Risk Disclosure Statement

General

Investing in cryptocurrencies via the Bamboo app involves significant risks. This statement has been prepared by Bamboo 61 Pty Ltd (Bamboo) to assist you in understanding the types of risks that may be involved with using the Bamboo app. This statement outlines some of the risks (in no particular order of importance) that may be relevant to your use of the Bamboo app. This statement is not intended to be an exhaustive list of all relevant risks to investing using the Bamboo app. You should consider all of the risks that may be relevant to your use of the Bamboo app and assess whether those risks are acceptable to you having regard to your financial circumstances and risk tolerance. If you are unsure, we strongly recommend that you read our FAQs, do your research and obtain your own financial, investment or professional advice.

Ownership Risk

You will not have any legal title to, rights of ownership or beneficial interest in any of the cryptocurrencies that are held as part of your investment. Your contributions will be used by us to purchase and hold cryptocurrencies equal to your investment (whether it is a one-off investment, recurring investments, round-ups or top-ups). You will only be entitled to any proceeds that are made from the sale of these investments at your direction and you can withdraw these proceeds as cash or convert them to stablecoins. At no time, will you be able to transfer any of the cryptocurrencies you have invested in via the Bamboo app to any person (including moving cryptocurrencies off the platform into your own wallet or to any other person’s wallet). This is different from trading in cryptocurrencies on an exchange where you directly own the assets and can transfer those assets outside of the exchange.

Investment Risk

The trading of cryptocurrencies involves significant risk. Although you are not directly trading in any cryptocurrency, you are exposed to the same investment risks as if you were.

Prices for cryptocurrencies are subject to volatility and can and do fluctuate (sometimes significantly) on any given day. Due to such price fluctuations, your investment in cryptocurrencies may increase or lose value at any given moment. Any currency - crypto or not - may be subject to large swings in value and may even become worthless. There is an inherent risk that losses will occur as a result of buying, selling or trading anything on a market. This is no different for investing in cryptocurrencies.

Cryptocurrency trading also has additional risks not generally shared with conventional markets for fiat currencies, goods or commodities. Unlike most fiat currencies, (which are backed by governments) or by commodities such as gold or silver (which have an intrinsic value based on use), cryptocurrencies are a unique kind of asset, which is backed by technology and trust. There is no central bank that can take corrective measures to protect the value of cryptocurrencies in a crisis or issue more currency.

Cryptocurrencies are for the most part an autonomous and largely unregulated worldwide system of cryptographic assets and individuals. Traders put their trust in digital, decentralised and partially anonymous systems that rely on peer-to-peer networking and cryptography to maintain their integrity.

Cryptocurrency trading is susceptible to irrational (or rational) bubbles or loss of confidence, which could collapse demand relative to supply. For example, confidence might collapse in cryptocurrency because of unexpected changes imposed by the software developers or others, a government crackdown, the creation of superior competing alternative currencies, or a deflationary or inflationary spiral. Confidence might also collapse because of technical problems: if the anonymity of the system is compromised, if money is lost or stolen, or if hackers or governments are able to prevent any transactions from settling. There may be additional risks that we have not foreseen or identified in this statement.

Counterparty Risk

Bamboo is the provider of the Bamboo app and is the principal to any transaction made by you via the Bamboo app. When you make an investment, we purchase the cryptocurrencies you specify, with the promise to pay to you, in the future, the proceeds of those cryptocurrencies when you instruct us to sell down your investment. In the event Bamboo suffers a financial failure, it may not be able to settle its obligations under the Bamboo Terms and Conditions as and when those obligations become due. This may lead to redemption risk (see below for more details).

Credit Risk

If Bamboo becomes insolvent, then because you do not have any legal rights to the cryptocurrencies you invested in, you will be an unsecured creditor in relation to your investment and you may not be repaid in full or at all.

Liquidity Risk

There is no secondary market for your investment in the Bamboo app and you cannot sell your investment to any person. This means that there is no mechanism for you to extract value from the Bamboo app other than to redeem your investments.

Transaction Risk

Bamboo holds legal title to, rights of ownership, and/or beneficial interest in all of the cryptocurrencies that are held as part of your investment. Bamboo may use those cryptocurrencies in its absolute discretion to earn a return, reward, yield or other amount or entitlement from a range of investment activities including accessing opportunities in centralised and decentralised markets. You acknowledge and agree that:

• you are not entitled to any return, reward, yield or other amount or entitlement from these investment activities and Bamboo is solely entitled to these amounts;

• there are risks associated with Bamboo’s investment activities including (but not limited to) exchange risk, volatility risk, custody risk, market risk, service provider risk, regulatory risk, network risk, technology risk, impairment risk, valuation risk and hacking risk; and

• while Bamboo has policies and procedures in place to manage the risks associated with its investment activities, there is a risk that the cryptocurrencies may be lost or reduced in value (which could be material). If this is the case, you understand that Bamboo will be liable to repay your investments to you in accordance with the Bamboo Terms and Conditions but any repayment will be subject to the counterparty risk and credit risk detailed above.

Market Risk

We will do our best to act on your directions as soon as possible and all trades made by us following your directions will be conducted at the market rate available for those cryptocurrencies at the time the trade is made and on the exchange chosen by us. There is a risk that the value of your investment in cryptocurrencies on the Bamboo app will differ from the market price due to rapid movement in the market value (whether up or down) for any one or more cryptocurrencies. This risk may impact both investment and redemption instructions and may arise when there is limited trading volume or market depth for cryptocurrencies. We will not be liable for any price variation, or any resulting loss to you, due to market volatility or delays that are not within our control or can’t be mitigated or managed.

Volatility Risk

There is a risk that market forces, including price volatility, liquidity risks, and changes in supply and demand dynamics, may impact the stability and value of one or more cryptocurrencies. These market forces may be caused or impacted by a range of factors including:

• economic, technological, geopolitical, or legal changes or events;
• social and environmental factors; and
• market sentiment.

There is a risk that adverse movements may affect the price of cryptocurrencies. These adverse movements may affect the value of your investment.

Regulatory Risk

The Bamboo app and cryptocurrencies you can invest in via the Bamboo app are not regulated financial products and you will not have the benefit of any of the protections under the Corporations Act 2001 (Cth).

There is also the risk that the regulatory landscape changes and any change may impact:

• Bamboo’s ability to comply with the Bamboo Terms and Conditions;
• the value of your investment in cryptocurrencies;
• require additional disclosures;
• reduce the attractiveness of the Bamboo app and / or any investment in cryptocurrencies; and
• in some extreme cases, may mean the Bamboo app may need to be withdrawn from the market or conditions need to be imposed on your access to, or investments in, the Bamboo app.

Redemption Risk

In the event of a large volume of redemption requests being placed simultaneously from Bamboo users, it may not be possible for us to satisfy all or any redemptions in a timely manner. This may happen as the result of market movements and liquidity issues. In these circumstances, it is possible that the value of your investment in cryptocurrencies may move by the time a redemption request is fulfilled or that you can’t redeem your investment. This could lead to losses or the inability to extract value from your investment in cryptocurrencies.

Service Provider Risk

We use our service providers to:

• receive fiat currency and remit the sale proceeds of your cryptocurrencies to you once they have been sold. Our banking and payment service providers do not transfer cryptocurrencies, exchange cryptocurrencies, or provide any services in connection with cryptocurrencies;
• store the cryptocurrencies equal to your investment in the Bamboo app;
• exchanges and liquidity providers to buy, sell and exchange cryptocurrencies;
• If any of our service providers are experiencing any operational issues, this may delay or impact our ability to comply with our obligations under the Bamboo Terms and Conditions.

Cryptocurrencies are not subject to any deposit protection under the Financial Claims Scheme in Australia or similar schemes in other countries (e.g. FDIC or SIPC protection).

Operational Risk

Operational risk covers a wide range of potential issues that may impact the operation of the Bamboo app, including system failures, network congestion, or human errors that can disrupt the operations of the Bamboo app, impact user experience or prevent or limit our ability to meet our obligations under the Bamboo Terms and Conditions.

Storage Risk

We make every effort to store the cryptocurrencies equal to your investment in safe storage. However, the cryptocurrencies may be compromised or lost as a result of events outside of our control e.g. hacking, attacks and theft. If this is the case, you understand that Bamboo will be liable to repay your investments to you in accordance with the Bamboo Terms and Conditions but any repayment will be subject to the counterparty risk and credit risk detailed above.

Technology Risk

Blockchain technology is susceptible to a wide variety of risks, from malicious attacks to technical difficulties and failures. If any of these risks materialise, then it may impact the value of your investment in cryptocurrencies

Other Risks

Cryptocurrencies and the underlying blockchain technology are constantly evolving. In addition to the risks outlined above, there are many other risks associated with using the Bamboo app to invest in cryptocurrencies. You should be aware of, and consider, these risks prior to using the Bamboo app to invest in or redeem any cryptocurrencies. If you are unsure of any other risk, you should consider getting advice from a financial, investment or professional adviser.