DISCRETIONARY MANDATE FOR THE MANAGEMENT OF LUNO DISCRETIONARY BUNDLES
ENTERED INTO BETWEEN
LUNO (PTY) LTD
Registration Number: 2013/075107/07
Authorised Financial Services Provider, licence number 53314
and
THE CUSTOMER
1. AUTHORITY TO ACT ON YOUR BEHALF AND MANAGE YOUR LUNO DISCRETIONARY BUNDLE(S)
1.1. In terms of this Mandate, you authorise Luno (Pty) Ltd (“Luno”) to act on your behalf and to use its discretion and manage, on an ongoing basis, each Discretionary Bundle which you purchase on the platform.
1.2. Luno is an authorised Financial Services Provider (“FSP”) under the Financial Advisory and Intermediary Services Act, 2002 (the “FAIS Act”), licence number 53314. Luno is authorised to render intermediary services (including discretionary services) in respect of crypto assets.
1.3. Each Discretionary Bundle, and the underlying crypto assets forming part of that Bundle, are exclusively supported and available on Luno’s platform in South Africa.
1.4. The FAIS Act will govern Luno’s obligations to you under this Mandate and if there is any conflict between this Mandate and the FAIS Act and/or any applicable regulations, then the FAIS Act and relevant regulation(s) will prevail.
1.5. When purchasing an applicable Discretionary Bundle from Luno, you are buying each crypto asset forming part of that Bundle itself directly, in accordance with the inclusion and weighting of the applicable Investment Strategy. As such, this Mandate must be read together with the Bundles Terms and Conditions (the “Bundles Terms.”)
1.6. In the event of any conflict between the provisions of this Mandate and the Bundles Terms insofar as they relate to the management of each Discretionary Bundle, the provisions of this Mandate shall prevail.
1.7. Once you have invested in an applicable Discretionary Bundle, Luno will manage the Bundle on your behalf in terms of the authority which you give to Luno in terms of this Mandate.
2. INVESTMENT STRATEGY
2.1. Each Discretionary Bundle is made up of a selection of constituent crypto assets, weighted according to this Mandate and the Investment Strategy applicable to that Bundle.
2.2. You declare that by purchasing a Discretionary Bundle on Luno’s Platform you approve of:
2.2.1. the stated Investment Strategy of the applicable Bundle;
2.2.2. the trading process, strategies or positions which Luno will use to achieve the Investment Strategy of the applicable Bundle; and
2.2.3. the risk profile and risk management policies (as set out in Risk Disclosure Statement in clause 8 below).
3. DISCRETIONARY BUNDLE(S)
3.1. Luno maintains an operational ‘float’ of crypto assets at group level which are available to purchase for each applicable Discretionary Bundle.
3.2. Each Discretionary Bundle allows you to directly own, and securely store, a broad selection of crypto assets in that Bundle. When purchasing an applicable Discretionary Bundle, you are purchasing the underlying crypto assets forming part of that Bundle, and will own them yourself. As such, the underlying crypto assets shall be registered in your name and to your Luno account.
3.3. Each Discretionary Bundle may only be invested in as a whole, and you will not be able to choose the selection of crypto assets making up the applicable Bundle, the weightings of each crypto asset or the Investment Strategy. You may not sell any crypto assets making up that Bundle individually, but you may sell that Bundle as a whole by initiating a sell transaction on Luno’s platform.
4. POWER AND AUTHORITY
4.1. Subject to the provisions of the Mandate and applicable law, you hereby authorise and empower Luno with full authority to manage your applicable Discretionary Bundle by buying, selling or otherwise dealing with the constituent crypto assets making up that Bundle in Luno’s sole discretion, but at all times in compliance with this Mandate. In particular, Luno will have the specific power and authority to:
4.1.1. as the index provider, determine in its sole discretion the weightings and constituent crypto assets in the applicable Bundle;
4.1.2. rebalance and reconstitute the applicable Bundle from time to time in any manner which Luno deems fit to comply with the Investment Strategy of that Bundle, including by buying or selling existing crypto assets, or amending the weightings assigned to each crypto asset making up that Bundle;
4.1.3. use the services of Luno’s employees or any other representative of Luno to assist Luno to perform its obligations under the Mandate;
4.1.4. appoint one or more authorised representatives of Luno (including, without limitation, any other authorised FSP or representative of that FSP) to represent Luno in the performance of its obligations under this Mandate and to delegate all or any of Luno’s powers and authorities in terms of this Mandate to such authorised representative;
4.1.5. execute any transactions in respect of the constituent crypto assets in the applicable Bundle and/or the applicable Bundle as a whole in any manner Luno deems fit, on Luno’s Platform;
4.1.6. execute any investments, including but not limited to staking, in respect of the constituent crypto assets in the applicable Bundle and/or the applicable Bundle as a whole in any manner Luno deems fit, including without limitation, on Luno’s Platform; and
4.1.7. do whatever shall be necessary or desirable for the due performance of Luno’s obligations under this Mandate.
4.2. The crypto assets in any Discretionary Bundle are directly owned and held by you. Luno will not vote as a proxy in terms of Investment Strategy decisions.
5. REBALANCING THE DISCRETIONARY BUNDLE(S)
5.1. Each Discretionary Bundle shall be rebalanced by Luno in our sole discretion from time to time, which may be quarterly or otherwise. Any such rebalancing will, as far as is reasonably possible, further the Investment Strategy and will not deviate significantly from the Risk Disclosure (as set out in clause 8 below).
5.2. Where rebalancing is scheduled to take place:
5.2.1. you will be notified via the Luno app confirming the date of rebalancing (the “Rebalancing Date”); and
5.2.2. your Discretionary Bundle will automatically be rebalanced in accordance with Luno’s instructions.
6. FEES
6.1. You will be charged a transaction fee when you buy or sell any Discretionary Bundle. Luno will also charge an ongoing tracking fee against the value of your Discretionary Bundle.
6.2. You will be shown the full price that you will pay before entering into a transaction involving any Discretionary Bundle. No extra (or hidden) fees or charges will be levied.
6.3. The fees and costs associated with each Discretionary Bundle can be viewed on the Fees page of the Luno website. Luno reserves the right to change our fees and costs at any time and will update the Fees page accordingly.
6.4. Luno does not enter into any soft commission arrangements.
7. STATEMENTS
7.1. You will receive a detailed Investment Strategy and Risk Disclosure (as set out in clause 8 below) when you purchase any Discretionary Bundle on the Platform. You will also receive periodic rebalancing notifications. All of your statements will be available to you on Luno’s Platform and you may request that copies of your statements and documents be sent to your email address of record.
7.2. You will also be able to access your statements and documents electronically by logging into your Luno Account via Luno’s website or app.
8. RISK DISCLOSURE
8.1. You hereby expressly acknowledge and confirm that:
8.1.1. you are aware of the extent to which the FAIS Act is applicable to the services provided to you by Luno under this Mandate;
8.1.2. you understand and are aware of the various risks that are involved in investing in any Discretionary Bundle;
8.1.3. Luno does not guarantee any future performance of any Discretionary Bundle, or that any Discretionary Bundle shall retain its value or behave in any particular manner;
8.1.4. Luno will manage (with full discretion) the constituent crypto assets and weightings within each Discretionary Bundle in accordance with this Mandate and the applicable Investment Strategy. However, in respect of the orders you place on Luno’s platform to trade (i.e. invest in, purchase or sell an applicable Bundle), we execute your orders in accordance with your instructions. You agree and acknowledge that you will rely solely upon your own judgment and trades are made at your own risk;
8.1.5. that you have read and understood the Investment Strategy applicable to each Discretionary Bundle, as disclosed to you below;
8.1.6. that you approve of the Investment Strategy assigned to each Discretionary Bundle, as annexed below; and
8.1.7. that you approve of Luno’s use of the process to be implemented in the form of trading strategies or positions, risk profile and risk management, as disclosed and stated in the Investment Strategy.
8.2. You hereby state that you accept such risks, which may result in financial loss, and agree that you will not hold Luno liable for any resulting financial loss associated with such risks.
9. DISCLAIMER AND LIMITATION OF LIABILITY
9.1. Each Discretionary Bundle and any related products or services are offered on a strictly “as-is” and “where-available” basis and Luno expressly disclaims, and you waive, all warranties of any kind, whether express or implied. Without limiting the generality of the foregoing, each Discretionary Bundle and any related products or services are offered without any warranty as to merchantability or fitness for any particular purpose.
9.2. You acknowledge and agree that the purchase of any Discretionary Bundle is at your own risk. To the maximum extent allowed by law, Luno, its affiliates and subsidiaries, its licensors, and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any damages or loss - whether direct or indirect, consequential, incidental, punitive or otherwise - arising in connection with the applicable Bundle(s) or any data or values relating thereto, whether arising out of negligence or otherwise. Without limiting any of the foregoing, in no event shall Luno have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.
9.3. Under no circumstances does any information contained on the Luno Site, or provided to you through your Luno Account, or in relation to an applicable Discretionary Bundle(s) by any employee, agent or affiliate of Luno, constitute financial, investment or other professional advice. You are solely responsible for any decision to invest into that applicable Bundle(s), and such a decision should take into account your own financial circumstances and risk tolerance.
9.4. It is the responsibility of any persons wishing to acquire crypto assets using Luno's Platform to observe all applicable legal requirements and tax consequences within the countries of their citizenship, residence, domicile, and place of business with respect to the acquisition, holding or disposal of the relevant crypto asset(s), and any foreign exchange restrictions that may be relevant thereto. You should consult with your own professional advisors with regard to such matters.
9.5. The above limitations of liability shall apply to the fullest extent permitted by South African law.
10. TERMINATION
10.1. Should you wish to terminate this Mandate, you may do so by selling the entirety of the applicable Discretionary Bundle(s) which you hold. Such termination will take effect immediately upon the sale of that entire Bundle(s) which you hold. By selling the applicable Bundle(s), you will be deemed to have terminated this Mandate insofar as it applies to that Bundle(s) only, with immediate effect.
10.2. Should Luno cease to manage the applicable Discretionary Bundle(s) in which you have invested for any reason whatsoever, we will give you notice of at least 1 (one) calendar month ("Termination Notice") and you will be entitled to sell that Bundle(s) as a whole.
10.3. Once this Mandate has terminated, and where you have sold the entirety of your applicable Discretionary Bundle(s), the proceeds from the sale of your constituent crypto assets making up that Bundle(s) will be paid into your Luno Account.
11. APPLICABLE LAW AND JURISDICTION
11.1. Luno’s Committee will act within the regulations of the FAIS Act and shall be governed and construed in accordance with South African law. You and we agree to submit all disputes, claims or controversies (including non-contractual disputes, claims or controversies) arising out of or in connection with this Mandate, or the termination, enforcement or interpretation thereof to the non-exclusive jurisdiction of the courts of South Africa.
11.2. Customer support and Complaints
Email: support@luno.com
Website: www.luno.com/en/legal/complaints
11.3. Compliance
Compli-Serve Gauteng (Pty) Ltd
Registered compliance officer: Jan H Scholtz
Email: sacompliance@luno.com
12. ACCEPTANCE AND AMENDMENT
12.1. By placing an order to buy an applicable Discretionary Bundle(s) on the Luno’s Platform, and by continuing to engage in any trading activity in respect of that Bundle(s) on Luno’s Platform, you agree to be bound by the provisions of this Mandate or to the provisions of any new or amended Mandate that may be published on Luno’s Platform from time to time.
Annexure A:
INVESTMENT STRATEGY FOR LUNO BLUE CHIP+ BUNDLE
1. This document serves as a disclosure statement for customers considering participation and investment in the Luno BlueChip+ Bundle.
2. This Investment Strategy outlines the investment objectives, strategies, and risk considerations associated with the Blue Chip+ Bundle.
3. The Blue Chip+ Bundle aims to track and replicate the performance of Luno’s proprietary Blue Chip+ Index over the long term (“Blue Chip+ Index”). The Blue Chip+ Bundle is managed to closely track the performance of the constituent assets and weightings of the Blue Chip+ Index. The Blue Chip + Index Methodology is incorporated by reference to this Investment Strategy, and broadly produces an index that represents the performance of:
3.1. The top 2 crypto coins by market capitalisation (30% weighting: 20% for top, 10% for second); and
3.2. The top 7 Tokenised Stocks by market capitalisation (70% total weighting: 10% each).
4. There are jurisdictional restrictions to the Blue Chip+ Bundle, and you acknowledge that Luno will exercise its discretion in respect of the crypto assets exclusively supported and available on its platform in South Africa (i.e. localised investment).