Risk Disclosure Statement

Nature of Virtual Assets:

Virtual Assets are highly risky and investors should exercise caution in relation to the products. A Virtual Asset is not legal tender, ie, it is not backed by the government and authorities. The nature of Virtual Assets exposes them to an increased risk of fraud or cyberattack. The nature of Virtual Assets means that any technological difficulties experienced by the company may prevent clients from accessing their Virtual Assets.

Security Risks:

It is not possible for NewBX Limited to eliminate all security risks. As an investor of this token, you may be vulnerable to security risks such as hacking, scams and phishing attacks or other types of theft and unauthorized access to user accounts. It is essential for users to follow best

practices for online security, including securing private keys and using trusted wallets and exchanges. Transactions in virtual assets may be irreversible, and, accordingly, losses due to fraudulent, unauthorised or accidental transactions may not be recoverable.

Operational Risks:

Technical issues, system failures can lead to disruptions in trading activities. This can result in delayed or failed transactions not to be settled on scheduled delivery date. Some Virtual Asset transactions may be deemed to be executed only when recorded and confirmed by the company, which may not necessarily be the time at which the client initiates the transaction.

Regulatory Compliance Risks:

We operate in a complex regulatory landscape. Non-compliance with existing or evolving regulations can lead to legal penalties, regulatory scrutiny, and operational restrictions. The regulatory landscape for tokens is evolving and can vary across jurisdictions. Legislative and regulatory changes may adversely affect the use, transfer, exchange and value of virtual assets and also our trading platform.

Liquidity Risks:

Investors need to pay attention that there is a lack of secondary markets for certain tokens. Should our company decided to suspend or withdraw a token from trading to protect the users in our platform, investors may lose the entire investment amount.

Market Risks:

There is a possibility that there will be a potential price manipulation on the market. The tokens price can be volatile and subject to significant price fluctuations within short period of time and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and any returns can go down as well as up, and Investors may not get back the amount you had invested. The value of a Virtual Asset may be derived from the continued willingness of market participants to exchange fiat currency for a Virtual Asset, which means that the value of a particular Virtual Asset may be completely and permanently lost should the market for that Virtual Asset disappear. There is no assurance that a person who accepts a Virtual Asset as payment today will continue to do so in the future.

Counterparty Risks:

There is a risk of default by counterparties, fraudulent activity, or insufficient verification processes, which can result in financial losses for investors. The offering documents or product information provided by issuers have not been subject to scrutiny by any regulatory body.

Legal Risks:

Changes in laws and regulations may materially affect the value of Digital Assets. This risk is unpredictable and may vary from market to market. A Virtual Asset may or may not be considered “property” under the law, and such legal uncertainty may affect the nature and enforceability of a client’s interest in such a Virtual Asset.

Currency Risks:

Currency exchange fluctuations will impact your gain or losses. The extreme volatility and unpredictability of the price of a Virtual Asset relative to fiat currencies may result in a total loss of the investment over a short period of time.

Technological Risks:

The fast-paced nature of technology means that new tokens or technological advancements may emerge that could potentially outperform or replace current tokens. Investors should stay informed about the evolving landscape and consider diversifying their portfolio.

Communication Risks:

When you communicate with us via electronic communication, you should be aware that electronic communications can fail, can be delayed, may not be secure and/or may not reach the intended destination.

No Protection from Investor Compensation Fund

The protection offered by the Investor Compensation Fund does not apply to transactions involving Virtual Assets (irrespective of the nature of the tokens).

Before proceeding, carefully review this productʼs documentation, risks and terms, please consult a financial advisor or professional to assess its suitability based on your financial institution and objectives.

By engaging with this product, you acknowledge that you understand and accept these risks and are willing to bear the potential consequences.