Digital asset securities may not be suitable or appropriate for everyone. These are sophisticated investments with inherent risks.
Investors should note that investing or trading in digital asset securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, and no assurance of liquidity which could impact their price and investor's ability to sell, and possible loss of principal invested. Further, an investment in a single digital asset security could mean lack of diversification and, consequently, higher risk.
Past performance of a digital asset security does not guarantee future results or returns. You should not invest any funds in which you require the ability to withdraw, cash-out, or liquidate within a certain period of time. Market volatility and volume may delay systems access and trade execution. There is always the potential of losing part or all of your money when you invest in digital asset securities.
Prometheum Ember Capital LLC. (“ProCap”) does not give any financial, legal, tax, investment, accounting or other advice. Certain transactions give rise to substantial risks and are not suitable for all investors. Prior to the entering of a transaction, you should consult your business advisor, attorney and tax and accounting advisors, as appropriate, with respect to the price, suitability, value, risk or other aspects of any digital asset, digital asset security or any other investment.
With respect to any digital asset security where ProCap acts as custodian we urge you to carefully evaluate its appropriateness for your specific financial situation with your financial advisor if you deem appropriate. No reference to any specific digital asset security constitutes a recommendation to buy, sell or hold that digital asset security or any other digital asset security. No reference to a digital asset security constitutes investment advice or offers any opinion with respect to the suitability of any digital asset security, and approval of your account should not be taken as advice to buy, sell or hold any digital asset security.
The USA PATRIOT Act (the “Act”) imposes anti-money laundering (“AML”) requirements on brokerage firms and financial institutions. Under the Act’s provisions, all brokerage firms are required to have comprehensive anti-money laundering programs. As part of ProCap’ required program, the firm may request that you provide various identification documents or other information. ProCap will not be able to open an account or effect any transactions on your behalf until all required information and/or documentation has been provided and reviewed.
Market Access Risk Controls and Customer Risk Management Controls
SEC Rule 15c3-5 requires broker-dealers with access to exchanges or alternative trading systems to establish, document and maintain a system of risk management controls and supervisory procedures reasonably designed to manage financial, regulatory and other risks in connection with market access.
ProCap utilizes risk controls (including but not limited to those controls required under Rule 15c3-5) to help:
(i) identify and prevent instructions to custody or withdraw DAS or cash that it determines, in its sole and absolute discretion or upon client confirmation, are erroneous or potentially erroneous;
(ii) enforce credit, capital, and quantitative thresholds;
(iii) comply with regulatory requirements; and
(iv) otherwise control the operation of its custody systems and activities for any other purposes including controls designed to prevent potentially manipulative trading.
If a customer instruction to ProCap to custody or withdraw DAS or cash triggers one of these controls, ProCap reserves the right to reject the instruction.
In order to establish appropriate limits for our customers, we may periodically request that you provide additional information, including but not limited to an updated FOCUS report or other comparable financial document.
As a user of ProCap’s services, you are responsible for ensuring that you, your investors, customers, clients, employees, principals, officers, directors, and/or agents (the “Users”) abide by applicable laws and rules when submitting instructions to ProCap.
If you are a broker-dealer or other securities institution, you are reminded to establish your own risk management policies, procedures, and/or controls and to monitor your investment and/or trading activities closely. Moreover, you should maintain these policies, procedures and controls independently from any market access or risk-management checks that are employed by ProCap. ProCap’ risk management checks may result in the rejection of an instruction to custody or withdraw DAS or cash or prevent an instruction to custody or withdraw DAS or cash from being executed.
Temporary Restriction and Settlement
You understand that ProCap is not responsible for settlement of trades, but instead that settlement will be the responsibility of the applicable custodian of each party to a trade.
ProCap limits its business to carrying accounts for customers not introduced to the Firm by any other broker or dealer (“direct customers”) and:
(a) allows you to deposit into your accounts cash and Crypto Asset Securities; and
(b) allows you to withdraw from your accounts cash and Crypto Asset Securities.
Payment for Order Flow
ProCap does not receive payment for order flow.
Order Routing Policy
SEC Rule 606 (formerly known as Rule 11Ac1-6 under the Securities Exchange Act of 1934) requires all broker-dealers that route customer orders in certain equity and option securities to make publicly available quarterly reports that disclose how broker-dealers route their customers’ orders to enable customers to evaluate order routing practices.
ProCap does not receive nor does it route customer orders in any form, therefore ProCap is not required to publish quarterly 606 disclosures.
FINRA BrokerCheck Hotline
The Financial Industry Regulatory Authority, Inc. offers investors information and education through the FINRA BrokerCheck Hotline at 800-289-9999 and the FINRA website at www.finra.org.
An investor brochure that includes information describing FINRA’s BrokerCheck is available on FINRA’s website.
As a member of SIPC and pursuant to FINRA Rule 2266, ProCap discloses to new customers, and annually to all customers, that they may obtain information about SIPC, including the SIPC brochure, by contacting SIPC at the following address:
Securities Investor Protection Corporation 1667 K St. N.W., Suite 1000 Washington, DC 20006-1620 Tel: (202) 371-8300 Fax: (202) 223-1679 Email: [email protected] Website: https://www.sipc.org
Please see the SIPC in the Disclosure Section of our website.