Risk Disclosures

Investing and trading in digital assets and global financial markets carries substantial risk, including the risk of total loss of capital. This page summarises the principal categories of risk relevant to the activities of Bitfinco. It is informational only and is not a complete statement of all risks.

1. General investment risk

The value of any investment can rise and fall. Past performance is not indicative or predictive of future results. There is no assurance that any investment objective will be achieved.

2. Market risk

Financial markets — including those for digital assets, equities, fixed income, currencies, and derivatives — may experience significant volatility, illiquidity, and dislocation in response to economic, political, regulatory, technological, or other developments, any of which may materially affect the value of positions.

3. Digital-asset risk

• Digital assets are a relatively new asset class with limited price history and incomplete legal and regulatory frameworks.
• Protocol-level technical risks include smart-contract vulnerabilities, consensus failures, and chain reorganisations.
• Custody risks include theft, loss of private keys, and counterparty insolvency.
• Regulatory treatment of digital assets continues to evolve and may change with limited notice in any jurisdiction.

4. Leverage and derivatives risk

The use of leverage, including through derivatives and margin, can magnify gains but can also magnify losses. Adverse movements may result in losses that exceed the initial capital deployed.

5. Liquidity risk

Some markets and instruments may experience reduced liquidity. Bitfinco may be unable to execute trades at prices it considers fair, or to close out positions in the timeframe it would otherwise prefer.

6. Operational and counterparty risk

Trading and post-trade activities depend on exchanges, custodians, brokers, banks, and technology infrastructure. Operational disruptions, fraud, cyber-incidents, or counterparty default may cause losses.

7. Regulatory and legal risk

Laws, regulations, and tax rules applicable to Bitfinco's strategies are subject to change. Changes may adversely affect the strategies, their tax treatment, or Bitfinco's ability to operate in particular jurisdictions.

8. Risk management is not risk elimination

Bitfinco maintains internal risk-management processes, but no process can eliminate risk. Investors and counterparties should consider whether they can bear the risks described above and seek independent professional advice before making decisions.