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Risk Disclosure

Last updated: January 22, 2026

Important Notice

Investing in trade cycles involves significant risk. You may lose part or all of your investment. Past performance does not guarantee future results. Please read this disclosure carefully before making any investment decisions.

No Offer or Solicitation

This Risk Disclosure does not constitute an offer, solicitation, or recommendation to invest in any financial product or security. Participation in trade cycles is subject to eligibility, regulatory requirements, and acceptance by the Platform.

1. Investment Risks

All investments carry inherent risks. Trade cycle investments are no exception and may result in:

  • Loss of Capital: You may lose your entire investment if a trade cycle fails or underperforms
  • No Guaranteed Returns: Expected returns are projections and not guaranteed
  • Market Volatility: Commodity prices and trade conditions can fluctuate significantly
  • Liquidity Risk: Investments may be locked until trade cycle completion, limiting access to funds

2. Trade Cycle Specific Risks

  • Counterparty Risk: Risk that trade partners may default on obligations
  • Operational Risk: Delays, disruptions, or failures in trade execution
  • Regulatory Risk: Changes in regulations may affect trade cycles or returns
  • Currency Risk: Fluctuations in exchange rates may impact returns
  • Commodity Price Risk: Changes in commodity prices can significantly affect profitability
  • Force Majeure and Geopolitical Risk: Trade cycles may be impacted by events beyond the control of Fraqtion Finance, including war, civil unrest, port closures, trade embargoes, export or import restrictions, currency controls, natural disasters, or government actions, which may result in delays, losses, or termination of trade activities

3. Platform Continuity and Insolvency Risk

In the event that Fraqtion Finance experiences financial distress, insolvency, or ceases operations, ongoing trade cycles may be delayed, restructured, or terminated, and recovery of funds may be partial or unavailable. User funds may be subject to the risks associated with third-party custodians and service providers.

4. Platform and Technology Risks

  • Technical Failures: System outages, bugs, or security breaches may affect operations
  • Distributed Ledger and Digital Infrastructure Risks: Certain components of the Platform may rely on blockchain or distributed ledger technologies. Such technologies may be subject to network congestion, technical limitations, security vulnerabilities, or changes in underlying protocols that could affect transaction processing or recordkeeping
  • Cybersecurity: Risk of unauthorized access, hacking, or data breaches

5. Custody and Settlement Risk

Funds may be held or processed by third-party custodial, payment, or settlement partners. Failures, insolvency, delays, or errors by such third parties may result in delayed access to funds or partial or total loss. Dependencies on external services (wallets, payment processors, custodians) may introduce risks beyond Fraqtion Finance's direct control.

6. Regulatory and Legal Risks

  • Regulatory Changes: Evolving regulations may impact platform operations or investment structures
  • Jurisdictional Issues: Legal uncertainties across different jurisdictions
  • Compliance Requirements: Changes in KYC/AML requirements may affect your ability to use the Platform

7. No Investment Advice

The Platform provides information about trade cycles but does not provide investment, financial, legal, or tax advice. You should consult with qualified professionals before making investment decisions.

8. Suitability

Trade cycle investments may not be suitable for all investors. You should only invest if you:

  • Understand the risks involved
  • Can afford to lose your entire investment
  • Have sufficient knowledge and experience in financial matters
  • Have considered your financial situation and investment objectives

9. No Guarantees

Fraqtion Finance does not guarantee:

  • That any trade cycle will achieve its expected returns
  • That investments will be profitable
  • That you will be able to withdraw funds at any time
  • That the Platform will be available without interruption

10. Tax and Reporting Risk

Tax treatment of returns may vary by jurisdiction and may change over time. Fraqtion Finance does not provide tax advice and does not guarantee any particular tax outcome. Users are solely responsible for complying with applicable tax and reporting obligations, including but not limited to reporting investment income, capital gains, and foreign account disclosures where required.

11. Due Diligence

Before investing, you should:

  • Carefully review all trade cycle documentation
  • Understand the terms, conditions, and risks of each investment
  • Verify the credentials and track record of trade partners
  • Consider diversifying your investments across multiple trade cycles

12. Limitation of Liability

To the maximum extent permitted by law, Fraqtion Finance, its affiliates, and service providers shall not be liable for any losses, damages, or costs arising from your use of the Platform or investments in trade cycles, except in cases of gross negligence or willful misconduct.

13. Acknowledgment

By using the Platform and participating in trade cycles, you acknowledge and agree that:

  • You have independently assessed the risks described in this disclosure
  • You are solely responsible for your investment decisions
  • You assume full responsibility for any losses incurred
  • Fraqtion Finance does not guarantee outcomes or capital protection
  • You will not hold Fraqtion Finance liable for investment losses except in cases of gross negligence or willful misconduct

14. Contact Information

For questions about risks or to report concerns, please contact us at hello@fraqtion.finance