Risk Disclosure

Risk Discloser Document

Before using the services provided by Zug Alfa AG (hereinafter referred to as "the Company"), it is essential that you fully understand and expressly acknowledge the risks associated with engaging with the Company.

As a legal entity affiliated with and supervised by the SRO PolyReg, the Company is required to inform clients of the risks related to its business model, the nature of its services, and the technologies it utilises.

Furthermore, the Company must disclose that it is not supervised by FINMA and neither public deposits nor crypto-assets held in collective custody are covered by any deposit protection scheme.

This Risk Disclosure Notice applies to all clients of the Company and is publicly available on the Company's official website for review at any time.

Major risks

Lack of deposits protection scheme — Accounts at the Company are not equivalent to Swiss bank accounts, which is why there is no deposit protection for public deposits.

Cybersecurity — Cybersecurity risk refers to the potential for unauthorised access, use, disclosure, disruption, modification, or destruction of information within our digital platforms such as phishing attacks, malware, man-in-the-middle attacks or account takeover. Although the Company makes every effort to ensure the security of information, cyberattacks and their consequences cannot be completely ruled out.

The exchange rate risk — Foreign currency exchange rates are subject to fluctuations that are beyond the control of the Company. If you make transactions in a currency other than CHF and funds need to be returned to your account for any reason, you may suffer losses resulting from a change in the exchange rate before the funds are returned.

Failure to process transactions — Our services rely on digital platforms, and system malfunctions could disrupt your ability to make or receive payments. For example, a transaction may not be executed at the desired time or as desired due to a network error.

Transaction Errors — There is a risk of errors occurring during the payment process, such as incorrect amounts being transferred or payments being sent to the wrong recipients or sent by an unauthorised person.

Correspondent banks — For international payments, it is not always possible for the Company to calculate in advance the amount of charges of external banks.

Data Security — While we employ robust security measures to protect your confidential information, no system can be completely secure, posing a risk of unauthorised access to your data.

Refuse payment — The receiving bank or merchant may, at its sole discretion, refuse to accept the Company’s payments.

Outsourcing Risks — Certain functions may be outsourced to third parties. This created additional risks, such as subpar service quality and potential data breaches from these providers.

System Reliability — The infrastructure of the Company relies on technology that can also be operated by third-party providers. This infrastructure may fail for unforeseeable reasons. The Company strives to provide its services continuously and without interruption, but our services may fail or be interrupted due to an interrupted telecommunications service or third-party downtime. If this infrastructure becomes unavailable, it may not be possible to conduct transactions or receive information.

No deposit protection scheme

Depositors maintaining accounts with banking institutions in Switzerland are entitled to deposit protection under esisuisse, up to a ceiling of CHF 100,000, in the unfortunate event of institutional bankruptcy. This protection is delineated within the parameters set forth on the official esisuisse website (www.esisuisse.ch). It is to be expressly noted that the Company is explicitly exempt from this regulatory provision. Consequently, should the Company enter into bankruptcy proceedings and clients funds become unavailable, the aforementioned deposit protection shall not be applicable.

For the avoidance of doubt, it is hereby clarified that, in the event of the Company's insolvency, deposits from the public shall not be accorded any preferential treatment and shall be considered part of the bankruptcy estate.

3. In light of the above, the Company strongly advises all its clients to undertake comprehensive due diligence and to weigh the attendant risks judiciously prior to depositing funds and/or crypto-based assets held in collective custody with the Company, and before making any corresponding investment decisions.

Further information on deposit insurance can be found at https://www.esisuisse.ch/de/faq.