Risk disclosure

When you invest in the crypto, your capital is at risk. You may receive back less than your original investment. This is true whether you invest in crypto, exchange-traded funds (ETFs), exchange-traded commodities (ETCs), investment trusts or any other securities available on our platform.

Whenever you invest your money, there is an element of risk to it. Even if you put your cash in a bank account, it is not truly risk-free - if the interest rate is less than inflation, the value of your cash is actually falling.

When you put your cash in a bank account, however, you expect to receive at least the same amount back as you put in (your ‘capital’), provided your bank doesn’t go bankrupt. This is not necessarily true of investments through our App, for which your capital is at risk.

This Risk Disclosure provides a summary of the nature of the risks of the securities you may invest in through our App and of the securities that are on loan. It does not disclose all of the risks and other significant aspects of the investments which we offer.

Insolvency risk

When you buy a asset in a company, you own a part of that company. This means that if the company does well, you are ordinarily entitled to receive any profits it distributes as dividends. It also means that, if the asset price has risen since you bought it, you are able to benefit from that increase in value by selling your asset.

However, if the company becomes insolvent, it is likely that the value of its assets will fall sharply. An asset will usually be delisted from the stock exchange when insolvency becomes likely or when insolvency processes are formally triggered. At this point, it will not be possible to buy or sell any assets you hold in this company on most occasions. Where an insolvency occurs, shareholders will usually rank lowest in the priority for receiving any funds back, meaning that there is a higher risk that you will receive either nothing at all or a fraction of what you invested. If shareholders do receive any funds back following an insolvency, it will typically take a long time for this to be confirmed and for any funds to be received.

Market fluctuations and volatility

The market price of an investment can go down as well as up. Past performance is also not a reliable indicator of future performance. The market price of an instrument is influenced by many factors. These include company performance, economic conditions, market sentiment and news flow.

Prices of assets will sometimes move very quickly and unexpectedly. This includes during times when markets are open for trading, but also there can be large jumps or falls in price between the time at which the market closes on a trading day, and the time it opens on the following trading day.

The movements in prices over time also means that the indicative price you see in-App (based on the latest price point received from our third party data provider) when you place your order will typically vary from the price you receive when that order is executed.

Liquidity risk

Liquidity risk is the risk that an asset may be difficult to sell at a reasonable price or the risk that it may be difficult to sell the asset quickly, meaning that you are not able to withdraw your money or use it on other investments.

All assets available on our platform carry liquidity risk. However, some assets carry higher liquidity risk than others. Typically, more highly traded assets will be more liquid than less traded assets. Certain ETFs and investment trusts can also suffer lower liquidity at times.

For all assets, there will be a difference between the price you can buy at (the ‘offer’ price) and the price you can sell at (the ‘bid’ price) - the offer price will almost always be higher than the bid price. The difference between these two prices is known as the bid-offer spread. More liquid stocks will have a lower bid-offer spread than less liquid ones. In addition to market fluctuations, this again means that the indicative price you see in-App when you place your order will typically vary from the price you receive when that order is executed.

Liquidity risk may also mean that orders are rejected (because there are no available market participants willing to execute a trade at an acceptable price) and can result in you not being able to buy or sell your securities. Typically these interruptions are short-lived, but for more illiquid securities it can sometimes result in difficulties trading those securities over extended periods.

Currency risk

Where your investments are denominated in currencies other than GBP, fluctuations in foreign exchange rates will impact the market value of your investment, as well as any dividends distributed by the company to shareholders.

In addition, a small proportion of the cash that we hold in the client money account may be in currencies other than GBP. This is so that we can process foreign exchange transactions. We manage this to ensure that we always hold the correct GPB value in the account but, if we were to become insolvent you might be exposed to fluctuations in foreign exchange rates.

Legal risks

Legal actions or changes, including those taken by governments or regulators, can cause risks to the value and ability to sell your investments. This includes regulatory actions to de-list or ban trading of a security, which can lead to you not being able to sell your securities. While such actions are relatively rare, they can be very impactful and unexpected.

Service interruption risks

While we try to minimise disruptions to our services, there can be instances where access to our services can be interrupted, whether this is caused by a market issue, an external provider or our own systems. As outlined in our terms and conditions, we do not guarantee that our services will always be accessible by you, always available, always functioning properly or error-free.

In these situations, you may not be able to submit orders or your orders may be cancelled. You may also not be able to monitor your positions using our platform.

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• Our Philosophy
  • Being open and transparent with each other and our customers creates trust as we work collaboratively to build Ringholdings.
• Gritty
  • Giving up is not an option at Ringholdings Inc. Resilience, determination and a relentless desire to succeed drive everything we achieve with and for our customers.
• Our Culture

  In order to offer commission-free trading and an ever-improving feature set sustainably, we have built our own engineering system called Invest by Ringholdings that allows us to execute your trades much cheaper and faster than using third-party solutions. Owning our tech platform means we are in control of our destiny.