General Risk Disclosures
Hamilton Digital Assets Limited · General Risk Disclosures
Version 1.0 | October 23, 2026
Important Notice#
THESE RISK DISCLOSURES ARE NOT EXHAUSTIVE. DIGITAL ASSETS AND DECENTRALIZED FINANCE INVOLVE SUBSTANTIAL RISK. YOU SHOULD NOT ACQUIRE USDh OR USE HAMILTON’S SERVICES UNLESS YOU ARE PREPARED TO SUSTAIN A TOTAL LOSS OF YOUR INVESTMENT. HDA DOES NOT PROVIDE INVESTMENT, FINANCIAL, LEGAL, OR TAX ADVICE. PLEASE SEEK INDEPENDENT PROFESSIONAL ADVICE BEFORE MAKING ANY DECISIONS.
1. Introduction#
Hamilton Digital Assets Limited ("HDA") has prepared these General Risk Disclosures to inform you of the principal risks associated with acquiring, holding, transferring, or otherwise interacting with USDh and using Hamilton’s services and Platform. These disclosures are provided for informational purposes only and do not constitute a complete description of all risks. By holding USDh or using the Platform, you acknowledge that you have read and understood these disclosures.
2. Asset Volatility and Peg Risk#
USDh is designed to maintain a stable value of approximately 1 USD. However, market conditions, liquidity constraints, and reserve management factors may cause USDh to trade at a premium or discount to its intended peg.
HDA does not guarantee that USDh will maintain its peg at all times. Past stability is not indicative of future performance.
Digital asset markets are highly volatile. The value of assets used to back USDh (including stablecoins) may fluctuate significantly, which may affect reserve adequacy.
3. Liquidity Risk#
There may be periods during which it is difficult or impossible to buy, sell, or transfer USDh due to market conditions, low trading volumes, technical issues, or HDA’s operational procedures.
Primary Users’ redemption rights are subject to redemption limits and may be delayed or suspended in adverse market conditions.
Holding Users have no direct redemption rights with HDA and are dependent on secondary market liquidity.
In a severe liquidity event, the value realized upon transfer or sale of USDh may be significantly less than the face value.
4. Counterparty Risk#
USDh holders are exposed to counterparty risk with respect to HDA. As an unsecured creditor of HDA, holders’ claims may not be fully satisfied in the event of HDA’s insolvency or inability to operate.
USDh reserves are managed by third-party entities. Holders are exposed to the counterparty risk of those reserve managers and custodians.
HDA’s services rely on relationships with banks, custodians, and other financial institutions. Disruption of those relationships may affect HDA’s ability to operate.
5. Regulatory Risk#
The regulatory treatment of digital assets, including stablecoins, is evolving rapidly across jurisdictions. Changes in applicable law or regulation may adversely affect USDh, HDA’s ability to operate, or the rights of holders.
HDA is not currently licensed as a bank, e-money institution, or regulated financial institution. Future regulatory requirements may require HDA to obtain licenses, restructure its operations, or cease operations in certain jurisdictions.
Regulatory actions, including bans, restrictions, or enforcement proceedings, may affect the transferability or value of USDh with little or no advance notice.
Users are responsible for ensuring that their acquisition and use of USDh complies with applicable law in their own jurisdiction. HDA does not provide legal advice regarding jurisdictional compliance.
6. Technology and Smart Contract Risk#
USDh is issued on public blockchain networks. Blockchain technology is novel and carries inherent technical risks.
Smart contracts are subject to bugs, vulnerabilities, and exploits. Even audited smart contracts may contain undiscovered flaws that could result in loss of assets.
Blockchain networks may experience outages, congestion, reorganizations, or consensus failures that delay or prevent transactions.
Upgrades or forks of blockchain networks may affect the functionality or value of USDh.
HDA may deploy USDh on additional blockchain networks over time. Each deployment carries its own technical risks.
7. Cybersecurity Risk#
HDA’s systems and infrastructure are subject to cybersecurity threats, including hacking, phishing, social engineering, and denial-of-service attacks.
Despite employing security best practices, no system is completely immune to attack. A successful attack on HDA’s systems could result in loss of assets, data breaches, or service disruption.
Users are responsible for the security of their own Wallets and private keys. Loss of private keys or compromise of Wallets is irreversible and HDA cannot assist in recovery.
8. Irreversibility of Blockchain Transactions#
Blockchain transactions, once confirmed, are generally irreversible. Sending USDh to an incorrect address, approving a malicious contract, or making any other erroneous transaction will likely result in permanent loss of assets.
HDA is not responsible for user errors in connection with blockchain transactions.
HDA may, in limited circumstances and at its sole discretion, attempt to reverse transactions through smart contract mechanisms (e.g., in the case of fraud or sanctions compliance). Such reversals are not guaranteed and depend on technical feasibility.
9. Third-Party Protocol Risk#
Users who interact with USDh through third-party decentralized finance protocols (including exchanges, liquidity pools, staking platforms, and bridges) are exposed to the specific risks of those protocols.
HDA does not control, endorse, or take responsibility for Third-Party Protocols. Exploits, rug pulls, governance attacks, or other failures of Third-Party Protocols may result in total loss of assets.
Staking rewards and yield generated through Third-Party Protocols are entirely independent of HDA. HDA makes no representations about the sustainability, legality, or safety of such returns.
10. Taxation Risk#
The tax treatment of digital assets, including stablecoins and staking rewards, varies by jurisdiction and may change over time.
Users are solely responsible for determining and satisfying their tax obligations in connection with their use of USDh and the Platform.
HDA does not provide tax advice. You should consult a qualified tax adviser in your jurisdiction.
11. No Deposit Guarantee or Investor Protection#
USDh is not a bank deposit. Holdings of USDh are not covered by any deposit guarantee scheme, investor protection fund, or similar government-backed protection.
In the event of HDA’s insolvency, USDh holders will be treated as unsecured creditors and may not recover the full face value of their holdings.
12. Concentration and Reserve Risk#
USDh reserves may be concentrated in a limited number of assets or with a limited number of custodians. Failure of a key reserve asset or custodian could adversely affect the reserve backing of USDh.
The composition of USDh reserves may change over time without advance notice to all holders.
13. Operational Risk#
HDA’s operations depend on key personnel, technology systems, and third-party service providers. Operational disruptions, including loss of key staff, system failures, or vendor failures, may affect HDA’s ability to process minting and redemption requests.
HDA may suspend or delay minting and redemption services during operational incidents.
14. No Representations or Warranties#
HDA makes no representation or warranty, express or implied, regarding: (a) the future value or stability of USDh; (b) the adequacy or safety of USDh reserves; (c) the performance of any Third-Party Protocol; (d) the regulatory status of USDh in any jurisdiction; or (e) the fitness of USDh for any particular purpose.
15. Acknowledgement#
By holding USDh or using the Hamilton Platform, you acknowledge that:
- You have read and understood these Risk Disclosures;
- You understand that digital assets involve substantial risk and you may lose all value;
- You have sought independent professional advice to the extent you consider appropriate;
- HDA is not your broker, financial adviser, or fiduciary; and
- You are making an independent decision based on your own assessment of the risks described herein.