This Website Risk Disclosure Statement applies to all services provided by Bequant Pro Limited (Malta) and Bequant Prime Limited (Seychelles) under the Bequant brand. It identifies 29 distinct risk categories associated with engaging in crypto-asset and digital asset services. Read this document carefully in its entirety before engaging with any Bequant service. This disclosure does not constitute investment advice. Services are provided exclusively to institutional and professional counterparties only.
Risk Categories
1.Price Volatility Risk.Crypto-asset prices are highly volatile and may fluctuate significantly — sometimes by large double-digit percentages — within very short time periods, including intraday. Such fluctuations may result from market sentiment, regulatory announcements, macroeconomic events, technical failures, or actions of large market participants. There is no guarantee that any crypto-asset will retain any given value or recover from a decline in value.
2.Liquidity Risk.Markets in crypto-assets may, at times, lack sufficient depth to absorb large orders without materially moving prices. In periods of market stress, liquidity may deteriorate rapidly. Large orders may be impossible to execute at the desired price or may need to be executed in tranches over an extended period, resulting in a blended average price that differs materially from the initially quoted price. In extreme cases, a market may become entirely illiquid.
3.Market Manipulation Risk.Crypto-asset markets may be subject to manipulation, including wash trading, spoofing, pump-and-dump schemes, or coordinated activity by large holders (“whales”). Regulatory oversight of such activities varies across jurisdictions and may be inadequate to deter or detect all forms of manipulation. Prices may therefore not reflect genuine supply and demand.
4.Leverage & Margin Risk.Where leverage or margin is used, gains and losses are amplified relative to the initial capital deployed. A relatively small adverse price movement may result in a loss that substantially exceeds the original margin posted. Leveraged positions may be subject to automatic liquidation with little or no advance notice if margin thresholds are breached. The Client may lose more than the initial margin deposited.
5.Exchange Rate Risk.Transactions denominated in or settled in a currency other than the Client's base or reporting currency introduce foreign exchange (“FX”) risk. Movements in exchange rates between transaction initiation and settlement may adversely affect the value of the transaction in the Client's base currency. This risk applies equally to fiat-to-crypto and crypto-to-crypto conversions involving stablecoins or other pegged instruments that may de-peg.
6.Regulatory Risk.The regulatory frameworks governing crypto-assets are evolving rapidly across multiple jurisdictions. Future legislative or regulatory changes — including new licensing requirements, restrictions on asset classes, mandatory disclosures, or outright prohibitions — may affect the availability of Bequant services, the value of specific crypto-assets, or the legality of certain activities. Compliance with new requirements may result in service interruptions or additional costs.
7.Jurisdictional Risk.Different jurisdictions treat crypto-assets differently for legal, regulatory, and tax purposes. Services that are lawful in one jurisdiction may be restricted, prohibited, or subject to licensing requirements in another. Cross-border transactions carry additional risk relating to applicable law, enforcement, and the ability to recover assets in the event of a dispute. Clients are responsible for ensuring that their use of Bequant services complies with applicable laws in all relevant jurisdictions.
8.Tax Treatment Risk.The tax treatment of crypto-asset transactions — including trading gains, income from staking or lending, and disposals — varies by jurisdiction and is subject to change without notice. Tax authorities in various jurisdictions continue to issue evolving guidance on crypto-asset taxation. Clients are solely responsible for determining and meeting their own tax obligations. Bequant does not provide tax advice.
9.AML & Sanctions Risk.Transacting with sanctioned entities, in sanctioned jurisdictions, or with funds that are the proceeds of crime exposes the Client to serious regulatory and legal risk, including asset freezing, civil or criminal liability, and reputational damage. Clients are required to ensure that all transactions comply with applicable anti-money laundering (“AML”) and sanctions regulations. Bequant screens transactions against applicable sanctions lists but cannot guarantee the detection of all prohibited activity.
10.Insolvency Risk.The insolvency of an exchange, custodian, counterparty, or any other participant in the crypto-asset ecosystem may result in the loss of assets held with or transferred to that entity. Assets held on centralised exchanges may not be segregated from the exchange's own assets and may not be recoverable in full in insolvency proceedings. There is generally no deposit guarantee scheme or investor compensation scheme applicable to crypto-asset holdings.
11.Cybersecurity Risk.Systems operated by Bequant and by third parties in the crypto-asset ecosystem may be subject to cyberattacks, including hacking, phishing, ransomware, distributed denial-of-service attacks, social engineering, and malware. Despite the implementation of security controls, no system can be made entirely secure. A successful cyberattack may result in loss of assets, disruption to services, or theft of sensitive client data. Clients should implement appropriate security measures on their own systems and devices.
12.Technology & System Risk.Software bugs, hardware failures, network outages, protocol errors, API failures, or latency issues may affect the availability of Bequant services or the accurate and timely execution of transactions. Bequant implements business continuity and disaster recovery arrangements, but cannot guarantee uninterrupted service availability. Market conditions may change significantly during any period of service unavailability.
13.Smart Contract Risk.Certain crypto-assets and DeFi protocols rely on smart contracts — self-executing code deployed on a blockchain. Smart contract code may contain vulnerabilities or bugs that can be exploited by malicious actors, resulting in the loss of assets. Smart contracts are generally immutable once deployed and may not be correctable after deployment. Audits of smart contract code do not guarantee the absence of exploitable vulnerabilities.
14.Fork & Network Upgrade Risk.Blockchain protocols may be subject to hard forks or soft forks that create multiple chains or alter the rules governing the network. Forks may affect the value, fungibility, or technical characteristics of a crypto-asset. Network upgrades may render certain wallets, software, or integrations non-functional. The treatment of forked assets may vary across exchanges, custodians, and counterparties, and Bequant may not support all forked assets.
15.Network Congestion Risk.Periods of high activity on a blockchain network may result in significant congestion, causing transactions to be delayed or to fail. During periods of congestion, network fees (such as gas fees on Ethereum) may increase substantially, potentially making certain transactions uneconomical. Clients should consider the potential impact of network congestion on time-sensitive transactions.
16.Wallet & Private Key Risk.The loss, theft, destruction, or compromise of private keys associated with a crypto-asset wallet results in the permanent and irreversible loss of the assets held in that wallet. Unlike traditional financial assets, there is generally no mechanism for recovering access to a wallet once the private key is lost or compromised. Clients are responsible for the secure management of their own private keys and wallet credentials.
17.DORA & Operational Resilience.Bequant Pro Limited is subject to digital operational resilience requirements under Regulation (EU) 2022/2554 (“DORA”) and related technical standards. DORA imposes obligations relating to ICT risk management, incident reporting, operational resilience testing, and third-party ICT risk. Despite DORA compliance measures, any significant operational disruption — whether caused by ICT failures, third-party incidents, or other events — may temporarily affect the availability or quality of services provided to clients.
18.Counterparty Risk.In bilateral OTC and prime brokerage transactions, the Client is exposed to the risk that the counterparty may fail to fulfil its obligations prior to or at settlement. This includes the risk of default, insolvency, or operational failure of the counterparty. Bequant assesses counterparty risk as part of its onboarding and ongoing due diligence processes, but cannot guarantee that any counterparty will perform its obligations in all circumstances.
19.Custody Risk.Crypto-assets held in custody — whether by Bequant Pro Limited, Bequant Prime Limited, or an approved sub-custodian — are subject to the operational, security, and insolvency risks of the custodian. While custodians implement security and segregation measures, the risk of loss cannot be entirely eliminated. Sub-custodians are selected and monitored by Bequant but are independent entities subject to their own risk profiles.
20.Settlement Risk.Delivery-versus-payment (“DVP”) and similar settlement arrangements carry residual risk that a transaction may fail to settle as expected, whether due to technical failure, counterparty default, or network issues. Settlement failures may result in the Client's exposure to adverse price movements between the agreed settlement date and the actual settlement date.
21.Operational Risk.Errors in order entry, settlement, reporting, reconciliation, or communications may occur due to human or system error. Internal processes are subject to the inherent limitations of any operational system. Bequant implements controls and oversight to mitigate operational risk, but cannot guarantee the absence of operational errors. Any errors identified will be addressed in accordance with applicable procedures.
22.Key Person Risk.The departure, incapacity, or unavailability of key personnel — including senior management, traders, compliance officers, or technical staff — may affect the continuity, quality, or availability of services. Bequant maintains succession planning and knowledge management processes, but the loss of key individuals may temporarily disrupt operations.
23.Environmental Risk.Proof-of-work crypto-assets, including Bitcoin, are associated with significant energy consumption and corresponding greenhouse gas emissions. These assets carry reputational and regulatory risk relating to their environmental impact. Future regulatory measures — such as carbon taxes, mandatory sustainability disclosures, or restrictions on proof-of-work mining — may affect the value or availability of such assets.
24.Political & Geopolitical Risk.Political instability, changes of government, imposition or expansion of sanctions regimes, or direct government actions targeting crypto-assets may affect the value of crypto-assets or the availability of Bequant services in specific markets. Geopolitical events may also cause sudden and severe market dislocations. Bequant monitors relevant geopolitical developments but cannot predict or control their impact.
25.Force Majeure.Natural disasters, pandemics, wars, terrorist acts, civil unrest, or other extraordinary events beyond Bequant's reasonable control may disrupt financial markets, communication networks, or Bequant's operations. In such circumstances, Bequant may be unable to perform its obligations and will seek to notify clients and resume normal operations as soon as practicable.
26.Concentration Risk.Holding a single crypto-asset or a small number of crypto-assets concentrates exposure to the specific risks of those assets, including issuer risk, protocol risk, and market risk. Diversification across assets, asset classes, or strategies does not guarantee protection against loss, but concentration in a single asset or strategy may amplify the impact of an adverse event.
27.Information Asymmetry.Participants in crypto-asset markets with access to superior information — whether technical, commercial, or market data — may trade at a material advantage over other participants. Publicly available information on crypto-assets is not uniformly accessible, accurate, or timely. Clients should not assume that any public disclosure or market data is complete or reliable.
28.No Regulatory Compensation Scheme.Services provided by Bequant Pro Limited and Bequant Prime Limited are not covered by any deposit guarantee scheme, investor compensation scheme, or equivalent protection mechanism. In the event of insolvency or failure of Bequant Pro Limited or Bequant Prime Limited, there is no government-backed scheme to compensate clients for losses. Clients should consider this risk in the context of the overall risk management of their portfolios.
29.Suitability.Services provided by Bequant Pro Limited and Bequant Prime Limited are provided solely to institutional clients and professional counterparties who have confirmed in writing that they understand and accept the risks set out in this disclosure. Bequant does not assess the suitability of its services or any specific transaction for individual clients and does not provide investment advice. Each client is solely responsible for determining whether any service or transaction is appropriate for its circumstances, objectives, and risk appetite.
By engaging with any Bequant service, the Client confirms that it has read, understood, and accepted all risks set out in this Website Risk Disclosure Statement. Past performance of any crypto-asset or trading strategy is not indicative of future results. You may lose all capital invested. If you are in any doubt about the risks involved, you should seek independent professional advice before proceeding.
© 2026 Bequant Pro Limited & Bequant Prime Limited. All rights reserved. Version BQ-WRD-2026-01. Effective 08 April 2026.