Managed Trading Strategies Risk Disclosure

This Asset Management Risk Disclosure outlines the specific risks associated with delegating the management of your investment portfolio to Ark Stone Trading or its affiliated portfolio managers.

By entering into an asset management agreement, you grant us discretionary authority to make investment decisions, execute trades, and manage your allocated capital in accordance with the agreed-upon investment mandate and risk profile.

Delegated Authority: You relinquish day-to-day control over the specific assets bought and sold within your managed account. Our portfolio managers will act on your behalf without requiring prior consultation for individual transactions.

Strategy Dependency: The success of your managed portfolio is entirely dependent on the expertise, analysis, and execution capabilities of the assigned portfolio management team. Strategies may involve complex financial instruments, derivatives, and leverage, which carry inherent risks.

Performance Uncertainty: Past performance of any managed portfolio or strategy is not indicative of future results. Financial markets are unpredictable, and your portfolio may experience significant drawdowns.

Concentration Risk: Depending on the mandate, your portfolio may be concentrated in specific sectors, asset classes, or geographic regions, increasing vulnerability to localized economic downturns.

Market Liquidity & Currency Risk: Investments may be made in illiquid assets or foreign currencies. You are exposed to the risk that assets cannot be sold quickly at fair value, and fluctuations in exchange rates may negatively impact your portfolio's base currency valuation.

Methodology: Portfolio assets are valued based on current market prices where available. For illiquid or over-the-counter (OTC) instruments, we utilize approved internal valuation models or third-party pricing services.

Indicative Nature: Interim portfolio valuations provided in your client portal or periodic reports are indicative. The actual realizable value of your portfolio upon liquidation may differ materially from these indicative valuations due to market movements and execution costs.

Multiple Portfolios: Ark Stone Trading manages multiple client portfolios and proprietary accounts simultaneously. We may execute transactions for other clients that differ from, or are contrary to, the transactions executed for your account.

Fair Allocation: We maintain strict trade allocation policies to ensure fair and equitable treatment across all managed accounts. However, in times of limited liquidity, it may not be possible to execute orders for all participating accounts at the same price or volume.

Ark Stone Trading provides no guarantee, warranty, or assurance regarding the preservation of your initial capital or the achievement of any specific return on investment.

You must be financially prepared to sustain a total loss of the capital allocated to the asset management service. The use of margin or leverage within the managed portfolio can result in losses exceeding your initial investment, requiring you to deposit additional funds.

Suitability: It is your responsibility to ensure that the selected investment mandate aligns with your overall financial situation, investment objectives, and risk tolerance. You must promptly inform us of any material changes to your financial circumstances.

Monitoring: While we manage the portfolio on a discretionary basis, you are responsible for reviewing all account statements, trade confirmations, and performance reports to ensure the management aligns with your expectations and the agreed mandate.

Notice Periods: The asset management agreement may be terminated by either party subject to the notice periods specified in your specific client agreement.

Liquidation Procedures: Upon termination, we will proceed to liquidate the portfolio's assets in an orderly manner. You bear the market risk during the liquidation period, and the final realized value may be lower than the valuation at the time the termination notice was given.