Introduction

Ownership of whisky casks involves risks and operational considerations.

Before purchasing a cask through CannyCask, customers should carefully consider the information contained in this notice and ensure they understand the nature of the asset they are acquiring.

If you are uncertain about any aspect of cask ownership, you should seek independent professional advice.

Physical Asset Risks

A whisky cask is a physical asset stored within a bonded warehouse.

Physical casks may be affected by factors including:

1. natural evaporation over time (the "angel's share");
2. regauge outcomes;
3. changes in alcohol strength or volume;
4. warehouse conditions; and
5. normal maturation processes.

These factors may affect the characteristics and quantity of whisky held within a cask.

Cask Ownership

Ownership of a whisky cask does not guarantee future financial returns, appreciation in value or liquidity.

Past performance of whisky, distilleries or whisky casks is not a reliable indicator of future performance.

No Investment Advice

CannyCask does not provide:

1. investment advice;
2. financial advice;
3. tax advice;
4. legal advice; or
5. valuation advice.

Any information provided by CannyCask is for general informational purposes only.

Customers remain responsible for obtaining independent professional advice where appropriate.

Liquidity Risk

Whisky casks are generally considered long-term assets.

There may be limited opportunities to sell a cask and there is no guarantee that a buyer will be available when a customer wishes to sell.

The ability to sell a cask may depend on market conditions, demand and other factors outside the control of CannyCask.

Pricing Risk

The value of a whisky cask may increase, decrease or remain unchanged over time.

Factors influencing value may include:

1. age;
2. distillery reputation;
3. market demand;
4. cask condition;
5. warehouse location;
6. regulatory changes; and
7. broader economic conditions.

Ownership Costs

Ownership of a whisky cask may involve ongoing costs, including:

1. storage fees;
2. insurance;
3. regauging;
4. sampling;
5. bottling; and
6. other warehouse or administrative services.

Such costs are typically charged by bonded warehouses or third-party service providers and remain the responsibility of the cask owner.

Storage & Operational Risk

Whisky casks are stored within bonded warehouses operated by independent warehousekeepers.

Although bonded warehouses operate within established regulatory frameworks and industry controls, operational risks may still exist.

CannyCask does not operate bonded warehouses and is not responsible for warehouse operations.

Ownership & Custody

All casks remain under the custody of bonded warehousekeepers.

The bonded warehouse register remains the authoritative record of custody and ownership.

CannyCask maintains verification, provenance and ownership infrastructure that supports, but does not replace, bonded warehouse records.

Verification & Provenance

DAV VERIFIED® provides an additional layer of verification by confirming that both CannyCask and the bonded warehouse have independently verified the same cask provenance record.

DAV VERIFIED® strengthens provenance verification but does not eliminate all operational, legal or commercial risks associated with cask ownership.

The bonded warehouse register remains the authoritative record of custody and ownership.

Technology Risk

CannyCask uses technology to support provenance, ownership verification and settlement processes.

Technology systems may be affected by outages, cyber incidents, software defects or third-party service failures.

CannyCask seeks to minimise such risks through operational, security and governance controls.

Regulatory Risk

Changes in law, regulation, taxation or government policy may affect whisky cask ownership, transferability, storage or value.

Customers remain responsible for understanding any legal, regulatory or tax consequences applicable to their circumstances.

Third-Party Risk

CannyCask works with bonded warehouses, payment providers and other service providers.

Certain services depend upon the performance of independent third parties.

CannyCask cannot guarantee the performance of third-party organisations outside its reasonable control.

Platform Independence

Ownership of a cask remains recorded through bonded warehouse custody records.

If the CannyCask platform becomes unavailable, ownership rights continue to exist through the bonded warehouse ownership records.

Customer Responsibility

Customers are responsible for:

1. conducting their own due diligence;
2. understanding the risks associated with cask ownership;
3. providing accurate information during onboarding; and
4. complying with applicable laws and regulations.

Contact

For questions regarding this notice, please contact:

support@cannycask.com

Governing Law

This notice shall be governed by the laws of Scotland.

Any dispute arising from this notice shall be subject to the exclusive jurisdiction of the Scottish courts.