Volatility risk Clause Samples

Volatility risk. Volatility risk is associated with the price fluctuations of a security. Volatility is considered high when a security experiences significant price movements over a relative time period, whether it's daily for some types of instruments or longer for others. The risk of volatility is calculated based on the average difference between the lowest and highest prices of a financial instrument over a specific period.

Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.

Volatility risk. The Investor acknowledges that: ● Cryptocurrency values are highly volatile ● The value of cryptocurrency may fluctuate significantly between: ● Initiation of transfer ● Confirmation of receipt The Company shall not be responsible for any changes in value during this period.

Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. The Customer should be aware of the underlying asset volatility. Limited Life: Unlike stocks, derivative warrants have an expiry date and therefore a limited life. Unless the derivative warrants are in-the-money, they become worthless at expiration. Deeply out- of-the-money warrants are less sensitive to movements in the price of the underlying asset because such warrants are unlikely to become in-the-money on expiry.

Volatility risk. Prices of DWs can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.

Volatility risk. Prices of DWs and CBBCs can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.

Volatility risk. Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the stock exchange. Generally, higher the volatility of security, greater is its price swings. There may be normally greater volatility in thinly traded securities than in active securities. As a result of volatility, orders may only be partially executed or not executed at all or the price at which the order gets executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses.

Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility. Some Additional Risks Involved in Trading CBBCs 1. Mandatory call risk Investors trading CBBCs should be aware of their intraday “knockout” or mandatory call feature. A CBBC will cease trading when the underlying asset value equals the mandatory call price/level as stated in the listing documents. Investors will only be entitled to the residual value of the terminated CBBC as calculated by the product issuer in accordance with the listing documents. Investors should also note that the residual value can be zero. 2. Funding costs The issue price of a CBBC includes funding costs. Funding costs are gradually reduced over time as the CBBC moves towards expiry. The longer the duration of the CBBC, the higher the total funding costs. In the event that a CBBC is called, investors will lose the funding costs for the entire lifespan of the CBBC. The formula for calculating the funding costs are stated in the listing documents. 1. Market risk ETFs are typically designed to track the performance of certain indices, market sectors, or groups of assets such as stocks, bonds, or commodities. ETF managers may use different strategies to achieve this goal, but in general they do not have the discretion to take defensive positions in declining markets. Investors must be prepared to bear the risk of loss and volatility associated with the underlying index/assets. 2. Tracking errors Tracking errors refer to the disparity in performance between an ETF and its underlying index/assets. Tracking errors can arise due to factors such as the impact of transaction fees and expenses incurred to the ETF, changes in composition of the underlying index/assets, and the ETF manager’s replication strategy. (The common replication strategies include full replication/representative sampling and synthetic replication which are discussed in more detail below.)

Volatility risk. The prices of cryptoassets have historically been subject to dramatic fluctuations and are highly volatile, and the market price of the TTT NFT may also be highly volatile, despite being linked to the Physical Asset. Several factors may influence the market price, if any, of the TTT NFT, including: (i) the ability (if any) of the TTT NFT to trade on a secondary market; (ii) global digital asset and token supply; (iii) the demand for cryptoassets, which can be influenced by the growth of retail merchants’ and commercial businesses’ acceptance of cryptoassets; (iv) the security of online cryptoasset exchanges and wallets that hold cryptoassets, as well the perception that the use and holding of cryptoassets is safe and secure, and the regulatory restrictions on their use; (v) general expectations with respect to the rate of inflation, interest rates and exchange rates; (vi) changes in the software, software requirements or hardware requirements underlying the TTT NFT; (vii) changes in the rights, obligations, incentives, or rewards for the various holders of the TTT NFT; (viii) interruptions in service from or failures of major cryptoasset exchanges on which cryptoassets are traded; (ix) investment and trading activities of large purchasers, including private and registered funds, that may directly or indirectly invest in cryptoassets; (x) monetary policies of governments, as well as any trade restrictions, currency devaluations and revaluations; (xi) regulatory measures, if any, that affect the use of cryptoassets and changes in Applicable Law; (xii) global or regional political, economic or financial events and situations; and (xiii) expectations among participants in cryptoassets that the value of cryptoassets will soon change. A decrease in the price of a single cryptoasset may cause volatility in the entire cryptoasset industry and may affect other cryptoassets including the TTT NFT. For example, a security breach that affects participants’ confidence in bitcoin or ether may affect the industry as a whole and may also cause the price of the TTT NFT to fluctuate. Such volatility in the price of the TTT NFT may result in significant loss over a short period of time.