Investors Risk Statement

Kylin Prime Capital LLP (“KPC”) adheres strictly to FCA rules on client categorisation (COBS 3.5 Professional Clients) to ensure all investors at point of onboarding declare to be classified as Professional Clients (Per se or Elective), with the capability to make their own investment decisions and understand the risks involved. KPC is unable to deal with any clients who are defined as ‘retail’ clients in accordance with FCA rules.

All forms of investment, which we may undertake on behalf of our clients, involve risk. The value of investments and return of capital is not guaranteed and past performance is no guarantee of future performance. The value of investments can go up as well as down and clients should be aware they might not get back the full value invested.

Risk Considerations

When considering risk factors pertaining to an investment, clients should carefully consider the suitability of such investment to their own knowledge and experience in financial and business matters, individual financial circumstances, investment objectives and risk appetite. If investors are unsure about any aspect on the merits or suitability of an investment, they should seek advice from an independent financial advisor, legal counsel or similar professional.

Investments in Cryptocurrencies may involve higher risk than investment in more developed and recognized asset classes.

Risk Types

The following list of risk factors is not intended to be exhaustive, nor a comprehensive explanation of the risks involved.

  • Systemic: Collapse of an entire financial system that may be triggered by as much as a single event.

  • Liquidity: Over a certain period given, a financial asset cannot be traded quickly enough in the market, which can have an impact on both the price of the investment as well as the ability of the provider to fulfil its obligations to the investor.

  • Market: Value of an individual investment or portfolio falling as a result of an adverse scenario in the sector, negative news in the markets, geopolitical events, monetary decisions and many more.

  • Inflation: Real value of an investment may decrease as a result of the rate of inflation exceeding the rate of return on the investment.

  • Volatility: Statistical measure of the tendency of an individual investment to feature significant fluctuations in value. Commonly, the higher the volatility, the riskier the investment.

  • Equity: There can be no assurance that any appreciation in value will occur. The value of investments and the income from them can fluctuate and may fall and there is no certainty that an investor will get back any part of his investment in the case of a default event. In addition, you are subject to all the risks raised above as well as the risk of not receiving a dividend.

  • Credit: All debt instruments, including bonds are potentially exposed to risks, in particular to credit and interest rate risk. Debt securities may be subject to the risk of the Issuer's inability to meet principal and interest payments on the obligation and may be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the Issuer, general market liquidity and other economic factors.

  • Concentration: Insufficient level of diversification such that an investor is excessively exposed to one or a limited number of investments, which exposes the investor to higher volatility and higher losses in the cases of negative events.

  • Counterparty: Where an investment is denominated in a currency other than the investor's currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment.

  • Leverage: Transactions in leveraged foreign exchange carry a high degree of risk. The amount of initial margin is small relative to the value of the leveraged foreign exchange transaction so that the transaction is highly “leveraged” or “geared”. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the Bank to maintain your position.

  • Real Estate Risk: Real estate investing may be subject to a higher degree of market risk because of concentration in a specific industry, sector, or geographic sector. Real estate investments may be subject to risks including, but not limited to, declines in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers, changes in the legislation of the country invested. In addition, as recent experience has demonstrated, real estate assets are subject to long-term cyclical trends that give rise to significant volatility in values.

  • Online Platform failure: If you trade through an online platform, which is also in charge of handling your money, you face the risk of losing all your money in this investment if the online platform fails and becomes insolvent. You also face the risk of daily malfunctions of the platform which may restrict you from trading.

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