To assist your understanding of the risks associated with trading Virtual Assets, Tiger Fintech (NZ) Limited (TFNZ, us, or we) has prepared this Risk Disclosure Statement for Virtual Asset Trading (the Disclosure Statement). Virtual Assets, also referred to as crypto assets or digital assets, are digital representations of value that are not issued or guaranteed by a central bank or public authority and do not possess the legal status of currency or money.
Virtual Asset trading is highly speculative, volatile, and subject to significant risk. Trading in Virtual Assets is not suitable for all investors. You should only trade in Virtual Assets if you fully understand the nature of these products, the extent to which these transactions expose you to risk, and whether they are appropriate for you considering your experience, objectives, financial resources, risk tolerance, and other relevant factors.
This Disclosure Statement forms part of and must be read in conjunction with the TFNZ Client Services Agreement (“CSA”). The terms of the CSA, including all risk acknowledgements, obligations, and liability limitations, apply with necessary modifications to all Virtual Asset trading activities, facilities, and services provided by TFNZ. For the purposes of this Disclosure Statement and all related trading activities and custody arrangements, any reference in the CSA to “Financial Product” shall be deemed to include a Virtual Asset. In the event of any inconsistency or conflict in terms, the Disclosure Statement shall prevail.
This Disclosure Statement provides an introductory explanation of the risks you may face when trading Virtual Assets. It does not provide an exhaustive list of all possible risks. If you are in any doubt, you should seek independent professional advice.
General Risks of Trading Virtual Assets
You should be aware that the risk of investment losses when trading Virtual Assets can be substantial and, in some cases, may exceed the total amount of funds you have invested. Virtual Assets can exhibit extreme price fluctuations over short periods, and it is common to experience substantial and sudden losses.
You should carefully read and understand the applicable terms and conditions, contracts, rules, and relevant responsibilities before you decide to trade in Virtual Assets.
You should be particularly aware of the following:
Loss of Investment
Virtual Asset prices are highly volatile and can fluctuate significantly within short periods. You may incur losses beyond the equity that you invested with us to establish or maintain your margin requirements, and may be obliged to settle any resulting shortfalls by making additional deposits or payments to us.
Automatic Liquidation
You should understand that we may liquidate your Virtual Asset positions or any assets held in your margin account (where applicable) in accordance with our internal risk control policy and applicable laws, rules, or regulatory directions, as amended or supplemented from time to time. We will generally close positions automatically if you fail to comply with our margin requirements and may do so as soon as your account is in deficit. While we may notify you if a deficit arises, we are not obliged to give you an opportunity to deposit further assets to rectify the margin deficit.
Non-Transferability and No Third-Party Withdrawals
Virtual Assets acquired, held, or traded through TFNZ are non-transferable to third parties or external wallets. You acknowledge and agree that:
· Virtual Assets are held and dealt with exclusively within TFNZ’s platform or through arrangements with TFNZ’s appointed custodians and licensed Virtual Asset trading platform(s).
· You may not withdraw, transfer, assign, gift, or otherwise dispose of any Virtual Asset held within your TFNZ account to any third party, external address, wallet, or platform.
· You may only buy, sell, or otherwise deal in such Virtual Assets through services expressly provided by TFNZ.
· TFNZ does not facilitate or permit transfers, withdrawals, or off-platform movements of Virtual Assets except where explicitly authorised by TFNZ in writing or required by applicable law.
Irreversible Transactions and Operational Risks
Virtual Asset transactions may be irreversible once confirmed. Losses resulting from accidental or fraudulent transactions may not be recoverable. The technology underpinning Virtual Assets, including blockchain and digital wallets, is complex and may be subject to malfunction, cyberattacks, or operational errors that prevent access to your assets or execution of transactions.
Market Collapse and Liquidity Risk
The value of a Virtual Asset may depend entirely on the continued willingness of market participants to trade it for fiat currency or other Virtual Assets. If market participants lose confidence, the value of a Virtual Asset may collapse completely and permanently. Virtual Asset markets may also experience limited liquidity, making it difficult or impossible to buy, sell, or convert assets at desired prices, especially during periods of market stress or disruption.
Electronic Trading and System Outages
Electronic trading facilities are supported by computer-based systems for order-routing, execution, matching, registration, or clearing of trades. Trading on one electronic trading system may differ from trading on other electronic trading systems. You are required to take reasonable and effective protective measures when using these systems, which may be subject to failure or temporary disruption. If a system fails or is interrupted for any reason, we may be unable to execute all or part of your order. Your ability to recover certain losses in these circumstances might be restricted by the system provider, exchange, market, clearing house, participant firms, or other relevant parties.
Common examples of disruption include fire, technology interruption, or other exchange emergencies. The exchange could suspend trading or cancel transactions under its operating rules. Technical failures or outages of trading platforms, exchanges, or blockchain networks may result in delays, inability to execute trades, or loss of access to your Virtual Assets.
TFNZ is not responsible for losses arising from any such events beyond its reasonable control.
Regulatory, Legislative, and Tax Risks
Laws and regulations regarding Virtual Assets are evolving rapidly in New Zealand and globally. Regulatory or legislative changes may impact the legality, availability, use, transfer, taxation, or value of Virtual Assets. It is your responsibility to understand and comply with all applicable legal, regulatory, and tax obligations related to Virtual Asset trading.
Virtual Asset trading is not regulated under the Financial Markets Conduct Act 2013 and may not be subject to the same protections applicable to Financial Products in New Zealand. TFNZ relies on third-party licensed Virtual Asset Trading Platforms in foreign jurisdictions (e.g., Hong Kong) for execution and custody services.
TFNZ does not provide legal or tax advice. You should obtain independent legal and tax advice regarding your specific circumstances.
Counterparty Risk
Where Virtual Asset transactions involve third parties, including exchanges, custodians, or counterparties, you may be exposed to their credit and operational risks. A failure by a counterparty to meet its obligations may result in financial loss, delays in transactions, or loss of access to your assets. Virtual Assets held on your behalf are held in custody with third-party licensed Virtual Asset Trading Platforms appointed by TFNZ. TFNZ itself does not maintain direct control over the private keys securing these assets.
Price Manipulation and Fraud Risk
Virtual Asset markets may be vulnerable to manipulation, fraud, and deceptive practices due to limited regulatory oversight in some jurisdictions and the decentralised nature of these markets. Market manipulation may significantly distort prices and increase your risk of loss.
Market Emergencies and Disruption
You may incur losses during market emergencies or disruptions caused by matters outside TFNZ’s control. A regulatory authority may suspend trading or alter the price at which a position is settled. A disruption may mean you are unable to trade when desired and may suffer loss as a result. TFNZ is not responsible for such losses.
General Disclaimer
All investments involve risks and uncertainties. Historical data for any Virtual Asset or financial product does not guarantee future performance. Diversification may reduce risk but cannot prevent losses in a declining market.
You need to consider your own investment objectives and risk tolerance before investing. By investing in Virtual Assets, you confirm that you have read, understood, and accepted the contents of this disclaimer, and that you agree to assume all risks involved in your investment. TFNZ does not accept any responsibility for losses arising from your investment decisions.
TFNZ and its affiliates endeavour to ensure the accuracy, reliability, and sufficiency of the information provided but do not guarantee it. All data and content are for reference only. You must independently assess the accuracy and relevance of any market data or information presented. TFNZ is not responsible for losses caused by any inaccuracies, omissions, or your reliance on such information.
To the maximum extent permitted by law, TFNZ is not liable for any loss or damage resulting from the use or inability to use its products, including but not limited to personal injury, loss of business profits, data loss, or other economic loss.
Exemption of Liability for User Negligence or Breach
TFNZ may amend this disclaimer at any time, with changes taking effect immediately upon publication. Continued use of TFNZ’s products constitutes your acceptance of the amended terms. TFNZ is not liable if you fail to read, understand, or accept the modified terms.
You are responsible for understanding the functions of TFNZ’s products and how to operate them. You voluntarily choose to use our services based on your own needs. TFNZ will not be responsible for any loss caused by your negligence or operational errors.