→

Privacy Notice

→

Business Continuity

→

Risk Disclosures

→

Regulatory Information

→

Complaints

→

Risk Disclosures

Last Updated: July 20, 2022

General

Digital Currency

Digital Currencies represent a speculative investment and involve a high degree of risk. Investors should have the financial ability, sophistication/experience and willingness to bear the risks of an investment. An investment in digital currencies may not suitable for all investors. Digital currencies are NOT considered securities and are NOT subject to the same regulatory requirements as SEC-registered securities, exchange traded funds, or similar investment vehicles. Potential investors should carefully consider the long term nature of an investment in digital currencies prior to making an investment decision. You should note carefully the following:

Regulatory disclosures regarding digital currencies

Digital currency is not legal tender, is not backed by the government. Genesis does not hold any balances or accounts of any kind for its counterparties. Nonetheless, balances of digital currencies are not subject to federal deposit insurance corporation or securities investor protection corporation protections;
Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of digital currency;
Transactions in digital currency may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;
Some digital currency transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the counterparty initiates the transaction;
The value of digital currency may be derived from the continued willingness of market participants to exchange fiat currency for digital currency, which may result in the potential for permanent and total loss of value of a particular digital currency should the market for that digital currency disappear;
Amendments – we may amend any portion of the Terms and Conditions, at any time, by posting the revised version of the Terms and Conditions with an updated revision date. The changes will become effective, and shall be deemed acceptable by you, the first time you transact with Genesis Global Trading, Inc. after the initial posting of the revised Terms and Conditions and shall apply only on a going-forward basis with respect to transactions initiated after the posting date. In the event that you do not agree with any such modification, your sole and exclusive remedy is to terminate your use of our services and close your account. You agree that we shall not be liable to you or any third party as a result of any losses suffered by any modification or amendment to the Terms and Conditions. If the revised Terms and Conditions includes a material change, we will provide you with prior notice via our website and/or email before the material change becomes effective. For this purpose a “material change” means a significant change other than changes that (i) are to your benefit, (ii) are required to be made to comply with applicable laws and/or regulations or as otherwise required by one of our regulators, (iii) relates to a new product or services made available to you, or (iv) to otherwise clarify an existing term.
There is no assurance that a person who accepts a digital currency as payment today will continue to do so in the future;
The volatility and unpredictability of the price of digital currency relative to fiat currency may result in significant loss over a short period of time;
The nature of digital currency may lead to an increased risk of fraud or cyber-attack;
Genesis does not hold any balances or accounts of any kind for its counterparties. Nonetheless the nature of digital currency means that any technological difficulties experienced by the genesis may prevent the access or use of a counterparty’s digital currency; and
Any bond or trust account maintained by genesis may not be sufficient to cover all losses incurred by counterparties.

General terms

Liability for unauthorized digital currency transactions will be evaluated on a case by case basis, with genesis making the final determination. Any disagreement resulting from such a determination is subject to the arbitration clause contained herein this new applicant profile form.
Any counterparty that reneges on an agreed upon transaction shall be subject to termination of its relationship with Genesis Global Trading, Inc..
Genesis Global Trading, Inc. may be required to disclose information about a counterparty pursuant to a request or regular or routine inspection by a governmental agency or regulatory agency or in response to a deposition, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process.

As Genesis Global Trading, Inc. does not hold funds of any kind for counterparties, there will be no periodic account statements and valuations from Genesis Global Trading, Inc..
All agreed upon transactions with Genesis Global Trading, Inc. shall be evidence by either a confirming message sent via email or the tradeblock platform.
Genesis Global Trading, Inc. reserves the right to terminate its relationship with a counterparty at any time and for any reason. Genesis Global Trading, Inc. will communicate such a decision as promptly as possible.

Restricted activities

The following categories of activities, business practices, and sale items are barred in connection with a trading relationship with Genesis Global Trading, Inc. (“restricted activities”). By trading with Genesis Global Trading, Inc., you confirm that you will not trade with Genesis Global Trading, Inc. in connection on your behalf, or on the behalf of a third party, with the following businesses, activities, practices, or items:
Conducting or facilitating money-laundering or terrorist financing
Operating as an unlicensed money transmitter, money service, payment service provider, e-money, or any other financial services business which requires licensure, including but not limited to exchanges of virtual currencies, sales of money orders or traveler’s checks, and escrow services
Transacting counterfeit products or any product or service that infringes upon the copyright trademark, or trade secrets of any third party
Transacting stolen goods
Transacting narcotics, controlled substances, prescription and pharmaceutical services, drug paraphernalia, or any substances designed to mimic illegal drugs
Gambling activities including but not limited to sports betting, casino games, horse racing, dog racing, lotteries, games of chance, sweepstakes, games of skill that may be classified as gambling (i.e. poker), or other activities that facilitate any of the foregoing
Extortion, blackmail, or efforts to induce unearned payments
Unlicensed sale of firearms and certain weapons
Engaging in deceptive marketing practices
Defrauding Genesis Global Trading, Inc. by providing false, inaccurate, or misleading information
Any business that violates any law, statute, ordinance or regulation

Arbitration disclosures

This agreement contains a predispute arbitration clause. By signing an arbitration agreement, the parties agree as follows:
All parties to this agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
Arbitration awards are generally final and binding: a party’s ability to have a court reverse or modify arbitration award is very limited.
The ability of the parties to obtain documents, witness statements, and other discovery is generally more limited in arbitration than in court proceedings.
The arbitrators do not have to explain the reason(s) for their award, unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date.
The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.
The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this agreement.

Arbitration agreement

Any controversy between you and us shall be submitted to arbitration before and only before the financial industry regulatory authority. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any predispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until; (i) the class certification is denied; (2) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent stated herein. The laws of the State of New York govern.
‍

Derivatives

Dodd-Frank Swap Dealer Disclosures And Notifications

Disclosures are provided in anticipation of Genesis Global Markets Limited registering as a swap dealer with the U.S. Commodity Futures Trading Commission.

1. INTRODUCTION

The Commodity Exchange Act (“CEA”), Commodity Futures Trading Commission (“CFTC”) rules, Securities Exchange Act of 1934 (“Exchange Act”) and the Securities Exchange Commission (“SEC”) rules, pursuant to Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") impose comprehensive regulatory requirements on swap dealers and security-based swap dealers. These requirements mandate that Genesis Global Markets Limited (“Genesis”, “Swap Dealer”, or “Security-Based Swap Dealer”) provides certain disclosures and notifications (“Disclosures”) to end-user counterparties and prospective counterparties in relation to entering into a Swap or a Security Based Swap as applicable to allow the counterparty to assess the material risks and material characteristics of the Swap or Security Based Swap and the material incentives and conflicts of interest that Genesis may have in connection with the Swap or Security Based Swap.

2. DEFINITIONS

“Business Day” means a day on which commercial banks are open for general business (including dealings in foreign exchange and foreign currency deposits).
“CEA” means the U.S. Commodity Exchange Act.
“CFTC” means the U.S. Commodity Futures Trading Commission.
“CFTC Regulations” means the rules, regulations, orders and interpretations published or issued by the CFTC.
“DCO” means a “derivatives clearing organization” as such term is defined in Section 1a(15) of the CEA and the CFTC Regulations.
“DF” means the Dodd-Frank Act.
“Disclosures” has the means the disclosures and notifications set forth in this document.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
“Exchange Act” means the Securities Exchange Act of 1934.
“FCM” means a futures commission merchant subject to regulation under the CEA.
“Interpretive Guidance” means the Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations, 78 Fed. Reg. 45292 (July 26, 2013), as amended or supplemented by the CFTC from time to time.
“SEC” means the Securities Exchange Commission.
“Security-Based Swap” means a “security-based swap” as defined in Section 3(68) of the Securities Exchange Act (15 U.S.C. 78c(a)(68)) and the SEC Regulation 240.3a68-5.
“Swap” means a “swap” as defined in Section 1a(47) of the CEA and CFTC Regulation 1.3. The term “Swap” also includes any foreign exchange swaps and foreign exchange forwards that may be exempted from regulation as “swaps” by the U. S. Secretary of the Treasury pursuant to authority granted by Section 1a(47)(E) of the CEA.
“Security-Based Swap Communication Event” means, with respect to you and Security-Based Swap Dealer, each (1) Security-Based Swap Transaction Event, (2) offer to enter into a Security-Based Swap Transaction Event, and (3) “recommendation” (as such term is used in SEC Regulation 240.15Fh-3) with respect to a Security-Based Swap or trading strategy involving a Security-Based Swap.
“Security-Based Swap Transaction Event” means, with respect to you and Security-Based Swap Dealer, the execution of a new Security-Based Swap or any material amendment, mutual unwind or novation of an existing Security-Based Swap.
“Swap Communication Event” means, with respect to you and Swap Dealer, each (1) Swap Transaction Event, (2) offer to enter into a Swap Transaction Event, and (3) “recommendation” (as such term is used in CFTC Regulation 23.434 and 23.440) with respect to a Swap or trading strategy involving a Swap.
“Swap Transaction Event” means, with respect to you and the Swap Dealer, the execution of a new Swap or any material amendment, mutual or unwind novation of an existing Swap.

3. DISCLOSURES AND NOTIFICATIONS

Please note certain Disclosures may not be relevant to all recipients. Specifically, Disclosures may not apply to you if (i) you are not a U.S. person as defined in the CFTC’s Interpretive Guidance and (ii) are transacting with any Swap Dealer organized outside the United States. In addition, note that, pursuant to SEC Regulation 240.3a71-3, Disclosures may not apply to you if (i) you are not a U.S. person or (ii) you are a U.S. person conducting a Security-Based Swap through a foreign branch and are transacting with any Security-Based Swap Dealer organized outside of the United States or that is organized within the Unites States but is conducting a Security-Based Swap through a foreign branch.

Material Risk Disclosures
The International Swaps and Derivatives Association, Inc. (“ISDA”) has created standard industry documentation to assist swap dealers in satisfying ongoing CFTC requirements. Please review the following documentation which describes the disclosures of material information required to be provided to you pursuant to CFTC Regulation 23.431(a) and SEC Regulation 240.15Fh-3(b)(1). These disclosures include (i) material characteristics of a variety of transactions related to certain underlying referenced assets; (ii) material risks of such transactions and (iii) material incentives and conflicts of interest that might exist when entering into a swap transaction with a swap dealer such as Genesis.

ISDA General Disclosure Statement for Transactions please login here.
‍
Material Economic Terms (METs) Disclosures
‍Please see the following documentation for the material economic terms (“MET”) of Swaps and Security-Based Swaps required to be provided to you pursuant to CFTC Regulation 23.431(a)(2) and SEC Regulation 240.15Fh-3(b)(1)(ii), respectively. These disclosures contain material information concerning the swap in a manner reasonably designed to allow you to assess the material characteristics of the particular swap, which shall include the material economic terms of the swap, the terms relating to the operation of the swap, and the rights and obligations of the parties during the term of the swap.

MET and Risk Disclosure please login here.
‍
Material Conflicts of Interest
‍Please see Annex A for disclosures related to some of the material conflicts of interest that may arise between you and Swap Dealer including (i) some of the material conflicts of interest that may arise between you and Swap Dealer where Swap Dealer performs services for you in relation to futures, options on futures, swaps, forwards or other commodity derivatives, which are required to be provided to you pursuant to CFTC Regulation 23.431(a)(3); and (ii) some of the material incentives that Security-Based Swap Dealer may have, or material conflicts of interest that may arise between you and Security-Based Swap Dealer, where Security-Based Swap Dealer performs services for you with respect to Security-Based Swaps. Disclosures may not be available in Annex A provided that your identity is not known at a reasonably sufficient time prior to execution. All disclosures made in writing pursuant to this Regulation will supersede oral disclosures made by Security-Based Swap Dealer.
‍
Pre-Trade Mid-Market Mark Methodology
‍Please see Annex B for disclosures related to the methodology used by Swap Dealer in providing you with pre-trade mid-market marks as per compliance with CFTC Regulation 23.431(a)(3).
‍
Scenario Analyses
With respect to each Swap between you and Swap Dealer that is not “available for trading” (as defined in the CFTC Regulations), prior to a Swap Transaction Event you may request, and consult on the design of, a scenario analysis to allow you to assess your potential exposure in connection with such Swap pursuant to in accordance with CFTC Regulation 23.431(b).
‍
Daily Marks
In accordance with regulations CFTC Regulation 23.431(d)(2) and SEC Regulation 240.15Fh-3(c)(2), Genesis is required to provide daily marks (“DF daily mark”) to you with respect to uncleared Swaps or uncleared Security-Based Swaps, respectively. For cleared Swaps originally executed between you and Swap Dealer, you have the right, upon request, to receive a DF daily mark from the futures commission merchant through which you clear such cleared Swap or the relevant derivatives clearing organization (“DCO”) or another third party in accordance with the CFTC Regulation 23.431(d)(1). For cleared Security-Based Swaps originally executed between you and Genesis, you have the right, upon request, to receive the DF daily mark the clearing member receives from the appropriate clearing agency through which you clear such Security-Based Swap in accordance with SEC Regulation 240.15Fh-3(c)(1). Such DF daily mark may be provided directly by Genesis or through a third party. Any DF daily mark provided to you by Genesis may not necessarily, and would often not be expected to, be a price at which either we or you would agree to replace or terminate a Swap or Security-Based Swap; include adjustments you need to make internally to account for your credit reserves, funding or liquidity costs; unless otherwise expressly agreed, be the basis for margin calls and maintenance of collateral; or be the value of the Swap or Security-Based Swap that is marked on our books and records. To the extent that such marks may be based on inputs or information obtained from external sources, Genesis believes any such sources to be reliable but makes no representations or warranties with respect to the accuracy, reliability, or completeness of such data or information, or the resulting daily mark. Pursuant to Section 4s(h)23.431(d) of the CEA, the DF daily mark is exclusive of several additional factors that may influence our pricing of Swaps, namely, profit, credit reserves, hedging costs, funding and liquidity or any other costs or adjustments. Unsettled cash payments due from one party to the other are taken into account in the DF daily marks. DF daily marks are provided only in respect of Swap or Security-Based Swap transactions that have not terminated or been novated or otherwise transferred to a third party, notwithstanding any unsettled cash payments that may remain in respect of such a terminated, novated or otherwise transferred Swap transaction. DF daily marks are not provided in relation to your entire portfolio. No DF daily mark is provided with respect to any Swap transactions with an affiliate that is not a Swap Dealer or in respect of any derivatives transaction that is not regulated by the CFTC. Likewise, no DF daily mark is provided with respect to any Security-Based Swap transaction with an affiliate that is not a Security-Based Swap Dealer. Any DF daily marks provided by Genesis, as applicable, to you will be calculated as of the close of business on the prior Business Day in the locality specified in the notice of such DF daily mark to you, such locality to be consistently specified with regard to a class or type of Swaps or Security-Based Swaps, as applicable, unless otherwise agreed with Swap Dealer or Security-Based Swap Dealer in writing. In addition, each DF daily mark will be expressed in terms of a position of a specified size, and will be applicable only with respect to that size and may not reflect the mark that would be calculated with respect to a position or transaction of any other size. For additional disclosures on the methodology and assumptions we use to prepare the DF daily marks, refer to Annex C.
‍
Clearing
‍With respect to any Swap entered into between you and Swap Dealer that is subject to the mandatory clearing requirements under Section 2(h) of the CEA, you have the sole right to select the DCO at which the Swap will be cleared pursuant to CFTC Regulation 23.432(a).With respect to any Security-Based Swap entered into between you and Security-Based Swap Dealer that is subject to the mandatory clearing requirements under Section 3C(a) of the Securities Exchange Act, you have the sole right to select the clearing agency at which the Security-Based Swap will be cleared, pursuant to SEC Regulation 240.15Fh-3(d)(1). For a general list of clearing agencies that clear security-based swaps and which security-based swaps each clearing agency clears, please see the list published by ISDA here. Of those clearing agencies, certain Security-Based Swap Dealers are authorized or permitted, directly or through a designated clearing member, to clear Security-Based Swaps at the following: ICE Clear Credit LLC, ICE Clear Europe Limited, and LCH SA. With respect to any Swap entered into between you and Swap Dealer that is not subject to the mandatory clearing requirements under Section 2(h) of the CEA, you may elect to clear such Swap and you have the sole right to select the DCO at which the Swap will be cleared in accordance with CFTC Regulation 23.432(b). With respect to any Security-Based Swap entered into between you and Security-Based Swap Dealer that is not subject to the mandatory clearing requirements under Section 3C(a) of the Exchange Act, but may be accepted for clearing by one or more clearing agency as determined by Security-Based Swap Dealer, you may elect to clear such Security-Based Swap. If you elect to clear such Security-Based Swap, you have the sole right to select the clearing agency through which to clear, so long as it is one of the clearing agencies at which Security-Based Swap Dealer is authorized or permitted, directly or through a designated clearing member, to clear the applicable Security-Based Swap, in accordance with SEC Regulation 240.15Fh-3 (d)(2)(iii). For a general list clearing agencies that clear security-based swaps and which security-based swaps each clearing agency clears, please refer to the list published by ISDA here. Of those clearing agencies, certain Security-Based Swap Dealers are authorized or permitted, directly or through a designated clearing member, to clear Security-Based Swaps at the following: ICE Clear Credit LLC, ICE Clear Europe Limited, and LCH SA. The decision by the clearing unit of Swap Dealer or of any affiliated clearing member of a DCO, or of Security-Based Swap Dealer or of any designated clearing member of a clearing agency, to provide Swaps or Security-Based Swaps services to you is determined based on some or all of the following criteria: (i) your credit profile, (ii) your capital and other financial resources, (iii) your expertise in trading complex financial products, including Swaps or Security-Based Swaps, as applicable, (iv) your operational, liquidity and risk management capabilities in trading financial products, including Swaps, or Security-Based Swaps, as applicable, (v) the types of Swaps or Security-Based Swaps that you intend to trade and clear at the clearing unit of Swap Dealer, Security-Based Swap Dealer or any affiliate thereof, (vi) whether the clearing unit of Swap Dealer, Security-Based Swap Dealer, or any affiliate thereof has the ability to clear the Swaps or Security-Based Swaps you are intending to trade, (vii) whether commercial and legal terms can be agreed with you, (viii) the approach you take to legal and compliance issues, (ix) your satisfaction of the client on-boarding requirements of the clearing unit of Swap Dealer, Security-Based Swap Dealer, or its affiliates, (x) credit exposure, capital and other financial resources/condition of the clearing unit of Swap Dealer, Security-Based Swap Dealer, or its affiliates, and (xi) any other relevant objective considerations.
‍
Special Entity Status
If you are an employee benefit plan defined in Section 3 of ERISA that is not subject to Title I of ERISA, you may elect to be treated as a special entity pursuant to CFTC Regulation 23.430(c).
‍
If you are an employee benefit plan defined in Section 3 of ERISA that is not subject to Title I of ERISA, you will be treated as a special entity unless you elect to not be treated as such pursuant to SEC Regulation 240.15Fh-3(a)(3) and 240.15Fh-2(d)(4) by notifying Security-Based Swap Dealer of such election prior to entering into a Security-Based Swap with such Security-Based Swap Dealer.
‍
Recommendations
‍As of each Swap Communication Event, Swap Dealer discloses to you in accordance with CFTC Regulations 23.434(b)(3) and 23.440(b)(2)(iii) that (a) Swap Dealer is not undertaking to act in your best interests nor is it undertaking to assess the suitability of any Swap or trading strategy involving a Swap for you.
‍
As of each Security-Based Swap Communication Event, Security-Based Swap Dealer discloses to you in accordance with SEC Regulation 240.15Fh-3(f)(2)(iii) that it is acting in its capacity as a counterparty and is not undertaking to assess the suitability of any Security-Based Swap, or trading strategy involving a Security-Based Swap for you.
‍
Segregation of Initial Margin
‍If you supply funds or other property to Swap Dealer to margin, guarantee, or secure your obligations to Swap Dealer under an uncleared Swap, you have the right in accordance with CFTC Regulation 23.701(a)(1) to require segregation of those funds or other property other than with respect to variation margin payments. This notification is deemed to be effective prior to execution of the first uncleared swap transaction.

If you supply funds or other property to Security-Based Swap Dealer to margin, guarantee, or secure your obligations to Security-Based Swap Dealer under an uncleared Security-Based Swap, you have the right in accordance with SEC Regulation 240.15c3-3(p)(4)(i) and 15 U.S.C. § 78c-5(f) to request segregation of those funds at any time. Please contact your Genesis sales representative if you would like further information on how to make this election, or write to [email protected].
‍
Variation Margin Calculation Methodology Overview
‍In accordance with CFTC Rule §23.155(b)(1), an overview of the methodology to calculate a reasonable approximation of the variation margin requirement used by Swap Dealer is available to you upon request. Please contact your Genesis sales representative if you would like further information.
‍
Address for Complaints
‍Set forth below for each Swap Dealer are the physical address, email, and telephone number of the department to which any complaints may be directed:
‍
Genesis Global Markets Limited
c/o Genesis Global Holdco, LLC
250 Park Avenue South, 5th Floor
New York, NY 10003
[email protected]
+1 646-493-2248

‍

Material Conflicts Of Interest And Material Incentives Disclosure

The purpose of this disclosure is to provide you with information about some of the material conflicts of interest may arise between you and Genesis connection with Genesis offering or performing services for you with respect to futures, options on futures, swaps (as defined in the CEA), forwards or other commodity derivatives, or between you and Security-Based Swap Dealer where Security-Based Swap Dealer performs services for you with respect to Security-Based Swaps (collectively with services performed by Swap Dealer, “Contracts”).

In particular, these conflicts of interests can arise when Swap Dealer or Security-Based Swap Dealer has an economic or other incentive to act, or persuade you to act, in a way that favors Swap Dealer, Security-Based Swap Dealer, or its respective affiliates.

Trading Facility Selection

Under applicable law, inclusive of regulations of the CFTC and the SEC, not all Swaps are required to be executed on an exchange, a swap execution facility, or a security-based swap execution facility (each, a “Trading Facility”), even if a Trading Facility lists the Swap or Security-Based Swap, as applicable, for trading. In such circumstances, it may be financially advantageous for Swap Dealer, Security-Based Swap Dealer, or its respective affiliate to execute a Swap or Security-Based Swap with you bilaterally in the over-the-counter market rather than on a Trading Facility and, to the extent permitted by applicable law, we may have an incentive to persuade you to execute your Swap or Security-Based Swap bilaterally.

Clearing House Selection

Applicable law may permit you to choose the CFTC-registered DCO to which you submit a Swap for clearing. You should be aware that Swap Dealer may not be a member of or may not otherwise be able to submit your Swap to, the DCO of your choice. Applicable law may also permit you to choose the SEC-registered clearing agency to which you submit a Security-Based Swap for clearing. The Security-Based Swap dealer may not be a member of or may not otherwise be able to submit your Security-Based Swap to, the clearing agency of your choice. In addition, the clearing costs that Swap Dealer or Security-Based Swap Dealer, as applicable may face will usually differ among DCOs. Consequently, Swap Dealer or Security Based-Swap Dealer, as applicable, may have an incentive to persuade you to use a DCO or clearing agency of which it or its affiliate is a member and where Swap Dealer or Security-Based Swap Dealer as applicable would face lower clearing costs, and may decline to enter into a Contract with you to the extent you choose another DCO.

Ownership Interests

You also should be aware that Swap Dealer, Security-Based Swap Dealer, or an affiliate of these may own stock in, or have some other form of ownership interest in one or more U.S. or foreign Trading Facilities or DCOs where your Contracts may be executed and/or cleared. As a result, Swap Dealer, Security-Based Swap Dealer, or a respective affiliate may receive financial or other benefits related to its ownership interest when Contracts are executed on a given Trading Facility or cleared through a given DCO or clearing agency, and Swap Dealer or Security-Based Swap Dealer would, in such circumstances, have an incentive to cause applicable Contracts to be executed on that Trading Facility or cleared by that DCO or clearing agency. In addition, directors, officers and employees of Swap Dealer, Security-Based Swap Dealer, or an affiliate may also serve on the board of directors or on one or more committees of a Trading Facility, DCO, or clearing agency.

Other Financial Incentives

In addition, Trading Facilities, DCOs, and clearing agencies may from time to time have in place other arrangements that provide their members or participants with volume, market-making or other discounts or credits, may call for members or participants to pre-pay fees based on volume thresholds, or may provide other incentives or arrangements that are intended to encourage market participants to trade on, or direct trades to, that Trading Facility, DCO, or clearing agency. Swap Dealer, Security-Based Swap Dealer, or an affiliate may participate in and obtain financial benefits from such incentive programs.

Other Conflictions of Interest

When Swap Dealer or Security-Based Swap Dealer provides execution services to you (either in conjunction with clearing services or in an execution-only capacity), Swap Dealer or Security-Based Swap Dealer may direct orders to affiliated or unaffiliated market-makers, other executing firms, individual brokers or brokerage groups for execution. When such affiliated or unaffiliated parties are used, they may, where permitted, agree to price concessions, volume discounts or refunds, rebates or similar payments in return for receiving such business. Likewise, where permitted by law and the rules of the applicable Trading Facility, Swap Dealer, Security-Based Swap Dealer, or an affiliate of these may solicit a counterparty to trade opposite your order or enter into transactions for its own account or the account of other counterparties that may, at times, be adverse to your interests in a Contract. In such circumstances, that counterparty may make payments and/or pay a commission to Swap Dealer, Security-Based Swap Dealer, or an affiliate of these, in connection with that transaction. The results of your transactions may differ significantly from the results achieved by Swap Dealer or the Security-Based Swap Dealer for its own account, its affiliates, or for other customers.

In addition, where permitted by applicable law (including, where applicable, the rules of the applicable Trading Facility), Swap Dealer, Security-Based Swap Dealer, and either of its directors, officers, employees or affiliates may act on the other side of your order or transaction by the purchase or sale for an account, or the execution of a transaction with a counterparty, in which Swap Dealer, Security-Based Swap Dealer, or a person affiliated with either dealer has a direct or indirect interest, or may affect any such order with a counterparty that provides Swap Dealer, Security-Based Swap Dealer, or its respective affiliates with discounts related to fees for Contracts or other products. In cases where Swap Dealer or Security-Based Swap Dealer has offered you a discounted commission or clearing fee for the applicable Contract executed through it as agent or with it or its affiliate acting as counterparty, Swap Dealer, Security-Based Swap Dealer, or its affiliates may be doing so because of the enhanced profit potential resulting from acting as executing broker or counterparty.

Swap Dealer, Security-Based Swap Dealer, or its respective affiliates may act as, among other things, an investor, research provider, placement agent, underwriter, distributor, remarketing agent, structurer, securitizer, lender, investment manager, investment adviser, commodity trading advisor, municipal advisor, market maker, trader, prime broker or clearing broker. In those and other capacities, Swap Dealer, Security-Based Swap Dealer, or its respective directors, officers, employees and affiliates may take or hold positions in, or advise other customers and counterparties concerning, or publish research or express a view with respect to, a Contract or a related financial instrument that may be the subject of advice from Swap Dealer or its affiliates to you. Any such positions and other advice may not be consistent with, or may be contrary to, your interests or to positions that are the subject of advice previously provided by Swap Dealer, Security-Based Swap Dealer, or its respective affiliate to you, and unless otherwise disclosed in writing, Swap Dealer, Security-Based Swap Dealer, or its respective affiliates are not necessarily acting in your best interest and are not assessing the suitability for you of any Contract or related financial instrument. Swap Dealer, Security-Based Swap Dealer, or its respective affiliates may also facilitate the activities of other counterparties, or hedge transactions it has entered into with other counterparties, which transactions may have adverse effects on the value of the assets underlying any Swap entered into between you and Swap Dealer, or a Security-Based Swap entered into between you and Security-Based Swap Dealer. Acting in one or more of the capacities noted above may give Swap Dealer, Security-Based Swap Dealer, or its respective affiliates access to information relating to markets, investments and products. As a result, Swap Dealer, Security-Based Swap Dealer, or any of its affiliates may be in possession of information which, if known to you, might cause you to seek to dispose of, retain or increase your position in one or more Contracts or other financial instruments. Swap Dealer, Security-Based Swap Dealer, and its affiliates will be under no duty to make any such information available to you, except to the extent we have agreed in writing or as may be required under applicable law.

‍

Pre-Trade Mid-Market Mark Disclosure

Pursuant to CFTC Regulation 23.431(a)(3), a “pre-trade mid-market mark” for a Swap (“DF mid”) is required to be provided to you. Such DF mid is prepared by discounting projected future cashflows of the swap to arrive at a current value. For each asset class, spot and forward curves, correlation and volatility levels are determined based on observable market inputs when available and on the when observable market inputs are not available, on the basis of estimates. These spot and forward curves, correlation and volatility levels are used to estimate future cashflows that are not certain (such as floating interest rates or options). The pre-trade mid-market would be the mathematical average of the bid and offer. In some circumstances, we may use probabilistic models to determine the expected value of future cashflows. These estimated cashflows, along with future cashflows that are known with certainty, are then discounted to their present value using discount factors derived from relevant market inputs. Unless otherwise specified, the discounting rate used for all Swaps is an overnight rate.

In our sole discretion, we may utilize a variety of methodologies to prepare the estimated cashflows described in the foregoing, including without limitation, preparing Monte Carlo simulations, Black-Scholes, or other mathematical pricing models. In our sole discretion, we may vary the inputs used in such simulations and modeling and are under no obligation to provide disclosure to you with regards to our methodology or the inputs used thereto.

Any DF mid may not necessarily, and would often not be expected to be a price at which either we or you would agree to enter into or terminate a Swap; include adjustments you need to make internally to account for your credit reserves, funding or liquidity costs; be the basis for margin calls and maintenance of collateral (unless otherwise expressly agreed); or be the value of the Swap that is recorded on our books and records.

In accordance with Section 4s(h)23.431(d) of the CEA, the DF mid does not include several additional factors that may influence our pricing of Swaps, namely, profit, credit reserves, hedging costs, funding and liquidity or any other costs or adjustments.

Any DF mid we provide to you is time-sensitive and only current as of the time at which it is provided to you. As a result, the DF mid you receive for a transaction may change even if the price at which we would agree to enter into or terminate such Swap has not changed over the same period of time. No DF mid is provided in respect of any Swap transaction with an affiliate that is not a Swap Dealer or in respect of any derivative transaction that is not regulated by the CFTC.

‍

DF Daily Mark Methodology Disclosure

In accordance with CFTC Regulation 23.431(d)(2) and SEC Regulation 240.15Fh-3(c)(2), the DF daily mark for each uncleared Swap and uncleared Security-Based Swap that is required to be provided to you is prepared by discounting projected future cashflows of the Swap or Security-Based Swap, as applicable, to arrive at a current value. For each asset class, spot and forward curves, correlation and volatility levels are determined based on observable market inputs when available and based on of estimates when observable market inputs are not available. These spot and forward curves, correlation and volatility levels are used to estimate future cashflows that are not certain (for example floating interest rates or options). In some instances, probabilistic models may be used to determine the expected value of future cashflows. These estimated cashflows, along with future cashflows that are known with certainty, are then discounted to their present value using discount factors derived from applicable market inputs.

The discounting rate used for all Swaps or Security Based Swaps is an overnight rate, unless otherwise specified.

In our sole discretion, we may use a variety of methods to formulate the estimated cashflows described above for Swaps and Security-Based Swaps, including without limitation, preparing Monte Carlo simulations, utilizing Black-Scholes, or other mathematical pricing models. We also may vary the inputs used in such simulations and modelling in our sole discretion, and are under no obligation to disclose to you the methodology used or the inputs thereto.

Singapore

RISK WARNING ON DIGITAL PAYMENT TOKEN SERVICES

The Monetary Authority of Singapore (“MAS”) requires us to provide this risk warning to you as a customer of digital payment token (“DPT”) service provider Genesis Asia Pacific Pte. Ltd (“GAP”). Before you pay GAP any money or DPT, you should be aware of the following:

GAP is exempted by MAS from holding a license to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to GAP if GAP’s business fails.
You should not transact in DPTs if you are not familiar with DPTs. Transacting in DPTs may not be suitable for you if you are not familiar with the technology through which DPT services are provided.
You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
You should be aware that GAP, as part of its license to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as a “stablecoin”.

England And Wales

Genesis Custody holds a registration with the Financial Conduct Authority as a cryptoasset business for anti-money laundering purposes under the The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, but neither Genesis Custody, nor our custody services, are regulated by the Financial Conduct Authority. The Customer will not benefit from the regulatory protections that are available in respect of regulated services offered by regulated firms. Business conducted by us in connection with our custody services is not covered by the Financial Services Compensation Scheme and the Customer will not be eligible to refer any complaint relating to our custody services to the Financial Ombudsman Service.
Our offering includes products that may carry a high degree of risk to your capital. It is possible to incur losses that exceed your initial investment. You should ensure you fully understand the risks involved and seek independent advice if necessary.
If you are unclear about anything, it is important that you seek independent advice and are comfortable with the risks that you are taking.