Risk Warnings

1. General Investment Risk Warning

All investments carry risk, and the value of your investments can go down as well as up. Past performance is not indicative of future results. No guarantee or warranty is made regarding the performance of any investment product or service offered by Sirius Digital.

You should carefully consider whether any investment is suitable for you in light of your financial circumstances, investment objectives, risk tolerance, and investment experience. If you are uncertain about the suitability of any investment, you should seek independent professional financial advice.

2. Market Risk

Market risk refers to the possibility that the value of your investments will fluctuate due to adverse movements in market prices, economic conditions, political events, or changes in market sentiment.

Market conditions can change rapidly and unpredictably, potentially resulting in significant losses over short periods of time.

3. Liquidity Risk

Liquidity risk is the risk that you may not be able to buy or sell an investment quickly at a fair price due to insufficient market demand or trading volume.

Some investments, particularly digital assets and alternative investments, may have limited liquidity, making it difficult or impossible to liquidate your position when desired.

4. Volatility Risk

Volatility risk refers to the degree of price fluctuation experienced by an investment. High volatility means prices can change dramatically in very short periods.

Digital assets, cryptocurrencies, and certain securities are subject to extreme price volatility. Prices may fluctuate rapidly and substantially due to:

• Market speculation and sentiment shifts
• Limited market depth and liquidity
• Regulatory announcements and developments
• Technology changes and network upgrades
• Media coverage and social media influence
• Large holder ("whale") trading activity

The unpredictable nature of price movements means returns cannot be forecasted with any degree of certainty.

5. Capital Loss Risk

Total Loss Scenarios Include:

• Platform Failure: Trading platform or exchange insolvency or shutdown
• Issuer Default: Complete failure of investment issuer or counterparty
• Market Collapse: Severe market downturn or asset devaluation to zero
• Regulatory Action: Prohibition or severe restriction of certain assets
• Technology Failure: Irreversible loss due to technical issues or hacks
• Fraud or Mismanagement: Loss due to fraudulent schemes or negligence

In leveraged or margin trading, losses can exceed your initial investment, resulting in debt obligations.

6. Digital Asset-Specific Risks

If you are investing in or trading digital assets, cryptocurrencies, or blockchain-based products, you are exposed to additional unique risks:

6.1 Technology Risks

• Hacking and Cybersecurity Threats: Digital assets are vulnerable to theft through hacking, phishing, malware, and other cyber attacks
• Smart Contract Vulnerabilities: Bugs or exploits in smart contract code can result in loss of funds
• Blockchain Forks: Network splits may affect asset value and create uncertainty
• Private Key Loss: Loss of access credentials results in permanent, irreversible loss of assets
• Network Failures: Blockchain network downtime or congestion may prevent transactions

6.2 Operational Risks

• Platform Downtime: Service interruptions may prevent access to your assets
• System Failures: Technical glitches may affect order execution or account access
• Processing Delays: Blockchain congestion can cause significant transaction delays
• Irreversible Transactions: Errors in transactions generally cannot be reversed

6.3 Regulatory Risks

• Evolving Regulations: Digital asset regulations are rapidly changing and uncertain
• Potential Restrictions: Governments may restrict or ban digital assets
• Compliance Requirements: New regulatory requirements may affect access or costs
• Tax Treatment Uncertainty: Tax implications may change or be unclear

7. Complexity Risk

Some investment products involve complex structures, multiple layers, derivatives, or sophisticated strategies that may be difficult to understand and value.

Complex products may not be suitable for retail partners. Ensure you fully understand the product structure, risks, costs, and potential outcomes before investing.

8. Credit and Counterparty Risk

Credit risk is the risk that an issuer, counterparty, or custodian will fail to meet their financial obligations, potentially resulting in loss of your investment.

• Issuer Default: Bond or debt security issuers may default on payments
• Counterparty Failure: Trading counterparties may fail to fulfill obligations
• Custodian Risk: Asset custodians may become insolvent or negligent
• Settlement Risk: Failure in the transaction settlement process

Your assets may not be protected by deposit insurance or compensation schemes in the event of platform or counterparty failure.

9. Foreign Investment Risks

Investments in foreign markets or foreign-denominated assets carry additional risks:

• Currency Risk: Exchange rate fluctuations can significantly affect investment returns
• Legal Protection Differences: Foreign investments may have different or weaker legal protections than Singapore investments
• Regulatory Framework Variations: Different regulatory standards may provide less partner protection
• Cross-Border Enforcement: Legal remedies may be difficult or impossible to pursue across jurisdictions
• Geopolitical Risks: Political instability, sanctions, or international conflicts may affect investments

10. Leverage and Margin Risks

If you engage in leveraged or margin trading, you are exposed to amplified risks:

• Amplified Losses: Small adverse price movements can result in large losses
• Margin Calls: You may be required to deposit additional funds on short notice
• Forced Liquidation: Positions may be closed automatically if margin requirements are not met
• Debt Obligations: You may owe money beyond your initial investment
• Interest Costs: Borrowing costs reduce overall returns

11. Conflicts of Interest

Sirius Digital and its affiliates may have conflicts of interest in relation to the products and services we offer. These conflicts may include:

• Receiving compensation from product issuers or third parties
• Trading or holding positions in products we offer to clients
• Acting in multiple capacities (e.g., as agent, principal, or consultant)
• Having financial interests that may differ from client interests

We maintain policies and procedures to identify, manage, and disclose conflicts of interest. However, these conflicts may influence the products, services, or information we provide. For details, see our Regulatory Disclosures.

12. No Investment Advice Disclaimer

13. Acknowledgment and Acceptance

By using Sirius Digital's services and opening an account, you acknowledge that:

1. You have read, understood, and accept all the risk warnings outlined above
2. You understand that you may lose some, all, or more than all of your invested capital
3. You accept full responsibility for all investment decisions and their consequences
4. You will not hold Sirius Digital liable for investment losses resulting from market conditions, your investment decisions, or any of the risks disclosed herein
5. You have adequate financial resources to bear the risks of investing
6. You have sought independent professional advice where appropriate

14. Contact Information

If you have questions about these risk warnings or require clarification, please contact us: