Kinetic’s Risk Disclosure

This document sets out the terms and conditions that specifically deal with the risks you may be exposed to by using the Company’s Services. It forms part of the agreement between you and Kinetic and should be read in conjunction with the Company’s Terms of Use. Any defined terms used in this risk disclosure shall have the meaning given to them in the Terms of Use.

Please note that it is not possible for a risk disclosure document to contain all risks and aspects involved in trading, and this document is not intended to be exhaustive. You should consider the risks set out in this document at a minimum and, if you choose to enter into a trading relationship with the Company, remain aware of the risks involved.

General Risks

1. Investing comes with risks, and there’s a chance you could lose the full amount you put in. Therefore, you should not trade or invest money that you cannot afford to lose. The Services are only suitable for you if you can afford to bear these losses and if you understand the risks involved in these trades.
2. The profit and losses you experience will vary depending on many factors, including market behaviour, market movement, and your trade size.
3. Markets may be volatile and unpredictable, which means that prices can change rapidly.
4. Any information the Company shares through its website, emails, or social media is intended solely for educational and awareness purposes for you to make independent investment decisions. It is not investment advice. This information does not consider individual circumstances or objectives and should not be regarded as personal recommendations, research, or advice intended to induce action, such as buying, selling, or holding securities.
5. The Company encourages you to conduct your own research before making trading and investment decisions.
6. The market prices can change rapidly, and the execution price may not immediately be visible once your order is filled.

Digital Assets (Cryptocurrency) Trading Risk

1. Digital assets operate differently from MYR, representing an emerging technology with unique risks.
2. The Company encourages you to fully understand these risks and avoid investing money you cannot afford to lose.
3. Digital assets transactions are generally irreversible. Therefore, you may be unable to recover the digital assets if you:
• Send digital assets to an incorrect address
• Send an incorrect amount
• Send digital assets to a fraudulent scheme or transactions that are made fraudulently from your account
• Experience unauthorised transactions by third party from your account
4. The Company is not liable for any losses resulting from accidental or fraudulent transactions.
5. Digital Assets prices are volatile and unpredictable in comparison to MYR, which may result in significant loss over a short period of time.
6. Buying and selling digital assets may result in a total loss of your funds.
7. The Company’s supported and approved digital assets are not backed by any entity. This means that you have no right of recourse against the issuing entity. It also means that neither the Company nor anyone else has an obligation to buy back your digital assets in the future.
8. Kinetic's supported and approved digital assets are not legal tenders and are not backed by the government.
9. Accounts and value balances are not subject to any government-backed deposit insurance or any other government protections.
10. Any losses resulting from you trading in digital assets are not covered by the Capital Market Compensation Fund in Malaysia.
11. Any changes or actions in legislation and/or regulation at state or international level may affect the use, transfer, exchange, and value of digital assets.
12. The date or time that you conducted the transaction may not be the same as the recorded time of the transaction in the "blockchain" ledger. However, the digital assets transactions are deemed to be made when it has been recorded in the ledger.
13. Without the continued willingness of market participants to exchange digital assets for MYR, which drives the value of each digital asset, it could cause a permanent loss of value of the digital assets should this demand disappear.
14. There is no guarantee that a person or business who currently accepts digital assets as payment will continue to do so in the future.
15. You are solely liable for any tax incurred by buying and selling digital assets, and for the tax obligations that come with.
16. The nature of digital assets may lead to an increased risk of fraud or cyber-attack.
17. You are responsible for keeping the Account safe from fraud or cyber-attack.
18. The nature of digital assets means that any technological difficulties experienced by a communication service provider may prevent access to or use of your digital assets.
19. In the unfortunate and unlikely event that the Company is unable to carry out (or ceases) its operations in one or more of our locations, the Company has created business continuity arrangements in place to ensure minimal impact is caused to you.
20. Having regard to the severity of the situation and the Services which may be affected, the following measures may apply (where appropriate):
    • Notification to the SC and other relevant authorities and compliance with any regulatory instructions issued
    • Activation of the Company’s dedicated response plan, and
    • Provision of regular updates to you on Kinetic Digital Platforms.

Operational Risks

1. Using an internet-based system always involves risks, such as hardware, software, and internet connection failure.
2. The Company does not control signal power, its reception or routing via the internet, the configuration of your equipment, or the reliability of its connection, and it shall not be held responsible for any communication failures, distortions, or delays when using the Services.
3. In particular, you bear the following risks and agree that the Company is not liable for:
   • Hardware software, or power failures on your devices;
   • Incorrect settings on your devices;
   • Malfunction of your devices;
   • Low quality or failures of communication channels used to link you and your communication service provider.
4. You accept the risk of loss arising from unauthorised access to your account by a third party.
5. The Company bears no responsibility for any loss that arises as a result of communications that are sent to you by Kinetic and not received (in a timely manner or at all).
6. The Company bears no responsibility for any losses if unencrypted information you send to Kinetic is accessed by unauthorised individuals.
7. In case of a force majeure event, you understand there is a risk of loss, and Kinetic will not be responsible for any such losses.

Safeguarding Your Funds

Kinetic prioritises safeguarding your funds. Your funds are protected through an independent corporate trustee service provided by Universal Trustee (M) Bhd. In the event that Kinetic cannot continue operations or must cease business, your funds remain secure. The Kinetic bank account for MYR deposits is strictly dedicated to holding and processing your funds exclusively. Both these accounts and the Company’s digital assets storage systems are subject to stringent controls and undergo regular reconciliations to ensure optimal security and compliance.