Why do I need to pass a short knowledge-based quiz?
From 1/10/2024 we have made it mandatory for all Wealth99 clients who use our Global platform to pass a short multiple choice knowledge-based quiz. This is because it is pertinent for all of our clients to have the knowledge and information about our business and crypto assets in general. We will be asking questions which will ensure that you are aware of the following information:
Role and Services: Understand the scope of Wealth99's services in offering or marketing crypto, including the nature of due diligence performed and the rights and obligations you hold as a client, including the risks of legal and beneficial ownership.
Investment Risks: Be aware of the complexities and risks associated with crypto investments, including potential loss of all invested funds, high volatility, operational risks (like cyber-attacks), and challenges in selling assets due to market illiquidity or outages.
Regulatory Status and Protections: Know the regulated status of Wealth99, the extent of FCA regulation, and the limited protections available through the Financial Ombudsman Service and FSCS, especially concerning unauthorised persons and investment performance.
Investment Guidance: Recognize that crypto assets differ from mainstream investments, with diversification being key, and retail clients should generally not invest more than 10% of their net assets in restricted mass market investments as advised by the FCA.
What are the types of questions that I will be asked and what do I need to know?
You will need to understand the following information in order to answer the questions correctly:
- The FCA considers crypto assets high-risk investments and recommends limiting their exposure to no more than 10% of your overall portfolio to minimise the potential for complete loss of your capital.
- The ultimate ownership of crypto assets in your Wealth99 wallet is determined by the entity or individual who owns the account
- The price of a crypto asset is influenced by market demand and supply dynamics, where buying drives prices up, and selling causes them to fall. Market sentiment, news, and regulatory developments can significantly impact prices, while technical analysis, trading strategies, algorithmic trading, and liquidity also contribute to price fluctuations.
- Illiquidity in a crypto asset can create challenges by making it difficult to sell or trade, potentially leading to delays, the need to sell at a discount, and higher price volatility. This lack of liquidity may hinder your ability to respond to market changes or access your investment quickly, introducing additional risks and uncertainty.
- Wealth99 (a trading name of Dacxi Ltd (UK)) is a cryptocurrency asset company which offers exchange facilities from Wealth99 UAB, an entity registered under the Lithuania Register of Legal Entities. It has not yet registered with the Financial Conduct Authority (FCA) for Anti Money Laundering/Counter Terrorism Financing compliance but is in the midst of preparing this application. At the current time, and once acquired, this registration doesn't mean that the Financial Services Compensation Scheme (FSCS) will provide protection in case of financial losses
- Wealth99 does not provide advice on which assets to buy. While they offer information about each asset listed on their platform, the complex nature of crypto assets requires you to conduct your own thorough research before making any purchases.