You are advised to read the following risk disclosure statement carefully.
These risk disclosure statements are not and are not intended to be a complete list of all the risks and considerations relevant to any investments,transactions or services provided,or your decision to invest in such products.
You must be aware that investments can be complex and may involve a high risk of loss.In light of the risks,you should invest or undertake transactions only if you understand the nature of the investments and the contracts (and contractual relationships)into which you are entering as well as the extent of your exposure to risks.
You should carefully consider whether the investments or transactions are appropriate for you in light of your experience,objectives,financial resources and other relevant circumstances.Prior to investing or entering into a transaction,you should consult your own legal,regulatory,tax,financial and/or accounting advisors or such other professional advisors to the extent you consider it necessary and appropriate,and make your own investment,hedging and trading decisions (including decisions regarding the suitability of the investment or transaction)based upon your own judgment and advice from those advisors you consider necessary.
GENERAL RISK DISCLOSURE STATEMENT
Investors should note that investment involves risks(including the possibility of loss of the capital invested), prices of investment may go up as well as down and past performance information presented is not indicative of future performance.
The investment decision is yours but you should not invest in an investment product unless the intermediary who sells it to you has explained to you that the investment product is suitable for you having regard to your financial situation,investment experience and investment objectives.
Risk of capital loss - The fund manager manages and uses the fund assets in accordance with the principles of due diligence, honesty, credibility, prudence and diligence, but does not guarantee that the principal of the subscribed funds in the fund assets will not be lost, nor does it guarantee a certain profit and minimum return. The fund's risk level and investor tolerance are assessed by the fund raising institution. According to the assessment of the fund raising institution, this fund belongs to the [R4] level fund product, which is suitable for professional investors and ordinary qualified investors with risk tolerance of [C4, C5].
You should be aware of concentration risks and your liquidity needs,and avoid over-investing in a particular product which may expose you to undue risks.
Fund managers manage risks - In actual operations, fund managers may be limited by knowledge, technology, experience and other factors, which may affect their judgment of relevant information, economic conditions and price trends. The performance of investment products selected by them may not continue to be better than other investment products.
Other factors including but not limited to political events, inflation, tax-code changes, regulatory decisions and corporate actions can all affect the value of your investment.
Please ensure you have received, read and clearly understood the risk factors before making any investment decision,and to seek independent professional advice in case of doubt.
This document does not set out all the risks associated with the product.Please refer to the full list of risk factors and risk warnings in the offering documents for detail information.
PRODUCT SPECIFIC RISK DISCLOSURE
1. Currency risk - If the deposit currency and/or linked currency is not your home currency,and you choose to convert it back to your home currency upon maturity,you may make a gain or loss due to exchange rate fluctuations.
2. Market Risk: .
· Market Volatility: The fund’s returns may be affected by market volatility. Market volatility includes changes in the overall economic environment, industry-specific risks, and fluctuations in market sentiment, which may cause significant fluctuations in the value of the fund’s assets.
Economic Environment: Global or regional economic downturns, inflation, and changes in interest rates and other macroeconomic factors may affect the fund’s investment returns.
3. Operational Risk:Management Errors: Decision-making or operational errors by the fund management team may lead to loss of fund assets or returns below expectations.
· System Failures: The fund’s operations rely on high-performance computing and data management systems, and any system failure or technical issue may affect the normal operation and realization of returns.
4. Technical Risk:
Technical Failures: Performance degradation or technical failures of high-performance servers may reduce data processing efficiency, affecting the fund’s returns. Technological Upgrades: The challenges brought by rapid technological development, such as the need for continuous updates of server equipment to maintain competitiveness, may lead to additional capital expenditures and technical risks.
5. Cyber security Risk: Despite the advanced security measures adopted by the project, it may still face hacker attacks, software defects, or other security threats that could lead to loss of funds.
6. Key Personnel Risk: The development of the project highly depends on its core team. The departure or inability to perform duties of any key personnel may negatively impact the project.
7. Policy Risk: Regulatory Changes:
The fund’s operations are subject to regulatory policies in various regions, and any changes in regulatory policies may affect the fund’s compliance and returns.
Tax Policy: Changes in tax policy may increase the fund’s tax burden, thereby affecting investment returns.
8. Liquidity Risk:
Insufficient Market Liquidity: During market downturns or unexpected events, market liquidity may be insufficient, making it difficult to liquidate fund assets and affecting investors’ redemption needs.Redemption Restrictions: The fund has certain redemption restrictions and lock-up periods, which may impose liquidity constraints on investors, preventing them from liquidating their investments in the short term.
9. Credit Risk:
Counterparty Default: Partners or suppliers related to the fund’s operations may default, affecting the normal operation and realization of returns. Asset Credit Risk: Investments in high-performance servers and data centers may face credit risks, such as poor financial conditions of equipment suppliers.
10. Investment Uncertainty: The fund’s investment decisions are based on current market conditions and project information. Future market changes and information updates may render current investment decisions inapplicable.
11. Legal and Compliance Risk:
Legal and Regulatory Changes: Changes in laws and regulations may affect the fund’s operations and compliance, such as data privacy laws and financial regulatory provisions. Compliance Management: Failure to comply with relevant laws and regulations in a timely manner or being penalized by regulatory authorities may negatively impact the fund’s reputation and operations.
12. Natural Disasters and Force Majeure Risk:
Natural Disasters: Earthquakes, floods, fires, and other natural disasters may damage server equipment and data centers, affecting the normal operation and returns of the fund. Force Majeure Events: Unforeseeable events, including wars and terrorist attacks, may have a significant impact on the fund’s assets and operations.
INFORMATION DISCLOSURE STATEMEN
1. Grayscale Investment (Hong Kong) Limited serves as the principal in this transaction.
2. Emerging Market Risk - The fund invests in emerging markets.There may be higher volatility and liquidity risks than investing in developed markets.Investment in emerging markets involves above-average investment risks,for example,possible liquidity risk and political and economic uncertainties.It is possible that investors may lose the entire investment.
3. Risks with distribution out of capital -If a mutual fund pays dividends out of the capital,which may result in an immediate decrease of net asset value.The payout may reduce the capital available for future investment.
4. Credit risk - By investing in this product you take a credit risk on the Issuer,and ultimately on the Guarantor as guarantor of the obligations of the Issuer in respect of the product according to the terms and conditions of the guarantee(available at the Guarantor's office upon request).Thus,the Guarantor's insolvency may result in the partial or total loss of the invested amount.The market value of the product can decrease significantly below its nominal value as a result of the Guarantor's creditworthiness.
5. Recourse limited to the Guarantor - By investing in this product,you shall have no recourse against the Issuer in the event of a payment default by the issuer with respect to any amount due under the product,i.e.no investor has the right to institute any proceeding or to otherwise assert a claim against the issuer of the product to enforce the relevant payment under the product. However,this is without prejudice to your rights under the Guarantee of the Guarantor.
6. Legal, tax and regulatory changes -Legal,tax and regulatory changes could occur during the term of the product that may adversely affect it, the underlying or related derivatives. The regulatory environment is evolving, and
changes in the regulation of any entities may adversely affect their value.Regulators and self-regulatory organisations and exchanges are authorised to take extraordinary actions in the event of market emergencies.The regulation of securities and derivatives transactions is an evolving area of law and is subject to modification by
government and judicial action.The effect of any future regulatory change on the underlying or related derivatives could be material,including clearing and margin requirements for derivatives and consequently may adversely affect the value of the Notes.
Acknowledgment By entering into any Transaction, you should read and fully understand this Risk Disclosure Statement,the term sheets and all annexures pertaining to the Transaction,the nature of the Transaction and the terms and conditions governing the Transaction.You further consider that:
(a)you understand,are familiar with and are fully aware of the risks related to the Transaction;
(b)you are willing to take all such risks;
(c)you are capable of bearing a full loss of the amounts invested as a result of or in connection with any Transaction entered into with the Bank and any additional loss over and above the initial amounts invested.
Acknowledgement of Receipt of this Risk Disclosure Statement by the Client I/We acknowledge that the Risk Disclosure Statement has been provided to me/us in a language of my/our choice, that
I/We have been invited to read such Risk Disclosure Statement, to ask questions on such Risk Disclosure Statement and to seek independent advice thereon should I/We wish to do so. I/We further declare that such Risk Disclosure Statement (in particular the General Risk Disclosure Statement applicable to the relevant Accounts(s)/Service(s) that will be made available to me/us) has been fully explained to me/us in a language that I/We understand and that I/We have read and understand the same and that l/We accept and acknowledge the same.I/We acknowledge that the documentation in relation to products or services that may be made available to me/us may be in English language only, and I/we do not have the necessary proficiency in English to read such documentation, I/We will seek independent professional advice and translation, or I/we will not invest in or use the relevant product or service. I/We understand that where Ant Private Equity Fund provides me/us with a translation of any English language document, the translation is for reference only and I/we acknowledge that I/we may not rely on the contents of any such translation. In the event that any conflict or inconsistency exists between the English and Chinese wording in the document, the English wording shall prevail.