Disclaimer

San-Khai Lacoda Capital Holdings, offers investment advisory and management services. The information provided is for educational purposes only and should not be interpreted as investment advice. Please note that past performance is not indicative of future results. Investing in digital currencies involves significant risks, including the potential for substantial losses. These risks include, but are not limited to, extreme market volatility, market manipulation, regulatory and economic uncertainties, technical issues, and cybersecurity threats. Unlike equity, options, futures, or foreign exchange investments, digital currency markets and exchanges lack the same regulatory oversight and customer protections. San-Khai Lacoda Capital Holdings does not provide tax advice, and any consultations or information shared by the firm should not be considered as such.

Volatility Risk: Digital currency is a speculative and highly volatile investment asset. Investors should be prepared for significant market fluctuations and extended periods of decline. Digital currencies tend to experience greater volatility than traditional investments like stocks and bonds, and market movements can be challenging to predict.

Economic Risk: The economic risk tied to digital currency lies in the uncertainty of its widespread or sustained adoption. Market participants and investors may determine that digital currency should not maintain its current market capitalization due to various factors.

Regulatory Risk: Governments may impose bans or strict regulations on digital currency, potentially discouraging investors from buying or holding it.

Technical Risk: Digital currency operates on a dynamic network with a codebase that is regularly updated to enhance security and functionality. However, these updates, implemented by core developers, could introduce errors that may compromise the security or functionality of the digital currency network.

Digital currency exchanges and wallets have been subject to hacking and theft in the past, which remains a potential risk for investors. To mitigate this risk, holding digital currency with a qualified custodian in offline systems (cold storage) with institutional-grade security and controls is recommended, as it reduces the likelihood of theft.

Digital Asset Service Providers: Various companies and financial institutions offer services related to buying, selling, payment processing, and storing virtual currency (e.g., banks, accountants, exchanges, digital wallet providers, and payment processors). However, there is no guarantee that the virtual currency market, or the service providers essential to its operation, will continue to support Digital Assets, remain in existence, or grow. Additionally, the availability and access to virtual currency service providers may be negatively impacted by government regulation or shifts in the supply and demand of Digital Assets. As a result, companies or financial institutions currently supporting virtual currency may not continue to do so in the future.

Custody of Digital Assets: Under the Advisers Act, SEC-registered investment advisers are required to hold securities with "qualified custodians," among other requirements. Some Digital Assets may be classified as securities. Currently, many companies offering custodial services for Digital Assets do not meet the SEC"s definition of a “qualified custodian,” and many established, prominent qualified custodians do not offer custodial services for Digital Assets or only provide such services for a limited selection of actively traded Digital Assets. As a result, clients may need to use nonqualified custodians to hold all or part of their Digital Assets.

The regulatory frameworks—both domestic and international—that may impact Digital Assets or a Digital Asset network are still evolving and subject to change. In the near or distant future, any jurisdiction could enact laws, regulations, policies, or rules that directly or indirectly affect a Digital Asset network, or that restrict the ability to acquire, own, hold, sell, convert, trade, or use Digital Assets, or to exchange them for fiat currency or other virtual currencies. Additionally, government authorities may initiate investigative or prosecutorial actions related to the use, ownership, or transfer of Digital Assets, potentially affecting their value or the development of a Digital Asset.