Last Updated: April 2026
⚠ IMPORTANT WARNING
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS. Investing in Merivo Fund involves significant risk. You may lose some or all of the capital you invest. Please read this document carefully and in its entirety before making any investment decision.
1. Purpose of this Document
1.1. This Risk Disclosure Statement (hereinafter — "Disclosure") has been prepared by Merivo Fund (hereinafter — "Fund"), incorporated in the British Virgin Islands as a BVI Incubator Fund, for the purpose of informing prospective and existing investors of the risks associated with investing in the Fund.
1.2. This Disclosure forms an integral part of the Fund's Terms of Service. By accessing the Platform or making an Investment, you confirm that you have read this document and understand the risks described herein.
1.3. This Disclosure does not constitute an exhaustive list of all possible risks. Investors are strongly encouraged to consult an independent financial adviser before making any investment decision.
2. General Risk Warning
2.1. Past performance does not guarantee future returns. The target return figures stated for the Fund's Investment Strategies (Start — 10%, Classic — 12%, Prime — 16%, Elite — 18%) are based on historical backtesting data and past performance of the Fund's algorithmic trading systems. Backtesting results have demonstrated a Compound Annual Growth Rate (CAGR) in the range of 36–40%; however, these figures are historical in nature only and do not constitute a promise, forecast, or guarantee that similar results will be achieved in the future.
2.2. Algorithmic trading strategies operate in evolving market environments. Market conditions that produced strong returns in the past may not recur, potentially resulting in materially reduced returns or losses.
2.3. Investments in the Fund are not insured by any government body, deposit protection scheme, or other investor protection mechanism.
3. Algorithmic Trading Risks
3.1. Model Risk. The Fund's algorithmic trading strategies are built on mathematical models optimised using historical data. There is a risk that a model may be poorly suited to actual market conditions, may contain latent errors, or may fail to account for important market factors.
3.2. Overfitting Risk. Strategies that demonstrate strong performance on historical data may deliver materially weaker results in live markets as a consequence of overfitting to historical patterns.
3.3. Algorithmic Operational Risk. Automated trading systems may experience malfunctions including unexpected algorithmic behaviour, software errors, and order execution system failures, all of which may result in unintended losses.
3.4. Strategy Decay Risk. As similar strategies gain widespread adoption across the market, the competitive advantage of algorithmic approaches may erode, leading to deterioration in return performance.
4. Market Risks
4.1. Market Volatility. Financial and digital asset markets are subject to significant and unpredictable price fluctuations. Sharp market movements may result in substantial losses irrespective of the quality of the trading strategies employed.
4.2. Cryptocurrency Market Risk. Digital asset markets are characterised by extreme volatility and are susceptible to manipulation by large market participants ("whales"), sudden liquidity shifts, and systemic shocks that are atypical of traditional financial markets.
4.3. Systemic Market Risk. Global economic disruptions, financial crises, pandemics, or other systemic events may result in simultaneous declines in the value of all asset classes, including those within the Fund's trading portfolio.
4.4. Liquidity Risk. Under certain market conditions, it may be difficult or impossible to exit trading positions at acceptable prices. Low market liquidity can increase transaction costs and amplify losses.
5. Liquidity and Early Withdrawal Risk
5.1. Investments in the Fund are not liquid assets. Funds are committed for a fixed term in accordance with the conditions of the chosen Strategy, and an Investor may not demand their return at will.
5.2. Early withdrawal is subject solely to the Fund's discretion and is subject to fees as further described in the Terms of Service. Under certain market conditions, the Fund may be unable to satisfy an early withdrawal request without realising trading positions on unfavourable terms.
5.3. Investors should not invest funds that they may need in the short term or that they cannot afford to lose.
6. Regulatory and Legal Risks
6.1. Regulatory Change. The regulatory environment governing investment funds, digital assets, and algorithmic trading is subject to substantial change across various jurisdictions. The introduction of new requirements or restrictions may necessitate changes to the Fund's operations, increase compliance costs, or require the Fund to cease operations in certain jurisdictions.
6.2. Jurisdictional Risk. Investors are personally responsible for compliance with the laws of their country of residence and/or citizenship. In a number of jurisdictions, investment in foreign funds or digital assets may be restricted or prohibited. The Fund does not provide legal advice regarding the applicability of these Terms to any particular Investor's jurisdiction.
6.3. Regulatory Enforcement Risk. Regulatory authorities may initiate investigations, impose restrictions, or take enforcement action against the Fund or its operations, which may adversely affect the Fund's ability to manage assets or make distributions to Investors.
7. Technology Risks
7.1. Cybersecurity Risk. The Fund's digital infrastructure, including digital asset wallets and trading systems, is exposed to the risk of cyberattacks, hacking, and other malicious interference. Notwithstanding the security measures in place, complete protection cannot be guaranteed.
7.2. Smart Contract Risk. To the extent that the Fund's operations involve smart contracts or other blockchain protocols, there is a risk that such contracts may contain errors or vulnerabilities that, if exploited, could result in the loss of assets.
7.3. Infrastructure Failure Risk. Server failures, internet service provider outages, exchange outages, or failures of other technical infrastructure components may result in disruptions to trading systems or inability to access the Platform.
7.4. Blockchain Risk. Transactions on blockchain networks are irreversible. Errors in transferring digital assets, whether due to technical failure or human error, cannot be reversed once a transaction is confirmed.
8. Counterparty Risk
8.1. The Fund conducts trading operations through digital asset exchanges and other intermediaries. There is a risk that a counterparty (exchange, broker, or other intermediary) may default on its obligations due to insolvency, fraudulent conduct, or technical failure, which may result in loss of the Fund's assets.
8.2. The Fund takes reasonable steps to diversify counterparty risk but cannot eliminate it entirely.
9. Operational Risk
9.1. The Fund's operations depend on key personnel and algorithmic systems. Departure of key staff, breakdowns in organisational processes, or operational errors may adversely affect asset management performance.
9.2. The insurance coverage maintained by the Fund may not cover all categories of operational loss.
10. Tax Risks
10.1. The tax consequences of investing in the Fund may vary materially depending on the Investor's jurisdiction of residence and citizenship. The Fund bears no responsibility for taxes arising for the Investor in connection with their participation in the Fund or receipt of investment returns.
10.2. Investors are strongly encouraged to consult a qualified tax adviser.
11. Disclaimer
11.1. This Disclosure has been prepared for informational purposes only and does not constitute an offer, solicitation, or recommendation in relation to any specific investment.
11.2. The Fund makes every reasonable effort to describe risks accurately and completely but cannot guarantee that this Disclosure is exhaustive. Market conditions and circumstances may change in unpredictable ways.
11.3. By making an investment, the Investor confirms that they have independently assessed the risks and have assumed them knowingly.
12. Contact Information
For all inquiries relating to this Disclosure, please contact:
Merivo Fund Email: [email protected] Website: merivo.fund