Cryptocurrency CFD Risk Disclosure

CFDs on cryptocurrencies, including but not limited to Bitcoin and Ethereum, are very high-risk investments and are not suitable for all investors. Cryptocurrencies — and therefore cryptocurrency CFDs — are subject to extreme price volatility.

Trading cryptocurrency CFDs should only be undertaken by experienced and sophisticated investors who fully understand the risks involved and are prepared to lose their entire investment. Cryptocurrencies have no intrinsic value and may become worthless. Cryptocurrency CFDs are derivative instruments and do not grant investors any ownership rights to the underlying cryptocurrencies.

If you are not prepared to accept these risks and the conditions outlined below, you should not trade cryptocurrency CFDs.

Cryptocurrencies, including Bitcoin and Ethereum, as well as the blockchain industry as a whole, are subject to a high degree of uncertainty. Investors in cryptocurrency CFDs face additional risks that do not apply to traditional financial instruments. The risks described below are not exhaustive.

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Extreme Market Risk

Cryptocurrencies are subject to extreme price volatility, as demonstrated by significant daily price fluctuations since their inception. Although the prices of some cryptocurrencies increased sharply in certain periods, they have also experienced severe crashes. For example, Bitcoin has previously lost up to 80% of its value in a single day.

Cryptocurrency markets operate 24/7 and do not close, meaning sudden and substantial price movements can occur at any time. Many market commentators have warned that price increases in cryptocurrencies may represent speculative bubbles.

ALTERNATIVES BROKER SCHWEIZ, at its sole and absolute discretion, may suspend trading in cryptocurrency CFDs. During such suspension, investors may be unable to open or close positions. When trading resumes, cryptocurrency prices may have changed significantly.

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Alternative Investment Risk

Cryptocurrencies are virtual assets considered novel and experimental compared to traditional investments. They lack a long-term performance history and remain in an early developmental stage.

Although Bitcoin is currently the most widely adopted cryptocurrency, technological advancements or innovations by competing cryptocurrencies may reduce or eliminate its dominance. Unexpected events may therefore result in sudden and substantial impacts on cryptocurrency prices.

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Regulatory Risk

Cryptocurrencies operate as alternatives to government-issued fiat currencies. Due to their decentralised and, in some cases, anonymous nature, cryptocurrencies may be used to facilitate money laundering or other illegal activities.

As a result, governments and regulatory authorities may seek to regulate, restrict, or prohibit the use, trading, or ownership of cryptocurrencies. Some jurisdictions have already implemented such measures. Any regulatory action may have a material adverse effect on the value of cryptocurrencies and cryptocurrency CFDs.

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Cryptocurrency Exchanges Risk

Prices for cryptocurrency CFDs offered by ALTERNATIVES BROKER SCHWEIZ are provided by its liquidity providers, who source pricing data from multiple cryptocurrency exchanges.

Cryptocurrency exchanges are fully digital platforms and are exposed to risks such as:

• hacking and cyberattacks,

• malware,

• system failures and operational disruptions.

If a cryptocurrency exchange is compromised or becomes unavailable, there is typically no central authority to resolve disputes, and cryptocurrency transactions are generally irreversible.

Exchange outages, hacking incidents, or imposed restrictions on funding and withdrawals may affect the value of cryptocurrency CFDs. In such circumstances, ALTERNATIVES BROKER SCHWEIZ may restrict or suspend the ability to open or close cryptocurrency CFD positions.

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Blockchain Fork Risk

Each cryptocurrency operates on a decentralised ledger known as a blockchain, which records all transactions. If participants in the network (known as “miners”) disagree on software rules, a fork may occur, resulting in two separate blockchains.

In most cases, consensus is reached quickly and disruption is limited. However, in the case of a hard fork, where both blockchains continue to exist, ALTERNATIVES BROKER SCHWEIZ will determine, at its sole and absolute discretion, which blockchain and corresponding cryptocurrency unit will be supported.

Hard forks may result in significant price volatility. If a hard fork creates a viable secondary cryptocurrency, ALTERNATIVES BROKER SCHWEIZ may, but is not obligated to, reflect such changes by creating an equivalent position on a client’s account.

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Closing-Only Trading

At any time, ALTERNATIVES BROKER SCHWEIZ may, at its sole and absolute discretion, restrict cryptocurrency CFD trading to “Closing Only” mode.

When trading is set to Closing Only:

• no new cryptocurrency CFD positions may be opened;

• existing positions may only be maintained or closed.

This restriction may be applied without prior notice or justification and may be implemented to ensure compliance with internal risk management limits or market conditions.