xStocks Product & Risk Disclosure

Please read this disclosure carefully before you trade xStocks.

IMPORTANT - YOU MAY LOSE YOUR ENTIRE INVESTMENT

xStocks are tokenised instruments that provide economic exposure to an underlying share or ETF. They are not the underlying shares themselves.
You do not own, or have legal title to, the underlying shares and you do not have voting rights or other direct shareholder rights.
The value of xStocks can fall significantly and you may lose all of the amount invested.
Past performance of the underlying asset is not indicative of future performance. Returns are not guaranteed.

Who provides xStocks? xStocks are issued by Backed Assets (JE) Limited (the “Issuer”). Eligible xStocks are made available through the CAMP platform by Alpha Ladder Finance Pte. Ltd. (“ALFIN”), subject to applicable law and eligibility requirements.

1. What you are buying

Economic exposure: Each xStock is intended to track the economic performance of a specified underlying share or ETF and within the Issuer’s arrangements.

No share ownership: Holding an xStock does not make you a shareholder of the underlying company. You do not have legal title to the underlying shares, voting rights, direct dividend rights, liquidation rights or other traditional shareholder rights.

No direct issuer relationship: The company whose shares are referenced by an xStock is not responsible for the xStock and does not owe duties to you as an xStock holder.

Platform holding: For the current CAMP product, your xStocks position is reflected in your CAMP account. Customer deposits and withdrawals of xStock tokens to external wallets are not supported in the MVP product flow.

3. Dividends and corporate actions

Dividends: You will not receive cash dividends. Where applicable, the economic value of dividends, after any applicable taxes or withholding, may be reflected through an increase in the number of units of the relevant xStock in accordance with the Issuer’s product mechanics.

Splits / adjustments: Stock splits, reverse splits or other economic adjustments may be reflected through changes to the number of xStock units shown in your position.

No shareholder elections: You cannot vote or directly participate in shareholder elections or voluntary corporate actions that require instructions from the legal holder of the underlying shares.

4. Key risks

The risks below are not exhaustive. You should consider the full product documentation and your own circumstances before investing.

Market risk: The value of an xStock can rise or fall with the underlying asset and broader market conditions. Volatility may be significant, including outside the normal trading hours of the underlying market.

Liquidity risk: You may not be able to sell at the time or price you want. Limited liquidity may cause wider spreads, price movements, delayed execution or inability to exit a position.

Issuer / counterparty risk: You are exposed to the financial and operational condition of the Issuer and other parties involved in issuing, backing, holding, pricing, settling or supporting xStocks. A failure or insolvency of an issuer, custodian, depositary, liquidity provider or other service provider may cause delay, reduced recovery or partial / total loss.

Technology / operational risk: CAMP, APIs, networks, ledgers, xChange and third-party systems may experience outages, errors, cyber incidents, failed transfers or other disruptions. These events may prevent or delay trading, pricing, settlement or access to your position.

Regulatory / jurisdiction risk: xStocks may be restricted, suspended or unavailable in a jurisdiction because of changes in law, regulatory action, licensing requirements, sanctions, issuer restrictions or service-provider decisions.

Tracking / pricing risk: Your xStocks return may differ from directly owning the underlying shares because of spreads, fees, quote timing, product adjustments, liquidity and other product mechanics.

Corporate action risk: Actions taken by the underlying company may affect the value or terms of an xStock. As you are not the legal shareholder, you may not receive the same rights, choices, information or timing as a direct shareholder.

5. Pricing, fees and disclosure of interest

Spread and fees: The buy and sell prices shown on CAMP may include an ALFIN-configured spread. Other product, network, redemption or service fees may apply depending on the transaction or service used. Fees and spreads reduce your investment return.
Commercial interest: ALFIN and/or its Affiliates may receive fees, marketing support or other commercial benefits from Kraken, xStocks-related counterparties or service providers in connection with the listing, promotion or distribution of xStocks. This means ALFIN and/or its Affiliates may have a commercial interest in making xStocks available or promoting the product.
No guarantee of best price: The price available on CAMP may differ from prices available through other platforms or venues. You should consider the quoted price and spread before confirming a trade.

6. Other important information

Eligibility: xStocks are only available to customers who satisfy ALFIN’s eligibility requirements and are in permitted jurisdictions.
No investment advice: Information provided through CAMP is for general information and product access. It is not personal investment, legal or tax advice. Consider obtaining independent professional advice if you are unsure whether xStocks are appropriate for you.
Tax: Your investment may have tax consequences depending on your circumstances and jurisdiction. ALFIN does not provide tax advice.
Product documents: This disclosure is a summary and is not exhaustive. Your investment decision should also take into account the Issuer’s Base Prospectus, applicable Final Terms and other product documentation.
Further product information: Backed Assets – Legal Documentation.

Customer acknowledgement

I have read and understood the xStocks Product & Risk Disclosure.
I understand that xStocks provide economic exposure only and that I do not own the underlying shares or have voting or other direct shareholder rights.
I understand that I may lose my entire investment and that xStocks are subject to market, liquidity, issuer / counterparty, technology / operational and regulatory risks, and that returns are not guaranteed.
I understand that prices may include a spread, quotes may change before execution, dividends are not paid to me in cash, and shareholder elections / instructions are not available to me as an xStock holder.
I acknowledge that ALFIN and/or its Affiliates may receive fees, marketing support or other commercial benefits in connection with xStocks.