Bamboo investments App
Bamboo investments App

Risk Disclosure Statement

Risk Disclosure Statement

General

Investing in cryptocurrencies via the Bamboo app involves significant risks. This statement has been prepared by Bamboo 61 Pty Ltd (Bamboo) to assist you to understand the types of risks that may be involved with using the Bamboo app, but is not intended to be exhaustive. You should consider all of the risks that may be relevant to your use of the Bamboo app and assess whether those risks are acceptable to you having regard to your financial circumstances and risk tolerance. If you are unsure, we strongly recommend that you read our FAQs, do your own research and obtain your own advice.

Ownership Risk

You will not have any legal title to, rights of ownership or beneficial interest in any of the cryptocurrencies that are held as part of your investment. Your contributions will be used by us to purchase and hold cryptocurrencies equal to your investment. You will only be entitled to any proceeds that are made from the sale of these investments at your direction. At no time will you be able to transfer any of the cryptocurrencies to any person (including moving cryptocurrencies off the platform into your own wallet). This is different to trading in cryptocurrencies on an exchange where you directly own the assets and can transfer those assets outside of the exchange.

Investment Risk

The trading of cryptocurrencies involves significant risk. Although you are not directly trading in any cryptocurrency, you are exposed to the same investment risks as if you were. Prices for crypto assets are subject to volatility and can and do fluctuate on any given day. Due to such price fluctuations, you may increase or lose value in cryptocurrencies that we hold as part of your investment at any given moment. Any currency - crypto or not - may be subject to large swings in value and may even become worthless. There is an inherent risk that losses will occur as a result of buying, selling or trading anything on a market. This is no different for cryptocurrencies.

Cryptocurrency trading also has special risks not generally shared with conventional currencies or goods or commodities in a market. Unlike most currencies, which are backed by governments or other legal entities, or by commodities such as gold or silver, cryptocurrencies are a unique kind of currency, backed by technology and trust. There is no central bank that can take corrective measure to protect the value of cryptocurrencies in a crisis or issue more currency.

Cryptocurrencies are an as-yet autonomous and largely unregulated worldwide system of cryptographic assets and individuals. Traders put their trust in a digital, decentralised and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity.

Cryptocurrency trading is susceptible to irrational (or rational) bubbles or loss of confidence, which could collapse demand relative to supply. For example, confidence might collapse in cryptocurrency because of unexpected changes imposed by the software developers or others, a government crackdown, the creation of superior competing alternative currencies, or a deflationary or inflationary spiral. Confidence might also collapse because of technical problems: if the anonymity of the system is compromised, if money is lost or stolen, or if hackers or governments are able to prevent any transactions from settling. There may be additional risks that we have not foreseen or identified in this statement.

Counterparty Risk

Bamboo is the provider of the Bamboo app and is the principal to any transaction made by you via the Bamboo app. When you make an investment, we purchase the cryptocurrencies you specify, with the promise to pay to you, in the future, the proceeds of those cryptocurrencies when you instruct us to sell down your investment. In the event Bamboo suffers a financial failure, it may not be able to settle its obligations under the Bamboo Terms and Conditions as and when those obligations become due.

Credit Risk

If Bamboo becomes insolvent, then because you do not have any legal rights to the cryptocurrencies you invested in, you will be an unsecured creditor in relation to your contributions and you may not be repaid in full or at all.

Liquidity Risk

There is no secondary market for your investment in the Bamboo app and you cannot sell your investment to any person. This means that there is no mechanism for you to extract value from the Bamboo app other than to redeem your investments.

Transaction Risk

Bamboo holds legal title to, rights of ownership, and/or beneficial interest in all of the cryptocurrencies that are held as part of your investment. Bamboo may use those cryptocurrencies in its absolute discretion to earn a return, reward, yield or other amount or entitlement from a range of investment activities including accessing opportunities in centralised and decentralised markets. You acknowledge and agree that:

  • you are not entitled to any return, reward, yield or other amount or entitlement from these investment activities and that Bamboo is solely entitled to these amounts;
  • there are risks associated with Bamboo’s investment activities including (but not limited to) exchange risk, volatility risk, custody risk, market risk, service provider risk, regulatory risk, network risk, impairment risk and valuation risk; and
  • while Bamboo has policies and procedures in place to manage the risks associated with its investment activities, there is a risk that the cryptocurrencies may be lost or reduce in value. If this is the case, you understand that Bamboo will be liable to repay your investments to you in accordance with the Bamboo Terms and Conditions but any repayment will be subject to the counterparty risk and credit risk detailed above.

Market Risk

We will do our best to act on your directions as soon as possible and all trades made by us that are made following your directions will be conducted at the market rate available for those cryptocurrencies at the time the trade is made and on the exchange chosen by us. There is a risk that the value of your investment in cryptocurrencies on the Bamboo app will differ from the market price due to rapid movement in the market value. We will not be liable for any price variation due to market volatility or delays that are not within our control.

Volatility Risk

There is a risk that adverse movements may affect the price of cryptocurrencies. These adverse movements may affect the value of your investment.

Regulatory Risk

The Bamboo app and cryptocurrencies you can invest in via the Bamboo app are not regulated financial products and you will not have the benefit of any of the protections under the Corporations Act 2001 (Cth).

There is also the risk that the regulatory landscape changes and any change may impact Bamboo’s ability to comply with the Bamboo Terms and Conditions or impact the value of the Assets.

Service Provider Risk

We use our banking providers in order to receive fiat currency and remit the sale proceeds of your cryptocurrencies to you once they have been sold. Our banking providers do not transfer cryptocurrencies, exchange cryptocurrencies, or provide any services in connection with cryptocurrencies. If our service providers are experiencing any operational issues, this may delay or impact our ability to comply with our obligations under the Bamboo Terms and Conditions.

Storage Risk

We make every effort to store the cryptocurrencies equal to your investment in safe storage. However, the cryptocurrencies may be compromised or lost as a result of events outside of our control e.g. hacking. If this is the case, you understand that Bamboo will be liable to repay your investments to you in accordance with the Bamboo Terms and Conditions but any repayment will be subject to the counterparty risk and credit risk detailed above.

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