Risk Disclosure

1. BACKGROUND

We are Wealthyhood Europe AEPEY, an investment services company incorporated under the laws of Greece (business registry number 178577960000) with its registered address at Solonos 60, 10672, Athens, Greece (“we”, “us”, “our” or “Wealthyhood”).
Wealthyhood is authorised and regulated by the Hellenic Capital Markets Commission (HCMC) as an investment firm (“AEPEY” or “Investment Services SA”), under activity licence number 3/1014.
Unless otherwise specified, the terms used in this document follow the definitions found in Wealthyhood’s Terms & Conditions, which can be accessed through our website or app. Wealthyhood facilitates investment services to its clients ("Clients" "you" or "your") by executing or forwarding orders to third-party brokers for execution.

2. PURPOSE

This document provides a general overview of the nature and potential risks involved when investing in financial instruments ("Instruments"). It is essential to understand these risks before you make any investments or submit orders via our platform and/or app. You should not proceed unless you fully grasp the risks and have independently evaluated whether a transaction is suitable for your financial situation. We strongly advise consulting independent financial, legal, accounting, tax, or other professionals before placing an order.
This risk disclosure does not cover every possible risk or consideration related to your orders but offers a general and brief summary of the typical risks associated with the Instruments available on our platform and/or app. Detailed risk information for each specific Instrument can be found in related product documentation, such as prospectuses, term sheets, offering circulars, or key information documents.
It is important that you carefully review all relevant materials provided by Wealthyhood to understand how each financial instrument works, its associated risks, and the potential outcomes of your investment decisions.
Investing in Instruments involves risks. The value of your investments can fluctuate, and you may receive back less than you originally invested or, in some cases, lose your entire investment. Past performance is not a reliable indicator of future results.
Before buying or selling any Instruments, make sure you have sufficient financial resources and can afford any potential losses. You should not depend on profits from your investments to fulfil essential financial obligations, such as repaying loans, and should refrain from using borrowed money to make purchases through our platform.

3. EXECUTION-ONLY & NO ADVICE

Non-Advised Execution-Only Services
We offer an execution-only service for placing and transmitting orders in shares and other Instruments. This means that, in line with our Terms & Conditions, we will execute your orders without assessing whether the investment is suitable for you, and we will not provide you with any investment advice.
Additionally, we will not evaluate the appropriateness of the Instruments based on your investment knowledge and experience, particularly for non-complex Instruments such as shares, units in collective investment schemes, or money market instruments.
As a result, your protection may be limited. When you submit an order through our platform and/or app, we assume that you have considered the associated risks and determined that the Instrument is suitable for your situation. We also assume that you have sought independent professional advice if needed. While we may occasionally provide general information or commentary via our app, website, or other communications, this information should not be interpreted as advice. The decision to place any orders is entirely your responsibility.
By using our platform and/or app, you acknowledge that you are solely responsible for your investment choices and that you have the necessary knowledge and experience to make informed decisions, fully understanding the risks involved. You also confirm that you have sought professional advice where appropriate.
Furthermore, you agree that Wealthyhood and its directors, managers, employees and any affiliated person are not liable for any losses you may incur from investments made through our platform an/or app.
Non-Advised Execution-Only Services for Complex Instruments
If we offer execution or transmission services for complex financial instruments through our platform and/or app, we will evaluate whether these instruments are suitable for you, considering your investment knowledge and experience. This evaluation helps us determine if you comprehend the risks involved with the specific instrument.
If you do not provide sufficient or accurate details regarding your investment experience, we will be unable to assess the appropriateness of the instrument for you. In cases where we find that a complex instrument is not appropriate for you, but you still choose to go ahead with the transaction, there is a possibility that you may not fully understand the risks, and your protection may be limited.
Ultimately, you are responsible for the decisions you make when placing orders with us. If you are uncertain, we strongly advise you to seek independent professional advice.

4. GENERAL RISKS OF INVESTING

Risk of Investing in Shares
Shares signify ownership in a company, and as a shareholder, you may gain rights such as the potential for an increase in share value, dividends, or other payouts. However, none of these outcomes are guaranteed. The value of shares may decrease or become worthless, especially in cases of company insolvency, where shareholders are often the last to receive any payment, if at all. Consequently, investing in shares involves specific risks tied to the performance of the company.
Risks of Investing in Fractional Shares
Our platform may provide fractional shares for certain Ιnstruments, either directly or through third-party partners like brokers. These fractional shares represent partial ownership of a whole share, carrying the same risks as full shares. However, there are restrictions, such as the inability to vote on fractional shares for Instruments based in the EU and UK and the potential for rounding-related issues. Furthermore, fractional shares cannot be transferred to another broker and can only be sold through our platform.
Risks of Investing in Bonds
Bonds represent loans given to an entity, such as a company, government, or organisation. The issuer of the bond is required to pay interest and return the principal amount to bondholders. Nevertheless, there is always the possibility that the issuer may fail to meet these obligations, which could reduce the bond's value. In the case of insolvency, bondholders may recover less than their original investment.
Risk of Investing in Exchange-Traded Products (ETPs)
Exchange-traded products (ETPs), including exchange-traded funds (ETFs) and exchange-traded commodities (ETCs), usually hold a range of assets, though not always. They aim to follow the performance of a financial index or benchmark, with their value changing accordingly. ETPs are exposed to the same risks as the underlying assets, as well as other market risks. For instance, if an ETF focuses on a specific industry, it is vulnerable to risks in that sector.
Additionally, if an ETF trades in multiple currencies or holds foreign securities, exchange rate fluctuations may affect returns. ETPs may also diverge from their benchmarks due to factors like fees and transaction costs, meaning returns are not guaranteed.
Risk of Investing in Depositary Receipts
Depositary receipts offer a way to invest in shares of foreign companies. Instead of owning the actual shares, you hold a receipt from a financial institution that holds the shares via a foreign custodian. While depositary receipts share the same risks as regular shares, they may also present additional risks related to the political and legal environment of the issuing company’s home country.
Risk of Investing in Money Market Funds (MMFs)
Money market funds (MMFs) invest in cash or short-term securities, like government loans that offer fixed interest rates. Although these loans are typically short-term (up to six months), they can extend to a year in some cases. MMFs are subject to interest rate risk, where changes in interest rates affect the value of the fund’s holdings, counterparty risk in case of insolvency of the institutions safeguarding the assets, and credit risk if the issuers of the underlying securities do not fulfil their obligations to the fund.

5. RISK FACTORS

Before placing an order, it is important to take the following risks into account:
Insolvency Risk
Investing in Instruments tied to a particular entity carries the risk of financial loss if that entity becomes insolvent. Instruments like ordinary shares are typically at the bottom of the issuer’s payment priority list, which means you could lose the full amount of your investment if the company goes insolvent.
Moreover, if any third-party broker, partner, or custodian handling your transactions enters insolvency, your holdings may be sold off or transferred to another entity without your prior approval. In such cases, we will inform you of how your assets will be managed, but there is still a chance that the value of your investments could diminish.
Political Risk
Political or economic turbulence in the country where the issuer is located can directly impact the value and legal standing of the Instruments you hold. Events like abrupt regulatory changes, economic downturns, or social upheaval can introduce political risks that might lead to partial or complete loss of your investment.
Market Risk
Instruments can see fluctuations in value due to changing market conditions, investor sentiment, or trading activity where the instrument is listed. International events or trends, such as those in the US, can also affect securities listed elsewhere.
During periods of market instability, price swings may occur rapidly and unpredictably, potentially making it more challenging to execute buy or sell orders. For Market Orders, the final execution price may also differ from the initially quoted price, particularly if the order was placed when the market was closed. Limit Orders are not exposed to this particular risk in the same way, since they only execute at your specified Limit Price or better. You bear full responsibility for keeping track of your investments' value, and we suggest monitoring your positions on the Wealthyhood platform and/or app regularly.
Liquidity Risk
Liquidity, or the ease with which an Instrument can be traded, depends on factors like market conditions, demand, and supply. Sudden price shifts or market disruptions can sometimes make it difficult—or even impossible—to sell or acquire a position.
Though fractional shares usually have liquidity similar to full shares, they may become less liquid in times of market stress. If you decide to close your account, all positions will be sold, which could result in commission fees. Additionally, fractional and full shares cannot be transferred to another broker unless the third-party broker, partner, or custodian is undergoing insolvency proceedings, and such transfers are allowed.
Inflation Risk
Inflation refers to the rise in prices for goods and services over time. Increasing inflation can reduce the actual value of your investments. For example, rising production costs or material shortages can lead to higher inflation, which in turn could erode the returns on your investments if they don’t keep up with inflation.
Instrument Rights-Related Risk
Some instruments may grant specific rights, such as voting at shareholder meetings or receiving dividends, but these rights are not guaranteed. They can be subject to change. Dividend payments, in particular, are contingent on factors such as the issuer’s financial health, and there is no certainty that dividends will always be distributed.
Operational Risk
Operational risks, such as system failures, technical malfunctions, or breakdowns in key processes (including IT systems), can affect financial products. Furthermore, business risks—such as poor management or operational inefficiencies—can negatively impact investors. Changes in the organisation, including shifts in personnel or management, can amplify these risks. Both Wealthyhood and our partners may encounter such risks, which may not always be apparent from outside the organisation.
Currency Risk
When investing in securities that are denominated in foreign currencies, fluctuations in exchange rates can influence your returns. These changes in currency values can either improve or worsen your trading outcomes.
Fraud Risk
Despite strong anti-fraud, anti-bribery, and anti-corruption regulations in many markets, financial crime continues to evolve. Criminals may impersonate legitimate financial institutions or promote fraudulent investment opportunities, potentially leading to a total loss of your capital. In severe cases, fraud may also result in the exposure of sensitive personal information. Recovering losses from fraudulent activities is not always guaranteed.
Third-Party Risk
For certain instruments, finalising, transferring, or realising an investment may rely on the actions or approvals of third parties. For example, trustees, custodians, clearinghouses, or exchanges may need to take specific steps for your investment to be settled or for your legal ownership to be recognised. Consequently, you are subject to the risk that these third parties might fail to act as required or may delay necessary actions.
Legal and Regulatory Risk
Changes in laws or regulations may affect instruments, potentially leading to additional costs or, in extreme situations, the loss of the instrument. These changes could also render previously acceptable instruments unlawful.
Shifts in legal and regulatory frameworks could impact your rights, obligations, or available remedies as an investor. Conflicting regulations or ambiguities in legal interpretations may further complicate your ability to assert your rights under the relevant jurisdiction's laws governing the instrument.
Tax Risk
Changes in tax legislation could introduce new taxes or alter existing ones on the transfer or holding of instruments, which may reduce the overall profitability of your investment. In some instances, the tax treatment of investments can be complex and subject to frequent modifications, making it hard to predict the tax implications of an investment. Your personal tax status will also determine the tax impact of your investments. We advise consulting a tax expert to understand how your trading activities may be affected, as we do not provide tax advice.
Rounding Risk
During corporate actions—such as dividend distributions, stock splits, or reverse stock splits—the amount of instruments or funds credited to you may be subject to rounding down, which can reduce the value of your holdings. The rounding process will depend on the quantity of instruments you own, established international practices, and the specific details of the corporate action.
Exchange Risk
The ability to trade securities listed on a public exchange is governed by that exchange’s rules and procedures. In certain scenarios, such as during extreme market volatility, exchanges may temporarily halt or restrict the trading of particular securities. This may prevent you from buying or selling an instrument at the time or price you desire.
Counterparty and Credit Risk
Counterparty and credit risks arise when a party involved in a transaction fails to meet its obligations. For example, credit risk could emerge if the issuer of a security, like a money market fund (MMF), defaults on its payment obligations. Similarly, counterparty risk could occur if a third-party custodian or issuer becomes insolvent, which may result in the liquidation of your positions and potential capital loss.
Limit Order Risk
Limit Orders carry risks that don't apply to Market Orders. Because a Limit Order only executes once the market reaches your specified Limit Price (or a better price), there is no guarantee it will execute at all. If the market never reaches your Limit Price before the Expiry Date you set, the order will simply expire unfilled, and you may miss market movements you would otherwise have participated in.
Limit Orders are executed on an all-or-nothing basis. Even if the market briefly reaches your Limit Price, there may not be sufficient volume available at that price to fill your entire order, in which case the order may not execute at all rather than being partially filled.
Where an order involves a currency conversion, the exchange rate applied is the one prevailing at the time of execution rather than at the time you placed the order. This means the final converted amount you receive or pay can still vary slightly, even where the instrument itself executed at or better than your Limit Price.
Risk of Orders Placed by Number of Shares
Where you place a buy order by number of shares rather than by cash amount, the amount shown to you when you place the order is an estimate. The number of shares is fixed by your instruction, so the total cost varies with the price at which the order is executed, and it may be higher than the amount displayed to you.
To allow for this, we reserve an amount of cash in your account that is higher than the estimated cost of the order, and that reserved amount also includes an estimate of any fees payable. That reserved cash cannot be withdrawn or used for other orders while the order remains pending, even though the order has not yet been executed. The amount reserved is not a limit on what you may be charged: where the cost at execution is higher than the amount reserved, the difference is taken from the available cash in your account.
If the price of the instrument moves sharply before execution and the available cash in your account is not enough to cover the total cost at that moment, your order will not be executed and will be rejected, so that your balance does not become negative. The reserved cash will then be released back to your balance in full, but the investment you intended to make will not have been made, and the price of the instrument may have moved against you by the time you place a new order. Holding available cash above the amount reserved for your order reduces the likelihood of this happening, but the reservation itself does not guarantee that your order will be executed.