Risk disclosure.

1. General investment risk

1.1 Market risk

The value of investments can go down as well as up and you may not get back the amount invested. Market conditions, economic factors and geopolitical events can all affect the performance of the mandate’s underlying positions.

1.2 Leverage risk

Futures and foreign exchange trading involves leverage, which amplifies both gains and losses. While the strategy applies rules-based risk management, leveraged positions can result in rapid and substantial losses during adverse market movements.

1.3 No guarantee of returns

Monthly objectives published against each mandate are indicative targets derived from the strategy’s historical behaviour. They are targets only, not guarantees. Actual returns may be significantly lower or negative in any given period. Past performance is not indicative of future results.

2. Specific risk factors

2.1 Futures trading

• High volatility in futures markets can produce significant price movements within short periods.
• Leverage magnifies both potential returns and potential losses.
• Market gaps and slippage can occur, particularly during periods of high volatility or low liquidity.
• Counterparty risk exists with clearing brokers and exchanges.

2.2 Digital asset trading

• Cryptocurrency and digital asset markets are highly volatile and considered speculative.
• Regulatory developments may affect digital asset valuations and accessibility.
• Technology risks include cybersecurity threats, exchange failures and protocol-level issues.
• Liquidity constraints can materialise quickly during stress periods.

2.3 Rules-based strategy

• A rules-based strategy is designed to run the same way in every market environment. A market regime in which the rules perform poorly may persist for an extended period.
• Execution infrastructure (connectivity to brokers and exchanges) can be interrupted by technical failure.
• The rules are implemented in software that may contain defects notwithstanding testing and review.

2.4 Liquidity risk

Each mandate has a contractual lock-up period and dealing-window schedule. During the lock-up, routine redemptions are not permitted. After the lock-up, redemptions are processed during designated windows subject to the applicable notice period. In exceptional market conditions the firm may implement redemption gates or temporary suspensions to protect all clients from forced liquidation at adverse prices. Full terms are set out in the subscription agreement.

2.5 Concentration risk

The strategy trades across four markets (index futures, commodities, foreign exchange and digital assets). Mandate rules determine position sizing and exposure. Poor performance across any of these markets may materially affect mandate returns.

3. Operational risk

3.1 General operational risk

The firm faces operational risks including technology failures, human error, fraud and external events beyond the firm’s control. While controls and procedures are in place, no system can eliminate all operational risk.

3.2 Key-person risk

The firm is founder-led. Performance is meaningfully dependent on the continued involvement of the founder, Felix Jones. Loss of the founder could materially affect operations and performance.

4. Suitability

The mandates are intended only for clients who:

• Understand the risks of leveraged trading and rules-based investment strategies.
• Can afford to lose their entire investment without affecting their financial position or standard of living.
• Have financial resources and risk tolerance commensurate with the mandate chosen.
• Do not require immediate or near-term liquidity from this capital.
• Have obtained independent financial and tax advice where appropriate.

5. How the firm manages risk

No investment is without risk. The firm manages its own exposure through:

• Position sizing as a fixed fraction of portfolio capital, applied uniformly.
• Portfolio-level exposure caps that cannot be lifted intraday.
• Predetermined stop-losses on every position, enforced by the execution system.
• A daily drawdown limit that halts trading automatically if breached.
• Segregated client accounts at independent brokers.
• Daily reconciliation against broker statements.
• Independent audit of custodial arrangements and accounting.

These measures do not eliminate risk. Losses may still occur. The measures exist to ensure losses occur within the bounds the strategy is designed to tolerate, not to prevent them entirely.

6. Acknowledgement

By subscribing to any Jones Croft mandate, clients acknowledge having read, understood and accepted this disclosure. Independent financial and legal advice is strongly recommended before investing.