Risk Disclosure

Purpose

This Risk Disclosure summarises the principal risks associated with the products and services offered by the Finquest Capital Group ecosystem. It is not exhaustive. You should not invest in, or otherwise commit capital to, any product unless you fully understand its features and risks and have obtained independent professional advice.

General Investment Risk

The value of any investment may go down as well as up. You may lose some or all of the capital you commit. Past performance is not a reliable indicator of future results. No representation is made that any objective will be achieved.

Risks Specific to Tokenised Real-World Assets

• Underlying-asset risk — the value of a token reflects the value of the underlying asset (real estate, fine art, equestrian or alternative asset) and is exposed to the same market, valuation, operational and event risks as a direct holding of that asset.
• Liquidity risk — secondary trading on the Finquest Exchange is conditional on the existence of willing counterparties. There is no guarantee that you will be able to sell tokens at any given time, or at a price reflecting the underlying value.
• Valuation risk — valuations of illiquid assets rely on professional appraisals and may not reflect the price obtainable in a forced or expedited sale.
• Legal and structural risk — tokens are issued by Special Purpose Vehicles whose legal protections (limited recourse, ring-fencing, security packages) depend on the integrity of the structuring documents and the law of the jurisdiction concerned.
• Regulatory risk — the legal and regulatory framework applicable to tokenised instruments is evolving. Tokens issued in respect of real-world assets may qualify as transferable securities under MiFID II / Prospectus Regulation, or as another category of financial instrument, depending on their economic substance. Regulatory change may adversely affect availability, transferability or value.

Technology and Infrastructure Risk

• Smart-contract risk — tokens are issued and transferred via smart contracts deployed on a public blockchain. Despite audit, smart contracts may contain bugs, vulnerabilities or unintended behaviours. Blockchain forks, protocol upgrades and network congestion may affect transferability.
• Custody and key-management risk — loss, theft or compromise of private keys or institutional custody credentials may result in loss of access to tokens. We use Fireblocks for institutional custody, but no custodial solution is risk-free.
• Cybersecurity risk — platforms and intermediaries may be targets of cyber-attacks. While robust security measures are applied, no system is immune.

Counterparty and Operational Risk

You are exposed to the credit and operational risk of the SPV that issues tokens, of intermediaries (custodians, banks, payment service providers, technology providers) and of the operator of any trading venue on which tokens are listed. Insolvency, fraud or operational failure of any such party may result in delays, losses or unavailability of services.

The Finquest Exchange

The Finquest Exchange is operated by PowrAI Digital Exchange sp. z o.o., a Polish company holding VASP authorisation under Polish law (RDWW-1725) and whose CASP application under Regulation (EU) 2023/1114 (MiCA) is currently under review. Any service provided by the Exchange is subject to the Exchange’s own terms, risk warnings and AML/KYC requirements.

Wealth Management

Finquest Wealth Management is a proprietary active-management technology with a track record since January 2019. The track record is based on the activity of the engine within defined parameters and does not constitute a guarantee of capital protection or future return. Performance figures published on the Website refer to historical results within the program perimeter.

No Deposit-Protection or Compensation Scheme

Tokens, digital assets and crypto-asset services offered through the Finquest ecosystem are not deposits and are not covered by the Irish Deposit Guarantee Scheme, the Polish Bankowy Fundusz Gwarancyjny, or any equivalent investor-compensation scheme. In the event of insolvency of an issuer, exchange operator or custodian, you may lose part or all of your investment.

Tax

Tax treatment of tokens and digital-asset transactions depends on individual circumstances and may change. We do not provide tax advice. You should consult an independent tax adviser in your jurisdiction.

Suitability and Qualified-Investor Restriction

Our products are intended for qualified investors, professional clients or comparable categories under applicable law. You confirm — by accepting our terms or by entering into a contractual relationship — that you have the knowledge, experience and financial capacity to assess and bear the risks described in this Risk Disclosure.

No Investment Advice

Information provided is generic and does not take into account your personal circumstances, objectives or constraints. It does not constitute investment, legal, tax or accounting advice. You are solely responsible for your investment decisions.

Updates

Risk profiles evolve. This Risk Disclosure may be updated from time to time and the version in force is the one published on the Website at the time of access.

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