Investment & capital-loss risk
Any investment involves risk, including the possible loss of the entire amount invested. Capital invested with or through StableEdge is at risk, is not protected by any assurance, compensation scheme or deposit insurance, and no return of capital is assured. Prospective investors should be prepared to lose their capital in full.
Digital-asset volatility
Digital assets can experience extreme and rapid price movements. Portfolio value may fall materially, and drawdowns may be deep and prolonged, including in conditions where traditional markets are stable.
Stablecoin & peg risk
Stablecoins and other pegged assets can lose their peg, become illiquid or fail. Where the portfolio holds, receives or is collateralised by such assets, its value can be impaired independently of broader market conditions.
Smart-contract & protocol risk
On-chain positions depend on smart contracts and protocols that may contain defects, be exploited or fail to operate as intended. Exploits and failures can result in partial or total loss of the affected positions, with no practical recourse.
Leverage & liquidation risk
Where leverage is used, adverse price movements can trigger liquidations or forced unwinds, and changes in venue rules, oracle inputs or collateral requirements can force sales at disadvantageous prices. Leverage magnifies losses as well as returns.
Liquidity risk
Some positions cannot be exited quickly or without significant cost. Redemption or realisation may be delayed or restricted, and stated liquidity profiles are estimates under normal conditions, not commitments.
Counterparty risk
The portfolio transacts with venues, lenders, issuers, brokers and other counterparties whose failure to perform could cause loss. Protections vary by counterparty and jurisdiction and may be limited in practice.
Credit risk
Capital extended to borrowers, structures or credit instruments may suffer default, impairment or restructuring, and recovery may be partial, slow or unavailable.
Custody & key-management risk
On-chain assets depend on the secure generation, storage and use of cryptographic keys and on custody arrangements. Key loss, theft, compromise or error can result in irreversible loss of assets. Custody arrangements and providers are published only once confirmed.
Blockchain, network, oracle & bridge risk
Blockchains and related infrastructure — including networks, oracles and bridges — can suffer outages, congestion, forks, manipulation or attacks. Transactions may fail, be delayed, or finalise incorrectly, and bridge compromises have historically caused large losses.
Valuation risk
Digital-asset and on-chain positions can be difficult to value. Valuations use methodologies that involve judgement, and stated values may differ from prices achievable on exit. Methodology notes accompany published figures where applicable.
Regulatory & legal risk
The legal and regulatory treatment of digital assets is evolving and differs by jurisdiction. Changes in law, regulation or enforcement could adversely affect strategies, venues, instruments or the ability to operate, and could occur with limited notice.
Tax
The tax treatment of digital-asset transactions is complex, in places unsettled, and jurisdiction-specific. StableEdge does not provide tax advice; investors should obtain their own.
Technology & operational risk
Operating on-chain depends on systems, software, processes and people. Errors, outages, security incidents or process failures — at StableEdge or at third parties — can cause loss or impair operations.
Conflicts of interest
Conflicts of interest can arise between StableEdge, its personnel, its vehicles and its investors — for example in allocation, fee or counterparty decisions. Conflicts are managed under governance controls, and material conflicts are disclosed as required.