Disclaimer

Trading Contracts for Difference (CFDs) involves significant risk and is not suitable for all investors. CFDs are leveraged products, which means both potential profits and losses are magnified. The use of leverage can result in losses that exceed your initial investment. CFD trading requires a thorough understanding of the markets and the strategies employed, and there is a possibility of losing all invested capital.

Risks Associated with Protocol 37’s Model:

Running a hedging model within Protocol 37 involves several risks that must be carefully managed:

• Hedge Mismatch Risk: There is a potential mismatch between the hedge and the underlying exposure. Even with carefully paired correlated instruments, residual risk may remain.
• Cost of Hedging: Hedging incurs costs such as spreads, financing fees, and opportunity costs from missed gains. These costs can erode returns, particularly in low-volatility environments.
• Market Condition Challenges: The strategy relies on real-time analysis of market conditions. In highly dynamic or unexpected market environments, these assumptions may be tested, potentially leading to suboptimal hedge performance or losses.
• Over-Hedging: An excessive focus on risk reduction might limit the strategy’s ability to capitalize on favorable market movements, thereby constraining upside potential.
• Model Risk: The complexity of Protocol 37’s hedging model, which includes multiple tiers and dynamic adjustments, introduces model risk due to possible errors in design, implementation, or assumptions. While rigorous testing and continuous refinement help mitigate this risk, the potential for errors remains.

Back-Testing Disclaimer:

The results presented in any trading back-test are provided for informational purposes only and do not guarantee future performance. These back-testing results are based on historical data, which may be incomplete or inaccurate, and the performance depicted may not reflect actual trading outcomes.

The data used in the back-test has been obtained from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Additionally, the software and algorithms used to generate these results are subject to potential errors, bugs, or inaccuracies that could impact the outcome of the back-test.

By using this information, you acknowledge that the back-test results are hypothetical and do not represent actual trading. You agree to indemnify and hold harmless Truestone Capital from any liability, loss, or damage resulting from your reliance on the back-testing results, including any errors in data, software, or calculations.

Risk Management:

While Protocol 37 employs rigorous testing and continuous refinement to manage and mitigate the aforementioned risks, prospective clients must always be fully cognizant of the potential loss of funds inherent in any high-yield offering. It is essential to ensure that such investment strategies align with your individual risk tolerance and financial objectives.