eToro SPAC Presentation Deck

53 бетого Risk factors (4/12) Risks Relating to the Regulation of Our Business. 1. Our business is subject to an extensive, complex, overlapping and constantly changing regulatory landscape and any adverse changes to, or our failure to comply with, any laws and regulations could adversely affect our business, operating results and financial condition. •The regulatory landscape includes government regulation, supervision and enforcement by the numerous governmental and regulatory bodies in the jurisdictions in which we operate, including rules and regulations relating to financial instruments, securities and digital assets in the U.S., European Union, U.K., Australia, Gibraltar, Cayman Islands and in additional jurisdictions in which we are currently seeking to become licensed or in which we otherwise have customers, each of which could restrict our business practices. We have implemented certain mechanisms in order to protect our business from the risk that customers could use our products and services in jurisdictions other than those in which they originally signed up. However, the failure of such mechanisms could have a negative effect on our business. • Certain of the products and services offered by us are complex products for retail customers. Regulators in the European Economic Area, U.K. and in some other jurisdictions in which we operate have imposed prohibitions or restrictions on the marketing, distribution and sale of certain products (including margin and leveraged products and the prohibition of contracts for difference ("CFDs") in the U.S.) and services to retail customers, and such measures could have a material adverse effect on our business, financial condition and results of operations and cash flows. • Furthermore, in the future regulators may seek to impose additional measures to limit and restrict our products and services available to retail customers. Any future regulations, including concerning the share trading model, may affect the availability of our products and materially and adversely affect our business. Any significant decline in the market for margin and leveraged products or CFDs could significantly harm our business. • We will likely be required to reorganize or adjust our business as temporary relief measures relating to the departure of the U.K. from the European Union (such as the U.K.'s 'Temporary Permissions Regime") expire, or as the U.K. and European Union regulatory regimes begin to diverge, which could lead to increased regulatory complexity and higher operating costs. For example, we currently offer certain services to customers in the U.K. from Cyprus. 2. If we fail to comply with applicable laws, rules and regulations, either domestically or internationally, including if we fail to adapt our business to new laws and regulations that are promulgated from time to time, we could be subject to disciplinary actions, fines and loss of licenses to provide our services, which may prevent us from serving customers in certain jurisdictions.

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