eToro SPAC Presentation Deck

52 етого Risk factors (3/12) 13. We are exposed to risks relating to the availability of capital to fund our working capital, including regulatory capital requirements, margin requirements and required advances to payment providers, and the possibility that we will be unable to meet financial obligations or liquidity requirements as needed. 14. Our current level of commission and fee rates may decline in the future either generally or in response to our competitors. Any material reduction in our commission or fee rates could reduce our revenue. 15. Our risk management practices may not fully mitigate our risks, whether identified or unidentified. • Our platform may be exploited to facilitate illegal activity such as fraud, money laundering, terrorist financing, sanctions breaches, gambling, tax evasion, scams and abusive trading. The risk of such activity is more acute in relation to certain of our services, notably digital asset transactions. The characteristics of certain digital assets (so-called "privacy coins") we provide services in relation to also increase the risk of use for this type of activity. In addition, we face risks related to our "know-your-customer" procedures when our customers may provide outdated, inaccurate, false or misleading information. Our business could be adversely affected and we may incur liability and reputational harm if our counter-financial crime and fraud measures, sanctions screening processes and anti-bribery and corruption measures are ineffective or do not meet the expectations of our regulators. Although we have internal policies and procedures, such policies and procedures are based on proper implementation by individual employees. We are susceptible to losses if any of our employees do not follow such policies and procedures, including an increased risk to us and our customers of internal fraud in respect of digital assets. ● • If we fail to comply with applicable requirements of our counterparty financial institutions, banking partners and other liquidity and payment providers, including their regulatory, "know-your-customer" and compliance requirements, those counterparties could seek to suspend or terminate our accounts which may materially and adversely affect our business and results of operations. 16. If we fail to develop, maintain, and enhance our brand and reputation, our business, operating results, and financial condition may be adversely affected. If there is any negative publicity with respect to us, our industry peers or our industries in general, our business and results of operations may be materially and adversely affected. 17. Any acquisitions, partnerships or joint ventures that we make or enter into could require significant management attention, disrupting our business and harming our financial condition. 18. Although we maintain insurance coverage that we believe is adequate for our business, we may not be able to get adequate insurance to cover all known risks and our insurance policies may not be sufficient to cover all claims. Our inability to obtain and maintain appropriate insurance coverage could cause a substantial business disruption, adverse reputational impact and regulatory scrutiny. In particular our insurance coverage for certain cyber incidents (including those compromising digital assets) is limited and does not cover the extent of loss nor the nature of such loss, in which case we may be liable for the full amount of losses suffered, which could be greater than all of our assets.

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