Investing in securities involves significant risk. You may lose some or all of your invested capital. Capital at risk — investments can go down as well as up, and you may get back less than you invested. This disclosure expands Section 5 of the Terms of Service and forms part of them.
1. Market risk
The value of equities traded on the NGX may rise or fall, and past performance is not indicative of future results. XODOS does not guarantee any investment return.
Share prices respond to company results, sector conditions, interest rates, government policy and sentiment. A single company can fall sharply on news specific to it, and the whole market can fall together.
2. Foreign exchange and naira devaluation risk
Your investments are denominated in NGN. Fluctuations in the NGN/GBP, NGN/USD, or NGN/CAD exchange rate may materially affect the value of your holdings and returns in your home currency. The Nigerian Naira has experienced periods of significant depreciation, and future devaluation cannot be excluded.
This means two things drive your return: the share price and the exchange rate. A holding can rise in naira and still lose you money once converted back, if the naira has weakened by more than the share has gained.
3. Liquidity risk
NGX-listed equities may have limited trading volumes. You may be unable to sell holdings at your desired price or within your desired timeframe. Some shares may take longer to sell than others, and a large order may itself move the price against you.
4. cNGN and stablecoin risk
The cNGN stablecoin is a relatively nascent product. There is a risk of de-pegging, regulatory restriction, issuer insolvency, or technical failure of the blockchain settlement infrastructure. XODOS has no liability for losses arising from such events.
5. Settlement and counterparty risk
There is a period between trade execution and final settlement during which market or counterparty conditions may change. In an Omnibus Account structure, the Client bears counterparty risk on XODOS and the custodian.
Between execution and settlement, and again between sale and withdrawal, your money is in transit and not available to you. Exchange halts, public holidays, banking delays and technical failures at any party in the chain can extend these periods.
6. Regulatory and jurisdictional risk
The regulatory environment for digital asset platforms, stablecoins, and cross-border securities access is evolving rapidly in Nigeria, the UK, the US, and Canada. Changes in law or regulation may affect your ability to use the Platform, hold assets, or make withdrawals. XODOS will use reasonable endeavours to notify Clients of material regulatory changes but cannot guarantee continuity of all services.
Your investments are also exposed to conditions in Nigeria: changes in tax and capital controls, political developments, and shifts in how foreign investors may repatriate funds.
7. Technology and cybersecurity risk
No technology platform is immune to outages, data breaches, or cyberattacks. While XODOS employs industry-standard security controls, we cannot guarantee the security of your Account or data in all circumstances.
8. Synthetic asset risk
Synthetic Assets carry the full credit risk of XODOS as counterparty. In the event of XODOS insolvency or default, holders of Synthetic Assets may lose their entire investment and rank as unsecured creditors.
9. Tax
Depending on where you live, you may owe tax on dividends or investment gains. Some taxes may also be deducted in the country where you invest. How your investments are taxed depends on your residence, your citizenship and your personal circumstances, and it can change.
XODOS provides transaction history and account statements, but does not provide tax advice. Take your own advice before you invest.
10. Only invest what you can afford to lose
Before investing, consider whether you understand what you are buying, whether you could withstand losing it, and whether the holding period suits money you may need sooner. Only invest money you can afford to leave invested.
XODOS does not provide financial advice. If you are unsure, speak to an independent financial adviser authorised in your own country.
If any part of this disclosure is unclear, contact [email protected] before you open a position.
ODOS