Risk Disclosure

Capital at risk

The value of any investment can go down as well as up. You may receive back less than you originally invested, and in some circumstances you may lose your entire investment. This applies to shares, bonds, exchange-traded funds, collective investment schemes, derivatives, virtual assets, and any other financial instrument. There is no guarantee of capital preservation or positive returns.

Market risk

Market risk, also known as systematic risk, refers to the risk that the overall value of financial markets declines due to broad economic, political, or social factors. These factors include but are not limited to: changes in interest rates, inflation, currency exchange rates, geopolitical instability, natural disasters, pandemics, changes in government policy or regulation, and shifts in investor sentiment. Market risk cannot be eliminated through diversification and affects all investments to some degree.

Liquidity risk

Liquidity risk is the risk that an investment cannot be bought or sold quickly enough at a fair price. Some investments, particularly those in smaller or newly listed companies, certain fixed-income products, or virtual assets with low trading volumes, may be difficult to sell at the desired time or price. In extreme market conditions, it may become impossible to exit a position entirely. Illiquid investments may require you to hold them for extended periods, potentially at a significant loss.

Concentration risk

Concentration risk arises when a portfolio is heavily weighted toward a single asset, sector, geography, or asset class. A lack of diversification means that a decline in that specific area can have a disproportionately large negative impact on the overall portfolio value. Proper diversification across multiple asset classes, sectors, geographies, and investment strategies is one of the most effective ways to manage investment risk, though it does not eliminate risk entirely.

Inflation risk

Inflation risk, or purchasing power risk, is the risk that the real value of your investment returns is eroded by inflation over time. If the rate of return on your investments is lower than the rate of inflation, your purchasing power decreases. This is particularly relevant for cash holdings and fixed-income investments with low nominal returns. Investments that do not keep pace with inflation result in a real loss of value even if the nominal value remains unchanged.

Currency risk

Where you invest in assets denominated in a currency different from your base currency, you are exposed to currency risk (also called foreign exchange risk). Fluctuations in exchange rates between the denomination currency and your base currency can affect the value of your investment, potentially reducing or eliminating gains or increasing losses. Currency risk can be hedged, but hedging itself carries costs and may not be perfectly effective.

Extreme volatility

Virtual assets are among the most volatile asset classes. Price swings of 30% or more within a single day are not uncommon. Values can be influenced by regulatory announcements, technological developments, market sentiment, social media activity, and concentration of ownership among a small number of holders ("whales"). You should be prepared for the possibility of rapid and substantial losses, including the total loss of your invested capital.

Regulatory uncertainty

The regulatory framework for virtual assets is still evolving in most jurisdictions, including Canada, St. Vincent and the Grenadines, and the United Kingdom. Changes in law, regulation, or regulatory interpretation could adversely affect the value, usability, or legality of virtual assets. Certain jurisdictions have banned or restricted virtual asset activities entirely. Our VASP registration (VABA‑2026‑0042) with the SVGFSA does not imply that virtual asset activities are regulated or permitted in every jurisdiction.

Technological risks

Virtual assets rely on distributed ledger technology (blockchain), which is subject to a range of technological risks including: (i) network attacks such as 51% attacks, Sybil attacks, and denial-of-service attacks; (ii) smart contract vulnerabilities, bugs, or exploits; (iii) forks, upgrades, or governance disputes that result in the creation of competing assets; (iv) loss of consensus or network disruption; (v) quantum computing threats to cryptographic security. Any of these events could result in a material decline in value or total loss.

Custody and access risk

Virtual assets are typically held in digital wallets secured by private keys. Loss, theft, or destruction of private keys results in permanent loss of access to the associated assets. There is no central authority, bank, or recovery mechanism that can restore access to lost keys. Custodial services provided by third parties carry their own risks, including insolvency, hacking, operational failure, and fraud. You are solely responsible for safeguarding your private keys and choosing reputable custodians.

Market manipulation

The virtual asset market is less regulated than traditional financial markets and may be more susceptible to manipulation, including pump-and-dump schemes, wash trading, spoofing, and front-running. The pseudonymous nature of blockchain transactions can make it difficult to identify and prosecute manipulative actors. You should exercise extreme caution when acting on information from social media, messaging platforms, or unverified sources.

Counterparty risk

When using exchanges, trading platforms, custodians, or other intermediaries to buy, sell, or hold virtual assets, you are exposed to the risk that the counterparty defaults, becomes insolvent, or otherwise fails to fulfil its obligations. Several high-profile exchange failures and insolvencies have resulted in users losing access to their assets for extended periods or permanently. You should evaluate the financial stability, regulatory status, and security practices of any intermediary before transacting.

System outages and disruptions

Online trading and investment platforms are dependent on complex hardware, software, and network infrastructure. System failures, internet outages, power interruptions, cyber-attacks, or other disruptions can prevent you from accessing your account, executing trades, or monitoring positions. During periods of high market volatility, platform capacity may be insufficient, leading to slow execution, delays, or inability to trade. We do not guarantee uninterrupted availability of any platform or service.

Cybersecurity risks

Investment platforms and their users are targets for cyber-attacks including phishing, malware, ransomware, credential theft, and account takeover. Despite security measures, no system is immune to breaches. A successful attack could result in loss of funds, personal data, or both. You are responsible for maintaining the security of your login credentials, using strong passwords, enabling multi-factor authentication where available, and being vigilant against phishing attempts.

Reliance on third-party services

We rely on third-party providers for certain services including custodianship, payment processing, data feeds, market data, hosting, and regulatory reporting. Failure or disruption at any third-party provider could affect our ability to deliver services to you. We do not control these third parties and cannot guarantee their performance, solvency, or security. Our liability for failures caused by third-party providers is limited to the greatest extent permitted by law.

Communication risks

Instructions, orders, and communications transmitted electronically are subject to the risks of transmission delay, misdirection, data corruption, and interception. We are not liable for losses arising from communication failures outside our reasonable control. You should verify the accuracy and completeness of any electronic communication and confirm receipt where appropriate.

General conflicts

Ellington Ltd and ELLINGTON TRADE LTD may have interests that conflict with those of users, including but not limited to: (i) holding positions in financial instruments or virtual assets that are discussed or referenced on the website; (ii) providing services to companies that are the subject of educational content; (iii) receiving compensation from third parties for referrals or introductions; (iv) having relationships with underwriters, market makers, or other intermediaries involved in IPO transactions. We endeavour to identify and manage conflicts of interest fairly and transparently, but we cannot guarantee that all conflicts are avoided.

No fiduciary duty

We provide educational information and content only. We do not act as a fiduciary, investment adviser, broker, or agent for any user. No relationship of trust or confidence is created between us and any user solely through the use of our website or services. You are solely responsible for your own investment decisions and due diligence. Nothing on this website creates a fiduciary duty or any similar obligation on our part.