• Virtual assets are considered as Complex Product (as defined in the "Code of Conduct for Persons Licensed by or Registered with the Securitiesand Futures Commission"). Please review the project website and whitepaper (available at website of partnering SFC-licensed platform), other relevant materials (collectively "Project Materials") and relevant risk disclosures on virtual asset before making any investment decisions.

• Investors should exercise caution in relation to Virtual Assets. 

• The Project Materials have not been reviewed by the Securities and Futures Commission (“SFC”). Investors are advised to exercise caution in relation to the offer.

• For virtual assets that are made available for trading by retail investors by the SFC-licensed platform, SFC’s acknowledgement on the eligibility to retail investors is not a recommendation or endorsement of a virtual asset, nor does it guarantee the commercial merits of a virtual asset or its performance.

• Past performance of virtual asset is not indicative of future performance.  

• Investors should read the Project Materials including but not limited to those disclosed on the project website and whitepaper (available at website of partnering SFC-licensed platform), and relevant disclosures on virtual assets to understand the key nature, features and risks of a virtual asset and are advised to seek independent professional advice before making any investment decision if needed, and should have sufficientnet worth to be able to assume the risks and bear the potential losses of trading the virtual assets.

INVESTORS ARE ADVISED TO CAREFULLY READ THESE RISK CONSIDERATIONS ASSOCIATED WITH VIRTUAL ASSETS. THESE CONSIDERATIONS ARE NOT EXHAUSTIVE.

Virtual Assets or its related products are high risk products. An investment in Virtual Assets may involve a high risk of loss of investors’ initial investment and are only suitable for investors who are capable of understanding, evaluating and taking considerable risks associated with an investment in virtual assets or its related products.

Prior to entering into a transaction, each investor should ensure that he/she understands the nature of all the risks associated with an investment in virtual assets or its related products in order to determine whether the investment is suitable for him/her in the light of his/her experience, objectives, financial position and other relevant circumstances. Each investor should consult his/her legal, regulatory, tax, accounting, financial and other professional advisers if necessary, and read and understand the relevant documents, if any, prior to making his/her investment decision. Past performance data have been provided to you, but is not indicative of future performance.

The following are certain risks in relation to virtual assets but does not purport to be a full or complete description of such risks.

General Risk Disclosures for Virtual Assets and Virtual Assets related Products:

1. No intrinsic value

Virtual assets generally do not have any intrinsic value and are not backed by any government, bank or physical assets to support their value or purchasing power. Apart from the simple law of supply and demand, there may be no fundamental or economic basis for their valuation, their prices mainly rely on investor confidence and market demand and supply. Speculative trades around virtual assets are common, and the market may not be transparent. Prices of virtual assets are easily affected by market rumors and celebrity shilling.

2. Highly volatile

The price of virtual asset is very volatile. Investors may lose all of his investment.

3. Liquidity risk and market manipulation

The scale and number of investors of many virtual assets are not large, and trading may not be active, leading to liquidity risk and potential market manipulation.

4. Trading platforms

Virtual asset trading platforms are generally operated by private companies, with only a few being regulated, and most are located overseas. If these platforms cease to operate or collapse or are hacked, investors may lose some or all of the virtual assets held on these platforms, and it may be difficult for them to seek recourse or recover the losses. Even large virtual asset leading players (such as virtual asset trading platforms, fund managers, brokers, deposit/lending platforms) may collapse and hence a knock-on effect and leading to significant losses among many investors. Moreover, different jurisdictions may have different stances on these emerging assets. Virtual asset trading platforms may be unregulated or only subject to light regulation (i.e. subject to none or minimal investor protection measures) in different jurisdictions and there may not be sufficient protection for investors.

5. Wallet security

In recent years, hacks and scams involving virtual assets have been increasing, especially for hot wallets connected to the internet. Investors may incur significant losses in such cases. Besides, investors could lose all their virtual assets if their devices are infected by virus or if they lose their private key.

6. Illegal activities

Due to the high anonymity of virtual assets, they could be used by criminals for money laundering or funding of terrorist activities. Additionally, virtual assets are increasingly being used as a medium for scams.

7. Speculative nature risk

Investing in virtual assets is highly speculative, and market movements are difficult to predict.

8. Unforeseeable risks

Given the rapidly evolving nature of virtual assets, including advancements in the underlying technology, market disruptions and resulting governmental interventions that are unforeseeable, an investor may be exposed to additional risks which cannot currently be predicted.

9. Regulatory risk

The regulation of virtual assets and related products and services continues to evolve. There is a trend of increase regulations. Certain regulatory authorities have brought enforcement actions and issued advisories and rules relating to virtual asset markets. Regulatory changes and actions may alter the nature of an investment in virtual assets, or affect whether virtual assets products may continue to operate, or restrict the use and exchange of virtual assets or the operations of the virtual assets network or venues on which virtual assets trades in a manner that adversely affects the price of virtual assets and virtual assets products. Virtual assets market disruptions and resulting governmental interventions are unpredictable, and may make virtual assets illegal.

10. Cybersecurity risks

The virtual assets network is vulnerable to various cyber attacks. Cybersecurity risks of the virtual assets protocol and of entities that custody or facilitate the transfers or trading of virtual assets could result in a loss of public confidence in virtual assets, a decline in the value of virtual assets. Also, malicious actors may exploit flaws in the code or structure in the virtual assets network that will allow them to, among other things, steal virtual assets held by others, control the blockchain, steal personally identifying information, or issue significant amounts of virtual assets in contravention of the virtual assets protocols. The occurrence of any of these events is likely to have a significant adverse impact on the price and liquidity of virtual assets.

For virtual assets related products, investor shall refer to the relevant offering document, prospectus and/or product information to understand the nature and risk of that products. Some of the associated risk are, in general, listed below.

a.     Price volatility;

b.     Potential price manipulation on trading, lending or other dealing platforms;

c.     Lack of secondary markets for certain virtual assets

d.     Difficulties in verifying ownership of virtual assets

e.     Most trading, lending or other dealing platforms and custodians of virtual assets are presently unregulated;

f.      Counterparty risk when effecting transactions with issuers, private buyers/sellers or through trading, lending or dealing platforms;

g.     Risks arising from custodial arrangements, including self-custody of assets by the fund manager and use of hot wallets;

h.     Continuing evolution of virtual assets and global regulatory developments;

i.      Cybersecurity and technology related risks

j.      Legal uncertainty on whether virtual assets can be regarded as “property” under the law.

k.     New risks which may arise from investing in new types of virtual assets or market participants’ engagement in more complex transaction strategies.

Risks Specific to Virtual Assets Futures Contracts and Options:

1. Nature of Virtual assets futures contracts and options

Both Virtual assets futures contract and options are derivative products and may not be suitable for all investors. Before investing, investors should understand its nature and risks, such as the extremely high price volatility of virtual assets futures contracts and options and the value of the virtual assets futures contract and options may decline significantly, such as dropping to zero. All the risks of the underlying virtual assets described above (e.g., insufficient liquidity, high price volatility, and potential market manipulation) may be magnified in trading virtual assets futures contracts and options by the speculative nature of the underlying virtual assets and the leverage inherent in futures contracts and options. Additionally, as virtual assets futures and options are margin products, losses (or gains) will also be magnified. Investors may lose more than what they initially invest.

2. Pricing Difference

Virtual assets futures contract and option prices differ from the spot price of virtual assets, which makes it difficult to value virtual assets futures contracts and options.

3. Liquidity Risk

Investors may be exposed to periods of illiquidity as the virtual assets futures and options market is still developing and may be more volatile than traditional futures and options markets that are more established. It may be challenging or impossible to buy or sell a position at the desired price during such times. Market disruptions or volatility can also make it challenging to find a counterparty willing to transact at a reasonable price and adequate size. Illiquid markets can cause losses, which could be significant and impact the price of virtual asset futures and options, which could reduce the correlation between the performance of virtual assets futures contracts and options and the "spot" price of a virtual asset.

4. Risk of rolling futures contracts

“Rollover” means selling existing futures contracts that are about to expire and replacing them with a futures contract that will expire at a later date. If the prices of the longer-term contracts are higher than those of the expiring contracts, also commonly known as a “contango” market, the proceeds from selling the expiring contracts will not be sufficient to buy the same number of longer-term contracts. A loss may therefore occur as a result of rollover.