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Risk Disclosure Statement

Effective Date: January 1, 2024

IMPORTANT RISK WARNING

Investment in financial markets carries substantial risk and may not be suitable for all investors.

While Truehub employs professional investment strategies and risk management techniques to minimize losses and optimize returns, investing through our platform involves risk of loss. You should carefully consider whether such investing is suitable for you in light of your financial condition. This document outlines the risks associated with our investment services.

Our Investment Model

Understanding How Your Money is Invested:

  • Truehub pools user investments to create a diversified portfolio in share markets
  • Our professional team makes investment decisions on behalf of all users
  • We employ various strategies including long-term holdings, swing trading, and dividend investing
  • Risk management protocols are in place to protect capital
  • Returns are distributed based on actual market performance minus management fees

Note: While we describe our approach as "risk-free profit sharing," this refers to our business model where users don't pay fees unless profits are generated. The underlying investments still carry market risks.

1. Market Risks

1.1 Market Volatility

  • Share prices can fluctuate significantly due to market conditions
  • Economic events, political changes, and global crises can impact markets
  • Short-term volatility may result in temporary losses
  • Market corrections can affect portfolio value

1.2 Systematic Risk

  • Market-wide risks that affect all investments
  • Cannot be eliminated through diversification
  • Includes recession risk, interest rate changes, and inflation

1.3 Liquidity Risk

  • Some investments may be difficult to sell quickly
  • Market conditions may affect our ability to exit positions
  • This could delay withdrawals in extreme circumstances

2. Investment-Specific Risks

2.1 Concentration Risk

  • Despite diversification, certain sectors may be overweighted
  • Geographic concentration in specific markets
  • Exposure to specific industries or companies

2.2 Currency Risk

  • International investments subject to exchange rate fluctuations
  • Currency devaluations can affect returns
  • Conversion costs may apply

2.3 Regulatory Risk

  • Changes in financial regulations may affect operations
  • Tax law changes could impact returns
  • Trading restrictions may be imposed

3. Operational Risks

3.1 Platform Risks

  • Technical failures or system outages may occur
  • Cybersecurity threats despite our security measures
  • Human errors in trade execution or processing

3.2 Counterparty Risk

  • Risk of broker or exchange failure
  • Banking partner insolvency risk
  • Third-party service provider failures

3.3 Management Risk

  • Investment decisions may not achieve expected results
  • Strategy changes may impact performance
  • Key personnel changes could affect operations

4. Our Risk Management Approach

While risks cannot be eliminated, we employ several strategies to manage them:

4.1 Diversification Strategy

  • Investment across multiple sectors and industries
  • Geographic diversification where applicable
  • Mix of growth and value investments
  • Various market capitalizations

4.2 Risk Controls

  • Stop-loss orders to limit downside
  • Position size limits to prevent overexposure
  • Regular portfolio rebalancing
  • Cash reserves for market opportunities

4.3 Professional Management

  • Experienced investment team
  • Continuous market analysis
  • Regular strategy reviews and adjustments
  • Compliance with investment guidelines

5. Performance Considerations

5.1 No Guarantee of Returns

  • Past performance does not guarantee future results
  • Advertised returns are historical and may not be repeated
  • Market conditions can change rapidly
  • Losses are possible despite our best efforts

5.2 Return Variability

  • Returns may vary significantly period to period
  • Some periods may show negative returns
  • Long-term perspective recommended
  • Compound returns depend on market performance

6. Personal Risk Factors

Consider your personal situation:

6.1 Financial Capacity

  • Only invest money you can afford to lose
  • Maintain emergency funds outside of investments
  • Consider your overall financial obligations
  • Don't borrow money to invest

6.2 Investment Horizon

  • Short-term needs should not depend on investment returns
  • Market volatility affects short-term results more
  • Longer investment periods generally reduce risk

6.3 Risk Tolerance

  • Assess your comfort with potential losses
  • Consider your emotional response to market volatility
  • Understand your investment goals and timeline

7. Specific Warnings

YOU SHOULD BE AWARE THAT:
  • You may lose your entire investment: Despite risk management, total loss is possible in extreme market conditions.
  • Withdrawals may be delayed: Market conditions or operational issues could delay access to your funds.
  • No government insurance: Unlike bank deposits, investments are not insured by government agencies.
  • Tax implications: You are responsible for taxes on any gains, which may be substantial.
  • Lock-in periods: Some investment packages may have lock-in periods affecting liquidity.
  • Fee impact: Management fees reduce overall returns and are charged regardless of performance.

8. Investor Acknowledgment

By investing through Truehub, you acknowledge and confirm that:

  • You have read and understood this Risk Disclosure Statement
  • You understand the risks involved in investment activities
  • You have the financial capacity to bear potential losses
  • You are making an informed decision to invest
  • You will not hold Truehub liable for market-driven losses
  • You understand that returns are not guaranteed
  • You accept all risks associated with your investment

FINAL WARNING:

If you do not fully understand the risks described in this document, or if you are not comfortable with the possibility of losing your investment, you should not proceed with investing through Truehub. Consider seeking advice from an independent financial advisor before making any investment decision.

9. Professional Advice Recommended

We strongly recommend that you:

  • Consult with a qualified financial advisor
  • Review your overall financial situation
  • Understand tax implications in your jurisdiction
  • Consider your investment as part of a diversified portfolio
  • Regularly review your investment strategy

10. Updates to This Disclosure

This Risk Disclosure Statement may be updated periodically to reflect changes in market conditions, regulations, or our investment approach. We will notify you of material changes, and the latest version will always be available on our platform. Your continued investment constitutes acceptance of any updates.

Questions About Risks?

If you have any questions about the risks involved in investing through Truehub, please contact us:

Email: risk@truehub.ltd

Support: support@truehub.ltd

Phone: +1 (555) 123-4567

Do not invest if you have unanswered questions or concerns about the risks involved.

Remember: All investments carry risk. Invest responsibly.

© 2024 Truehub. All rights reserved.

Last updated: January 1, 2024