Risk Disclosure
Investing in or holding precious metals involves inherent risks.
Effective: February 2025
1. Market Risk
Precious metal prices may fluctuate based on a variety of factors including supply and demand dynamics, geopolitical developments, inflation expectations, monetary policy decisions, and prevailing macroeconomic conditions. Price movements can be unpredictable and may result in both gains and losses. Clients should acknowledge that the market value of their holdings may decline at any time.
2. Liquidity Risk
Liquidity conditions may vary, particularly during periods of market stress, elevated volatility, or extraordinary market events. Such conditions may affect execution timing, bid-ask spreads, and the ability to liquidate positions. While Auxite endeavors to facilitate efficient execution under normal market conditions, immediate liquidity cannot be guaranteed in all market environments.
3. Counterparty Risk
Auxite engages third-party institutional counterparties for custody, settlement, and logistics services. Although these participants are selected through rigorous due diligence and ongoing monitoring, the risk of insolvency, operational failure, or contractual non-performance by any counterparty cannot be entirely eliminated.
4. Custody Risk
Physical precious metals are stored in professional vault facilities under allocated and segregated conditions. However, custody arrangements may be subject to operational risks including vault operator disruptions, natural disasters, confiscation, legal seizure, or other force majeure events. While Auxite seeks to maintain appropriate insurance coverage, insurance may not cover all loss scenarios.
5. Technology Risk
Auxite utilizes secure digital infrastructure for asset management and transaction processing. As with all technology systems, the platform may be exposed to cyber threats, software vulnerabilities, system outages, or third-party service interruptions. Although Auxite implements industry-standard security measures to mitigate these risks, uninterrupted or breach-free operation cannot be guaranteed.
6. Regulatory Risk
Legal and regulatory frameworks applicable to precious metals, digital assets, or financial services may be subject to change in any jurisdiction. Modifications to laws, tax regulations, or compliance requirements may affect the availability of Auxite services, tax treatment, or the value of assets held. Clients are responsible for remaining informed about regulatory developments in their respective jurisdictions.
7. No Yield Guarantee
Returns on assets held or managed through the Auxite platform are not guaranteed. Past performance is not indicative of future results. Asset values may decrease, increase, or remain unchanged, and full preservation of capital may not be possible.
8. Client Responsibility
Clients are responsible for independently evaluating their own financial objectives, investment experience, and risk tolerance prior to making any decision to invest in or hold precious metals. Auxite does not provide investment advisory services. Clients are strongly encouraged to seek advice from qualified financial and legal advisors before making any investment decisions.
Auxite prioritizes asset protection and operational resilience but cannot eliminate all financial risk.
