Important Information and Legal Disclosures.
The following disclosures contain information and legal disclosures that are very important for you to know before you invest or otherwise deal with us. Please read it carefully in its entirety. The operations of 1stX Digital Asset Exchange, where a variety of assets, stocks and other valuables may be trading via applications of the emerging blockchain technology, are managed globally by a regulated Swiss Asset Management company in accordance with the strictest regulatory guidelines and standards applicable to Swiss financial intermediaries. Please read the following disclosures pertinent to such Swiss regulations and standards, as well as other relevant information regarding the operations of 1stX.
Herein, the terms “1stX”, “us”, "we" or “our” refer to 1stX. The term “you" or "your" refers to you, the reader of this legal disclosure.
Questions, concerns, problems
If you have any problems or questions now or in the future regarding items of general nature pertinent to the business of 1stX or a transaction you have entered into, or are contemplating entering into or for any other concerns or questions you may have, you may reach our corporate compliance department at 1stX via e-mail to compliance@1stX.com. Do not hesitate to contact us immediately should you have any problems or issues.
Not an offer for sale
This website and any and accompanying information are for informational purposes only and shall not constitute or be construed as an offer or a solicitation of an offer for sale of any securities in the United States, Canada, Australia, Japan, Switzerland or any other territory or jurisdiction.
Contact from us
1stX will never contact you from a non-1stX email account. If anyone, including a person that you know to be associated with 1stX, ever contacts you via email with an address that does not end with @1stX.com, please notify the compliance department of 1stX at compliance@1stX.com it immediately.
Definition of a “Qualified Investor”
A “Qualified Investor” as defined by Article 10ter of the Federal Act on Collective Investment Schemes (CISA) is an individual that, directly or indirectly, has at least CHF 2 million in bankable assets. More limited protections and rules apply to dealings with qualified investors and, thus, qualified investors are under greater risk than non-qualified investors. You have the option to declare in writing that you do not wish to be considered as a qualified investor. Copy and paste the following link in your Internet browser in order to access the text of CISA:
Definition of "Professional Investor" under MiFID
A “Professional Investor” under the Markets in Financial Instrument Directive (MiFID) Article4(1)(11) is considered to possess the experience, knowledge and expertise to make their own investment decisions and assess the risks inherent in their decisions. MiFID recognizes certain persons as having these qualifications and automatically classifies them as professional investors. These per se professional investors in Annex II.I to MiFID, are: (1) entities which are required to be authorized or regulated to operate in the financial markets. The list below should be understood as including all authorized entities carrying out the characteristic activities of the entities mentioned: entities authorized by a Member State under a Directive, entities authorized or regulated by a Member State without reference to a Directive, and entities authorized and regulated by a non-Member State: (1.a.) credit institutions; (1.b.)investment firms; (1.c.) other authorized or regulated financial institutions; (1.d.) insurance companies; (1.e.) collective investment schemes and their management companies; (1.f.) pension funds and their management companies; (1.g.) commodity and commodity derivative dealers; (1.h.)locals; (1.i.) other institutional investors. (2) Large undertakings meeting two of the following size requirements on a company basis: (2.a.) balance sheet total of €20 million;(2.b.) net turnover of €40 million; (2.c.) own funds of €2 million. (3) National and regional governments, public bodies that manage public debt, central banks and international and supranational institutions and; (4) Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitization of assets or other financing transactions.
Be honest about your financial situation
A representative at 1stX may ask you for information about your investment objectives and personal financial situation, including your income, net worth and investment experience. Be honest. 1stX will rely on this information to make appropriate business recommendations. Because of this, it is important that you pay special attention to the information that you provide to us when you open an account with 1stX, as applicable. Make sure to review your new account form very carefully before you sign it, and if any of the information is not accurate, please make and initial the appropriate changes before you sign and return it.
How can I protect myself as an investor?
Take sufficient time to evaluate and research your investments, diversify the risks, be critical. Spectacular returns seek to induce investors to make investments. You must, therefore, be wary of offers that seem just too good to be true. Such offers are often pyramid schemes or other forms of embezzlement or fraud, which promise high returns. Initially, returns are often paid out as a confidence-building tactic, but ultimately the money invested is not paid back. Fraudulent and illegal providers of financial products are plentiful. By applying the following ten rules, you can reduce the likelihood of falling a victim to wheeling and dealing. (1) Take sufficient time when making investment decisions. Never let yourself be put under pressure; (2)Conduct your own checks into providers and products. Do not be dazzled by fancy prospectuses or skillful telemarketing or other financial marketing tools. Use Google or other search engines to find information about providers and products; (3) Check whether the providers have been issued with a FINMA Self-Regulatory Organization (“SRO”) registration or direct FINMA license by entering the company name on FINMA’s website at the following web address: https://www.finma.ch/en/authorisation/self-regulatory-organisations-sros/sro-member-search/. Be aware that not every institution subject to FINMA or SRO supervision is monitored on the same scale or with equal intensity; (4) You should also check whether the providers appear on FINMA's negative list. If yes, you should be extremely careful and cautious; (5) Check if the company's registered in the Commercial Register for Swiss providers at the Central Business Names Index. Frequent changes of company name, address, authorized signatories should raise your suspicion; (6) For providers and offerings from other countries, always ask yourself whom you can contact if problems arise: how can you make a rightful claim (against whom, where and at what cost); (7) Consult appropriate online forums and consumer websites. Any evidence you find of investors who have already suffered losses or are feeling uncertain should be taken as a warning sign; (8) Compare the products, returns, and commissions with those of other providers. If they are considerably better than those of institutions licensed by FINMA, you should be prudent; (9) Always diversify your investments: do not put all your eggs in one basket; (1)Remember the basic rule for making investments: high returns usually go hand in hand with a high risk of incurring losses. The chances of losing are generally higher than those of making potential returns.
Company presentation materials include statements concerning the operations, prospects, strategies, financial condition, future economic performance and demand for certain companies and/or their future financials, products or services, as well as their intentions, plans and objectives (particularly with respect to product and service offerings and revenue and profit projections), that are forward-looking statements. These statements are based upon a number of assumptions and estimates, which are subject to significant uncertainties, many of which are beyond such company's control. When a company uses words like “anticipates,” “expects, ”believes,” “estimates,” “seeks,” “plans,” “intends,” “will” and similar expressions, they are intended to identify forward-looking statements designed to fall within securities law “safe harbors” for forward-looking statements. None of the information accompanying this document is intended to be, and shall not be deemed to be, incorporated into any of our securities-related filings or documents.
High-risk stocks and digital assets
Be aware that securities which trade on unregulated markets, including but not limited to the London AIM Markets, NYSE Euronext’s Free Market, US OTCQB, US OTC QX, US Pink Sheets, US AMEX and NASDAQ OMX and the Frankfurt Stock Exchange Entry Standard segment are considered extremely speculative. Such securities often trade with very little or no volume, which may greatly limit an investor’s ability to sell the security. You should never invest in such securities unless you can afford to lose 100% of the amount that you invest. If you cannot afford to lose 100% of your investment, do NOT invest in securities, which trade on an unregulated market. This also fully applies to the emerging digital assets markets, where crypto currencies or “tokens” are traded, and 1stX is one of such markets.
Investing in private companies—high risk
Investments in private companies either via buying shares of stock or digital tokens are extremely risky. There is typically no sufficiently liquid public trading market for private companies. Therefore, there is no central place, such as a stock exchange or electronic trading system with sufficient volume of trading in such securities or digital tokens, for investors in equity securities, digital tokens or convertible notes of such private companies to resell their shares. If you do want to resell your shares or digital tokens you may have to locate a buyer and negotiate your own sale. If you invest in a private company and it does not later become listed on a stock exchange or electronic trading system, then there will not be a public trading market for its shares and investors may not ever be able to recoup their investment.
Bonds and notes
When you invest in bonds and notes (herein “bonds”), particularly distributed via blockchain means you should be aware of certain related risks including, in particular, the credit risk, i.e. the risk that the borrower may default on the payment of the coupons/interest or the repayment of the nominal amount/principal at maturity. For bonds, the common risks also include in particular the market risks arising from interest rate fluctuations and/or currency movements as well as general market influencing factors.
When you invest, please be aware that there are never any "guarantees" or "sure things". Please notify the Compliance Department of 1stX (compliance@1stX.com) immediately should your representative ever promise or guarantee the performance of any security or make a recommendation based on "inside" or "confidential" information. Never purchase a security if you feel pressured. 1stX recommends that you always do your own research before investing, including a review of the company’s audited financial statements, where applicable. Remember, if it sounds too good to be true...it probably is.
Please be aware that commissions set forth in the 1stX rate sheets may be negotiable between you and your account representative. You should always ask your representative what commission you will be charged before you agree to open account and trade. Your representative will generally, but not always, charge commissions based on the amount of money you invest in each trade, not on how much profit you make from a trade. Please be sure to always carefully review your trade confirmation or trade price information where applicable, to ensure that all information is accurate. In addition, you should always check that the commission charged was what you and your representative agreed to.
Always carefully review your trade execution information immediately upon receipt. If your confirmation reflects a trade that you did not authorize, is executed at a price you did not agree to, contains material information about which you were not informed, or contains any other discrepancies, you should immediately contact the compliance department of 1stX atcompliance@1stX.com. The timing of the trade executions and settlements are not guaranteed and are subject to significant latency risks caused by third parties out of control of 1stX.
Do your own research before you invest
We recommend that you always do your own research before investing, including a review of the company's audited (or unaudited) financial statements. You should never invest if you feel pressured by anyone or any circumstances. 1stX welcomes your questions, no matter how basic. At1stX, we know that an educated investor is an asset, not a liability.
Disclosure upon official request
Note that from time to time, 1stX receives information requests about its customers from law enforcement agencies around the world. When 1stX is contacted for that reason, law enforcement is generally interested in two types of data: information about customers’ identities and information about their trading activities. When information requests are received, 1stXrequires that it be accompanied by appropriate documentation evidencing due process. This can vary from place to place. For example, production court orders, search warrants, and subpoenas may all amount to evidence of such due process. The legal department of 1stX reviews each case individually to determine that it has a valid legal basis and that any response is limited to ensure that only the information to which law enforcement is entitled is provided. 1stX also reserves the right to make disclosures to authorities in order to protect itself, any of its business associates, and customers. 1stX welcomes inquiries from law enforcement agencies about its policies and procedures. Please contact 1stX at info@1stX.com for any information and further disclosure.
Risks and limitation of liability regarding digital assets
Trading markets in Digital Assets are volatile and shift quickly in terms of price, liquidity, market depth, and trading dynamics. You are solely responsible and liable: for any and all trading and non-trading activity on the Website and for your Digital Assets Wallet on the website; and, for knowing the true status of any position or contract with any other party on the Website, even if presented incorrectly by the Website at any time. You acknowledge and agree: to be fully responsible and liable for your trading and non-trading actions and inactions on the Website and all gains and losses sustained from your use of the Website and any of the 1stX Services; to be responsible for any negative balance in your Digital Assets Wallet(s) on the Website; to be fully responsible and liable for all of your obligations with respect to any financing activities on the Website; and, to be fully responsible for safeguarding access to, and any information provided through, the Website and any of the Services, including, but not limited to, Digital Assets Wallet, Digital Assets Address, private keys, usernames, passwords, and bank account details. There is no guarantee against losses on the Website. You may lose more than is in your various Digital Assets Wallets on the Website if you engage in margin-type financing on the Website or if there is a force majeure event. When financing is used for trading, the loan carries a risk if, among other things, the value of your Digital Assets drops. If the value of your Digital Assets drops below a certain level, you are responsible for responding to this market circumstance with cash or additional Digital Assets satisfactory to 1stX. Failure to respond can result in the forced liquidation of Digital Assets in any of your Digital Assets Wallet(s). 1stX cannot guarantee to stop losses even with the ability to force-liquidate any of your positions (due to, for example, market volatility and low liquidity). 1stX will not be and is not responsible for any account holder losing fiat funds, or Digital Assets to on the Website or for any other losses incurred by an account holder or any other party on the Website. Trading and financing trades in Digital Assets entails certain high risks. This disclosure statement cannot and does not disclose all risks and other aspects involved in holding, trading, or engaging in financing or financed transactions in Digital Assets. Such risks include, but are not limited to, the following. The market for Digital Assets is still new and uncertain. No one should have funds invested in Digital Assets or speculate in Digital Assets that he or she is not prepared to lose entirely. Whether the market for one or more Digital Assets will move up or down, or whether a particular Digital Asset will lose all or substantially all of its value, is unknown and unpredictable. This applies both to traders that are going long and to traders that are shorting the market. 1stX account holders should also be cautious about holding Digital Assets as they may lose all of their market value and liquidity. Markets for Digital Assets have varying degrees of liquidity. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade Digital Assets or products derived from or ancillary to them. Furthermore, any type of Digital Assets may abruptly appear and vanish. 1stX makes no representations or warranties about whether a Digital Asset that may be currently traded on the Website may be traded on the Website at any point in the future, if at all. Any Digital Asset is subject to delisting without notice or consent of 1stX account holders. The legal status of certain Digital Assets is uncertain in most of the relevant jurisdictions. This can mean that the legality of holding or trading them is subject to the risks of prohibitive actions of the respective administrative of legislative powers. 1stX account holders are responsible for knowing and understanding how Digital Assets will be addressed, regulated, and taxed under applicable law. Having Digital Assets on deposit, or with any third party in a custodial relationship, has respective risks. These risks include security breaches, risk of contractual breach, and risk of loss. 1stX account holders should be wary of allowing third parties to hold their property without an appropriate commercial reason. In addition to liquidity risks, values in any digital assets marketplace are volatile and can shift quickly. Participants in any Digital Assets market are warned that they should pay close attention to their digital asset holdings as they may be impacted by sudden and adverse shifts in trading and other market activities. When you as an 1stX account holder finance a purchase or sale of Digital Assets on a peer-to-peer basis, you run the risk of losing your provided financing. Similarly, when you accept financing to enter a trading agreement, you accept the risk of not being able to repay that financing. 1stX accountholders should familiarize themselves with all of the terms of any contracts they enter and how their trading strategies and other market and risk factors can affect their margin and other financing obligations.
Digital asset trading and margin financing
The Website is a global trading environment for the spot purchase and sale of Digital Assets in the exchange format as well as in several specialized modules. The Website permits both cash-based and margin-type financed transactions. Cash-based trades are fully funded by trading participants through their fiat funds deposited into an 1stX Digital Assets Wallet. Purchases and sales of Digital Assets Wallet on the Website, whether via a cash-based transaction or a margin-type financed transaction, are settled by actual delivery of the full amount of the Digital Assets by the seller to the purchaser’s Digital Assets Wallet against payment in full by the purchaser of the purchase price to the seller’s Digital Assets Wallet.
1stX is committed to providing safe, compliant, and reputable services to identify, detect, prevent, and report on money laundering, terrorist financing, and other improper activities under applicable AML Laws, CTF Laws, Anti-Corruption Laws, and Economic Sanctions Laws. Accordingly, 1stX insists on a comprehensive and thorough user due diligence process implementation and ongoing analysis and reporting. You must provide promptly all information requested and necessary to satisfy due diligence requirements and obligations pursuant to applicable laws and the compliance policies or procedures of 1stX. Additionally, 1stX may assess whether you will make, or intend to make, a deposit, withdrawal, or transfer of fiat or Digital Assets to, from, or through any U.S. Financial Institution to facilitate the provision of the services, and if applicable, you must
Rights to intellectual property
1stX and the 1stX logos, trade names, word marks, and design marks (the “1stX Marks") are trademarks of 1stX. You agree not to appropriate, copy, display, or use the 1stX Marks or other content without express, prior, written permission to do so. Unless otherwise indicated, all materials on the Website are copyright 1stX.
Your Warranties and Representations
No representations & warranties by 1stX; limitation of liability
Additional questions or concerns in connection to the foregoing should be addressed to: compliance@1stX.com