- I confirm that I am directing the Administrator (Alto Solutions, Inc. d/b/a AltoIRA) to complete the transaction according to the data and documents presented to me. I agree that my account is self-directed, and I take complete responsibility for any investment I choose for my account, including the investment specified in this Direction of Investment. I agree that neither the Administrator nor the Custodian (Alto Trust Co.) sells or endorses any investment products, or assumes any responsibility or liability for the acts or omissions of any provider or issuer of any investment or other third party.
- I agree that the roles of the Administrator and the Custodian are limited, and their responsibilities do not include investment advice or investment selection for my account. I agree that neither the Administrator nor the Custodian has provided or assumed responsibility for any tax, legal or financial advice with respect to this investment, and I agree that they will not be liable for any loss which results from my decision to purchase the investment. I agree that neither the Administrator nor the Custodian has reviewed or will review the merits, legitimacy, appropriateness or suitability of this investment, and I certify that I have done my own due diligence investigation prior to instructing the Administrator to make this investment for my account.
- I agree that neither the Administrator nor the Custodian determines whether this investment is acceptable under the Employee Retirement Income Securities Act (ERISA), the Internal Revenue Code (IRC), or any applicable federal, state, or local laws, including securities laws. I agree that it is my responsibility to review any investments to ensure compliance with these requirements. I agree that in processing this transaction the Administrator and the Custodian are only acting as my agent, and nothing will be construed as conferring fiduciary status on either the Administrator or the Custodian.
- I agree that the Administrator and the Custodian will not be liable for any investment losses sustained by me or my account as a result of this transaction. I agree to indemnify and hold harmless the Administrator and the Custodian and their respective officers, directors, shareholders and employees, agents, and assigns, from any and all claims, actions, proceedings, damages, judgments, liabilities, costs and expenses (including reasonable attorneys’ fees) and any loss to my account as a result of any action I have taken or failed to take in connection with this investment transaction, including, without limitation, claims, actions, proceedings, damages, judgments, liabilities, costs and expenses (including reasonable attorneys’ fees) asserted by me.
- I agree that if this Direction of Investment and any accompanying documentation are not received as required, or, if received, are unclear in the opinion of the Administrator, or if there is insufficient undirected cash in my account to fully comply with my instructions to purchase the investment and to pay all fees, the Administrator may not process this transaction until proper documentation and/or clarification is received, and the Administrator and Custodian will have no liability for loss of income or appreciation. I agree that all communications regarding this transaction must be in writing or entered electronically in a form approved by the Administrator by me or by my authorized agent on my behalf, and that no oral modification of my instructions will be valid.
- I agree that my account is subject to the provisions of Internal Revenue Code (IRC) §4975, which defines certain prohibited transactions. I agree that it is my sole responsibility to review investments and to determine whether they are prohibited under §4975 or under any other federal, state or local law. I agree to seek the counsel from licensed attorneys, CPAs, and other professionals as to the legal, tax and financial ramifications from my investment. I certify that making this investment will not constitute a prohibited transaction and that it complies with all applicable federal, state, and local laws, regulations and requirements.
- I agree that I am responsible for confirming that no “disqualified person” with respect to my account will benefit from this investment in any way which is prohibited by IRC §4975. I represent that I have done my own due diligence on the investment to confirm no disqualified person will benefit from this investment in any way which is prohibited by IRC §4975.
- I agree that an investment in certain entities may be subject to the Plan Asset Regulations (29 C.F.R. § 2510.3-101) and Interpretive Bulletin 75-2 (29 C.F.R. § 2509.75-2) issued by the U.S. Department of Labor. If these regulations apply to this investment, an entity in which I invest may be disregarded for purposes of the prohibited transaction rules of IRC §4975, and officers, directors, managers and the like may become fiduciaries of my account. I understand the Plan Asset Regulations and Interpretive Bulletin 75-2 may apply and I have consulted with competent legal counsel regarding these regulations and their potential application to this investment prior to making my investment decision.
- I agree that no person at the office of the Administrator or the Custodian has the authority to modify any of the foregoing provisions.
- I further agree that my account is subject to the provisions of IRC §§511-514 relating to Unrelated Business Taxable Income (UBTI) of tax-exempt organizations. If this investment generates UBTI, I agree that I will be responsible for preparing or having prepared the required IRS Form 990-T tax return and any other documents that may be required. I agree that neither the Administrator nor the Custodian makes any determination of whether or not investments in my account generate UBTI.
I agree that the assets in my account are required by the IRS to be valued annually as of the end of each calendar year. I agree to provide the prior year end value of this investment by no later than January 15th of each year in writing or other form provided by the Administrator, with substantiation to support the value provided. I agree that the Administrator and the Custodian do not conduct appraisals and do not seek to verify values provided to it by myself or by any third party on my account’s behalf.
- I agree that with some types of accounts there are rules for Required Minimum Distributions (RMDs) from the account. If I am now subject to the RMD rules in my account, or if I will become subject to those rules during the term of this investment, I represent that I have verified either that the investment will provide income or distributions sufficient to cover each RMD, or that there are other assets in my account or in other accounts that are sufficiently liquid (including cash) from which I will be able to withdraw my RMDs. I agree that failure to take RMDs may result in a tax penalty of 50% of the amount I should have withdrawn.
- Self-directed financial opportunities processed through AltoIRA have not been endorsed by the IRS or any government or regulatory agency. The IRS does not review, approve, or endorse any investments, including digital assets, in an IRA. The Custodian is a non-fiduciary trust company, registered and regulated in the state of New Mexico as a non-depository trust company. I acknowledge and agree the Administrator and Custodian do not provide, promote, endorse, or sell investment products.
- I agree to indemnify and hold harmless the Administrator and the Custodian and their respective officers, directors, shareholders, employees, agents, and assigns, from and against any and all liabilities, losses, costs and expenses arising from or relating to the performance of their services with respect to this investment or my account, including but not limited to any liability for taxes, penalties or other amounts because the investment (a) is or may be offered or conducted by any seller, issuer or provider in violation of applicable law, (b) is or becomes a prohibited transaction under IRC §4975, (c) generates UBTI, or (d) results in a distribution of any value.
- I agree that as the Account Holder, I am solely responsible for choosing this Digital Asset investment (including but not limited to Bitcoin, Ethereum, Litecoin and other cryptocurrencies, hereinafter referred to as a “digital asset”). I acknowledge and understand that it is my sole responsibility for conducting all due diligence and other inquiry into the advisability of my investment in digital assets, and I represent and agree that I have not relied on any statement from the Administrator and the Custodian relating to the advisability of such investment.
- I acknowledge and agree that the price of digital assets is dependent upon many factors and is subject to regular fluctuations. I understand that the price for the asset(s) contemplated under this Direction of Investment may change from the time I submit this Direction of Investment to the Administrator and the time the Administrator makes payment for the purchase of the digital asset(s) or requests delivery of the digital asset(s) sold. I direct the Administrator to execute this Direction of Investment regardless of such fluctuations. I hereby waive any claims that I may have (past, present or future, known or unknown, anticipated or unanticipated) with respect to any fluctuation in the price or condition of the digital asset(s) contemplated under this Direction of Investment. I understand that losses in a self-directed IRA account generally cannot be used to offset personal income or personal investment gains.
- I understand and agree that AltoIRA only operates a platform at altoira.com that connects consumers to qualified custodians, digital wallets, and cryptocurrency exchanges. AltoIRA does not provide digital asset custody, is not a digital wallet, and is not an exchange. I understand and direct that my digital asset trades will be made through Coinbase, a third party provider that will be responsible for delivering digital assets to an omnibus Digital Asset Wallet held and administered for the Administrator and the Custodian by Coinbase. I understand and agree that neither the Administrator nor Custodian assumes any liability arising from or relating to any act or omission by Coinbase or for the operation of any Coinbase technology, products or services.
- To facilitate the transactions and investments I direct using Coinbase services, Coinbase will provide the Administrator with access to: (i) a hosted digital asset wallet(s) for holding Supported Digital Assets (each a “Digital Asset Wallet”); and (ii) a hosted Fiat Currency wallet(s) for holding Fiat Currencies (each a “Fiat Wallet “). In order to utilize the Coinbase platform, I acknowledge and agree that:
1. I am directing AltoIRA to access and use a central limit order book exchange operated by Coinbase (the “Market Platform”) for various pairs of digital assets (“Digital Assets”) and government issued currencies (“Fiat Currencies”).
2. All digital asset trades through the Market Platform will be executed automatically (but not necessarily immediately), based on my instructions and subject to the Coinbase Market Trading Rules located at www.coinbase.com/legal/trading_rules(goes to new website)(opens in a new tab) (“Trading Rules”). As used in this Direction of Investment Authorization, “Supported Digital Assets” means any and all digital assets and fiat currencies supported by the Coinbase Market Platform.
3. I am directing the placement of orders to buy or sell certain pairs (digital assets/fiat currency or digital assets/digital assets) of Supported Digital Assets on the Market Platform (“Orders”) provided such orders are in compliance with the Trading Rules and my agreements with AltoIRA. I understand that any Order submitted by me must be fully collateralized by Digital Assets or Fiat Currencies held in my AltoIRA account or transferred from my account to the Digital Asset Wallet or Fiat Wallet on the Market Platform.
4. Once an Order is submitted to the Market Platform, the transaction will be in pending state until a sufficient number of confirmations occur on the applicable digital asset network. Funds associated with pending transactions will be designated accordingly and will not be available for conducting transactions. I understand that once an Order is submitted to the Market Platform, I cannot change, correct, suspend, cancel or reverse it.
5. Coinbase will settle Orders once each Order is filled and updated on Coinbase’s internal ledger; Coinbase will take all reasonable measures to cause an update to its internal ledger immediately following execution of an Order. The Administrator in turn will record transactions through Coinbase for the benefit of my AltoIRA account on a subledger maintained by the Administrator. I understand and agree that digital assets as well as fiat currencies (cash) held for the benefit of my account will be separately accounted for by the Administrator while invested at Coinbase with other digital assets and fiat currencies held for the benefit of my account and other AltoIRA accounts in the Digital Asset Wallet and Fiat Wallet, respectively.
6. I agree not to use my access to Coinbase and the Market Platform through AltoIRA in order to, or for any activity that would: (i) violate, or assist in violation of, any law, statute, ordinance, or regulation, or applicable sanctions programs including but not limited to those of the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”); (ii) transfer proceeds of any unlawful activity; (iii) publish, distribute or disseminate any unlawful material or information; (iv) impose interfere with or disrupt the operation of the Market Platform or intercept or expropriates any system, data, or information; (v) transmit or upload any material to Coinbase systems that contains viruses, trojan horses, worms, or any other harmful or deleterious programs; (vi) attempt to gain unauthorized access to Coinbase systems, other Coinbase accounts, computer systems or networks connected to Coinbase systems or the Coinbase site, through password mining or any other means; (vii) use Coinbase account information of another party, except to the extent I have been expressly authorized by such party, or transfer account access or rights to a third party, unless by operation of law or with the express permission of Coinbase; or (viii) defraud Coinbase or any other person or entity.
7. Coinbase Support of Digital Assets.
i. Advanced Protocols. Digital assets which are not supported by Coinbase include metacoins, colored coins, side chains, or other derivative, enhanced, or forked protocols, tokens, or coins which supplement or interact with Supported Digital Assets (collectively, “Advanced Protocols”). I will not use my access to Coinbase through AltoIRA to attempt to receive, request, send, store, or engage in any other type of transaction involving any Advanced Protocols. The Market Platform is not configured to detect and/or secure Advanced Protocol transactions and Coinbase assumes no responsibility or liability whatsoever with respect to Advanced Protocols.
ii. Open Protocols. I understand Coinbase does not own or control the underlying software protocols that govern the operation of Supported Digital Assets. In general, the underlying protocols are open source, and anyone can use, copy, modify, and distribute them. Coinbase is not responsible for operation of the underlying protocols and Coinbase, Administrator and Custodian make no guarantee of their functionality, security, or availability. I understand the underlying protocols are subject to sudden changes in operating rules (a/k/a “forks”), and such forks may materially affect the value, function, and/or even the name of the digital assets stored for the benefit of my AltoIRA account. In the event of a fork, Coinbase may temporarily suspend Coinbase operations including the Coinbase spot market (with or without advance notice) and Coinbase may, in its sole discretion, decide whether or not to support (or cease supporting) either branch of the forked protocol entirely. I acknowledge and agree that Coinbase, Administrator and Custodian assume no responsibility or liability whatsoever with respect to an unsupported branch of a forked protocol or resulting suspension of access to the Market Platform.
8. Coinbase stores digital asset private keys to the Digital Asset Wallet in either a “hot” or “cold” wallet for custodied storage. A hot wallet is online and accessible by Coinbase’s internal systems. A cold wallet is where the private keys are kept on a device and not connected online. I understand Coinbase may keep the private keys to the digital assets held for the benefit of my account in any combination of “hot” or “cold” storage from time to time, in accordance with Coinbase protocols and neither the Administrator nor Custodian control such protocols. In accordance with Coinbase security protocols, I acknowledge and agree that the Administrator and the Custodian will not be liable for any loss I may suffer if the Digital Asset Wallet held and administered by Coinbase should fail in any way, or if the digital currency in my Digital Asset Wallet is stolen or otherwise becomes inaccessible to me, and I agree to indemnify and hold the Administrator and the Custodian harmless from any and all damages arising from such loss.
9. I acknowledge that based upon Coinbase’s security protocol, digital asset transactions may incur delays of up to three (3) business days or longer and delays are beyond the control of Administrator and the Custodian. Market fluctuations during such delays may negatively impact the value of my digital asset, my investment and my account. I agree that Administrator and the Custodian will not be liable for any loss I may suffer if market fluctuations decrease the value of my assets, investment or account during the processing time for sales or trades.
10. I acknowledge and agree title to my digital assets shall at all times remain with the Administrator or Custodian (for the benefit of AltoIRA accounts) and shall not transfer to Coinbase. I acknowledge I will have no access to the digital asset private keys to the Digital Asset Wallet.
In consideration of the foregoing, I direct the Administrator to utilize the Coinbase Digital Asset Wallet.
- Without limiting the generality of the foregoing, I have read, understand, acknowledge, agree to and assume the following risks of purchasing or holding digital assets:
1. DIGITAL ASSET INVESTMENTS MAY LOSE ALL VALUE.
2. DIGITAL ASSET INVESTMENTS SUCH AS DIGITAL CURRENCIES MAY BE SUBJECT TO LEGISLATIVE AND REGULATORY CHANGES OR ACTIONS AT THE STATE, FEDERAL, OR INTERNATIONAL LEVEL WHICH MAY ADVERSELY AFFECT THE USE, TRANSFER, EXCHANGE, AND VALUE OF DIGITAL/CRYPTO ASSETS.
3. An investment in digital assets should be made using discretionary capital set aside strictly for speculative purposes.
4. An investment in digital assets is not suitable or desirable for all investors.
5. Digital asset exchanges have limited operating and performance histories.
6. Fees and expenses associated with digital asset transactions may be substantial.
7. Digital assets markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a digital asset as payment today will continue to do so in the future.
8. Investors should conduct extensive research into the legitimacy of each individual digital asset and exchange before investing. The features, functions, characteristics, operation, use and other properties of the specific digital asset may be complex, technical, or difficult to understand or evaluate. The digital asset may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the digital asset’s blockchain or other underlying technology. Some digital asset transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.
9. Digital asset trading requires knowledge of digital asset markets. In attempting to profit through digital asset trading you must compete with traders worldwide. You should have appropriate knowledge and experience before engaging in digital asset trading.
10. Under certain market conditions, investors may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a particular digital asset suddenly drops, or if trading is halted due to recent news events, unusual trading activity, or changes in the underlying digital asset system.
11. The greater the volatility of a particular digital asset, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, investors may experience losses due to one or more of the following: system failures, hardware failures, software failures, network connectivity disruptions, fraud, cyber attack and data corruption.
12. Transactions in digital asset investments may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable.
13. Digital asset transactions are deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the customer initiates the transaction.
14. The value of digital asset investments may be derived from the continued willingness of market participants to exchange fiat currency for digital/crypto assets, which may result in the potential for permanent and total loss of value of digital assets should the market for digital assets disappear.
15. There is no assurance that a person who accepts digital assets as payment today will continue to do so in the future.
16. The volatility and unpredictability of the price of digital asset investments relative to fiat currency may result in significant or total loss over a short period of time.
17. The nature of digital asset investments may lead to an increased risk of fraud or cyber-attack; and the nature of digital assets means that any technological difficulties experienced by third parties may prevent access to or use of digital assets held for my account.
18. The Internal Revenue Service has neither approved nor disapproved of the use of the Digital Asset Wallet for custody of digital assets for the benefit of AltoIRA accounts, and any ruling that such assets are not maintained in compliance with the Internal Revenue Code may result in a distribution from my account or other adverse tax consequences.
- I further have read and understand the state-specific disclosures made by Coinbase here that are applicable to me.
- By utilizing altoira.com to purchase and sell digital assets through Coinbase, I acknowledge and agree I have appropriate training, sophistication, expertise and knowledge necessary to make informed decisions regarding trading in digital assets. Additionally, I acknowledge and agree I am solely responsible for determining whether, and to what extent, any taxes apply to any transactions Administrator conducts through Coinbase for my account, and authorize the Administrator and Custodian to withhold, collect, report and remit the correct amounts of taxes to the appropriate tax authorities.
- I understand information provided by AltoIRA is not intended to be, nor should it be construed or used as investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest in digital assets.
- I hereby indemnify and hold the Administrator and the Custodian harmless from any and all damages arising from or in connection with this Direction of Investment, including, but not limited to, losses resulting from the risks set forth above.
- I certify that I have examined this Direction of Investment and any accompanying documents or information, and to the best of my knowledge and belief, it is all true, correct and complete.
