{"url_path":"/sec/sos/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1346610/0001213900-26-057725-index.html","accession_number":"0001213900-26-057725","cik":"0001346610","ticker":"SOS","issuer_name":"SOS Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1346610/0001213900-26-057725-index.html","primary_entity_key":"0001346610","primary_entity_name":"SOS Ltd"},"word_count":373,"has_tables":true,"body_markdown":"**ITEM\n11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n \n\n**Foreign\nExchange Risk**\n\n \n\nOur\nrevenue and expenses are mostly denominated in RMB, and a significant portion of our financial assets are also denominated in RMB, whereas\nour reporting currency is the U.S. dollar. The RMB is not freely convertible into foreign currencies for capital account transactions.\nThe value of the RMB against the U.S. dollar and other currencies is affected by, among other things, changes in China’s political\nand economic conditions and China’s foreign exchange policies. On July 21, 2005, the PRC government changed its decade-old policy\nof pegging the value of the RMB to the U.S. dollar, and the RMB appreciated more than 20% against the U.S. dollar over the following\nthree years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the RMB and the U.S. dollar remained\nwithin a narrow band. Starting in June 2010, the PRC government allowed the RMB to appreciate slowly against the U.S. dollar. However,\nwith the announcement by the PBOC to devalue the RMB in a move to support exports and boost the role of market pricing, the RMB has experienced\nsignificant depreciation against the U.S. dollar. For example, in August 2015, the PRC government allowed the RMB to depreciate by more\nthan 4% against the U.S. dollar. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange\nrate between the RMB and the U.S. dollar in the future. To date, we have not entered into any hedging transactions in an effort to reduce\nour exposure to foreign currency exchange risk.\n\n \n\n81\n\n \n\n \n\n**Interest\nRate Risk**\n\n \n\nWe\ndeposit surplus funds with Chinese banks earning daily interest. We do not invest in any instruments for trading purposes. Most of our\noutstanding debt instruments carry fixed rates of interest. Our operations generally are not directly sensitive to fluctuations in interest\nrates and we currently do not have any long-term debt outstanding. Management monitors the banks’ prime rates in conjunction with\nour cash requirements to determine the appropriate level of debt balances relative to other sources of funds. We have not entered into\nany hedging transactions in an effort to reduce our exposure to interest rate risk."}