2.10. The Client confirms that they are aware of the above-mentioned risks, understand their possible consequences, including the complete loss of invested funds, and fully accept them. The Advisor does not guarantee the identification of all potential threats and bears no responsibility for their occurrence.
3. ABSENCE OF PROFIT GUARANTEES AND RISK WARNING
3.1. The Advisor operates exclusively in the format of providing analytical and advisory information. None of the services, materials, analytical reviews, strategies, forecasts, or assessments provided by the Advisor contain or may be regarded as a guarantee of capital preservation, profit generation, achievement of a specific rate of return, limitation of losses, or attainment of any other financial results.
3.2. Any quantitative benchmarks, target indicators, scenario models, examples of historical performance, as well as illustrative results, are provided solely for illustrative purposes and are intended to explain the principles underlying certain strategies. They do not take into account all market factors and do not constitute a promise, offer, or obligation on the part of the Advisor to achieve similar results in the future.
3.3. The Client’s actual performance and losses may differ significantly from those anticipated due to market conditions, technical factors, individual decisions of the Client, and other circumstances beyond the Advisor’s control. The Client acknowledges that past performance is not indicative of future results.
3.4. The Advisor bears no responsibility for any discrepancy between actual results and the forecasts, scenarios, or models set out in analytical materials, nor for any loss of profit, indirect losses, or reduction in asset value caused by market or technological changes, or by actions of third parties or regulators.
3.5. The Client confirms that investment decisions are made independently, based on their own understanding of market conditions, acceptable risk level, and investment objectives. The Advisor does not assume any fiduciary duties and does not act as a trustee or discretionary manager of the Client’s assets.
4. CLIENT’S ACKNOWLEDGMENTS AND REPRESENTATIONS REGARDING THE ACCEPTANCE OF RISKS
4.1. The Client confirms that, prior to receiving the Advisor’s services, they have reviewed this Risk Disclosure Statement, understand its provisions, and acknowledge that transactions involving crypto-assets and the use of DeFi Protocols are associated with a heightened level of uncertainty and risk, including the possibility of a complete loss of invested funds.
4.2. The Client acknowledges that:
- They possess sufficient knowledge and understanding of the principles of functioning of the crypto market, decentralized protocols, and related instruments;
- They are capable of independently assessing the proposed strategies, their potential profitability, and level of risk;
- If necessary, they are entitled to seek advice from independent financial, tax, and legal advisors for additional clarification, doing so on their own initiative and at their own risk.
4.3. The Client confirms that all investment decisions are made independently, without any coercion, influence, or interference from the Advisor, based on their own investment objectives, strategy, and acceptable risk level. The Advisor does not make decisions on behalf of the Client, does not dispose of the Client’s assets, and does not exercise discretionary or fiduciary management.
4.4. The Client acknowledges and agrees that the materials, forecasts, models, reports, and recommendations provided by the Advisor are of an exclusively informational and analytical nature, do not constitute an individualized investment recommendation, an offer to purchase or sell any asset, and do not contain any guarantee of achieving a certain rate of return or preserving capital.
4.5. The Client accepts and fully understands that the actual results of their activities may differ from projected outcomes due to market fluctuations, technological failures, actions of third parties, changes in the regulatory environment, tax consequences, and other circumstances beyond the Advisor’s control.
4.6. The Client confirms that they accept all of the above-mentioned risks in full, bear personal responsibility for the results of their decisions, and undertake not to make any claims against the Advisor in connection with losses arising from the realization of market, technological, legal, or other risks described in this document.
4.7. The Client confirms that they act as an independent investor and acknowledge that the Advisor does not verify or assess the Client’s qualification, investment experience, or financial sophistication. The services provided are of a general analytical and educational nature and do not constitute individualized investment advice. The Client assumes full responsibility for ensuring that participation in the Service is suitable for their experience, knowledge, and financial capacity. The Advisor shall not be liable for any losses or misunderstandings arising from the Client’s lack of experience, qualification, or comprehension of the risks involved in virtual asset markets.
5. PRIORITY OF THIS RISK DISCLOSURE STATEMENT
5.1. This Risk Disclosure Statement constitutes an integral part of the Investment Advisory Agreement and shall be applied together with it. In the event of any discrepancies or inconsistencies between the provisions of this document and other sources of information, including oral explanations, correspondence, advertising materials, presentations, analytical reports, demonstrative calculations, marketing publications, or other accompanying materials, the provisions of the Investment Advisory Agreement and this Risk Disclosure Statement shall prevail.
5.2. The Client acknowledges and confirms that any oral comments, examples, forecasts, or assessments provided by the Advisor during consultations, meetings, demonstrations, or correspondence are of an exclusively explanatory and illustrative nature and do not amend, supplement, or replace the written terms contained in the Investment Advisory Agreement and this document.
5.3. The Client’s confirmation of having received, reviewed, and understood this Risk Disclosure Statement is a mandatory condition for the commencement of the Advisor’s services and the provision of recommendations. In the absence of such confirmation, the Advisor is entitled to refuse the provision of services until written consent from the Client to the terms of this document is obtained.
5.4. In the event of any disagreement regarding the content or interpretation of provisions communicated orally, through correspondence, or marketing materials, the parties acknowledge that the decisive and governing source shall be the text of the Investment Advisory Agreement and this Risk Disclosure Statement signed by the Client.
6. ACCEPTANCE AND ACKNOWLEDGMENT
6.1. The Client confirms that they have carefully reviewed the provisions of this Risk Disclosure Statement, fully understand the terms set out herein, as well as the nature and extent of the risks associated with transactions involving crypto-assets and the use of DeFi Protocols, including the possibility of a complete loss of invested capital.
6.2. By signing the Investment Advisory Agreement, the Client confirms that they consciously, voluntarily, and fully agree with all provisions of this document and undertake to comply with them.