Risk Disclosure

Investment results achieved in the past do not guarantee profits in the future.

Investment activity on financial markets may offer opportunities to earn income, but it also involves a risk of partial or total loss of the funds invested.

Before placing capital under management, the client should assess the investment strategy in light of their own objectives, financial capacity and risk tolerance.

Description of risks

This notice provides the client with general information about the risks of investment management and transactions on financial markets, and warns of possible financial losses.

Because market conditions vary, this list of risks is not exhaustive.

Capital management may involve transactions in financial instruments whose value fluctuates. Such transactions may result in the loss of expected profits and invested funds.

This notice is intended to help the client understand and assess the risks and make an informed decision about placing capital under management.

Risk classification

By source

• Systemic risk — risk associated with the functioning of the financial system as a whole, including political events, adverse changes in legislation, macroeconomic risks, banking, currency and debt crises, and force majeure.
• Non-systemic or individual risk — risk associated with a particular financial-market participant, management company, intermediary, financial instrument or trading system.

By risk factor

• Economic risk — adverse economic events that may affect the value of investments and management results.
• Price risk — losses resulting from an adverse change in the value of financial instruments.
• Currency risk — losses resulting from adverse movements in exchange rates.
• Interest-rate risk — losses resulting from changes in interest rates.
• Inflation risk — a decrease in the purchasing power of capital and income received.
• Liquidity risk — difficulty buying or selling a financial instrument when needed, and a possible increase in transaction execution costs.
• Legal risk — losses resulting from the adoption, amendment or repeal of legal acts, including tax laws, or from insufficient regulation.
• Socio-political risk — consequences of political and economic changes, social instability, strikes or military action.
• Criminal risk — unlawful acts by third parties, fraud, and unauthorised access to systems or confidential information.
• Operational risk — losses caused by failures of information, communications or other systems, software, communications, management, accounting, controls or personnel actions.
• Natural risk — consequences of earthquakes, floods, hurricanes and other natural events.
• Man-made risk — consequences of accidents, fires and other events associated with human economic activity.

By economic consequence

• Risk of loss of profit — the possibility of partial or total loss of expected investment income.
• Risk of loss of invested funds — the possibility of partial or total loss of invested capital.

By the client’s connection to the source of risk

• Direct risk — risk whose source is directly connected to the client’s investments.
• Indirect risk — risk of an adverse event affecting the client’s investments through a chain of interrelated circumstances.

Additional investment-management risks

• Transactions in financial instruments may involve significant fluctuations in the value of capital. When leverage is used, even a relatively small market movement may result in substantial losses.
• In adverse market conditions, the client may lose the funds initially invested and any additional funds contributed.
• Where the agreement and transaction terms provide for it, positions may be closed forcibly, which may result in losses being realised.
• Market conditions may make it difficult or impossible to close a position at the desired time and expected price.
• Protective orders and risk-limiting methods may not always limit losses to the calculated level.
• The Company may manage capital for other clients and interact with various financial intermediaries, which may create conflicts of interest.
• The Company does not guarantee profits, a particular rate of return or preservation of the initial capital amount.
• The client independently decides whether to place funds under management. ART Capital Ltd. makes investment decisions within the agreed strategy.
• The financial result of properly implementing the agreed strategy, including trading losses, is borne by the client. This does not release the Company from liability for breach of contract or other obligations imposed by applicable law.

Investment activity may result in financial losses. Past experience does not determine future results, and the success of other investors does not guarantee a similar result for the client.

The client should carefully assess their ability to accept investment risks in light of their own financial objectives and capacity.

This notice is intended to help the client understand the risks, assess whether they are acceptable, and make an informed decision when choosing an investment strategy.