Virtual Assets Products
Our Product Risk Rating (PRR) framework for virtual assets provides a robust assessment of each asset’s risk profile. Our methodology evaluates quantitative metrics (e.g. historical price volatility and liquidity), and qualitative factors (e.g. protocol governance, regulatory status, and technical security).
Products are categorised on a five-level scale, from P1 (Very Low Risk) to P5 (Very High Risk). The final rating is determined on a case-by-case basis by evaluating the risk characteristics of the product. Virtual assets possess inherent risks arising from their volatility and complexity. Consequently, our framework adopts a conservative baseline classification to ensure appropriate investor protection.
The resulting PRR serves as the benchmark for our suitability matching process, ensuring that the products offered to you align with your individual risk tolerance, investment objectives, and financial situation.
Tokenised Security Products
Our PRR framework for tokenised securities provides an objective, systematic evaluation of investment products by decomposing uncertainty into two primary components: Risk Factors and Structural Features. This dual-layer approach combines quantitative metrics (e.g., asset class concentration, geographical exposure, and historical volatility) with qualitative analysis (e.g., investment strategy, transparency, and issuer profile).
Products are categorised on a five-level scale, from P1 (Very Low Risk) to P5 (Very High Risk). The final rating is determined by the two scores (Risk and Structural), ensuring that the classification adequately reflects both the inherent risk exposure and any heightened concerns arising from the product’s structural design or features.
The resulting PRR serves as the benchmark for our suitability matching process, ensuring that the products offered to you align with your individual risk tolerance, investment objectives, and financial situation.
Product Risk Rating Definition
Please note that these categories only reflect the general risk profile of a product based on our assessment methodology. A rating assigned to a product does not preclude the existence of specific risks unique to that asset, nor does it guarantee performance.
The PRR is not static and may vary over time. An allocation to the lowest risk rating does not mean that an investment product is risk free.
| PRR | Description |
| Very Low Risk [P1] | Products generally focused on capital preservation, typically characterised by minimal price volatility over short periods of time. |
| Low Risk [P2] | Products generally designed for steady potential returns, typically characterised by limited exposure to market fluctuations over short periods of time. |
| Medium Risk [P3] | Products generally following a balanced investment approach, aiming for moderate capital appreciation through a blend of assets, typically demonstrate moderate level of price fluctuations over short periods of time. |
| High Risk [P4] | Products generally following a growth-oriented approach, typically involve structural complexity or higher volatility over short periods of time. |
| Very High Risk [P5] | Products generally considered highly speculative or structurally complex, carrying significant potential for volatility and the risk of substantial capital loss over short periods of time. |