As a CoinSmart customer who is residing in Canada, you will be required to complete our new risk acknowledgement statements and account appropriateness assessment. You will need to complete both of these the next time you login to your CoinSmart account.
The goal of this questionnaire is to ensure you are aware of the risks you are taking trading crypto assets as a Canadian resident.
After logging in, you’ll find our risk acknowledgment documents. We encourage you to read through each of them. and you must click I agree for each one.
At the end, you will be required to provide a signature that matches your legal name. This can be found at the top of your screen to the right of the CoinSmart logo.
After you’ve completed this, you will be moved on to our account appropriateness assessment. These questions help us determine if crypto assets are right for you. Based on your responses, we will provide you with a loss-limit recommendation and we will alert you if your account value drops below your defined loss-limit threshold.
You can find your answers and recommended loss limits on your profile, under Account Settings, in the Verification section. If you have any trouble with account appropriateness, please contact our customer experience team by clicking the green Support button in the bottom-right corner of your screen.
What questions will you be asked?
- What is your yearly income?
- What is your net worth (all assets minus debts)?
- How many years of investing do you have investing in crypto assets?
- How much of your crypto asset investment are you prepared to lose due to market volatility?
- Will you be using any borrowed funds (including credit cards) for your crypto investments?
Why am I being asked these questions?
Depending on your answers, you will be given recommended loss limits to help mitigate any potential losses. The loss limit acts as a safety valve that may assist in protecting your Crypto Assets from market volatility.
How does it work?
Let’s say that based on your answers, our system determines that you should have a loss limit of 10%. Now, let’s say that your portfolio is worth $10,000. However, the market suddenly tanks, and now your portfolio is worth $8,900, crossing the 10% loss limit.
You will be notified, via email, that your portfolio has crossed the 10% loss limit. Following that, you are free to take whatever action you deem necessary. The loss limit email is only an email notification and will not liquidate your positions
If you have any questions about this decision, please get in touch with our Client Experience (CX) team.