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⚠️ Risk Disclosure Statement

Last updated: April 25, 2025

IMPORTANT: Please read this risk disclosure carefully before investing. Investing in hedge funds and alternative investments involves substantial risk of loss. You should only invest funds that you can afford to lose entirely.

1. General Investment Risks

  • Capital Loss Risk: You may lose some or all of your invested capital. There is no guarantee that you will recover your initial investment or achieve any returns.
  • No Guaranteed Returns: Past performance is not indicative of future results. Historical returns do not guarantee future performance, and investments may result in losses.
  • Market Risk: Investment values fluctuate based on market conditions, economic factors, geopolitical events, and other variables beyond our control.
  • Liquidity Risk: Some investments may not be readily liquid, and you may not be able to withdraw funds immediately or at favorable prices.
  • Inflation Risk: Returns may not keep pace with inflation, reducing your purchasing power over time.

2. Hedge Fund & Alternative Investment Risks

  • Leverage Risk: Hedge funds may use leverage, which can amplify both gains and losses, potentially resulting in losses exceeding your initial investment.
  • Concentration Risk: Portfolios may be concentrated in specific sectors, asset classes, or strategies, increasing vulnerability to adverse events.
  • Counterparty Risk: Investments may involve exposure to counterparties, including brokers, banks, and other financial institutions, which may default.
  • Operational Risk: System failures, human error, fraud, or other operational issues may result in losses.
  • Regulatory Risk: Changes in laws, regulations, or regulatory interpretations may adversely affect investments or the platform's operations.
  • Lock-Up Periods: Some investments may have lock-up periods during which you cannot withdraw funds.
  • Redemption Restrictions: Withdrawals may be subject to notice periods, gates, or other restrictions.

3. Quantitative & AI Trading Risks

  • Model Risk: AI and quantitative models may fail to perform as expected, especially during unprecedented market conditions or "black swan" events.
  • Data Risk: Models depend on historical data, which may not accurately predict future market behavior.
  • Algorithmic Risk: Automated trading systems may execute trades based on flawed logic, bugs, or unexpected market conditions.
  • Technology Risk: System failures, cyberattacks, or connectivity issues may disrupt trading or result in losses.
  • Over-Optimization: Models may be over-fitted to historical data and perform poorly in live trading.
  • Market Regime Changes: Models trained on one market regime may fail when market conditions change significantly.

4. Currency & International Investment Risks

  • Currency Risk: Investments in foreign currencies are subject to exchange rate fluctuations, which may result in losses.
  • Political Risk: Investments in foreign markets are subject to political instability, changes in government policies, expropriation, or other political events.
  • Regulatory Differences: Foreign markets may have different regulatory frameworks, investor protections, and legal systems.
  • Settlement Risk: Cross-border transactions may involve additional settlement risks and delays.

5. Cryptocurrency & Digital Asset Risks

  • Extreme Volatility: Cryptocurrency prices can be extremely volatile, with rapid and substantial price movements.
  • Regulatory Uncertainty: Cryptocurrency regulations are evolving and may change, potentially affecting investments.
  • Technology Risk: Blockchain technology, smart contracts, and digital wallets may have vulnerabilities or fail.
  • Custody Risk: Digital assets may be lost, stolen, or inaccessible due to technical issues or security breaches.
  • Market Manipulation: Cryptocurrency markets may be subject to manipulation, fraud, or other illegal activities.

6. Investor Suitability Requirements

Before investing, you should:

  • Understand the risks involved in hedge fund and alternative investments
  • Have sufficient financial resources to bear the risk of total loss
  • Have investment experience and knowledge appropriate for these investments
  • Seek independent financial, legal, and tax advice
  • Only invest funds that you can afford to lose entirely
  • Understand that investments are not suitable for all investors

7. Important Disclaimers

  • No Investment Advice: Information provided on this platform does not constitute investment, financial, legal, or tax advice.
  • No Guarantees: We do not guarantee any returns, performance, or the safety of your investments.
  • Not FDIC Insured: Investments are not insured by the FDIC, SIPC, or any government agency.
  • Not Bank Deposits: Investments are not bank deposits and are not covered by deposit insurance.
  • Regulatory Status: Evermount Capital operates as a technology platform. Investment services may be provided by licensed third-party entities.

Investor Acknowledgment

By using Evermount Capital's platform and investing through our services, you acknowledge that you have read, understood, and accept all risks disclosed in this statement. You confirm that you are capable of evaluating the merits and risks of these investments and that you have sufficient financial resources to bear the risk of loss.

If you do not understand or accept these risks, you should not invest through this platform.