News • 2 min read
Bitpanda Stocks is an innovative financial product and as such, we wanted to implement security measurements for our clients to keep investments safe. Learn more about counterparty risk and how we reduce risk for customers participating in Bitpanda Stocks.
First off, let’s clarify what “counterparty risk” actually means. It may sound complicated, but it’s actually pretty straight forward and, at a very basic level, describes the likelihood of one of the involved parties not being able to meet their responsibilities.
With that in mind, we created a mechanism to reduce risk for Bitpanda Stocks users. If something happens to Bitpanda, you would then be able to get up to 100% of your investment back. Or, in other words: Bitpanda is the owner of your shares and ETFs but we significantly reduced the default risk you are exposed to.
This is how it works in more detail: Bitpanda is the issuer of the derivative contracts for the fractional shares and pledges the securities and the settlement deposit held by Bitpanda with the custodian bank to the customer.
If you acquire Bitpanda Stocks, you also agree to a pledge agreement which collaterises your investment. Since Bitpanda physically holds the underlying stocks through our partner, we are able to offer this form of pledge agreement for our customers. The pledge agreement is implemented as a means of security in the event of Bitpanda’s insolvency.
If that were to happen, the pledge agreement would allow Bitpanda to return up to the respective equivalent value of their Bitpanda Stocks to our users with preferential treatment over other creditors. This effectively means that you, as a customer, have preferential right to the equivalent cash amount of the Bitpanda Stocks you are holding.
Don’t worry, we are not going anywhere. But since Bitpanda Stocks is a relatively new way of investing, we want to make it as secure and safe as possible.
This might all sound technical, but with any financial investment that you are planning to make, we advise you to do your research and assess what level of risk you are comfortable with. To learn more about personal finances and investing, head on over to the Bitpanda Academy.
To learn more about Bitpanda Stocks, click here!
*“Bitpanda Stocks” is a new product from Bitpanda and allows you to invest in fractional shares/ETFs. “Bitpanda Stocks” are not shares, but a contract that allows you to participate in the price movements of certain shares, including any dividend distributions. It is neither tradable on stock exchanges nor on other trading venues, but can be resold to Bitpanda at any time under the conditions set out in the general terms and conditions and the contract. Further details on this product, the issuer and the relevant risks are available in the prospectus at bitpanda.com.
€100k worth of daily prizes are waiting for you, from Dec. 1Read more
Bitpanda GmbH ve grup şirketleri (Bitpanda) Türk Parasının Kıymetini’nin Korunması Hakkında 32 sayılı Karar’ın 2/b maddesine göre Türkiye’de yerleşik sayılan hiçbir kişiye yönelik olarak 6362 sayılı Sermaye Piyasası Kanunu başta olmak üzere Türkiye Cumhuriyeti Devleti mevzuatı hükümleri gereği Türkiye’de faaliyet izni gerektiren hiçbir sermaye piyasası faaliyetine dair hizmet sunmamaktadır. Şayet Bitpanda’nın yabancı sermaye piyasalarında vermiş olduğu hizmetlerden Türkiye’de yerleşik kişilerin faydalandığı tespit edilecek olursa tüm zararları kullanıcıya ait olmak üzere bu hizmetler ivedilikle sona erdirilecektir.
As the name would suggest, some cookies on our website are essential. They are necessary to remember your settings when using Bitpanda, (such as privacy or language settings), to protect the platform from attacks, or simply to stay logged in after you originally log in. You have the option to refuse, block or delete them, but this will significantly affect your experience using the website and not all our services will be available to you.
We use such cookies and similar technologies to collect information as users browse our website to help us better understand how it is used and then improve our services accordingly. It also helps us measure the overall performance of our website. We receive the date that this generates on an aggregated and anonymous basis. Blocking these cookies and tools does not affect the way our services work, but it does make it much harder for us to improve your experience.
These cookies are used to provide you with adverts relevant to Bitpanda. The tools for this are usually provided by third parties. With the help of these cookies and such third parties, we can ensure for example, that you don’t see the same ad more than once and that the advertisements are tailored to your interests. We can also use these technologies to measure the success of our marketing campaigns. Blocking these cookies and similar technologies does not generally affect the way our services work. Please note, however, that while you’ll still see advertisements about Bitpanda on websites, the adverts will no longer be personalised for you.