IPO Risk Disclosure Statement

I acknowledge that:

1. Investing in initial public offerings (IPOs) or other public offerings (secondary offerings), collectively ‘new issue securities’, can be a high-risk, high-reward proposition.

2. I have read the “SEC Bulletin - Investing in an IPO”.

3. I received and carefully reviewed the ‘IPO Risk Disclosure Statement’ (set forth below).

4. I understand the ‘SEC Bulletin – Investing in an IPO’ and the ‘IPO Risk Disclosure Statement’ and are in a language that I fully understand;

5. I am not a “Restricted Person” and will not engage in prohibitive conduct as defined by FINRA Rule 5130 and 5131.

6. I will carefully read the prospectus and other investment materials before investing in a new issue.

The information provided herein is not intended to assess the benefits of a specific offering or investment strategy and should not be interpreted as a recommendation by Moomoo Financial Inc. or its affiliates to purchase any particular security.

Moomoo Financial Inc. is providing you with the following statement to alert you of certain risk factors associated with investing in new issue securities. It is essential to evaluate whether investing in new issue securities, in general, or buying securities in a specific offering aligns with your investment objectives, risk tolerance, goals and financial situation.

To obtain a comprehensive understanding of the business, operations, financial condition, and risks associated with investing in new issue securities, it is imperative that you carefully read the offering prospectus before investing. Prospectuses are generally provided and accompany a new issue offering, but can also be obtained by contacting Moomoo Financial.

It is important that you fully understand the risks involved in trading in new issues securities. Although not an exhaustive list, here are some significant risk factors associated with new issue securities, and any one of them may negatively affect the issuer's common stock price:  

1. Lack of historical data: Unlike established companies, IPOs may not have a long track record of financial performance that is readily available to you. This lack of historical data can make it difficult to assess the company’s potential for growth and profitability.

2. Volatility: IPOs can be highly volatile and subject to significant price swings in the early days of trading. This volatility can be driven by a range of factors, including investor sentiment, market conditions, and news about the company.

3. Limited information: IPO prospectuses typically provide detailed information about the company, its products, and its financials. However, there may be limited information available about the company’s operations, future plans, and risks. This can make it challenging to make informed investment decisions.

4. Valuation risks: The price of an IPO is typically based on the company’s projected future earnings and growth prospects. However, there is no guarantee that these projections will come to fruition, and investors may end up overpaying for the stock.

5. Lock-up periods: Certain IPO investors may be subject to lock-up periods, during which they are prohibited from selling their shares. These lock-up periods can range from a few weeks to several months. Following the expiration of the lockup period, major shareholders and company insiders may sell large number of shares in the company. Such events often coincide with a drop in the company's stock price because of the increased number of available shares in the open market and can limit your ability to realize gains or cut losses.

6. Lack of diversification: Investing in an IPO can be risky because it often involves investing a significant amount of money in a single company. This lack of diversification can increase the risk of loss if the company fails to meet expectations or faces unforeseen challenges.