Legal
General risk disclosure
Draft — not yet in force — requires legal and compliance approval
This document is a placeholder drafted for internal review. It is not legal advice, is not final, and does not yet govern any relationship with Quantari. Final policies will be published before any service becomes available.
Purpose and status
This document is a framework draft prepared for internal review. It describes, in general terms, the categories of risk that a future investment service could involve. It is not final, is not in force, is not personalised, and requires legal and compliance approval. Quantari currently offers no regulated investment service, so nothing here describes a risk you are exposed to through Quantari today.
Capital at risk and no guarantee
All investing carries risk. The value of investments can fall as well as rise, and an investor may get back less than the amount invested, potentially losing some or all of their capital. No investment approach — systematic, quantitative or otherwise — can guarantee capital or returns, prevent losses, or be described as safe, risk-free, superior or market-beating.
Market risk
The prices of financial instruments are affected by movements in markets as a whole and by factors specific to particular instruments, sectors or regions. Adverse market movements can reduce the value of a portfolio, sometimes rapidly and by significant amounts.
Volatility risk
The value of investments can move sharply over short periods. Higher volatility increases the range of possible outcomes, including the size of potential losses, and can make returns over any given period difficult to predict.
Liquidity risk
Some instruments cannot be bought or sold quickly at a representative price, particularly in stressed conditions. Reduced liquidity can widen trading costs, delay execution, or make it difficult to exit a position at the expected value.
Concentration risk
A portfolio that is exposed to a limited number of instruments, issuers, sectors, regions or risk factors is more sensitive to developments affecting them. Concentration can amplify both gains and losses relative to a more diversified exposure.
Issuer risk
The value of an instrument depends in part on the financial condition of its issuer. Deterioration in an issuer's circumstances, or its default, can reduce or eliminate the value of instruments it has issued.
Currency risk
Where investments are denominated in a currency other than the client's reference currency, changes in exchange rates can increase or decrease their value independently of the performance of the underlying instrument. Currency exposure may or may not be hedged.
Interest-rate and inflation risk
Changes in interest rates can affect the value of many instruments, particularly interest-bearing ones, whose prices generally move inversely to rates. Inflation can erode the real value of capital and of returns, so that a positive nominal return may still represent a loss of purchasing power.
Model and algorithmic risk
Systematic and quantitative approaches rely on models, assumptions and rules that may be incomplete, may contain errors, or may perform poorly in conditions not reflected in their design or historical basis. Models can degrade as markets change, and a model that performed well historically may not continue to do so.
Data risk
Systematic approaches depend on data whose accuracy, completeness, timeliness and availability cannot be guaranteed. Errors, gaps, delays or biases in data — or in its processing — can lead to unintended positions or decisions.
Execution risk
The price at which an order is actually executed can differ from the price expected when the decision was made, because of market movement, timing, order size or available liquidity. Execution outcomes are not guaranteed.
Broker, custodian and counterparty risk
A future service would rely on banks, brokers, custodians and other counterparties to hold assets and to execute and settle transactions. The failure, default, error or operational disruption of such a party could cause loss, delay or restricted access to assets. The identity of any such parties is not confirmed.
Operational and cybersecurity risk
Investment activity depends on systems, processes and people, any of which can fail. Operational failures, human error, service interruptions, and cybersecurity incidents such as unauthorised access, data loss or fraud could disrupt activity or cause loss.
Legal, regulatory and tax risk
Changes in law, regulation, supervisory practice or their interpretation can affect investments, services and their costs, sometimes retroactively or at short notice. Tax treatment depends on individual circumstances and can change; investors are responsible for their own tax position and should take independent tax advice.
Derivatives and options (conditional future scope only)
If, in future, an approved service were to include derivatives or options, these can carry additional and potentially amplified risks, including leverage, the risk of losses exceeding amounts initially committed, and dependence on counterparties. No such products are offered today, and their inclusion in any future service is conditional, unconfirmed and subject to approval. [Product scope: pending approval.]
Status: draft placeholder. Last updated: not yet published.