GAINSKY INVESTMENTS LTD - RISK DISCLOSURE STATEMENT
This statement does not disclose all of the risks and other significant aspects of trading in capital markets products. In light of the risks, the Customer should undertake such transactions only if he/she understands the nature of the contracts (and contractual relationship) which the Customer is entering into and the extent of the Customer’s exposure to risk. The Customer should carefully consider whether trading in capital markets products is appropriate in the light of his/her experience, objectives, financial resources, and other relevant circumstances. If in any doubt, the Customer should seek professional advice. Different capital markets products involve different levels of risk and in considering whether to trade or invest in capital markets products, the Customer should be aware of the following points:
a) Terms and Conditions of Trading / Investing in Capital Markets Products
The Customer should read and understand the terms and conditions spelt out (and from time to time amended) in the CONDITIONS GOVERNING GAINSKY INVESTMENTS LTD ACCOUNTS and relevant INFORMATION SHEET(S), all of which are referred to and construed as part of the agreement between GAINSKY INVESTMENTS LTD and Customers.
b) Risks associated with Trading / Investing in Capital Markets Products
i. Price fluctuation
The price and value of any investment in capital markets products and the income, if any, from them, can fluctuate and may fall against the Customer’s interest. An individual cryptocurrency may experience downward price movements and may under some circumstances even become valueless. An inherent risk of trading/investing in capital markets products is that losses may be incurred, rather than profits made, as a result of buying and selling such products.
ii. Suspension or Restriction of Trading
Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any cryptocurrency because of price limits or trading halts) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.
c) Commission, Fees, Interest and Other Charges
The Customer should obtain a clear explanation of all commissions, fees, interest and charges, including charges for the custody of the Customer’s investments, and understand that these charges may affect the Customer's net profit (if any) or increase the Customer's loss. The Customer agrees that he/she will be liable for these charges (as may be amended from time to time).
d) Trading Facilities and Electronic Trading
GAINSKY INVESTMENTS LTD's trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and computer systems, customers will be exposed to risks associated with the systems including the failure of hardware and software. The result of any system failure may be that the Customer's order is either not executed according to instructions or is not executed at all. The Customer should also be aware that the Internet is not a completely reliable transmission medium and there may be delays in service provisions.
e) Additional Risk Disclosure Statement for Managed Accounts
Before making a decision to invest, Customers should seek to understand and evaluate the investment risks involved and any other significant aspects of vesting discretionary trading and other powers on GAINSKY INVESTMENTS LTD to invest and manage a portfolio of investments for them. The Customer should read and understand the terms and conditions of the Managed Account services before making a decision to invest in discretionary managed accounts. Investing whether directly or by proxy through a fund manager may not be suitable for all members of the public. The Customer should carefully consider whether such discretionary managed account service is suitable for him, taking into consideration his investment experience, objectives, risk appetite, financial situation and any other circumstances. Further, the Customer should be aware of and understand clearly the commissions, fees and charges that the Customer is liable to when investing in discretionary managed accounts, as these may affect the performance of and/or returns to the Customer's portfolio. The Customer should note that by accepting the terms and conditions of the Managed Account services, the Customer is authorising GAINSKY INVESTMENTS LTD as fund manager, at its discretion and subject only to such restrictions as may be agreed with GAINSKY INVESTMENTS LTD, to act in the Customer’s name and/or for the Customer’s account and/or benefit in relation to transactions and investments in capital markets products. The Customer should be aware of the following, in addition to the risk factors disclosed above in this Risk Disclosure Statement:
i. Concentration risk
The Managed Account may at any point in time be highly concentrated in its investment or be held significantly in cash. The Managed Account could be subject to significant losses if it holds a large position in a particular cryptocurrency that declines in value or is otherwise adversely affected.
ii. Account and market risk
The prices of capital markets products can and do fluctuate, and any individual product may experience upward or downward movements and may even become valueless. There is an inherent risk that losses may be incurred rather than profits made as a result of buying and selling capital markets products and there can be no assurance that the fund manager will achieve its investment objectives.
iii. Political, economic, legal, regulatory and social developments
Markets are influenced by the political, economic, legal, regulatory and social developments in the jurisdictions concerned, and may be uncertain and may increase the risk of investment.
iv. Counterparty and broker risks
Transactions executed with counterparties and brokers are dependent on their respective due performance of their obligations. The insolvency or default of such counterparties and brokers may lead to positions being liquidated or closed out and/or may result in difficulties in recovering the Customer's monies and assets held.
The Customer should note in particular that the proceeds from the sale of capital markets products in some markets or the receipt of any dividends and other income may be or may become subject to tax, levies, duties or other fees or charges imposed by the authorities in that market, including taxation levied by withholding at source. Tax law and practice in certain countries into which the fund manager invests or may invest in the future may not be clearly established. It is therefore possible that the current interpretation of the law or understanding of practice may change, or that the law may be changed with retrospective effect.