These risk disclosures should be read in conjunction with the Terms and Conditions of the Application and/or the Specific Terms (Crypto T&Cs, Trading T&Cs, Modulr T&Cs, etc). The terms defined therein have the same meaning herein.
Investor risk
The financial instruments and digital assets, offered respectively by Shares Financial Assets and Shares Digital Assets (together “the Products”) can be purchased and held by any individual resident in a country where the Application and the Services are available. However, investors must first ensure that the investment in these products is suitable for their financial situation and investment objectives. Furthermore, it is recalled that in the interest of investment diversification, it is generally recommended to individual investors that the portion of their wealth invested in risky assets (like digital assets) represents only a minor part of the total value of said wealth.
Risk of capital loss
The price of the Products constantly fluctuates according to the relative amounts of demand for buying and selling on marketplaces. The greater the upward and downward movement in the price of a Product, the greater the volatility. This volatility is positively associated with the expectation of gain and negatively associated with the risk of capital loss. Making transactions involves a high degree of risk of capital loss up to the full value of the purchase or exchange of the Product.
Regulatory risk
The legal and regulatory status of the Products may not be clearly defined or may not exist at all depending on the jurisdiction in which a Customer is located. It is the Customer's responsibility to ascertain the extent to which the purchase, sale or exchange of the Products is permitted under the regulations of the Customer's country of residence.
Volatility risk
The value of all Products can change rapidly. Customers should be aware of their exposure to different Products and that their exposure may be potentially impacted by sudden and unpredictable price changes that would affect their Transactions.
Tax risk
The tax status of certain Products may be undetermined in the jurisdiction in which the Customer is located. This implies that the Customer must verify, under his sole responsibility, the obligation to declare the possession, purchase,sale or exchange, and if required, the payment of taxes and duties on Products to the tax authorities.
Risks related to digital assets
The following is a list of some of the many risks inherent to the use of digital assets:
- Risk of hacking a blockchain,
- Risks inherent to digital assets such as coding errors, counterparty risk, etc,
- Risk of hacking of a digital asset marketplace,
- Risk of access problems of any kind between Shares Digital Assets and the partner Digital Assets Marketplace, including loss of internet connection,
- Risk of temporary or permanent shutdown of a digital asset marketplaces or blockchains,,
- Unforeseen risks due to the young age and experimental nature of the technologies used.
Currency risk
Where your Instruments are denominated in currencies other than the default currency of your securities Account (e.g. USD when your account is in EUR), fluctuations in exchange rates may affect your profits and losses from your transactions in such Investments.
Liquidity risk
The Investments in Products made via the Application are all admitted to trading on marketplaces, and in the event that you wish to sell your Investments, a corresponding buyer of those Investments must be found in the underlying market. Whilst certain Investments can be very liquid, you should be aware that others, such as Investments with smaller capitalisation, can be less liquid and it is not guaranteed that there will be a buyer for your Investments. Therefore, you may not be able to realise your investment or realise it at its actual market value. In some circumstances, such as instances of market volatility or where trading in a particular Investment or on a particular underlying market has been suspended or otherwise restricted, it may not be possible to find a buyer for your Investments, meaning you will not be able to liquidate your Positions.
If you close your User account, all Positions in Investments will need to be sold via the Application.
Risks related to securities sub-custody by a foreign custodian (via omnibus account)
You may not be able, in this configuration, to benefit from the rights of recovery that you may have for securities registered directly with Shares.
Risk of User Account hacking
Account hacking refers to a malicious individual taking control of your account to the detriment of its legitimate owner. The Customer is warned of this risk and is recommended to follow the security procedures for the Customer account proposed by Shares.
Risk of digital identity theft
Shares is susceptible to identity theft as a company. Customers may be victims of fraud by third parties posing as Shares. Customers are responsible for verifying that they are using our Application.
Risk Associated with Investments in Complex Products
Complex products, such as ETCs and structured products, involve specific risks that must be understood before investing.
- ETCs: The value depends on the performance of the underlying commodities, which can fluctuate significantly over long periods. Currency hedging may be imperfect, and this product does not provide protection against market risks. In the event the issuer is unable to meet its obligations, you may lose some or all of your investment.
- Structured products: These products have complex mechanisms and specific conditions for returns or repayment, which may lead to partial or total loss of capital depending on the performance of the underlying assets or market conditions.
Investors should review the regulatory documents for a detailed description of the risks and ensure these products align with their financial situation and objectives.
