Risk Disclosure Statement

Last updated 15 Dec 2025

Risk Disclosure Statement
‍
Engaging in activities involving virtual assets carries significant risk. Gaulbridge Limited (“Gaulbridge”, “we”, “us”) provides this Risk Disclosure Statement to help clients understand the potential risks associated with transacting in, transferring, or otherwise using virtual assets through our services. These risks may result in partial or total loss of value and may not be suitable for all individuals.This Risk Disclosure Statement forms an integral part of Gaulbridge’s Terms and Conditions. Capitalised terms not defined in this Risk Disclosure Statement have the meanings given in the Terms and Conditions. By using our services, you acknowledge that you have read, understood, and accepted the risks described below.

General Risk Warning

Virtual asset activities are inherently risky and may result in financial loss. You should ensure that you fully understand the risks associated with virtual assets before engaging in any transaction involving them. This Risk Disclosure Statement does not describe all possible risks. It is your responsibility to independently assess and understand the risks applicable to your circumstances.Transactions involving virtual assets expose you to the risk of losing some or all of the value involved. You should only transact in virtual assets if you can afford to bear such losses and have sufficient financial resources to manage the associated risks.

Volatility and Loss of Value

Virtual assets are speculative and subject to extreme price volatility. Unlike traditional financial instruments, virtual assets are generally not backed by central banks, government guarantees, or regulated deposit protection schemes. Their value is largely influenced by market perception, demand, and speculative activity. Prices may fluctuate rapidly and unpredictably—sometimes within minutes or hours—resulting in substantial gains or losses. Factors influencing price movements include, but are not limited to:

Market dynamics: sudden changes in liquidity, trading volume, or market concentration

Investor sentiment: media coverage, social media activity, public commentary, or speculation

Regulatory developments: changes in laws, enforcement actions, or asset classifications

Macroeconomic events: interest rate changes, inflation, geopolitical developments

Technological developments: protocol upgrades, forks, vulnerabilities, or network failures

Project-specific risks: development delays, governance failures, fraud, or abandonmentThere is no guarantee that any virtual asset will retain or increase its value. In some cases, a virtual asset may become illiquid or lose all value, resulting in total loss.

Transferability and Irreversibility

Virtual asset transactions are recorded using distributed ledger technology (DLT), such as blockchain networks. Once confirmed, transactions are generally final and irreversible.If a transaction is made in error—such as sending assets to an incorrect address, using the wrong network, or entering an incorrect amount—it cannot be reversed, amended, or recovered by Gaulbridge, the network, or any third party.You are solely responsible for:Verifying wallet addresses and transaction detailsConfirming asset type, network, and destination compatibilityEnsuring private keys, credentials, and access controls are securely maintainedFailure to take appropriate precautions may result in permanent and unrecoverable loss.

Transfer Restrictions

Certain virtual assets may be subject to transfer limitations, including:

Legal or regulatory restrictions, such as sanctions or jurisdictional limitations

Smart contract controls, including lock-ups or whitelisted addresses

Platform-imposed restrictions by custodians, wallet providers, or service partners

Network congestion or protocol failures, leading to delays or increased transaction costsThese factors may prevent or delay the transfer of virtual assets or impact transaction outcomes.

Over-the-Counter (OTC) TransactionsSome transactions facilitated through Gaulbridge or its partners may occur over-the-counter (OTC) rather than on an exchange. OTC transactions may involve additional risks, including reduced liquidity, limited price transparency, and difficulty determining fair market value.In certain circumstances, it may be difficult or impossible to liquidate a position or accurately assess its value.

Liquidity Risks

Not all virtual assets trade in active or liquid markets. Low trading volumes or market disruptions may prevent timely sale or conversion at expected prices. Liquidity conditions can change rapidly and may differ significantly between assets.

Transparency and Privacy

While blockchain networks provide public and immutable transaction records, this transparency may reduce user privacy. Transaction histories and wallet addresses may be traceable, and anonymity is not guaranteed. Privacy-enhancing technologies may be limited or subject to regulatory or forensic analysis.

Settlement Risk

Virtual asset transactions may be delayed due to network congestion, technical failures, or third-party service interruptions. There is also a risk that counterparties may fail to deliver assets or funds as expected, resulting in settlement delays or losses.

Security, Fraud, and Legal Risks

Virtual assets and related infrastructure are exposed to risks including hacking, phishing, malware, smart contract exploits, fraud, and theft. Losses arising from such events may be irreversible.Virtual assets are not protected by deposit insurance or investor compensation schemes. Legal remedies may be limited in the event of fraud, insolvency, or technical failure.

Technological and Operational Risks

Virtual asset systems rely on complex and evolving technologies that may contain undiscovered vulnerabilities. Network failures, software bugs, forks, or third-party outages may disrupt transactions or result in losses.Operational risks may also arise from reliance on third-party service providers whose systems are outside Gaulbridge’s direct control.

Counterparty Risks

You may interact with third-party exchanges, custodians, liquidity providers, or payment partners. The financial stability, compliance posture, or operational integrity of these entities may affect your ability to access or recover assets. Insolvency, mismanagement, or regulatory action against a counterparty may result in partial or total loss.

Regulatory and Legal Uncertainty

The regulatory treatment of virtual assets varies by jurisdiction and continues to evolve. Changes in law, enforcement practices, or regulatory interpretation may restrict or prohibit certain activities or assets. You are responsible for ensuring compliance with all applicable laws, including tax and reporting obligations.

Market Conduct and Manipulation Risks

Virtual asset markets may be less regulated than traditional financial markets and may be susceptible to manipulation, insider trading, or unethical practices. Reduced oversight can increase risk for participants.

No Advice Disclaimer

This Risk Disclosure Statement is provided for informational purposes only and does not constitute financial, legal, investment, or tax advice. Gaulbridge does not provide investment recommendations or advice in relation to virtual assets.You should seek independent professional advice before engaging in any virtual asset activity.

Acceptance of Risk

By using Gaulbridge’s services, you acknowledge that you understand and accept the risks associated with virtual assets and that you bear sole responsibility for any losses incurred.