eToro SPAC Presentation Deck

51 'етого Risk factors (2/12) 6. We operate in a highly competitive industry where many of our competitors may have product suites and/or pricing schemes that may appeal to our current or potential customers. If we are unable to compete effectively, we may lose our market share and our results of operations and financial condition may be materially and adversely affected. 7. We may suffer losses due to abrupt and erratic market movements. During times of market volatility, an asset price may move up or down suddenly in a single large movement or over a short period of time. Because of this sudden movement, we may be unable to execute or adjust our risk management practices in a timely manner, which could result in a potential loss. Our market risk analysis is based on, among other things, gular scenario-based stress tests and value at risk analysis and may not be able to fully anticipate extreme market conditions or "black swan events". 8. Because our customers are located in diverse markets around the world, our revenue is vulnerable to local market conditions around the world and geopolitical developments, such as trade wars and foreign exchange limitations. 9. Because we provide real-time services in volatile markets, our customers are exposed to the risk of loss on their investments and positions and customer satisfaction may be severely negatively impacted as a result, which may lead to an increased risk of customer complaints, litigation, and reputational harm and could have an adverse impact on our results of operations. •We are more susceptible to customer disgruntlement and dissatisfaction or losing customers if customers are not able to execute trades as desired. • In addition, a portion of our customer base utilizes leverage, which may be permitted up to significant amounts in certain asset classes in certain jurisdictions and may increase their likelihood for potential loss. • The social network aspect of our products also allows customers to be more vocal about any issues they experience with our services and allows customers to group together easily. 10. Any significant disruption in our products and services, or the services provided by third-party data centers or internet service providers, or in any of the blockchain networks we support, could result in a loss of customers or funds and adversely impact our brand and reputation and our business, operating results, and financial condition. 11. Our ability to provide our customers with execution services on a principal basis is dependent upon our banking infrastructure and our liquidity and payment providers. If we are unable to maintain relationships with such parties and enter into new arrangements, our business and financial performance could be negatively affected and we may encounter a reduction in customer confidence in our company. 12. We are subject to counterparty risk whereby defaults by our customers or a financial counterparty, or insolvency proceedings, can have an adverse effect on our business, financial condition and results of operations. As a result of offering leveraged trading products, we accept the risk that customer credit losses can arise as a cost of our business model in the event that a customer's total funds deposited with us are insufficient to cover any trading losses incurred by such customer. In addition, a small number of customers are extended credit to cover running losses on open trades and margin requirements.

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