Risk Disclosure

1. Important Notice

This Risk Disclosure Statement is provided by InvCo Funds Ltd. ("InvCo Funds") to inform prospective and existing investors of the risks associated with participating in our cryptocurrency investment platform. This document is not exhaustive — additional risks may exist that are not described herein.

By creating an account and making an investment with InvCo Funds, you confirm that you have read, understood, and accepted the risks described in this document. If you do not fully understand or accept these risks, you should not invest.

2. Nature of Investment Risk

Cryptocurrency investment, including algorithmic trading strategies such as those employed by InvCo Funds, involves the possibility of loss as well as gain. The three primary risk categories applicable to our platform are:

3. Market Risks

Cryptocurrency markets are among the most volatile financial markets in the world. The following market risks are relevant to your investment with InvCo Funds:

3.1 Price Volatility

The prices of Bitcoin, Ethereum, and other cryptocurrencies can fluctuate by 20–50% or more within a single day. While our algorithmic strategies are designed to be market-neutral, extreme volatility may impact the availability of arbitrage opportunities and the profitability of micro-trading strategies.

3.2 Arbitrage Spread Compression

Cross-exchange arbitrage opportunities can compress during periods of high market correlation or when major exchanges experience synchronized price movements. This may temporarily reduce the yield from our arbitrage pillar.

3.3 DeFi Protocol Risk

A portion of pooled capital is deployed in DeFi protocols including Aave, Compound, and Uniswap v3. These protocols are subject to smart contract risk, impermanent loss, liquidity risk, and governance risks that are outside InvCo Funds' direct control.

3.4 Market Manipulation

Cryptocurrency markets are susceptible to manipulation, including wash trading, spoofing, and coordinated pump-and-dump schemes. While our AI systems are designed to detect and avoid manipulated conditions, no system is 100% effective in all circumstances.

4. Technology Risks

As a technology-driven platform, InvCo Funds is exposed to a range of technology-related risks:

• System failures: Hardware failures, software bugs, or infrastructure outages that may temporarily interrupt trading or access to the platform
• Cybersecurity threats: Hacking attempts, phishing attacks, or other malicious activities targeting the platform or individual accounts
• Smart contract vulnerabilities: Bugs or exploits in DeFi smart contracts where capital is deployed
• Network congestion: Blockchain network congestion may delay transaction confirmations, affecting cycle timing and withdrawal processing
• Algorithm failure: While extensively tested, our trading algorithms may produce unexpected results in unprecedented market conditions

5. Regulatory Risks

The regulatory landscape for cryptocurrency and algorithmic trading is rapidly evolving worldwide. Regulatory risks include:

• Governments may introduce new laws that restrict or prohibit cryptocurrency trading or investment platforms in certain jurisdictions
• Tax regulations affecting cryptocurrency gains may change, impacting net returns for investors
• Regulatory actions against cryptocurrency exchanges where we execute trades may affect our ability to access liquidity
• Anti-money laundering regulations may require us to request additional documentation or restrict certain transactions

6. Liquidity Risks

Investment cycles at InvCo Funds run for a fixed 7-day period. During this time, your invested capital is locked and cannot be withdrawn. This creates the following liquidity risks:

• You will not have access to your invested capital for the duration of the cycle, regardless of personal financial circumstances that may arise
• In the event of extreme market conditions or a force majeure event, payout processing may be delayed beyond the standard 1–3 hour window
• Cryptocurrency withdrawal processing times are subject to blockchain network conditions and may vary

7. Operational Risks

Operational risks arise from inadequate or failed internal processes, human error, or external events:

• Key personnel risk: Dependence on key technical staff for platform maintenance and algorithm development
• Third-party dependencies: Reliance on exchange APIs, blockchain networks, and cloud infrastructure providers
• Fraud risk: The possibility of fraudulent activity by bad actors impersonating InvCo Funds staff or the platform
• User error: Incorrect wallet addresses provided for withdrawals resulting in irreversible loss of funds

8. Risk Mitigation Strategies

InvCo Funds employs the following risk mitigation strategies to protect investor capital:

9. Investor Suitability

InvCo Funds investment products are suitable only for investors who:

• Fully understand the nature and risks of cryptocurrency investments
• Can afford to invest capital without needing access to it for at least 7 days
• Have sufficient financial resources to absorb potential losses without material impact on their lifestyle
• Have experience with cryptocurrency transactions including sending and receiving digital assets
• Are not relying on InvCo Funds returns as their primary source of income or financial security

10. No Guarantees

While InvCo Funds has maintained a 99.9% cycle success rate since inception and commits to delivering 100% ROI per cycle, the following must be clearly understood:

• Past performance of our trading algorithms does not guarantee or predict future results
• The 100% ROI commitment is based on our historical performance and current market conditions, which may change
• In the event of extraordinary market conditions, force majeure events, or catastrophic system failures, returns may be reduced or delayed
• InvCo Funds is not a bank or regulated investment fund and does not offer deposit guarantee schemes
• Returns are not insured by any government scheme or deposit protection authority

11. Acknowledgment

By investing with InvCo Funds, you acknowledge and confirm that:

• You have read this Risk Disclosure Statement in full and understand its contents
• You understand that cryptocurrency investment carries the risk of partial or total loss of capital
• You are investing voluntarily and of your own free will, without any undue pressure or inducement
• You have sought independent financial advice or have determined that such advice is not necessary given your knowledge and experience
• You accept the risks described in this document and agree to hold InvCo Funds harmless for losses arising from risks disclosed herein