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Blockchain Stocks Risk Disclosure

The below list of disclosures is not exhaustive.

Holders of Blockchain Stocks do not have ownership in any of the underlying stock or shares of the companies to which they are economically linked ("underlying stock"); instead, by purchasing Blockchain Stocks investors can benefit from exposure to the performance of the underlying stock. Holders of Blockchain Stocks have no voting rights, or distribution entitlements, or legal claims to the underlying stocks or any residual assets in the event of the underlying company’s liquidation. An investment in the Blockchain Stocks does not entitle holders to receive any information from the respective issuer or sponsor of the underlying stocks or shares.

Blockchain Stocks are traded via tokens on the Blockchain Stock Exchange trading platform. Blockchain Stock tokens use the underlying stock asset which is rented to investors by the stock owners “Stakers”. The Stakers, in exchange for the staking service, receive a reward that is determined by the supply and demand of the Blockchain Stock. Stakers also bear regulatory obligations on their holdings, in compliance with applicable laws and regulations in their geographic location.

All investments in Blockchain Stocks are subject to fees and taxes for applicable regulatory requirements and reward costs paid to Stakers. Consequently, the return on Blockchain Stocks will not be identical to the potential return generated by directly holding the underlying stock or shares of the same company during the same period. Fees, taxes, and rewards are netted against the Blockchain Stock Price to provide a net asset value.

Investment in Blockchain Stocks involves a high degree of risk and may result in the total loss of invested capital. Blockchain Stocks are a highly speculative investment and are highly reliant on technology. Blockchain Stocks are complex products which are difficult to understand and may not be suitable for inexperienced investors.

BY INVESTING IN Blockchain Stocks, YOU CAN LOSE YOUR ENTIRE INVESTMENT. You should not invest money that you cannot afford to lose. You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade.

When investing in Blockchain Stocks, it is your responsibility:

  • To familiarize yourself with the specific features of Blockchain Stock Exchange’s Blockchain Stocks product before you start trading.
  • Not to invest more than you can afford to lose.

By investing in Blockchain Stocks, you acknowledge that you have understood the associated risks and that you accept, in addition to all of the risks outlined in the Base Prospectus and Final Terms for the issuance linked at the top of this page, also the following:

Investing in Blockchain Stocks exposes you to market risks associated with the underlying companies (i.e., the company whose shares your Blockchain Stocks represent), such as market volatility, financial performance, corporate actions, regulatory developments, and economic conditions.

Investing in Blockchain Stocks exposes you to the financial and operational risks of Blockchain Stock Exchange itself as the broker and initial custodian of your investment, which include risks related to the creditworthiness, operational and technology related risks, and solvency of Blockchain Stock Exchange, and which exist irrespective of the performance of the underlying companies.

Investing in Blockchain Stocks exposes you to liquidity risk, which is the risk that you suffer a loss because you cannot liquidate your investment at the moment you wish to because there is insufficient purchase demand.

Investing in Blockchain Stocks exposes you to platform parameters risk, which is the risk that you suffer a loss because Blockchain Stock Exchange had to change parameters on the platform which affects Blockchain Stocks.

Investing in Blockchain Stocks exposes you to operational risk, which is the risk that you suffer a loss because of a malfunction of the platform, for example resulting from scheduled or unscheduled downtimes, matching system failure, database failure, cryptocurrency transfer or storage failure, failure or malfunction of the API, hacker attacks or other failure or malfunction.

Investing in Blockchain Stocks exposes you to regulatory risk, which is the risk that you suffer a loss because Blockchain Stock Exchange has to restrict or terminate elements of our service in response to regulatory action against us or the Issuer.

Investing in Blockchain Stocks also exposes you to the financial and operational risks of Stakers and owners, which include risks related to creditworthiness, operational and technology related risks, and solvency, and which exist irrespective of the performance of the underlying companies.

Staked Stock and its corresponding Blockchain stock is also exposed to the credit risks of the various counterparties with which it transacts and the failure of such counterparties to fulfill their respective obligations. This includes the credit risks of depositary institutions that hold cash, crypto and securities. This credit risk includes the possibility that the depositary institution holding a financial instrument (cash, crypto or securities) will fail to fulfil an obligation or commitment. Any insolvency of such depositary institution may result in delayed or impossible access to the underlying stocks, including those serving as collateral for any Blockchain Stocks. In such an event, you may face a partial or total loss of your invested capital.

Blockchain Stocks FAQs

Who can invest in Blockchain Stocks?

Blockchain Stocks are only available to retail clients in select countries. We will update the select countries here.

What are Blockchain Stocks?

Blockchain Stocks are tokenized representations of real-world U.S. stocks and ETFs. Each Blockchain Stock is backed 1:1 by the underlying stock.

Is an investment in Blockchain Stocks the same as an investment in equities?

No. An investment in Blockchain Stocks is not the same as a direct equity investment in any of the underlying stock or companies to which they are economically linked; instead, Blockchain Stocks provide exposure to the value of those stocks and shares. Holders of Blockchain Stocks have no voting rights and no legal claims to the underlying company shares or any residual assets in the event of the underlying company’s liquidation. An investment in Blockchain Stocks does not entitle holders to receive any information from the respective issuer or sponsor of the underlying stocks or shares.

The respective issuer or sponsor of the underlying stocks is not involved in the offer and sale of the Blockchain Stocks and is under no obligation to you. Blockchain Stocks are therefore not sponsored, supported or promoted in any way by the respective issuer or sponsor of the underlying stocks, and the respective issuer or sponsor of the underlying stocks may take actions with respect to the underlying stocks without taking into account the interests of any holder of Blockchain Stocks. Holders of Blockchain Stocks will be unlikely to have any opportunity to influence decisions affecting the underlying stocks.

All investments in Blockchain Stocks are subject to fees and taxes by the Staker. Consequently, the return on Blockchain Stocks will not reflect the potential return of actual ownership of the underlying stock or shares of companies if held during the same period.

What stocks and ETFs are available as Blockchain Stocks?

At launch, Blockchain Stock Exchange will offer around 60 assets.

What’s the minimum investment for Blockchain Stocks?

Clients can purchase fractional shares, with investments starting as low as $1.00 USDC.

Are there any trading fees?

The purchase price for all Blockchain Stocks occurs at Net Asset Value after costs for renting and applicable regulatory fees and taxes. Clients can use crypto, stablecoins, or fiat to purchase Blockchain Stocks. For clients purchasing Blockchain Stocks with all crypto or fiat other than USDG or USD, standard Instant Buy/Sell fees apply. Clients purchasing Blockchain Stocks with USDG or USD will not incur any additional fees.

Can I trade Blockchain Stocks 24/7?

Blockchain Stocks can be traded 24/5, during traditional market hours. Orders will be taken during non-market hours and will be in pending status until the order is processed.

Does Blockchain Stock Exchange maintain custody of the underlying stocks?

No. The underlying stocks are maintained in depositary institutions in accordance with a custody agreement with Stakers to which Blockchain Stock Exchange is not a party.

Can I withdraw Blockchain Stocks to a self-hosted wallet?

No. The Blockchain Stock Exchange is currently the only platform on which you can manage Blockchain Stocks.

How do I fund my account to buy Blockchain Stocks?

You can buy Blockchain Stocks using fiat, crypto, or stablecoins.

Do I receive dividends from Blockchain Stocks?

Dividend payouts will be automatically reinvested into more of the same token. Rather than receiving a cash dividend, your Blockchain Stocks balance will increase to reflect the dividend.

Does Blockchain Stock Exchange provide investment advice?

No. Blockchain Stock Exchange does not provide investment advice and none of the materials on our website nor any of our correspondence with you may be interpreted as investment advice. If you are not sure if an investment in Blockchain Stocks is the right investment for you, you should seek independent financial and/or tax advice.

Is Blockchain Stock Exchange obliged to accept my orders?

Blockchain Stock Exchange reserves the right to refuse an offer to trade via the platform at our sole discretion. Blockchain Stock Exchange also reserves the right to cancel a previously accepted offer at our sole discretion or to roll back trades we deem to have happened erroneously.

How much money can I lose?

By trading Blockchain Stocks, you can lose your entire investment, which means the total amount you’ve invested in any particular Stock you purchase. However, you cannot lose more than that.

When can I redeem my Blockchain Stocks?

Token holders may redeem their Blockchain Stocks for USD, crypto, or stablecoins directly on the Blockchain Stock Exchange platform. Remember, all investments in Blockchain Stocks are subject to fees and taxes. Consequently, the value of your Blockchain Stocks at redemption may be less than the potential return of actual ownership of the underlying stock or shares of companies held during the same period.

Limitations on Blockchain Stock Exchange's Liability

Blockchain Stock Exchange shall not be responsible to the extent permitted by law for any errors or omissions in the calculation of any amount or with respect to any other determination or decisions required to be made with respect to Blockchain Stocks. Blockchain Stock Exchange shall not be liable for fraud, theft, cyber-attacks, drastic changes in regulation or any analogous or similar event. In no event shall Blockchain Stock Exchange have any liability for indirect, incidental, consequential or other damages (even if it was advised of the possibility of such damages). You would only be entitled to damages (if any) and are not entitled to the remedy of specific performance in respect of a Blockchain Stock.

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DISCLAIMER

Blockchain Stocks are not nor will be registered with any local securities regulators. Blockchain Stock Exchange (BSE) does not provide investment advice and/or recommendations, and, no communication, through any App or website or otherwise, should be construed as such. Individual investors should make their own decisions or seek professional independent advice if they are unsure as to the suitability / appropriateness of any investment for their circumstances or needs, including potential tax treatment. Investing in Blockchain Stocks involves an element of risk. The value of an investment may go down as well as up, and past performance is not a reliable indicator of future results. Not available in the U.S. or to U.S. persons. Geo restrictions apply. Read BSE's Blockchain Stocks Risk Disclosure as well as the Base Prospectus and related Final Terms for Blockchain Stocks to learn more.

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