Risk Disclosure

ResoNova Signal Service

Risk Disclosure Statement

Last Update: 2016-07-25

Trading and financing trades in digital currency entails certain risks. This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding, trading, or engaging in financing or financed transactions in digital currency. Risks include, but are not limited to, the following:

Market Risk: The market for digital currency is still new and uncertain. No-one should have funds invested in digital currency or speculate in digital currency which they are not prepared to lose entirely. Whether the market for one or more digital currencies will move up or down, or whether a particular digital currency will lose all or substantially all of its value, is unknown. This applies both to traders that are going long and to traders that are shorting the market. Participants should be cautious about holding digital currency.

Liquidity Risk: Markets for digital currency have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade digital currency or products derived from or ancillary to them.

Legal Risk: The legal status of certain digital currencies may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more digital currencies constitute property, or assets, or rights of any kind may also seem unclear. Participants are responsible for knowing and understanding how digital currency will be addressed, regulated, and taxed under applicable law.

Exchange Risk (Counterparty Risk): Having digital currency on deposit or with any third party in a custodial relationship has attendant risks. These risks include security breaches, risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold their property for any reason.

Trading Risk: In addition to liquidity risks, values in any digital currency marketplace are volatile and can shift quickly. Participants in any digital currency market are warned that they should pay close attention to their position and holdings, and how they may be impacted by sudden and adverse shifts in trading and other market activities.

Risks Associated with Financing Activities: When you finance a purchase or sale of digital currency on a peer-to-peer basis, you run the risk of losing your provided financing. Similarly, when you accept financing to enter a trading agreement, you accept the risk of not being able to repay that financing (e.g., if the market price of the digital currency you purchased with the financing falls). Participants should know all of the terms of any contracts they enter and how their trading strategies and other market and risk factors can affect their financing obligations.