ALL INVESTING INVOLVES RISK.
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Bitwise Asset Management, Inc. (“BAM”) is the parent company of Bitwise Investment Manager and Attestant Ltd.
Bitwise Investment Manager, LLC (“BIM”) is an investment adviser registered with the SEC under the Investment Advisers Act of 1940, as amended (the “Advisers Act”) and is registered with the Commodity Futures Exchange Commission as a commodity pool operator and commodity trading advisor. BIM is also a member of the National Futures Association.
Attestant Limited (“Attestant”) is a limited company registered in England and Wales under company number 12540798 at 7 Albert Buildings, 49 Queen Victoria Street, City of London, EC4N 4SA, United Kingdom. Attestant is a wholly owned subsidiary of Bitwise Asset Management.
Bitwise Onchain Solutions AG (“BOS AG”) is a company limited by shares registered in Switzerland under company number CHE - 196.335.293 at Gartenstrasse 4, 6300 Zug, Switzerland. BOS AG is a wholly-owned subsidiary of Attestant. Together, Attestant and BOS AG do business as “Bitwise Onchain Solutions” (“BOS”).
Vault Curation Services are offered by Bitwise Investment Manager, LLC. Custody of assets deposited into vaults are handled by independent third party providers and are not held by BAM, BIM, BOS or any other Bitwise entity or affiliate.
Participation in Vault Curation Services and DeFi Vaults may result in participation in decentralized finance lending activities (“DeFi Vault Lending”). DeFi Vault Lending comes with certain risks that lenders should consider. DeFi Vault Lending relies on smart contracts, which may contain vulnerabilities or bugs despite security audits. Price data on DeFi lending platforms is provided through oracles, and incorrect or manipulated feeds could lead to unwanted liquidations or bad debt. Participants in DeFi Vault Lending may experience bad debt if collateral values drop too quickly for liquidations to occur. Liquidity risk can also affect participants if funds are temporarily unavailable for withdrawal during high market demand.
Unlike mainstream borrowing and lending entities such as traditional FDIC insured banks which are backed by the full faith and credit of the United States Government, DeFi Vaults are not FDIC insured and investors run the risk of losing their entire investment if the markets and vaults default. Bad debt is shared amongst users of the same vault. If a borrower is liquidated but the collateral isn't enough to cover the debt, the loss is socialized among the lenders in that specific vault. You could see your balance decrease slightly to cover the gap. Lenders are subject to liquidity risk if a market is 100% utilized (everyone has borrowed the available funds) and may have to wait for someone to repay their loan before their deposit can be withdrawn.
Prior to making any investment decision, each investor must undertake its own independent examination and investigation, including the merits and risks involved in an investment, and must base its investment decision—including a determination whether the investment would be a suitable investment for the investor—on such examination and investigation.
