Regulatory compliance

Risks on Website and Mobile Application

General Disclaimer
Crypto-assets and the underlying technologies are innovative and relatively new. Regardless of their uses (investment value, exchange value, representation of rights, etc.), crypto-assets and their usage entail numerous risks outlined and explained in this document.
Therefore, investing in crypto-assets is not suitable for all clients. It is the responsibility of clients to educate themselves about different crypto-assets, the underlying technologies, and to understand what a Wallet/Portfolio (as defined below) is, how to handle it, including making deposits and withdrawals of crypto-assets.
Upwealth provides educational content, research notes, and detailed explanations written by its teams on its Website and Mobile Application to assist its clients. The Help/FAQ section offers answers to numerous questions.
Upwealth cannot be held liable for damages resulting from a Wallet/Portfolio address error attributed to the client.

On its Website, Mobile Application, and various platforms, Upwealth may indicate the past performance of the valuation of a specific crypto-asset (including its Price as defined below). Upwealth reminds its clients that past performance does not predict future performance, and that the Prices of crypto-assets are highly volatile (for reference, they can vary by more than + or – 20% in a single day), and in general, high returns come with high risks.

The following risks are not an exhaustive list of all the risks related to digital assets.

Generalities: Clients should note that the value of their investment in digital assets can both decrease and increase, and the value of the investment in digital assets can experience sudden and substantial drops. A client might not be able to recover the invested amount or may experience a substantial or total loss of the investment. There is no guarantee that investment objectives will be achieved.
Investor Risk: The digital assets offered by Upwealth can be purchased and held by any individual or entity, French or foreign. However, investors must ensure beforehand that investing in digital assets aligns with their financial situation and investment objectives. The service provider for digital assets may refuse any investment that it deems not in line with the professional situation and investment objectives of an investor or any other regulatory constraint. Additionally, it is advised that for the purpose of investment diversification, individual investors generally not invest more than 10% of their total assets in this asset type.
Capital Loss Risk: The value of Crypto-assets or Digital Assets constantly fluctuates based on the relative quantities of buying and selling demand on Marketplaces. The more a Crypto-asset’s price records significant upward and downward movements, the greater the volatility. This volatility is positively associated with profit potential and negatively with the risk of capital loss. Engaging in a Crypto-asset transaction carries a high risk of total capital loss connected to the purchase or conversion of Crypto-assets.
Legal Risks: The legal status of certain Crypto-assets might be undetermined in the jurisdiction where the client is located. This implies that the legality of possessing or exchanging Crypto-assets must be verified by the client. Clients are solely responsible for knowing and understanding how Crypto-assets are treated by all relevant legislation, particularly applicable tax laws.
Volatility Risks: The value of all Crypto-assets can vary rapidly. Clients are cautioned to be aware of their exposure to various Crypto-assets and that their exposure may be potentially affected by sudden and unpredictable changes impacting their transactions.
Tax Risks: The tax status of certain Crypto-assets might be undetermined in the jurisdiction where the client is located. This implies that the client is responsible for verifying, at their own risk, the obligation to report ownership, purchase or sale, payment of taxes on Crypto-assets to the tax authorities of which the client is subject to.

Risks Related to Digital Assets or Crypto Assets: Given the nature of Digital Assets and the underlying technologies, the following list enumerates the numerous inherent risks associated with their use:
Risk of hacking of one of the underlying blockchains of the Digital Assets used and subject to this mandate.
Inherent risks of digital assets, such as coding errors, counterparty risk, etc.
Risk of hacking of the platform(s) used.
Risk of coding errors in the platform(s).
Risk of access problems, of any nature, between the Mandate Management System and the platform(s) it uses, including loss of internet connection.
Risk of temporary or permanent shutdown of the platform(s) used.
Legal and regulatory risks related to one or more jurisdictions.
Risk of technological development leading to the obsolescence of the cryptographic systems used within this mandate, whether for Blockchain protocols (Ethereum, Bitcoin, USDT, etc.), for the Mandate Management System, or for the platform(s) used.
Risk of low liquidity in Digital Assets or loss of any liquidity on one or more Digital Assets in the overall portfolio on the platform(s).
Unforeseen risks due to the novelty of the technologies used.

Client Account Hacking Risks: Account hacking refers to the malicious takeover of an account to the detriment of its legitimate owner. The client is informed of this risk and is recommended to follow the account security procedures proposed by Upwealth.

Illiquidity Risk:
 The risk of illiquidity is high in digital asset markets, especially during periods of economic stress for small market capitalizations. The inability to absorb transaction volumes can significantly impact the price of digital assets. This is referred to as a lack of liquidity.

Delivery Risk: This is the risk that operations on digital assets (e.g., ICOs) may not be settled on the scheduled delivery date. The risk is equal to the difference between the value of the asset on the theoretical delivery date and its market value on the actual delivery date.

Exchange Rate Risk: Risk faced by any investor acquiring a digital asset denominated in a currency other than the legal currency of the resident country. A decrease or increase in exchange rates can result in a decrease or increase in the value of the digital asset when denominated in foreign currency.

Regulatory Risk: Upwealth is a service provider for digital assets registered as a DASP (Digital Asset Service Provider) under number E2023-062 with the AMF in France and RIA (Registered Investment Adviser) under number 801-126117 with the SEC in the United States for the activities of buying/selling and custody of digital assets (except for USA) on behalf of third parties. Thus, the company is subject to regulatory risk, which refers to the imposition of administrative fines, or even withdrawal of registration or approval, leading to a prohibition of activity. Investors are duly informed of this risk.

Market Risk: There is a risk of losing value in digital assets due to unfavorable changes in their prices. Consequently, clients investing in digital assets must consider the risk of partial or total loss of their investment due to fluctuations in digital asset values.
Client Complaints
Principles:
Upwealth places great importance on client satisfaction and service quality. To achieve this, the company has implemented a client complaints management system to handle client complaints effectively, transparently, and uniformly. This system applies to all clients, both individuals and legal entities.

Definition:
A client complaint is a written declaration, or received through any means, indicating a client’s dissatisfaction with the provision of a service by Upwealth.
Submission of a Complaint:
Any client complaint must be addressed in writing through the following methods:

By mail, to the following address:
Upwealth Digital Asset Management SAS
Direction Générale
31 avenue de Ségur, 75007 Paris, France
By email, to the following address: info@upwealth.io

Processing of My Complaint:
The processing of client complaints is free of charge.
The processing of client complaints adheres to the following requirement:
A response will be sent by email within a maximum of 2 months from the date of receiving the complaint, except in the case of exceptional circumstances that are duly justified.

Information Required for Complaint Processing:
Complete identity of the complainant: Name, First Name, Address, Phone Number, Email Address.
Description of the complaint and supporting documents: invoice, contract, supporting email, etc.

Referring to the Mediator:
If, despite our efforts, you are not satisfied with the response to your complaint, you have the option to refer the matter to the AMF mediator.
You can contact the AMF mediator via email:
https://www.amf-france.org/fr/le-mediateur
Or by mail:
Médiateur de l’AMF
Madame Marielle Cohen-Branche
Autorité des Marchés Financiers
17, place de la Bourse
75082 Paris cedex 02