Interest Risk

Bonds are more susceptible to fluctuations in interest rates and generally prices of bonds will fall when interest rates rise. 

Currency Risk

Currency risk arises from holding debt securities that are issued in a foreign currency, hence exposing the buyer to fluctuations in exchange rate. There is a chance that if the currency moves adversely, the buyer may also suffer a loss. 

Liquidity Risk

Liquidity risk refers to the availability of prices for buying and selling in a market. Some bonds may not have active secondary markets and it would be difficult or impossible for investors to sell the bond before its maturity. Bondsupermart does not warrant that there is an active trading market. 

Event Risk

A corporate event such as a merger or takeover may lower the credit rating of the bond issuer. In case the corporate restructurings are financed by the issuance of a large amount of new debt-burden, the company's ability to pay off existing bonds will be weakened. 

Regulatory Risk 

Regulatory risk refers to the possibility that changes in laws, regulations, or government policies may negatively affect an investment or business operation. Regulatory risk can impact the profitability, viability, and liquidity of investments, for instance, the bond pricing, issuance or trading. 

You acknowledge that all orders received by Bondsupermart are irrevocable and your investment is subject to risks, including possible loss of the principal amount invested. You represent and warrant that you understand and are fully aware of the risks involved. Additionally, you acknowledge and accept that any loss resulting from trading or investment through Bondsupermart platform is not covered by the Capital Market Compensation Fund. You acknowledge that you will obtain/make available to the investors up-to-date versions of the disclosure documents or any materials supplied by the relevant issuer/credit rating agency/third party data provider/Bondsupermart that might exist on the date of the transaction and the date of the order prior to placing any order with Bondsupermart. Bondsupermart undertakes no liability with regard to the performance of the obligations represented by the issuer/credit rating agency/third party data provider/investment product. You acknowledge that Bondsupermart is an operator of a market place which allows you to trade bond with other Market Participant/Market Maker and does not act as agent on behalf of the Market Participant/Market Maker.

2. Odd Lot Provisions 

In relation to odd lot transactions, only a selected list of bonds are made available for such transactions and Bondsupermart reserves the right to amend the list of bonds from time to time. 

As the contract sizes for odd lot transactions are below its intended denomination, such transactions may be incapable of being traded on other open market. 

Due to the minimum denomination requirement of relevant clearing systems, Market Participants and Market Makers that choose to engage in odd lot trading would have to agree to custodian arrangement under a custodian appointed by Bondsupermart and odd lot bonds may not be transferred out from its custody. 

In relation to voting rights, given that relevant clearing systems or trustees may only recognise votes cast for bonds held in its intended denomination, Bondsupermart shall facilitate to collate votes and further instructions on behalf of the holders to the custodian for voting. 

3. Bonds with Special Features

Some bonds may contain special features and risks that warrant special attention. These include bonds: 

• That have subordinated ranking and in case of liquidation of the issuer, investors can only get back the principal after other senior creditors are paid; 
• That are callable and investors face reinvestment risk when the issuer exercises its right to redeem the bond before it matures; 
• That have variable and/or deferral of interest payment terms and investors would face uncertainty over the amount and time of the interest payments to be received; 
• That have extendable maturity dates and investors would not have a definite schedule of principal repayment; 
• That are convertible or exchangeable in nature and investors are subject to both equity and bond investment risk; and/or 
• That have contingent write down or loss absorption feature and the bond may be written-off fully or partially or converted to common stock on the occurrence of a trigger event. 

4. Accuracy and Completeness of Information

You acknowledge and agree that Bondsupermart shall bear no liability or responsibility whatsoever to you for any error, misstatement or omission in any disclosure document or any other material prepared by or issued by any issuer/financial institution/credit rating agency/third party data provider or wilful action or omission, default, fraud or negligence by the issuer/financial institution/credit rating agency/third party data provider. Bondsupermart does not endorse the creditworthiness of the issuers. Bondsupermart may make available certain information about an issuer with the intention of assisting investors to have easier access to information. Such information is supplied by the issuer/financial institution/credit rating agency/third party data provider. As such, Bondsupermart cannot guarantee such information to be completely accurate and therefore cannot accept liability or responsibility for the accuracy of any information supplied by an issuer/financial institution/credit rating agency/third party data provider, nor for any opinion expressed or implied in relation to the creditworthiness of an issuer (in the form of a risk rating or otherwise). 

Investors shall form their own opinion regarding the creditworthiness of the issuer and undertake their own research and analysis for each bond and where appropriate, seek their own independent financial, legal, and/or professional advice. There may be limited financial and trading information provided by the issuer/financial institution/credit rating agency/third party data provider and the disclosure of information might or might not be sufficient for you to reasonably make fully informed investment decisions and/or assessments of the issuer and its issued investment product being offered to you. Additionally, some issuers (especially those who are sole proprietors or partnerships) may not be subjected to statutory audit of their financial statements. Unaudited financial statements may not accurately reflect the creditworthiness of an issuer. Therefore, it remains your responsibility as an investor to manage your returns and select the issued investment product according to your risk tolerance. 

5. System Downtime

You acknowledge the possibility of system downtime, which may occur due to various factors beyond Bondsupermart's control. While Bondsupermart strives to maintain optimal system performance, you understand that unforeseen circumstances such as technical issues, maintenance requirements, or external events may result in temporary unavailability of the website. Consequently, you accept that Bondsupermart cannot be held liable for any losses or inconveniences experienced during such periods of system downtime. You are encouraged to exercise caution and implement appropriate risk management strategies when engaging with Bondsupermart platform.

6. Acknowledgement

You recognise that this Statement does not aim to cover all possible risk factors, and there may be additional considerations you should evaluate before investing in bond. You have carefully reviewed, fully comprehended, and accepted the risks and terms outlined herein when dealing with Bondsupermart or utilising the products and services provided by Bondsupermart. You acknowledge that this statement is legally effective and binding upon yourself.