Risk Disclosure Statement

Last updated: 10 July 2025

Airwallex Capital (Singapore) Pte. Ltd. 

SECURITIES AND FUTURES ACT 2001

SECURITIES AND FUTURES (LICENSING AND CONDUCT OF BUSINESS) REGULATIONS (Rg 10)

This statement does not purport to disclose every possible risk and other significant aspect of trading in money market funds. You should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources, and other relevant circumstances. In considering whether to trade, you should be aware of the following:

(i) Interest Rate Risk

Interest rate risk is the risk that changes in interest rates will negatively affect the value of an investment. Fixed-income securities, such as bonds and money market instruments, are particularly sensitive to changes in interest rates. While the prices of shorter-term securities generally have less sensitivity to interest rate changes than longer-term securities, money market funds are still subject to interest rate risk.

Changes in prevailing interest rates can affect the yield of money market funds. When interest rates decline, the yield of the fund will also tend to decline. Conversely, when interest rates rise, the yield of the fund will tend to rise.

(ii) Volatility Risk

Volatility risk refers to the potential for significant and unpredictable fluctuations in the value of investments or financial instruments over a given period. It is a measure of the degree of variation of a trading price series over time. Higher volatility implies that the value of an investment can potentially change dramatically over a short period.

Several factors can contribute to volatility risk, including, but not limited to:

• Market conditions: Broad market movements, economic news, and investor sentiment can cause rapid price swings.

• Economic factors: Changes in interest rates, inflation, or economic growth can increase market volatility.

• Political events: Political instability, elections, or changes in government policy can lead to market uncertainty and volatility.

• Company-specific news: Events such as earnings announcements, mergers, or regulatory changes can cause significant price volatility for individual securities.

• Leverage: The use of leverage amplifies both gains and losses, increasing the potential for significant losses due to volatility.

• Global events: International events, such as pandemics, geopolitical conflicts, or changes in global trade, can trigger widespread market volatility.

(iii) Liquidity Risk

Several factors can contribute to liquidity risk, including, but not limited to:

• Market conditions: Changes in market conditions, such as a sudden decrease in trading activity or market disruptions, can make it difficult to sell assets.

• Concentration of holdings: A significant portion of assets being concentrated in a few investments may make it difficult to liquidate those assets quickly.

• Counterparty risk: The inability of counterparties to meet their obligations can negatively impact the liquidity position.

• Operational issues: Disruptions to operational processes, such as settlement failures, can lead to liquidity shortfalls.

• Regulatory changes: Changes in regulations can impact our ability to manage our liquidity.

• Client redemptions/withdrawals: Unexpected or large client redemptions or withdrawals may strain the available liquidity.

While money market funds are generally considered highly liquid, there is a risk that during periods of market stress, the fund may experience increased redemption requests, which could force the fund to sell its holdings at unfavorable prices, impacting the fund's value and yield.

(iv) Principal risk

It is possible to lose money by investing in a money market fund. An investment in a money market fund is not insured or guaranteed by the Monetary Authority of Singapore (MAS) or any government agency. The fund's sponsors are not required to reimburse the fund for losses, and you should not expect that the sponsors will provide financial support to the fund at any time, including during periods of market stress.

(v) Credit Risk

Money market funds invest in debt securities, which carry credit risk, the risk that the issuer may default on its obligations. While money market funds typically invest in high-quality, short-term debt securities, there is still a possibility of credit losses.

(vi) Currency Risk

The profit or loss in transactions in foreign currency-denominated instruments (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates, where there is a need to convert from the currency denomination of the contract to another currency.

(vii) Fees

Before you begin to trade, you should obtain a clear explanation of all fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

(viii) Electronic Trading

Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or not executed at all.

(ix) Counterparty Risk

When you enter into transactions with us or through us, you are exposed to the risk that the other party to the transaction, the counterparty, may fail to meet its obligations. This is known as counterparty risk. It is important that you understand the counterparty risks associated with each product you invest in. We encourage you to review the specific product terms and conditions and consult with your financial advisor.

SCHEDULE 1:

Fair Dealing Notice

Airwallex is committed to implementing the Monetary Authority of Singapore Fair Dealing Guidelines.  Our Board and Senior Management lead a corporate culture where fair dealing drives every decision. We rigorously test products to ensure suitability for target customer segments, with enhanced safeguards for vulnerable individuals. Representatives receive continuous training on regulatory requirements and ethical practices, with balanced incentives prioritizing customer outcomes over sales targets. Complaints are resolved independently within 20 business days. We continually enhance services through customer feedback analysis, market reviews, and Board-monitored improvement initiatives.  For more information about the applicable guidelines, please see MAS Guidelines on Fair Dealing (FSG-G04).