Risk Disclosure.

01General Risk Warning

Trading and investing in financial instruments — including but not limited to foreign exchange (FX), contracts for difference (CFDs), futures, options, equities, commodities, and digital assets — involves significant risk of financial loss. The prices of financial instruments are subject to substantial volatility, and any individual transaction may result in a loss. The possibility exists that you could sustain a loss of some or all of your initial investment, and therefore you should not invest money that you cannot afford to lose.

There is no guarantee that any strategy, algorithm, or trading system will generate profits or prevent losses. All trading carries inherent risk, regardless of the sophistication of the methodology employed.

02Nature of Algorithmic Trading

Divitae Assets develops proprietary quantitative trading algorithms that employ systematic, rules-based approaches to financial markets. While algorithmic strategies are designed to remove emotional bias and enforce disciplined risk management, they are subject to specific risks that investors must understand:

• Drawdown periods. All systematic strategies experience periods of sustained losses. These drawdowns can be significant in magnitude and extended in duration. Historical drawdown statistics may not reflect the maximum possible drawdown that a strategy could experience in future market conditions.
• Regime dependency. Algorithmic strategies are typically optimised for specific market conditions or regimes. When market dynamics change fundamentally, strategies may fail to adapt and may generate sustained losses.
• Black swan events. Unprecedented or extreme market events (flash crashes, geopolitical crises, pandemics, sudden regulatory changes) may cause market conditions that fall entirely outside the parameters for which a strategy was designed. In such scenarios, losses may be severe.
• Correlation breakdown. Statistical relationships upon which strategies depend may break down without warning, particularly during periods of market stress when correlations across asset classes tend to converge.

03Past Performance

Past performance is not indicative of future results. Any historical returns, performance statistics, track records, or backtested results presented by Divitae Assets represent the performance of algorithmic strategies as implemented by licensed partner firms under regulated conditions. These results should not be interpreted as a guarantee, promise, or forecast of future performance.

Historical performance data may be based on backtested results. Backtested performance has inherent limitations: it is derived from the retroactive application of a strategy to historical market data and does not reflect actual trading. Backtested results may overstate potential returns and understate potential risks due to factors including:

• Survivorship bias in strategy selection.
• Look-ahead bias in data handling.
• Overfitting to historical market conditions.
• Failure to account for actual market impact, slippage, and execution costs.
• Differences between simulated and live execution environments.

Even where performance figures are based on live trading records, past performance under previous market conditions provides no assurance of similar results in the future.

04Market Risk

Investments in financial instruments are subject to the following market-related risks:

• Price volatility. Prices can be highly volatile and may increase suddenly during periods of economic uncertainty, geopolitical tension, or systemic stress. Increased volatility magnifies both the potential for gains and the risk of losses.
• Liquidity risk. In certain market conditions, it may be difficult or impossible to execute trades at desired prices. Illiquidity can result from market disruptions, exchange halts, or a lack of counterparties willing to trade.
• Gap risk. Prices may "gap" — moving sharply from one price level to another without trading at intermediate prices. Gaps frequently occur at market opens, around major data releases, or following unexpected events. Stop-loss orders may not be filled at the intended price.
• Weekend and overnight risk. Positions held over weekends, public holidays, or outside normal trading hours are exposed to adverse price movements during periods when markets are closed or trading is limited.
• Emerging and frontier market risk. Strategies that trade instruments in these markets may be subject to additional risks including political instability, capital controls, limited regulatory oversight, and reduced market depth.

05Leverage Risk

Many financial instruments, including foreign exchange, CFDs, and futures, involve the use of leverage (margin trading). Leverage allows a trader to control a large position with a relatively small amount of capital. While leverage can amplify profits, it equally amplifies losses.

When leverage is employed:

• A relatively small adverse movement in price can result in a loss disproportionately large relative to the initial margin deposit.
• Losses may exceed the initial amount invested, potentially resulting in a liability to the broker or counterparty.
• Margin calls may be issued, requiring additional capital at short notice. Failure to meet a margin call may result in positions being liquidated at unfavourable prices.
• In extreme market conditions, leveraged positions may be forcibly closed without prior notice, and resulting losses may exceed all available capital in the account.

06Technology Risk

Algorithmic trading strategies are dependent on complex technology infrastructure. The following technology-related risks must be acknowledged:

• System failures. Hardware failures, software bugs, or infrastructure outages may prevent timely trade execution.
• Network and connectivity issues. Disruptions, data feed failures, or exchange connectivity problems may delay or prevent execution.
• Latency. Delays in data transmission, order routing, or execution can result in trades being filled at materially different prices.
• Cybersecurity threats. Trading systems, data feeds, and communication channels may be vulnerable to cyber attacks, data breaches, or unauthorised access.
• Third-party dependencies. Algorithmic strategies may rely on third-party data providers, execution venues, cloud infrastructure, and other service providers.

07Model Risk

Quantitative trading strategies are built upon mathematical and statistical models. These models carry inherent risks:

• Regime changes. Financial markets are non-stationary systems. Statistical relationships that held in historical data may not persist in the future.
• Alpha decay. Strategy profitability may erode over time as market participants adapt or as similar strategies are adopted by competitors.
• Overfitting. Models may be excessively tuned to historical data, capturing noise rather than genuine market signals.
• Model assumptions. All quantitative models rely on assumptions about market behaviour, return distributions, and the persistence of statistical relationships.
• Parameter sensitivity. Small changes in model parameters may result in materially different strategy behaviour and performance outcomes.

08Counterparty Risk

Trading in financial instruments involves exposure to the credit risk of counterparties, including brokers, dealers, clearing houses, exchanges, and other market participants. If a counterparty becomes insolvent or is otherwise unable to meet its obligations, you may suffer losses regardless of the performance of the underlying strategy.

Over-the-counter (OTC) instruments, such as FX and CFDs, are particularly subject to counterparty risk as they are not traded on a centralised exchange and may not benefit from the same protections as exchange-traded instruments.

09Regulatory Risk

The financial services industry is subject to extensive and evolving regulation. Changes in laws, regulations, or regulatory interpretation in any relevant jurisdiction may:

• Restrict or prohibit certain types of trading activities, instruments, or strategies.
• Impose additional capital requirements, margin requirements, or leverage restrictions.
• Alter the tax treatment of trading profits or losses.
• Require changes to the structure or operation of trading systems.
• Affect the ability of regulated partners to implement certain algorithmic strategies.

Regulatory changes may be enacted with limited advance notice and may have retrospective effect.

10Currency Risk

Where investments or trading activities involve instruments denominated in currencies other than the investor's base currency, the investor is exposed to foreign exchange risk. Fluctuations in exchange rates may increase or decrease the value of investments, the amount of any income received, or the magnitude of any trading gains or losses, independently of the performance of the underlying strategy.

Currency risk may be particularly significant during periods of geopolitical instability, divergent central bank policies, or economic crises.

11No Guarantee of Returns

No algorithm, trading system, risk management framework, or quantitative methodology can eliminate the risk of financial loss. The possibility of losing some or all of your invested capital is a real and material risk that must be fully understood and accepted before engaging with any trading strategy.

Any forward-looking statements, projections, targets, or expected returns communicated by Divitae Assets, its directors, employees, or agents should be treated as illustrative estimates only and should not be relied upon as a promise or forecast of future performance.

12Role of Divitae Assets

"Divitae Assets" is the trading name of DKZ INFORMATION TECHNOLOGY SERVICES L.L.C and Stratinova LTD. Divitae Assets is exclusively a technology and research company specialising in the development of proprietary quantitative trading algorithms. Divitae Assets is:

• Not a regulated financial institution.
• Not an investment adviser or asset manager.
• Not authorised or regulated to provide investment services, investment advice, portfolio management, or any form of financial intermediation in any jurisdiction.
• Not accepting, holding, or managing client funds or assets.
• Not providing any financial promotion, recommendation, or solicitation to buy, sell, or trade any financial instrument.

Divitae Assets operates solely as a strategy provider and intellectual property licensor. Our algorithms are licensed exclusively to independent regulated partners authorised by the FCA, CySEC, or SEC, depending on jurisdiction.

All client-facing activities — investor onboarding, KYC/AML compliance, suitability assessments, account management, trade execution, position monitoring, regulatory reporting, and investor communications — are performed solely and exclusively by these regulated partners.

13Investor Suitability

The algorithmic strategies developed by Divitae Assets are designed for and made available to professional investors, qualified investors, and institutional counterparties through regulated partner firms. These strategies are not intended for, and should not be accessed by, retail investors unless they have been classified as professional or eligible counterparty clients by the relevant regulated firm.

Before engaging with any algorithmic trading strategy implemented by a regulated partner, you must:

• Satisfy yourself that you meet the classification requirements applicable in your jurisdiction.
• Carefully assess your financial situation, investment experience, knowledge, and risk tolerance.
• Understand and accept that you may lose some or all of your invested capital.
• Ensure that your investment represents an appropriate proportion of your overall portfolio.
• Complete all suitability and appropriateness assessments as required by the regulated partner firm.

The regulated partner firms are responsible for conducting all necessary suitability and appropriateness assessments. Divitae Assets does not assess or verify investor suitability.

14Independent Professional Advice

Divitae Assets strongly recommends that all prospective investors seek independent professional advice before making any investment decision. This advice should be obtained from a suitably qualified and regulated financial adviser, tax adviser, and/or legal adviser who is familiar with your individual financial circumstances, investment objectives, and the specific risks associated with algorithmic trading strategies.

Nothing contained on this website, in any marketing materials, or in any communication from Divitae Assets should be construed as investment advice, tax advice, legal advice, or a recommendation to invest in, subscribe to, or engage with any particular strategy, product, or service.

If you are in any doubt about the risks described in this document, or about the suitability of algorithmic trading strategies for your personal financial situation, you should refrain from investing and consult a qualified professional adviser.

15Contact

This Risk Disclosure Statement forms part of the general information provided by Divitae Assets and should be read in conjunction with our Terms of Use, Privacy Policy, and Regulatory Information.

This document may be updated from time to time to reflect changes in applicable law, regulation, or our business activities. The most current version will always be available on this page. It is your responsibility to review this Risk Disclosure Statement periodically.

If you have any questions, please contact us at info@divitaeassets.com.