1. What is the Client Risk Exposure Limit?

The Client Risk Exposure Limit is a threshold set to ensure that the client’s exposure to virtual assets is reasonable, so that the exposure is aligned with the client’s investment experience and objectives, financial position, as well as risk appetite.

2. How is my Client Risk Exposure Limit determined?

Your Client Risk Exposure Limit is calculated based on the information you provided during the onboarding process in the account opening form and risk profiling questionnaire, which include but are not limited to your net worth and the percentage of virtual assets in your net worth.

3. How to calculate my Client Risk Exposure Limit?

The Client Risk Exposure Limit is calculated using the following formula:  

Net Worth x (Exposure Limit % - Other VA % in Net Worth)

For example: Client A declared that he has HKD 1,000,000 net worth, the Risk Tolerance Level is calculated as “High” according to the results in the risk profiling questionnaire, therefore obtaining a corresponding exposure limit of 30%, and Client A maintained 0% of virtual assets in the net worth. 

As a result, Client A’s Risk Exposure Limit is calculated as: 

HKD 1,000,000 x (30% - 0%)  = HKD 300,000 or equivalent in USD or other virtual assets

4. What factors are considered in the calculation of my Client Risk Exposure Limit?

The factors include:

• Net worth
• Risk tolerance level
• Percentage of virtual asset holdings in your net worth

5. Can you explain the terms "Net Worth" and "Percentage of Virtual Asset Holdings in Your Net Worth"?

• Net Worth: Your total liquid assets minus total liabilities. Liquid assets include assets such as cash, investments, and virtual assets.
• Percentage of virtual asset holdings in your net worth: The proportion of your net worth that is invested in virtual assets.

6. What are the risk tolerance levels and their corresponding exposure limits?

• For individual client: 

High: 30% of net worth

Aggressive: 35% of net worth

• For corporate client:

High: 35% of net worth

Aggressive: 40% of net worth

7. Are there any additional considerations for vulnerable clients?

Yes, for clients deemed vulnerable (e.g., elderly aged 65 or above, visually impaired, illiterate, or with limited means), a further reduction (haircut) of 5% to the exposure limit is applied.

8. How often is my exposure limit reassessed?

Your exposure limit is reassessed annually or as and when there are significant changes in your financial situation. You can also refresh your financial situation and suitability assessment by contacting us to update any information previously provided, thereby changing your exposure limit after our reassessment. We may request updated financial statements or confirmation of your financial situation.

9. What happens if there is a change in my exposure limit?

If there is a change in your exposure limit, we will notify you accordingly. This ensures that your investment strategy remains aligned with your updated financial profile and risk tolerance level.

10. How will my exposure limit affect me?

You will only be allowed to deposit fiat and/or virtual assets in an amount that is equivalent to your exposure limit. If your deposit amount exceeds your exposure limit, the exceeded amount will be refunded to the original source, and you will need to bear the relevant charges of this refund, which equals to 1% of the exceeded amount, or HKD 150 or an equivalent amount in USD or virtual asset, whichever amount is higher.

11. Does this Client Risk Exposure Limit also apply to Professional Investors?

Client Risk Exposure Limit does not apply to institutional and qualified corporate professional investors only.

12. Where can I get more information or assistance?

If you have any questions or need further assistance, please contact our customer support team at cs@matrixport.hk.