Risk Disclosure & Investment Warning

I. Crypto assets risks disclosure

Crypto asset services carry a high degree of risk and are not right for everyone. By entering into the Customer Agreement you confirm that you have read, understood and accepted the risks set out below. Nebeus does not guarantee the value, performance or liquidity of any crypto asset, and you remain responsible for your own choices, including meeting any legal and tax obligations that apply to you.

1. Financial risks

• Market risk: Crypto asset prices can move sharply and without warning, in either direction. Significant value may be lost over very short periods, up to and including everything you hold, and the way an asset has behaved in the past is not a reliable guide to how it will behave in future.
• Liquidity and price formation: Crypto asset prices are set outside the safeguards that apply to regulated securities markets, and market depth can be thin. When conditions are stressed you may be unable to sell, exchange or move an asset quickly, at a reasonable price, or at all, and large coordinated orders by other users can shift prices abruptly.
• No guarantee of returns: These services are speculative by nature. Nebeus promises no profit, yield, capital preservation or redeemability, and nothing made available should be read as a forecast of future value.
• Issuer and counterparty risk: Some crypto assets depend on a third party issuer or backer, and your orders are passed to third party venues to be completed. If any such party defaults, becomes insolvent or fails to perform, the value, redemption or settlement of your transaction may be affected and you may lose money.
• Tax risk: How crypto assets are taxed differs between countries and can change without notice. Working out, declaring and paying any tax due is your responsibility. Nebeus may itself be required by law to withhold amounts or report information to the tax authorities.

2. Security and operational risks

• Cybersecurity and fraud: Even with strong controls in place, no platform can be made wholly immune to intrusion, phishing, impersonation or malicious software, and unauthorised access to an account may allow crypto assets to be moved. Keeping your credentials and authentication factors (including two factor authentication) secret and well managed is your responsibility. Losing or exposing them can mean losing access to, or losing, your crypto assets.
• Custody and wallet risk: Nebeus holds crypto assets in omnibus custody, allocating a deposit address to each client, keeps them segregated from its own assets and does not use them for its own account. Where your crypto assets sit in Nebeus controlled wallets and you do not hold the private keys, your rights are those set out in the Customer Agreement and the Crypto Asset Custody and Administration Policy. Nebeus answers for the loss of client crypto assets, or of the means of accessing them, where the loss results from an incident attributable to Nebeus. Other residual risks remain, including those connected to any authorised subcustodian.
• Operational and technology risk: Software defects, outages, maintenance or other technical failures may at times interrupt the platform and affect your ability to sign in, have an order transmitted, or withdraw your crypto assets.

3. Crypto specific and regulatory risks

• Not legal tender, no public safety net: Crypto assets are not legal tender, are not money and carry no central bank backing, and no one is obliged to accept them. Neither your crypto assets nor any related funds are protected by deposit guarantee or investor compensation schemes in the EEA.
• Blockchain and consensus risk: Crypto assets run on distributed ledger networks that Nebeus neither owns nor controls and that are still maturing. Forks, protocol defects, failed or attacked consensus, congestion, or a project simply being abandoned can all affect whether an asset can be used or transferred, and may lead to loss.
• Transfers are irreversible: Once executed, a crypto asset transfer generally cannot be undone. Sending to a wrong, incompatible or third party address, or to one you do not control, can result in permanent loss. Some transfers require originator and beneficiary information to be collected and passed on. If that information is missing or inaccurate, a transfer may be delayed or refused.
• E money tokens, stablecoins and asset backed tokens: A token that claims to track a currency or asset is only as dependable as the issuer standing behind it. Its value is not guaranteed and may drift from its reference. Reserves may prove insufficient, poorly managed or inadequately disclosed, and such tokens are subject to issuer, reserve and redemption risk and to the MiCA regime, so one may be restricted or delisted.
• Regulatory risk: The rules that apply to crypto assets are still taking shape. New laws, changes in how existing rules are interpreted, or supervisory action may limit, suspend or otherwise affect whether particular crypto assets or services remain available, transferable, lawful or valuable.
• Jurisdictional restrictions: The services are not offered in every country (see the Supported Countries for this platform). Making sure that your use of them is lawful where you are located is your responsibility.

4. General disclaimers

• Not advice: Nothing Nebeus provides is investment, legal, tax or accounting advice, and making a service available is not a personal recommendation. Any decision to buy, hold, sell or move crypto assets is yours alone. Seek professional advice where you need it.
• Conflicts of interest: Nebeus identifies, prevents, manages and discloses conflicts of interest according to its conflicts of interest policy.
• Complaints: If something is not right, you may complain to Nebeus under its complaints handling procedure. Please see the Nebeus complaints page.
• Policies and further information: Further detail is set out in the Terms of Use, the Crypto Asset Custody and Administration Policy, and our fee schedule.

This disclosure does not describe every risk associated with crypto assets. Do not use crypto asset services with money you cannot afford to lose.

II. High risk investment warning

At Nebeus, we want to ensure that all investors understand the risks associated with the investments offered. Please carefully review the following information before making any investment decisions.

1. You could lose all the money you invest

Investing carries inherent risks. The value of your investment may fluctuate significantly, which can result in substantial losses, including the potential to lose the entire amount you have invested. This is particularly true for volatile markets or speculative investments, where rapid changes in value are common.

Key takeaway: Be prepared for the possibility of losing your entire investment.

2. No expectation of compensation or protection

Nebeus investments may not qualify for protection under compensation schemes like FOGAIN. If the company fails, or the investment does not perform as expected, your ability to recover lost funds could be extremely limited. Regulatory compensation schemes and investor protections may not cover high risk or speculative investments, and any recourse may be available only in specific, limited cases.

Key takeaway: You may not be covered by compensation schemes if something goes wrong with your investment.

3. Liquidity risks: selling your investment may be difficult

You may encounter difficulties when attempting to sell or exit your investment, particularly in volatile markets or due to operational or technical issues. Delays may result from market demand fluctuations, cyberattacks, outages, or other technical failures. As a result, you might not be able to sell your assets at the desired time or price.

Key takeaway: Liquidity risks could prevent you from selling your investment when you want.

4. Complexity of Nebeus investments

Investments offered by Nebeus may involve complex financial products. These investments often require a comprehensive understanding of market operations, which can make it difficult to fully assess the associated risks. If you are unfamiliar with the market or the product, it is crucial to research extensively or consult with a financial advisor.

Key takeaway: Nebeus investments can be complex, and it is essential to thoroughly understand them before investing.

5. Diversification is key: don't put all your eggs in one basket

Focusing your funds on a single investment or high risk products exposes you to heightened risk. Spreading your investments across different asset classes can reduce overall risk. We recommend limiting your exposure to high risk investments to no more than 10% of your overall portfolio.

Key takeaway: Diversifying your investments helps manage risk and protect against significant losses.

Investing in high risk products, like those offered by Nebeus, requires a solid understanding of both the opportunities and the associated risks. Always ensure that you are informed and prepared for the potential outcomes before proceeding.

For more personalised advice, consider consulting with a qualified financial advisor.