Risk Disclosures


This statement does not disclose all the risks of trading in options or risks relating to Digital Assets. You should only undertake transactions in options, including options relating to Digital Assets if you understand the nature of the contracts into which you are entering and the extent of your exposure to risk, and you understand the risks associated with options referencing Digital Assets, including risks relating to Digital Assets as an asset class.

Transactions in options trading carry a high degree of risk. Purchasers and sellers of options should understand the type of option (i.e., a put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.

The purchaser of options may offset or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying Digital Asset. If the purchased options expire worthless, you will suffer a total loss in your investment, which will consist of the option premium plus transaction costs.

Selling (writing or granting) an option generally entails considerably more risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying Digital Asset.

The profit or loss in transactions in foreign currency or Digital Asset denominated contracts will be affected by fluctuations in exchange rates where there is a need to convert from the denomination of the contract to another currency or Digital Asset.

For information about options trading, including the risks, please review the Characteristics and Risks of Standardised Options which you can view at www.theocc.com/about/publications/character-risks.jsp.

There are additional risks inherent in trading options relating to Digital Assets (such as BTC or ETH). A non-exhaustive list is as follows:

   • The volatility and unpredictability of the price of Digital Assets relative to fiat currencies may result in significant loss over a short period of time. Certain Digital Assets have    experienced daily price volatility of more than 20% for example.

   • Digital Assets are not legal tender, are not backed by government, and accounts and balances are not subject to government deposit protection schemes, such as in the US the    Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections, or in the UK, the Financial Services Compensation Scheme.

   • There is uncertainty around the legal classification of Digital Currencies in many jurisdictions, meaning that there is a risk of changes in legislation or regulation, or approach    that local regulators may take towards Digital Assets which could adversely affect their use, transferability or value.

   • Digital Asset protocol, blockchain or other applicable technology is subject to change from time to time, including by way of forks, or hard forks, which may impact the use,    transferability, or value of the Digital Asset.

   • Matters as described above or other applicable circumstances, may cause the Digital Asset to be undeliverable on any settlement date, causing disruption events under the    transaction documentation and uncertainty and/or delay as to settlement of the transaction, and/or losses to occur.

   • The technology behind Digital Assets and the way in which they are stored gives rise to increased risk of theft, fraud and/or cyber-attack, which in each case may lead to    substantial, immediate and irreversible losses, including by way of loss of willing market participants, and loss in value of the Digital Assets.

   • The value of Digital Assets will be, to a certain extent, derived from the continued willingness of market participants to utilise the Digital Assets, whether by way of payment,     storage of value or exchange, and which may therefore result in the potential for permanent and total loss of value of Digital Assets should the market for any of them disappear.

As noted above, this statement does not contain all the risks associated with trading options or associated with Digital Assets. You must ensure you understand all the risks before entering any option transaction, including any option transaction relating to Digital Assets.

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