Version: 10 March 2025
This Risk Disclosure forms part of the General Terms and Conditions of Hidden Road Partners CIV NL B.V., Gustav Mahlerplein 28, Unit 7.07, 1082 MA Amsterdam, Niederlande, registered with the Handelsregister der Kamer van Koophandel (KVK), Niederlande under 83214941 (RSIN 862773775), supervised by the Autoriteit Financiële Markten (AFM), Amsterdam. It describes the main risks of the services offered through the Portal. It cannot describe every conceivable risk exhaustively. Please read this document in full before depositing funds or concluding any product, and contact [email protected] if you have questions.
General notice: Investments in crypto-assets and in the products described here may lead to the complete loss of the capital invested. Only invest funds whose loss you can bear. The Company does not provide investment advice; all Portal content serves general information purposes only.
- Volatility: Prices of crypto-assets fluctuate substantially and may fall sharply within a short time. Price declines of more than half of the value within a few days have occurred repeatedly in the past.
- Total loss: Crypto-assets have no intrinsic value and no payment obligation of an issuer. Their value may fall to zero.
- Liquidity: There may be periods in which crypto-assets cannot be sold at all or only at unfavourable prices, for example during trading suspensions or the failure of a trading platform.
- Technology and cyber risks: Blockchain networks, protocols, wallets and trading platforms may suffer errors, attacks, forks or outages. Loss of private keys results in the irretrievable loss of the crypto-assets.
- Irreversibility: Transactions on a blockchain cannot be reversed. Transfers to an incorrect address or via an incorrect network are final.
- Custody: Your crypto-assets are held in custody by the Company itself, separately from its own assets; euro balances are held in accounts with EU credit institutions. You nevertheless bear the risk that the Company becomes insolvent or that its key management is attacked; in the event of insolvency, the separation of your assets may take time.
- Regulatory change: The legal framework for crypto-assets, in particular Regulation (EU) 2023/1114 (MiCA), is still being implemented and may change. New rules, licensing requirements, prohibitions or tax changes may affect the value, tradability or availability of crypto-assets and of the Company's services.
- No investor protection as for securities: Crypto-assets are not covered by deposit guarantee schemes and generally not by investor compensation schemes.
USDT ("Tether") is a stablecoin intended to be pegged to the US dollar. This peg is maintained solely by the issuer, which is independent of the Company.
- Issuer risk: Insolvency, sanctions, regulatory measures against the issuer or suspension of redemptions may result in USDT no longer being exchangeable for US dollars.
- Depeg risk: The market price of USDT may deviate temporarily or permanently from the value of one US dollar.
- Reserve risk: The composition, quality and auditing of the issuer's reserves are outside the Company's control. Insufficient reserve coverage may impair the value of USDT.
- Currency risk: USDT is pegged to the US dollar. Customers who account in euro bear an additional exchange rate risk.
- Regulatory risk: Under MiCA stablecoins are subject to specific authorisation requirements. If the issuer does not meet them, trading or use in the EU may be restricted.
- Algorithmic strategy: The investment strategy is driven by an algorithmic, AI-supported model. Models rely on assumptions and historical data and may make erroneous or loss-making decisions in new market situations. Software and data errors cannot be excluded.
- Fixed risk profile: The strategy follows a predefined risk profile and is not individually adapted to your personal situation. Assess for yourself whether the profile matches your objectives, investment horizon and capacity to bear losses.
- No guarantee: The Company owes diligent implementation of the strategy, not a particular result. There is no capital protection and no minimum return.
- Past performance is not an indicator: Historical or retrospectively calculated performance figures do not allow conclusions about future results.
- Back-tests are not results: Historical or modelled strategy paths displayed on the Portal are calculations. In actual trading, trading costs, spreads, execution delays, liquidity shortages and price movements between decision and execution additionally apply, so that real results may differ from calculated paths.
- Rebalancing costs: Periodic rebalancing causes transaction and network costs and may trigger taxable events which reduce returns.
- Concentration risk: The strategy is limited to crypto-assets and therefore less diversified than a portfolio across several asset classes.
- Bank risk: For fixed-term deposits, call money and flexible deposits you conclude the contract with the Partner Bank. If the bank becomes insolvent, your deposit is protected only within the deposit guarantee scheme applicable to that bank.
- Differences in deposit guarantee schemes: Within the EU, deposits are in principle protected up to EUR 100,000 per depositor and bank by the national scheme of the bank's home state (Directive 2014/49/EU). However, procedures, payout periods, currency and the financial resources of the schemes differ between states. Banks outside the EU may be subject to different or lower levels of protection. Details on the scheme of the respective Partner Bank are set out in the Product Document.
- Interest rate and term risk: For fixed-term deposits the capital is locked for the term; early access is often excluded or subject to loss of interest. If market rates rise, you forgo the additional return.
- Currency risk: If the deposit is denominated in a foreign currency, you bear the exchange rate risk.
- Intermediary role: The Company is not liable for the acceptance of your application, the creditworthiness of the bank or the repayment of the deposit. The Company may receive remuneration from Partner Banks; this may influence the selection and order of the products displayed.
- Tax treatment: Interest on foreign deposits is taxable in your state of residence; withholding taxes of the bank's home state are possible.
The products "Fixed Term", "Daily Available" and "Combined" are contracts between you and the Company. They are denominated in USDT.
- No deposit guarantee: These products are not bank deposits and are not covered by any statutory or voluntary deposit guarantee scheme. There is no claim against any guarantee scheme.
- Counterparty risk: Your claim is exclusively against the Company. If the Company becomes insolvent, you may lose your capital in whole or in part. No collateral exists in your favour unless the Product Document provides otherwise.
- No guaranteed return: The return ranges shown on the Portal are targets. Returns are generated from the profits the Company earns from trading crypto-assets and other assets. Whether and to what extent returns are achieved depends on the Company's trading results and on market conditions; losses from this trading may result in no return at all.
- USDT risks: All risks described in § 2 apply in full. Repayments are made in USDT; the euro equivalent at repayment may be lower than at deposit.
- Liquidity risk: For fixed-term products early repayment is excluded or possible only as provided in the Product Document. Even for "daily available" products the Company may temporarily suspend withdrawals in exceptional market conditions or due to regulatory requirements, to the extent provided in the Product Document.
- Regulatory risk: The regulatory classification of these products may change. Orders by competent authorities may lead to early termination or modification of the products.
Income and capital gains from crypto-assets, stablecoins, deposits and the Company's products may be taxable in your state of residence. Reallocations within the Managed Portfolio may trigger taxable events even if no funds are paid out to you. Tax treatment depends on your personal circumstances and may change. The Company does not provide tax advice and does not remit taxes on your behalf unless legally required to do so. The Company may be obliged to report data on your crypto-asset transactions to tax authorities (Directive (EU) 2023/2226, DAC8).
- Availability of the Portal: Maintenance, outages or attacks may temporarily prevent access to the Portal and the execution of orders.
- Data sources: Price and market data originate from third parties, in particular Binance, and may be delayed, incomplete or erroneous.
- Access credentials: Anyone in possession of your access credentials can operate your User Account. Protect your credentials and enable available security features.
- Fraud risk: The Company communicates exclusively via the Portal and [email protected]. It will never contact you by telephone or ask for your access credentials. Be suspicious of messages that refer to the Company or the brand "CoinRoad" and ask you to make payments to other addresses.
Before activating the Managed Portfolio, the Company performs a suitability assessment and for that purpose collects information on your knowledge and experience, financial situation and investment objectives. For the other services, the Company does not assess whether a product is suitable or appropriate for you personally unless expressly provided for in the Product Document. Descriptions, comparisons, metrics and retrospective analyses on the Portal are general information and not a personal recommendation. Seek independent legal, tax or financial advice where needed.
Complaints should be sent in text form to [email protected]. The Company generally responds within one month. The person responsible for complaint handling is Moritz Heise, member of the management board. If your complaint is unsuccessful, you may refer the matter to the out-of-court dispute resolution body (Kifid) under the conditions set out in § 21 of the General Terms and Conditions; recourse to the courts remains open in any event.
By registering and before the first use of each product you confirm that you have read and understood this Risk Disclosure, that you are aware of the risks including the possible total loss, and that you bear these risks on your own responsibility.
