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Disclosures & Risk Information

This information is an integral part of the Client Advisory Agreement. Please review it carefully.

Digital Assets Disclosure

WARNING: HIGHLY SPECULATIVE INVESTMENT

INVESTMENTS IN DIGITAL ASSETS ARE HIGHLY SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POTENTIAL FOR TOTAL LOSS OF YOUR INVESTMENT. These assets are suitable only for sophisticated investors with a high-risk tolerance.

Inherent Risks of Digital Assets

Client understands and accepts the following risks, which are not exhaustive:

Extreme Volatility and Market Risk

The value of digital assets can fluctuate dramatically and unpredictably.

Cybersecurity & Private Key Risk

Digital assets are targets for cybercriminals. Loss, theft, or compromise of your private keys will result in permanent and irreversible loss of your assets.

Regulatory Uncertainty

The regulatory framework for digital assets is evolving and subject to change, which could materially affect the value, liquidity, and legality of certain assets.

Smart Contract and Protocol Risk

DeFi protocols involve complex smart contracts subject to flaws, bugs, or exploits that could result in total loss of deposited funds.

Third-Party Platform Risk

Third-party platforms carry risks of insolvency, hacking, and operational failure.

Irreversibility of Transactions

Blockchain transactions are immutable and cannot be reversed once confirmed.

Client Responsibilities and Representations

Client represents and agrees that:

  • Security Responsibility: You are exclusively responsible for securing all private keys, hardware wallets, seed phrases, and passwords.
  • Due Diligence: You will perform your own research on any digital asset or protocol in addition to any analysis provided.
  • Risk Tolerance: You affirm that you are financially prepared to accept these risks, including loss of your entire principal.
  • Tax and Legal Compliance: You are solely responsible for understanding and complying with all applicable tax and legal requirements.

Options and Futures Trading Disclosure

WARNING

TRADING IN DERIVATIVES PRODUCTS IS HIGHLY SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. IT IS SUITABLE ONLY FOR FINANCIALLY SOPHISTICATED CLIENTS WHO HAVE A HIGH RISK TOLERANCE AND ARE PREPARED TO SUSTAIN SUBSTANTIAL LOSSES, POTENTIALLY EXCEEDING THEIR ENTIRE INVESTMENT. YOU MAY LOSE MORE THAN YOU INVEST.

Summary of Key Risks

Leverage Risk

Derivatives are leveraged instruments. Small adverse movements in the underlying asset can result in substantial, magnified losses.

Total Loss of Premium

When purchasing an option, your maximum loss is typically the premium paid. However, you can lose this entire amount if the option expires worthless.

Unlimited Loss Potential

Certain strategies, such as uncovered call options or short futures positions, expose you to theoretically unlimited losses.

Time Decay

Options lose time value as expiration approaches, potentially to zero, even if the underlying asset's price remains unchanged.

Margin Risk

Futures contracts require margin. Adverse market movements may trigger margin calls requiring immediate additional funds.

Crypto Derivatives Risk

Cryptocurrency derivatives carry amplified risks due to less regulated, highly volatile underlying markets.

Official Disclosures: Clients are encouraged to read the official "Characteristics and Risks of Standardized Options" disclosure document from the Options Clearing Corporation, available at theocc.com