Risk Disclosure
1. Important notice
This Risk Disclosure describes the principal risks of using KingAIVest’s investment management Services. It is not exhaustive and does not constitute investment advice. You should read it together with your investment management agreement and seek independent advice if you are in any doubt.
2. Capital at risk
The value of investments and the income from them can fall as well as rise. You may get back less than you invested, and you could lose all of your invested capital. You should only invest money you can afford to lose.
3. No guarantee of returns
We do not guarantee any particular return or outcome. Any target, projected or illustrative performance figures are hypothetical, are not a promise of future results, and may not be achieved. Actual results may differ materially.
4. Past performance
Past performance is not a reliable indicator of future performance. Historical figures may reflect market conditions, strategies or fee arrangements that no longer apply.
5. Suitability and appropriateness
An investment that is suitable for one investor may not be suitable for another. Before investing you should consider, with professional advice where appropriate, whether the Services are suitable for your financial situation, objectives, time horizon and risk tolerance.
6. Market risk
The value of your portfolio is affected by movements in financial markets, which can be caused by economic, political, regulatory and other factors beyond our control. Markets can be highly volatile and can move sharply and unpredictably.
7. Liquidity risk
Some investments may be difficult to sell at a particular time or price, particularly in stressed market conditions. This may delay the realisation of positions or reduce the price obtained.
8. Volatility and drawdown risk
The strategies we employ may experience significant short-term fluctuations in value. Periods of drawdown, including substantial drawdown, can occur and may persist for extended periods.
9. Credit and counterparty risk
The Firm and your portfolio are exposed to the risk that counterparties, issuers, banks or other parties fail to meet their obligations, which could result in loss.
10. Custody risk
Although Assets are held with regulated custodians in segregated accounts, there remains a residual risk associated with custody, including the insolvency or default of a custodian or sub-custodian.
11. Currency risk
Where your portfolio holds assets denominated in a currency other than your base currency, changes in exchange rates may increase or decrease the value of those assets and any income from them.
12. Concentration risk
A portfolio that is concentrated in particular assets, sectors or markets may be more volatile than a diversified portfolio and more exposed to specific adverse events.
13. Leverage and derivatives
Where strategies use leverage or derivative instruments, gains and losses may be magnified, and losses can exceed the amount initially committed to a position. Such instruments carry additional risks, including basis, margin and counterparty risk.
14. Artificial-intelligence and model risk
Our Services rely on AI models and quantitative methods. Models are based on assumptions and historical data and may contain errors or limitations; they may perform poorly in conditions that differ from those in which they were developed, may be affected by inaccurate or incomplete data, and may produce unexpected results. There is no assurance that a model-driven strategy will be profitable.
15. Technology, cyber and operational risk
The Services depend on software, data feeds, connectivity and third-party infrastructure. System failures, data errors, cyber-attacks or operational disruptions could affect our ability to manage the portfolio, execute transactions or report accurately, and could result in loss.
16. Regulatory and legal risk
Changes in laws, regulations, tax rules or their interpretation, in any relevant jurisdiction, may adversely affect the Services, the value of investments, or the way in which strategies can be implemented.
17. Tax risk
The tax treatment of your investment depends on your individual circumstances and may change. You are responsible for your own tax affairs and should seek independent tax advice.
18. Impact of fees and costs
Fees, charges and transaction costs reduce the return on your investment. Over time, the compounding effect of costs can be significant.
19. Forward-looking statements
Any statements about future events, strategies or performance are forward-looking and inherently uncertain. They are subject to risks and assumptions, and actual outcomes may differ materially.
20. Acknowledgement
By engaging the Firm you acknowledge that you have read and understood this Risk Disclosure and accept the risks described. If you do not understand any aspect of it, you should seek independent professional advice before investing.
This document is provided for information and does not constitute legal or financial advice. KingAIVest may update these terms from time to time; the version published here supersedes prior versions. Questions? Reach us at the address below.