{"url_path":"/sec/twg/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/1978057/0001213900-26-057962-index.html","accession_number":"0001213900-26-057962","cik":"0001978057","ticker":"TWG","issuer_name":"Top Wealth Group Holding Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1978057/0001213900-26-057962-index.html","primary_entity_key":"0001978057","primary_entity_name":"Top Wealth Group Holding Ltd"},"word_count":298,"has_tables":true,"body_markdown":"**Item\n11. Quantitative and Qualitative Disclosures About Market Risk** \n\n \n\n**Credit risk**\n\n \n\nAssets that potentially subject the Company to\na significant concentration of credit risk primarily consist of accounts receivable.\n\n \n\nWe have designed our credit policies with an\nobjective to minimize their exposure to credit risk. Our Company’s “receivables” are generally short term in nature\nand the associated risk is minimal. We conduct credit evaluations on its customers and generally does not require collateral or other\nsecurity from such customers. We extended a one-off credit term to 90 days as a 2023 Christmas promotion to our creditworthy customers.\nWe periodically evaluate the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based\nupon the age of the receivables and factors surrounding the credit risk of specific customers.\n\n** **\n\n**Interest rate risk**\n\n \n\nWe have no signification exposure to interest\nrate risk.\n\n** **\n\n**Foreign currency risk**\n\n \n\nOur functional currency is Hong Kong dollars\nthat trade primarily in Hong Kong dollar (“HK$”). Our presentation currency is United Sates dollar (“US$”). HK$\nis currently pegged to US$, our exposure to foreign exchange fluctuations is minimal.\n\n** **\n\n**Liquidity Risk**\n\n \n\nLiquidity risk is the risk that we will encounter\ndifficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial\nasset. Our approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its\nliabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation.\n\n \n\nTypically, we ensure that it has sufficient cash\non demand to meet expected operational expenses for a period of 90 days, including the servicing of financial obligations; this excludes\nthe potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters."}