Digital currencies may not currently backed or supported by the government or central bank in the jurisdictions in which the Services are available in. Their value is determined by the economy of supply and demand and is subject to significant volatility, often exceeding that of traditional currencies. Trading in digital currencies involves substantial risks, including but not limited to market price volatility, flash crashes, market manipulation, regulatory uncertainties, government prohibitions or confiscations, technological risks, transmission risks, and cybersecurity threats. Additionally, digital currency markets are not subject to the same regulatory controls or consumer protections as traditional equity, options, futures, or foreign exchange markets.
Trading digital currencies requires a comprehensive understanding of digital currency markets. Competing in such markets necessitates competing with traders worldwide. Before engaging in substantial digital currency trading, you should possess appropriate knowledge and experience. It is not generally advisable to engage in digital currency trading using funds derived from retirement savings, student loans, mortgages, emergency reserves, or funds allocated for other critical purposes. Additionally, digital currency transactions may result in taxable events in your jurisdiction, requiring you to calculate, report, and pay applicable taxes. Digital currency transactions are often settled in real time and are irreversible, which can lead to immediate financial losses.
Under certain market conditions, it may be difficult or impossible to liquidate a position quickly or at a reasonable or favourable price. For example, this can occur when the market for a particular digital currency suddenly drops or market participants are suspended or prohibited from trading in markets, or trading is halted due to recent news events, unusual trading activity, or changes in the underlying digital currency system (whether in the legal or economic sense).
BYBLET does not provide any investment or financial recommendations or advice in any of the materials made available to you (including those on the Site) unless otherwise expressly stated. The listing of a digital currency on the Platform or any related communication, whether delivered through our Site or otherwise, should not be interpreted as an endorsement or recommendation to buy or sell any digital currency.
The following disclosure highlights the material risks associated with Digital Assets to assist Users in making informed decisions.
Users are advised that Digital Asset transactions involving parties or markets in foreign jurisdictions may be subject to risks such as regulatory controls, debt moratoriums, enforcement actions, or other actions imposed by governmental or regulatory bodies, which could delay, reduce, or prevent the recovery of invested amounts, profits, or gains or the transfer of funds in and out of Users’ account(s). Prior to engaging in any Digital Asset transaction, it is the User’s responsibility to ensure they fully understand the relevant laws and regulations applicable to such transactions.
Furthermore, Users should be aware that their local regulatory authority may not have the power to enforce the rules of foreign regulatory authorities or markets where the User’s transactions take place. It is the sole responsibility of the User to obtain independent advice regarding the remedies available in both their home jurisdiction and the relevant foreign jurisdictions before proceeding with any transaction. If the User’s jurisdiction imposes restrictions on Digital Asset transactions, BYBLET may be required to restrict access to the User’s account(s) and may be unable to facilitate the transfer of Digital Assets until such restrictions are lifted.
Digital assets may be subject to oversight by legal and regulatory authorities in various jurisdictions. As such, BYBLET may receive regulatory notices, warnings, or rulings that could result in the suspension or termination of certain actions related to Digital Assets or Users’ account(s) with BYBLET without prior notice. Users should be aware that Digital Assets operate in a rapidly evolving legal environment, where new laws or regulations may emerge, potentially impacting the governance, trading, or holding of Digital Assets. Regulatory policies can change without notice, and Digital Assets may be reclassified as commodities, securities, or currencies in certain jurisdictions, which could affect their legal status and the rights associated with them.
Fiat currencies or Digital Assets held by us for your benefit are not considered “deposits” under any applicable law relating to banking and are not covered by public or private deposit insurance or similar protection schemes. Additionally, BYBLET is not regulated by any related authority in this regard.
Digital Assets and fiat currencies held or received are subject to the laws of the respective jurisdictions of such holding or receipt, which may differ from each other. As a result, assets held in one jurisdiction may not receive the same level of protection as assets held in another jurisdiction.
Certain jurisdictions may restrict or prohibit residents, tax residents, or individuals with relevant connections to those jurisdictions from engaging in Digital Asset transactions. Any change in the User’s place of domicile or applicable laws may result in non-compliance with legal or regulatory requirements. It is the User’s responsibility to ensure that their Digital Asset transactions remain lawful, considering any changes to applicable laws, their jurisdiction of residence, or personal circumstances.
Digital Assets are typically issued by third parties. Users are responsible for reviewing the terms, conditions, and risk disclosures provided by the relevant issuers before entering into any transaction. Any offering documents or product information from third-party Digital Asset issuers may not have been reviewed or approved by any regulatory authority.
For Digital Assets authorised by a regulator, Users should note that such authorisation does not imply an endorsement or guarantee of the asset’s commercial value or performance. In the event of issuer insolvency or default, Users will be treated as unsecured creditors, with no preferential claim to the issuer’s assets. As Digital Assets are not legal tender and are not backed by any government or physical assets, they may lose their entire value if the issuer becomes insolvent or ceases operations, resulting in a total loss of the User's investment.
BYBLET does not guarantee that any Digital Asset will continue to be traded on the Platform and reserves the right to delist any asset at its discretion without prior notice. Digital Assets affiliated with BYBLET are subject to the same listing requirements and risks as those issued by third parties. Users should conduct thorough due diligence on all Digital Assets, including those associated with BYBLET, just as they would for any other third-party-issued Digital Asset. Users are encouraged to seek independent professional advice before making any investment decisions.
BYBLET does not provide any guarantees or endorsements regarding the Digital Assets listed on the Platform. Information provided on the website or trading platform is for general informational and educational purposes only, and no representations or warranties are made as to the accuracy or completeness of such information. This information should not be considered investment advice or a recommendation for the User to buy or sell any Digital Asset. It is the User’s responsibility to assess the quality, legitimacy, and value of any Digital Assets. BYBLET strongly advises the User to conduct independent research and due diligence before engaging in any trading activities.
The price of Digital Assets can be highly volatile and unpredictable, potentially leading to significant losses over a short period. Price fluctuations may occur due to various factors, including market manipulation, regulatory or governmental actions, changes to the nature of the asset, the suspension or cessation of support by platforms, service providers or other intermediaries, or the bankruptcy, liquidation or similar credit-events in relation to these platforms, service providers or other intermediaries. Additionally, technical advancements, economic conditions, and political events may cause rapid changes in the value of Digital Assets. Given these risks, Users should exercise caution when trading Digital Assets, as they may lose part or all of their investment. Furthermore, if you engage in margin trading or contract trading, there is a risk that your loss may exceed the amount of funds held in your account(s) and you may be liable to us to replenish your account(s) in relation to any such shortfall. See “Other Services that may be Provided” in the Terms of Use for details. In addition, the calculation of the required margin or collateral for your account(s) and the quoted prices of derivative products available on the Platform may depend on certain price indices maintained by BYBLET at its sole and absolute discretion with respect to the relevant Digital Assets. There is no guarantee that such indices will be equal, equivalent or comparable, whether in value or in terms of methodology, to those maintained by other platforms for the relevant Digital Assets, or that BYBLET will maintain or update such indices according to their published methodologies, if any, in a timely manner.
The market conditions of Digital Assets can change rapidly, affecting the prices, spreads, and other features of related products. Due to these conditions and other conditions potentially arising from or in relation to the failure or non-acceptance of certain types of stablecoins, Users may not be able to sell their Digital Assets as quickly as desired. BYBLET is not liable for any losses incurred if a User is unable to sell their assets due to liquidity issues in the Digital Asset market.
Digital Asset platforms are relatively new and often operate with limited or no regulation, unlike traditional financial markets. These platforms are typically not subject to the same regulatory oversight as securities or futures markets and, as a result, may offer fewer protections to Users. Digital Asset platforms may be more vulnerable to risks such as theft, fraud, operational failure, security breaches, market manipulation, and insider trading. Some platforms have collapsed or closed due to these risks. Consequently, the prices of Digital Assets may experience greater volatility and sudden declines compared to assets traded on more established, regulated platforms.
In the event of a trading suspension for any Digital Asset, Users will be unable to buy or sell units on the Platform. The Platform reserves the right to suspend trading at its discretion to maintain a fair and orderly market in the interests of Users. If trading is suspended, the subscription and redemption of the affected Digital Assets may also be halted. Under certain circumstances, it may be difficult or impossible to liquidate a position in the Digital Assets. Additionally, certain events such as airdrops, forks, or network events may occur unexpectedly, potentially affecting the ability to conduct transactions, with limited prior notice or oversight available to stabilize the network.
Digital Assets may be considered complex products due to their complex structure, technological dependencies, and the inherent difficulty in fully understanding their terms and features. Users should take the necessary steps to fully understand these complexities and the associated risks before engaging in transactions involving such assets.
The User acknowledges and agrees that the past performance of any services or products available on the Platform is not indicative of future results. BYBLET does not provide any guarantees regarding the performance of any such service or product, nor does it offer any financial, legal, or investment advice to the User.
It is the sole responsibility of the User to assess and determine the suitability of any services or products for their individual needs, objectives, and risk tolerance. The User must carefully consider the inherent risks associated with Digital Assets, as well as the potential volatility and unpredictability of future returns. BYBLET will not be liable for any losses incurred as a result of the User’s reliance on past performance as an indicator of future success.
In the event of the insolvency or default of any counterparty or service provider/intermediary involved with the Services and products, the User’s trading positions may be liquidated or closed without their consent. If the assets of a service provider/intermediary are subject to insolvency proceedings or other similar credit events, there is a risk that the relevant User may lose the assets they have invested. BYBLET will make reasonable efforts, but not obliged, to notify the User promptly in the event of such an insolvency or similar credit event.
Many cryptographic tokens, including those developed on the Ethereum blockchain, are based on open-source protocols. Once released to the open-source community, any participant can propose patches or upgrades to the Ethereum source code without requiring prior authorization. The acceptance of such changes by a significant portion of Ethereum holders may result in a "fork" of the Ethereum blockchain. The existence of forked blockchains, whether temporary or permanent, could adversely affect the proper functioning of the Platform. A fork may destabilize the Platform’s ecosystem, potentially causing significant disruption or even failure. Although efforts may be made by the community to reconcile and re-merge the separate blockchain branches, such efforts are not guaranteed to succeed and could take an indeterminate amount of time to resolve.
Digital Assets are also susceptible to attacks on the security, integrity, or operation of their networks, including forks or other network-related incidents. These events may alter the functionality, usage, or properties of any Digital Asset, network, or the Platform. Such events may have a substantial impact on the price, value, or function of Digital Assets, or could even lead to the shutdown of the relevant network or the Platform. These circumstances may be beyond the control of BYBLET, and any actions taken by BYBLET in response to such events may not necessarily align with the best interests of the User.
Digital Asset transactions are heavily dependent on the internet and related technologies. Due to the public nature of the internet, sections or the entire network may become unreliable or unavailable at any time. Interruptions, delays, data corruption, breaches of confidentiality, or the transmission of malware may occur during the transmission of data over the internet or other digital platforms. As a result, the User’s Digital Asset transactions may not be executed as instructed, may face delays, or may not occur at all.
The reliance on technology also means that any technical issues experienced by the Platform may hinder the User’s ability to access their Digital Assets.
It is essential to understand that no form of authentication, verification, computer security, software or hardware is entirely foolproof. The internet, any other electronic channels, any software, any telecommunication services, or any electronic devices, including servers and mobile devices, are inherently prone to unreliability, which may be beyond BYBLET’s control. Furthermore, any information or transactions conducted over the internet or via any electronic media, software, telecommunication services, or electronic devices, including mobile devices or servers, may be subject to interruptions, transmission blackouts, delayed communications, or inaccuracies due to factors such as data volume, internet traffic, technical failures, or market volatility. These vulnerabilities are inherent to electronic communication, and BYBLET cannot guarantee the continuous reliability of such methods.
Blockchain networks may become unavailable due to bugs, forks, or other unforeseen circumstances. Unlike traditional securities, where prices are fixed at certain times, the prices of Digital Assets fluctuate continuously throughout the day. In the event of a network outage, the User may be unable to execute trades or liquidate positions, even as the market price of Digital Assets continues to change. BYBLET cannot guarantee access to blockchain networks at all times, and the User should be aware of the potential risks associated with such unavailability.
The User is solely responsible for securing their private key for any Digital Assets not held by BYBLET or its affiliates. Any loss of control over the private key will permanently and irreversibly deny the User access to those Digital Assets, and the User will no longer be able to prove ownership. Neither BYBLET nor any other party will be able to recover or protect the Digital Assets not held within the User’s account(s). Once the private key is lost, the User will be unable to transfer such Digital Assets to another address or wallet, effectively losing any value or utility the assets may hold, now or in the future.
The User’s Digital Assets, User’s account(s), and Services may be vulnerable to malicious actors attempting to steal assets or interfere with transactions. Due to the nature of Digital Assets, the User is exposed to increased risks of fraud and cyber-attacks, including phishing, hacking, malware, and other forms of malicious acts. These actors may seek to gain unauthorised access to the User’s private keys, account credentials, or devices, potentially resulting in the loss of Digital Assets.
Furthermore, vulnerabilities in smart contracts, coding errors, or human error could be exploited, compromising the functionality, security, or value of Digital Assets. The User is solely responsible for securing their account(s), devices, and personal information against such risks.
Some of the User’s Digital Assets may be stored in hot wallets, which are more prone to hacking and cyber-attacks. Cyber-attacks on networks and platforms are common, and victims often face challenges in recovering lost assets. Such incidents can lead to substantial financial losses and materially affect the User’s interests. The user is advised to take all necessary precautions to safeguard their assets.
In the case of corporate Users, the scope of authorization and the authorization level may be set, changed, adjusted or removed by an authorized person. Giving a person with excessive authority to change, remove, etc the scope of authorization and the authorization level may lead to improper or abusive use of the account. There is also a possibility of erroneous setting of authority level and scope by the user if more than one authorized persons is permitted to operate the account. There may be delays and failure in placing orders and/or repeated orders made resulting from or in connection with any change, removal, etc of the scope of authorization and the authorization level.
The Platform, due to its technically complex nature, may encounter unforeseen or irresolvable difficulties. As a result, the development of the Platform could fail, be delayed, or terminate at any time for various reasons, including but not limited to a lack of funds. Such failure or termination may render the Digital Assets non-transferable, non-exercisable, or obsolete.
The Platform is designed to operate on various distributed ledger systems, which are unpermissioned protocols accessible by anyone. The Platform also utilizes supporting technologies that could function on decentralized ledgers. The Platform's utility and integrity depend on the stability, security, and adoption of these decentralized systems.
Risks associated with relying on distributed ledger technology include technical flaws, potential targeting by malicious actors, majority-mining or consensus-based attacks, changes to consensus protocols or algorithms, reduced support from the community or miners, rapid fluctuations in the value of Digital Assets, competing networks or platforms, flaws in the scripting language, disputes among developers, miners, and Users, and possible regulatory actions.
The Platform may function as an open community, so it may include users, supporters, developers, and other participants worldwide, who may have no formal connection with BYBLET.
BYBLET or other Digital Assets service providers may act both as an agent on your behalf and as a principal in transactions against you. This dual role presents inherent conflicts of interest. In cases where these operations are not subject to regulatory oversight, it can be difficult to detect, monitor, and manage these conflicts. You are advised to be aware of such potential conflicts and to exercise due diligence in assessing the associated risks.
Unless otherwise defined, capitalised words used in these risk disclosures shall have the same meaning given to them in the Terms of Use and the relevant product or service terms.
To the extent that WM Assets deposited by Users are loaned to other Users of BYBLET or BYBLET’s affiliates, these loaned assets are subject to the risk that the borrowing party will be unable or unwilling to repay the borrowed assets. BYBLET takes reasonable precautions to minimise this counterparty risk of borrowers defaulting, including (a) conducting due diligence on prospective borrowers and (b) requiring borrowers to provide collateral as security for the repayment obligation. Further, BYBLET may maintain insurance fund(s) that is available to cover losses that would otherwise be incurred when a User’s margin balance is insufficient to cover the User’s debt obligation to BYBLET.
BYBLET’s ability to return your WM Assets may be adversely affected or delayed if a significant number of borrowers default on the obligation to repay borrowed assets to BYBLET, or the collateral held by or for the benefit of BYBLET is insufficient to cover the outstanding loan amount and outstanding debts cannot be recovered from the relevant insurance fund (if applicable).
In extreme and exceptional circumstances, BYBLET may have insufficient liquid assets readily available to satisfy requests to redeem WM Assets in a timely manner as a result of various different other factors including, without limitation, concentrated exposure to the performance of a particular Digital Asset, a particular borrowing client or a particular depositor and depletion of the relevant insurance fund (if applicable). BYBLET has processes in place to monitor and minimise liquidity risk and concentration risk. This includes, for example, limiting the maximum amount that an individual borrower is able to borrow and limiting the maximum amount that a User can subscribe to WM Products. These controls limit BYBLET’s exposure to the risk of default of any particular borrower and also limit BYBLET’s dependency on the deposits of any particular User for liquidity. In addition, for each Digital Asset, there is a maximum percentage of WM Assets that can be made available for lending, which is determined based on the volatility, liquidity and market capitalisation of the relevant Digital Asset.
Digital Assets that are deployed in on-chain staking will be subject to a number of risks, including the risk of protocol penalties (known as “slashing”) which result in the forfeiture of some or all of the Digital Assets that are staked. Slashing is designed to discourage network validators from engaging in dishonest, malicious or other inappropriate activity and may occur due to errors in smart contracts, misbehaviour of validators, or mistakes during block production. Slashing is rare but may still occur. While BYBLET takes all reasonable precautions to avoid slashing and compensate Users as far as possible (acting at its own discretion) to replace Digital Assets lost to slashing penalties if they do occur, so as to minimize your risk of loss in the event of slashing, in some rare situations it is possible you could lose some or all of your WM Assets. This would include situations where slashing is the result of a hack or technical failure, your own actions or other extreme events.
BYBLET does not guarantee that the WM Assets are right for you. You should consider whether the WM Assets still meet your needs and your risk profile.
Although BYBLET takes all reasonable precautions to minimise the risks described in these Risk Disclosures and to safeguard the return of WM Assets to Users in accordance with the WM Terms, in extreme and exceptional circumstances BYBLET may not have sufficient assets readily available to return WM Assets to Users in a timely manner. This could result in Users losing some or all of their WM Assets or experiencing a delay in the return of all or some WM Assets to Users. These exceptional circumstances could arise, for example, following a catastrophic hack or major technical failure, a significant number of borrowers to whom loans have been granted defaulting at the same time, depletion of the same relevant insurance fund, extreme market volatility, network delays or disruptions, systemic risk or other black swan events that affect the cryptocurrency market as a whole.
Dual Investment is a structured product in which the results depend very much on the market conditions and various other factors. It is not a principal-protected product and is different from other wealth management products available on the Platform.
Unless otherwise specified, the details in the Quoted Subscription, such as APR are estimates only, and may change each time and over time.
Once your subscription is executed, your Target Price, Settlement Date, Subscription Period, APR and other relevant details will be fixed. You will not be able to edit, cancel or revise the Target Price, Settlement Date, Subscription Period, APR and other relevant details once your subscription is executed.
A subscription to Dual Investment is illiquid. Your Subscribed DI Assets will be locked and you will not be able to access or otherwise deal with your Subscribed DI Assets (together with all DI Rewards) until the Settlement Date. During the Subscription Period you may be exposed to the risk of extreme market volatility and may have no ability to exit your position in the Subscribed DI Assets prior to the Settlement Date. The illiquidity of your Subscribed DI Assets could result in potential loss of profits or opportunity to earn, or loss of opportunity to mitigate losses.
DI Rewards will be credited to your account only after they are received by BYBLET. However, the availability of DI Rewards is subject to market volatility. We do not guarantee that you will receive any DI Rewards from your Dual Investment. There can be no guarantee or assurance that if the Target Price is reached and your Subscribed DI Assets are exchanged into the Alternative Currency, or that you will be in a more favourable financial position.
Not Principal protected. The Performance Tracking Product is not principal-protected. Your subscription money is not guaranteed or secured by any collateral. You may sustain a total loss of all of your investment. There can be no assurance that the investment strategy of the Underlying Assets and/or the investment vehicles will be successful or that its investment objective will be achieved.
Past Performance. Any past performance, projection or forecast stated is not necessarily indicative of future performance. No representation or promise as to the PT Return or the performance of any Underlying Asset and/or the investment vehicles investment vehicles in which the Underlying Assets invest in is made. The Underlying Assets to which the Performance Tracking Products relate to are subject to risks, including the possible loss of the principal amount invested. There can be no assurance that any trading or investment strategy will produce profitable results, or that the Underlying Assets and/or the investment vehicles will achieve its investment objectives or avoid substantial or total losses. Performance information presented without deduction of the fees and expenses of the Underlying Assets and/or the investment vehicles would be materially lower as a result of such fees and expenses.
No interest in the Underlying Asset. By virtue of subscription of Performance Tracking Products, you will not hold an interest or obtain ownership in any interest, unit of share in the Underlying Asset and/or the investment vehicles in which the Underlying Assets invest in. Consequently, you will not have the ability to exercise any rights attributable to an investor in the Underlying Asset such as the right to vote, receive information and/or receive a return directly from the Underlying Asset. You shall not be entitled to rely upon any written or oral information from the Underlying Assets and/or the investment vehicles and will have no standing or recourse against the Underlying Assets and/or the investment vehicles. You acknowledge and accept that BYBLET or any of its affiliates hold the Underlying Asset for its own account and not on trust, as agent or as nominee for you.
Tracking error. A Performance Tracking Product is designed to track the performance of the Underlying Asset. However, the PT Return will not be identical to the returns achieved by the Underlying Assets due to fees, expenses, time differences and other operational factors. The costs and expenses charged by the Underlying Asset and/or the relevant distributor or placement agent will necessarily result in the PT Return being less than the return of the Underlying Assets. From time to time and over time, there will be tracking error of the Underlying Asset and in the case of a fund of fund structure, between the performance of the Underlying Asset and the performance of the investment vehicles that could, under certain circumstances, be material. There is no guarantee that the return of a Performance Tracking Product will completely replicate the return of the Underlying Asset.
Subscription and/or Redemption Limits. Some of the Underlying Assets to which the Performance Tracking Products relate to may set a limit and/or other restrictions to their subscription and/or redemption quota. If the Underlying Asset has such subscription and/or redemption limits and/or restrictions imposed, you may have to wait through several subscription and/or redemption cycles before a subscription and/or redemption request is fully satisfied. For some Performance Tracking Products, subscription and/or repurchase requests that are not accepted in full, or that are only partially accepted, will not roll over to the next subscription and/or redemption date and you will need to re-submit a new subscription and/or redemption request for any unfulfilled portion at the next available subscription and/or redemption date.
Lock-ups. Some of the Underlying Assets to which the Performance Tracking Products relate to have imposed lock-ups. You may not be able to redeem out of the Performance Tracking Products if such lock-ups are in place. In certain circumstances, you may be able to redeem by payment of a fee determined at a certain percentage of the purchase price of the shares/interest being redeemed.
Limited Liquidity. Performance Tracking Products are suitable only for sophisticated investors who have no need for current and immediate liquidity. The Performance Tracking Products provide limited liquidity since redemptions are only periodical. In addition, the Performance Tracking Products are designed primarily for long-term investors who are comfortable with investing in less liquid or illiquid investments.
Leverage and Financing Risk. Certain Underlying Assets and/or investment vehicles may trade on margin, engage in other forms of borrowing to finance their operations and use other forms of financial leverage. Accordingly, an Underlying Assets and/or investment vehicle may pledge its assets in order to borrow additional funds for investment purposes. An Underlying Assets and/or investment vehicle may also leverage its investment returns with options, short sales, swaps, forwards and other derivative instruments. The amount of borrowings which an investment vehicle may have outstanding at any time may be substantial in relation to its capital. While leverage presents opportunities for increasing an investment vehicle’s total return, it also potentially increases losses as well.
Investments in Alternative Assets. Investing in alternative assets involves higher risks than traditional investments including, without limitation, limited liquidity and valuation risk, and is suitable only for investors with sufficient knowledge and sophistication to evaluate the merits and risks of such investments. Alternative investments should not be deemed a complete investment program and distributions are not guaranteed. They may not tax efficient and an investor should consult with their tax advisor prior to investing. Alternative investments often have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain. The value of the investment may fall as well as rise and investors may get back less than they invested - including the risk of loss of the entire investment.
Investments in Private Assets. Some of the Underlying Assets to which the Performance Tracking Products relate to may have significant exposure to and invest in private assets across a variety of industries or sectors. The Underlying Asset’s ability to realize value from an investment in a private asset will depend largely upon successful completion of the company’s initial public offering, success of series financing and/or the sale of the company to another company, which may not occur for a period of several years after the date of the Underlying Asset’s investment, or may not occur at all. There may not be secondary market for the shares of such investment portfolio. Concentration in a specific industry or sector can inherently lead to increased volatility. Investments in companies that comprise private assets at various stages in their development involve a high degree of business and financial risk. The valuation of such private assets may not be transparent as the managers of some investment vehicles may not provide or are unable to provide the entirety of their portfolio or at real time to the investment managers of Underlying Assets. There may not be independent valuation and verification of the net asset value of such private assets. Accordingly, BYBLET may not know the composition of the portfolio with respect to the positions taken, the degrees of hedged or directional positions, or the extent of concentration risk or exposure to specific markets, at any given time. In addition, BYBLET may not learn of significant structural events, such as personnel changes, major asset withdrawals and/or substantial capital growth, until after the fact.
Fund of Funds Structure. Some of the Underlying Assets to which the Performance Tracking Products relate to operate in a fund of fund structure, in that they make downstream investments into other investment vehicles, also in the form of funds. Some of the principal disadvantages and risks inherent in a fund of funds structure are the restrictions imposed on the asset allocation flexibility and risk control capability of the investment manager of the Underlying Asset as a result of the limited liquidity of the investment vehicles. The Underlying Assets may not be able to redeem in time from the investment vehicles after the investment manager of the Underlying Asset determines that the management of the investment vehicles is deviating from the announced trading policies and strategy. Certain investment vehicles may suspend redemptions or withdrawals, especially during periods of market disruption, and such events would adversely affect the redemption process by the Underlying Fund and thereby affecting the redemption of the Performance Tracking Product. The investment manager of the Underlying Asset does not control the managers of the investment vehicles, and there can be no assurances that such manager will manage its investment vehicle in a manner consistent with the Underlying Asset’s investment objectives and strategies.
Multiple layers of fees. You should be aware that there will be multiple levels of fees associated with the subscription of the Performance Tracking Product, especially where a fund of fund structure is involved. The fees and expenses of the Underlying Asset including those charged by the further underlying investment vehicles and/or the distributor or placement agent would normally be deducted in proportions before you receive your PT Return. You acknowledge that you agree and accept any fees and expenses of the Underlying Asset, investment vehicles and/or the distributor or placement agent corresponding to the Performance Tracking Product. Accordingly, these fees and expenses will have an impact on the investment return that you receive in the end.
In-kind distribution. The manner of the payment of the PT Return may be affected by that of the Underlying Assets. The payment of the withdrawal proceeds from the Underlying Asset may, in certain circumstances, be delayed, or may be effected by means of an in-kind distribution of the Underlying Asset. The process may be slow as such proceeds are a distribution of, without limitation, interests in one or more special purpose vehicles holding assets owned by the Underlying Asset and/or the investment vehicles. Only the investment manager of the relevant fund would have control over when and at what price the assets in such vehicles are sold.
Use of Side Pockets. Some of the Underlying Assets and/or investment vehicles to which the Performance Tracking Products relate to may utilize side pockets. Side pockets are created when an investment is designated by the investment manager as being not readily marketable or illiquid. Side pockets are typically valued separately from the general portfolio of an Underlying Asset and/or investment vehicle and once designated, distinct valuation, allocation, redemption and distribution rights are applied. Generally, until a side pocket is realized or becomes readily marketable, it is valued at cost and fees associated with maintaining such side pocket are accrued. Upon redemption or withdrawal from the Underlying Asset or the investment vehicles, distribution of amounts attributable to a side pocket will typically be postponed pending the realization of such side pocket or a determination by the investment manager that such side pocket has become readily marketable. As a result, the management fees and performance fees payable to the investment manager may be calculated based in part on unrealized profits that are not subsequently realized.
Counterparty risk. Any of the Underlying Assets, investment vehicles and their respective service providers (such as prime brokers, administrators or custodians) may fail to comply with its contractual obligations vis-à-vis the Underlying Assets and/or the investment vehicles due to insolvency, bankruptcy or other causes that result in such counterparty not having access to finance and/or sufficient assets at the relevant time. Where such event occurs, an Underlying Asset and/or its investment vehicles could experience delays in liquidating its positions and significant losses, including the loss of that portion of the portfolio financed through such a transaction, a decline in value of its investment during the period in which the Underlying Asset and/or investment vehicle seeks to enforce its rights, an inability to realize any gains on its investment during such period, and fees and expenses incurred in enforcing its rights.
Conflict of Interest. Certain Underlying Assets and/or investment vehicles may be related to BYBLET Group by way of investment, advisory, management, control and/or otherwise affiliated. BYBLET Group may (but not necessarily) have partial (or full) decision-making power in relation to the investment and trading strategies of such Underlying Asset and/or investment vehicles. BYBLET Group may (but not necessarily) receive more revenue and fees from such Underlying Assets and/or investment vehicles than it would receive if BYBLET Group did not invest, advise, manage, control and/or otherwise affiliated with such Underlying Asset and/or investment vehicles. The investment manager of such Underlying Asset and/or investment vehicles therefore has a conflict of interest when the Underlying Asset and/or investment vehicles invests in affiliated funds or investment vehicles.
Extraordinary Events. Mandatory redemption may occur as a result of Extraordinary Events. These events include but are not limited to the resignation of key person or investment manager, NAV suspension, mandatory redemption, merger, initial public offering, delisting, liquidation or insolvency, regulatory actions and investigations, fraud, of or relating to the Underlying Asset and/or the investment vehicles. Where such circumstances arise, BYBLET may take actions as appropriate in its discretion, including but not limited to immediate or imminent redeeming out of and withdrawing from the Underlying Asset before the specified redemption dates, re-select and replace the Underlying Asset, adjust the return calculation methodology and change the payment method.
USDT Depeg. The subscription currency of the Performance Tracking Products may be different from that of the Underlying Assets. In the event of the USDT depeg, the subscription amount of the Performance Tracking Products may increase or decrease without prediction.
Personal Information. In certain circumstances, BYBLET may be required to provide, the Underlying Assets, the relevant distributor or placement agent or any agent of or other person connected with the foregoing, with customer information (including personal data relating to the customer and its beneficial owners and directors) and any documentation upon their reasonable request. You further understand that BYBLET Group BYBLET shall not be liable for any loss which you may suffer as a result of any failure, by the Underlying Assets, the relevant distributor or placement agent or any agent of or other person connected with the foregoing, to comply with its obligations under any applicable personal data privacy legislation.
Absence of Regulation. Certain investment vehicles and their respective managers may be subject to little or no regulation. Moreover, the Underlying Assets generally will have no control over the selection of the custodians, administrators and other service providers of such investment vehicles, which also may be subject to a lesser degree of governmental supervision or regulation than commercial banks, trust companies or securities dealers.
Changes in Applicable Law and Regulatory Environment. The regulation of the securities and futures markets and the digital assets market have undergone substantial change in recent years, and such change is expected to continue for the foreseeable future. In addition, there are substantial regulatory changes pending in certain foreign markets. The effect of such regulatory changes on an Underlying Asset and/or its investment vehicles is impossible to predict and could be material and adverse. Certain changes could reduce the utility of or eliminate altogether certain investment strategies that were previously profitable.
