The Group may be exposed to the following risks arising from financial instruments: foreign exchange risk, interest rate risk, liquidity risk and credit risk.

The nature and exposure of the Group to currency risk has evolved due to a growing portion of its operations being denominated in US dollars, and because the Group decided not to convert into euros the US dollar denominated cash it raised in March 2019 IPO. The Company expects to use cash held in US dollars to meet expenses denominated in this currency over the next few years.

In the future, and in particular with respect to its clinical trials and pre-marketing activities, the Group will manage an increasing number of transactions denominated in foreign currencies or indirectly exposed to currency risk.

The increase in the overall exposure of the Company to this risk will depend, in particular, on:

During the 2017 fiscal year, the Group used specific hedging arrangements (e.g., purchase of U.S. dollars and of UCITS in U.S. dollars, as well as currency forwards in U.S. dollars). In 2018, the Group considered the implementation of appropriate certain hedging arrangements without ultimately using any such arrangements. During 2019, the Company did not use any specific hedging arrangements in light of the Company’s decision to leave a significant part of its cash and cash equivalents in US dollars.

The following table shows the sensitivity of the Group's cash and cash equivalent and expenses in U.S. dollars to a variation of 10% of the U.S. dollar against the euro in 2017, 2018 and 2019:

Sensitivity of the Group's cash and cash equivalents to a variation of +/- 10% of the US dollar against the euro	As of
(in € thousands or in US dollar thousands, as applicable)	2017/12/31		2018/12/31		2019/12/31
Cash and cash equivalents denominated in US dollars		3,611		1,188		153,438
Equivalent in euros, on the basis of the exchange rate described below		3,011		1,038		136,582
Equivalent in euros, in the event of an increase of 10% of US dollar vs euro		3,345		1,153		151,758
Equivalent in euros, in the event of a decrease of 10% of US dollar vs euro		2,737		944		124,166

Sensitivity of the Group's expenses to a variation of +/- 10% of the US dollar against the euro	Year ended
(in € thousands or in US dollar thousands, as applicable)	2017/12/31		2018/12/31		2019/12/31
Expenses denominated in US dollars		5,993		9,613		40,355
Equivalent in euros, on the basis of the exchange rate described below		4,997		8,396		35,922
Equivalent in euros, in the event of an increase of 10% of US dollar vs euro		5,552		9,328		39,914
Equivalent in euros, in the event of a decrease of 10% of US dollar vs euro		4,543		7,632		32,657

2019/12/31 : Equivalent in euros, on the basis of a 1 euro = 1.1234 US dollar ratio
2018/12/31 : Equivalent in euros, on the basis of a 1 euro = 1.145 US dollar ratio
2017/12/31 : Equivalent in euros, on the basis of a 1 euro = 1.1993 US dollar ratio

Cash, cash equivalents and financial assets	As of
(in € thousands or in US dollar thousands, as applicable)	2017/12/31		2018/12/31		2019/12/31
At origin, denominated in EUR
Cash and cash equivalents		270,210		206,199		139,863
Current and non current financial assets		729		1,303		1,614
Total		270,939		207,502		141,477
At origin, denominated in USD
Cash and cash equivalents		3,611		1,041		136,884
Current and non current financial assets		31		10		113
Total		3,642		1,051		136,997
Total, in EUR
Cash and cash equivalents		273,820		207,240		276,748
Current and non current financial assets		760		1,313		1,727
Total		274,581		208,553		278,474

As of December 31, 2019, the Group was only liable for governmental advances or conditional advances with no interest or interest at a fixed rate, generally below market rate, and for fixed-rate bank loans (the only variable-rate loan was repaid in 2017).

As of December 31, 2017, 2018, and 2019 the Group's financial liabilities totaled €164,680, €169,593 (net of the equity component of the convertible loan and debt issue costs), and €183,617 respectively. Current borrowings are at a fixed rate. The Group's exposure to interest rate risk through its financial assets is also insignificant due to low market rates and since these assets are mainly euro-denominated Undertakings for the Collective Investment of Transferable Securities (UCITs), medium-term negotiable notes or term deposits with progressive rates denominated in euros or US dollars..

The Group's loans and borrowings mainly consist of bonds convertible or exchangeable into new or existing shares (OCEANE), government advances for research projects and bank loans. For conditional advances, reimbursement of the principal is subject to the commercial success of the related research project.

The Company has conducted a specific review of its liquidity risk and considers that it is able to meet its future maturities. On December 31, 2017, 2018 and 2019, the Group had €274,581, €208,553, and €278,474 respectively, in cash and cash equivalents and other financial assets. The Company does not believe it is exposed to short-term liquidity risk. The Company believes that the Group's cash and cash equivalents and current financial instruments are sufficient to ensure its financing, in light of its current projects and obligations, for at least the next twelve months.

If the Group's funds are insufficient to cover any additional financing needs, the Group would require additional financing. The conditions and arrangements for any such new financing would depend, among other factors, on economic and market conditions that are beyond the Group's control.

Credit risk is the risk of financial loss if a customer or counterparty to a financial asset defaults on their contractual commitments. The Group is exposed to credit risk due to trade receivables and other financial assets.

The Group's policy is to manage this risk by transacting with third parties with good credit standards.