Management Risk

Management Risk:

• As outlined in the organization and management section, the fund’s management will be delegated to the community, creating inherent investment risk. The lack of a professional investment advisor overseeing the fund will increase the possible volatility and affect the performance of the fund.

• Lack of central management also eliminates the ability to fault one party for potential losses incurred. The fund's investment action follows the majority vote of the community of shareholders, and therefore, all profits or losses can be directly attributed to the actions taken by the community of shareholders, as no promise of profits was provided by the development team.

• The autonomous code which runs the fund through the smart contract does not have any authority to make investment decisions on its own and is just a reactive factor that responds to the voting inputs of the community as outlined in the Internal Operations & Voting Structure.

• Despite the inherent risks outlined above, the unique management style of the fund creates opportunity. The collaboration of the community to make decisions generates more informed decision making, and could potentially result in better performance. Moreover, the inherent benefits of pooling funds in a decentralized manner in order to invest may potentially outweigh the management risks.