These disclosures are supplemental to any agreements, terms of business or other documentation you may have in place with any Hidden Road entity (including, but not limited to Hidden Road Partners CIV UK Ltd, Hidden Road Partners CIV (BVI) Limited, Hidden Road Partners CIV (BVI) OTC Ltd, Hidden Road Partners CIV NL B.V., Hidden Road Partners CIV SG PTE Ltd, Hidden Road Partners CIV (BR) LTDA, Hidden Road Partners CIV US OTC LLC and Hidden Road Partners CIV US LLC (collectively “Hidden Road,” “us,” the “Group”)) and may be amended or supplemented by additional disclosures from time to time and are intended for use by professional clients and eligible counterparties. Defined terms used but not defined herein have the meanings ascribed to them in the Terms.
These disclosures contain information about certain designated instruments/transactions, including guidance on and warnings of the risk associated with such instruments/transactions. They are provided to assist you in understanding the nature and risks of the service and of the specific type of instrument/transaction being offered and, consequently, to be able to take decisions on such instruments/transactions on an informed basis.
Notwithstanding the foregoing, these notices are non-exhaustive, do not set out all risks arising in relation to all instruments/transactions and services we may offer and should not be relied upon as doing so. You should refrain from entering into transactions unless you fully understand their nature and the extent of your exposure to risk and potential loss and you should be satisfied that such instruments/transactions are appropriate and suitable for you in light of your own circumstances and financial position and where there is any doubt, you should seek professional advice. Applicable law allows us to deem professional clients, eligible counterparties and eligible contract participants as having the necessary knowledge and experience to understand the risks in the services provided to you or transactions entered into with you. As such, services, activities and transactions offered will be deemed to be appropriate for you.
By providing instructions to us after receipt of this notice, you will be taken to have acknowledged and accepted that you have been properly notified by Hidden Road of the risks listed herein and you acknowledge and accept that any one or more of these risks could lead to loss which could, in certain circumstances, exceed the initial value of your instrument/transaction and capital.
All financial products carry a degree of risk and even low-risk strategies contain an element of uncertainty. Prices may fluctuate and there is a risk that you may lose some or all the value of your instrument/transaction. The types of risk involved may depend on various factors, including how the product is structured, the counterparty you are facing and the terms upon which you transact.
The nature of instrument/transaction risk varies with, amongst other things, the type of instrument/transaction, the location or domicile of the issuer, the diversification or concentration in a portfolio, the complexity of the transaction and/or the use of leverage. The price or value of an instrument/a transaction will depend on fluctuations in the financial markets and current performance, past performance or forecast performance are not a reliable indicator of future performance.
Types of risk that may impact the value of the instrument/transaction include, without limitation, liquidity risk, market risk, insolvency risk, credit risk, settlement risk, currency risk, operational risk, business risk, tax risk, regulatory risk, legal risk, interest rate risk, risks relating to margin requirements or leverage and/or risks related to “over the counter” derivatives (“OTC Derivatives”). Risks may occur simultaneously and may have an unpredictable effect on the value of the instrument/transaction.
Different instruments/transactions involve different levels of exposure to risk. In deciding whether to engage in such instruments/transactions, you should be aware of the following areas.
Instruments/Transactions denominated in currencies other than your base currency carry the risk of exchange rate movements. The profit or loss in transactions involving foreign currency-denominated contracts will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of a contract to another currency.
The weakening of a country’s currency relative to a benchmark currency will negatively affect the value of an instrument/a transaction denominated in that currency. Currency valuations are linked to a host of economic, social and political factors and can fluctuate significantly, even during intra-day trading. Some countries have foreign exchange controls which may include the suspension of the ability to exchange or transfer currency, or the devaluation of currency.
Derivatives are financial instruments whose characteristics and value depend upon the characteristics and value of an underlying asset (e.g., bond, equity, commodity) or an index (e.g., equity, interest rate). OTC derivatives include options, forwards and swaps.
In general, OTC derivatives can involve the following risk:
There may be special risks associated with transactions in securities or financial products related to or linked to issuers and obligors established under the laws of, based or principally engaged in, business in emerging markets countries. Emerging markets countries include all countries where financial markets are less well developed than those in countries such as those of the OECD.
The risks associated with emerging markets instruments/transactions may arise as a result of political and economic uncertainties which tend to be greater than those in OECD countries. Many emerging markets do not have fully developed or clear legal, judicial, regulatory or settlement infrastructure. Accounting standards may differ significantly. Liquidity within the markets may be far lower and less transparent than OECD countries. The foregoing is not intended to be an exhaustive list of risks arising from entering transactions in emerging markets.
Transactions in emerging markets should only be made by investors with the experience to understand the special risks and sufficient resources to bear the losses that may be incurred in such markets. Prior to entering into transactions in emerging markets, you should ensure that you fully understand the nature of the transaction, the terms governing the transaction and the extent of your exposure and risk of loss.
There may also be special risks associated with transactions in, linked to or related to digital assets in particular:
Pursuant to current relevant regulations, digital assets and any associated activities within the United Kingdom do not fall within the scope of the Financial Ombudsman Service and will not benefit from the Financial Services Compensation Scheme.