Risk Warning

1. Read this before you invest

Investing involves risk. You could lose some or all of the money you invest. The information below is a summary only; it does not describe every risk, and each product has its own risks set out in its offering documents. Where a product's documents say something more specific than this warning, the product's documents prevail for that product.

2. Who issues this warning

This Risk Warning is issued by MT Capital Markets Ltd, trading as RockLake Capital, a company incorporated in the Cayman Islands and regulated by the Cayman Islands Monetary Authority (CIMA). It forms part of our Terms of Use.

3. You could lose everything

Capital is at risk. The value of investments, and any income from them, can go down as well as up, and you may get back less than you invested, or nothing. Past performance is not a reliable guide to future results.

Some investments, for example those that involve borrowing, further capital commitments or capital calls, can in principle cost you more than the amount first invested. Each product's documents say whether this applies.

4. Projections are not guarantees

Projected values on the Platform are illustrative models built from stated assumptions such as a target rate of return, an income schedule, a J-curve profile or a range of scenarios. They are speculative. They are not forecasts, promises or guarantees. If the assumptions prove wrong, which they often do, actual results will differ, potentially materially and to the downside. The basis for each projection is shown so you can judge it for yourself.

Where a projection is shown as a range, for example a downside, base and upside scenario, the range is not a limit and the base case is not the most likely outcome. The real result could be better than the upside shown or worse than the downside, including the loss of everything you invested.

5. Illiquidity and lock-ups

Some investments, particularly alternative investments such as private equity and real estate co-investments, can be locked up for many years and may not be sellable or redeemable before maturity. Redemptions may be limited, delayed or suspended, notice periods may be long, and there may be no market in which to sell. If you can exit early, it may be at a significant discount. You may be unable to access your money when you want to.

6. Valuation and pricing

Private and unlisted investments are valued infrequently, often by the manager or issuer, using estimates and judgement. Their reported value can differ from what you could actually obtain. Prices and charts from secondary markets or data providers, including any market chart shown on the Platform, are indicative only: they can be thin, stale or wrong, and are not a price at which you can buy or sell.

7. Alternative investments

Private equity, venture capital and multi-strategy funds can be complex, valued less transparently than listed assets, and often show negative returns in their early years before any recovery (sometimes called the J-curve). They can involve concentration in a small number of holdings and may call for additional capital over time.

8. Real estate

Property values and rental income can fall because of interest rates, vacancies, tenant failure, construction or planning problems, local market conditions and changes in law or tax. Property is difficult to sell quickly, valuations are opinions rather than prices, and holdings are often concentrated in a few buildings or one region.

9. Infrastructure

Infrastructure assets are long-term and depend on contracts, regulation and political decisions that can change. Construction delays, lower-than-expected demand, counterparty failure and changes to tariffs or concessions can reduce income and value, and the assets are rarely easy to sell.

10. Private credit

Loans to companies carry the risk that the borrower cannot pay interest or repay capital, and recovery after a default can be slow, costly and incomplete. The protections in each loan vary, loans are usually illiquid, and their reported value is an estimate. A fund's own borrowing can magnify losses.

11. Bonds and credit

Bond prices move inversely to interest rates. Issuers may fail to make payments, and a fall in an issuer's credit quality can reduce the value of its bonds. Bonds can be difficult to sell in stressed markets, and may be repaid early, leaving you to reinvest at lower rates.

12. Listed equities

Share prices can be volatile and can fall sharply and quickly, and a company's shares can become worthless. Dividends are not guaranteed and can be cut or stopped.

13. Commodities

Commodity prices can be extremely volatile, driven by supply and demand, weather, geopolitics, currencies and speculation. Commodities generally produce no income, and exposure held through futures can lose value as contracts are rolled over.

14. New issues and IPOs

Newly listed and pre-IPO companies are often young, loss-making or hard to value, and information about them may be limited. The risks are specific and can be severe:

• an allocation may be scaled back, or you may receive none;
• the listing may be delayed, re-priced or cancelled, and may never happen;
• pre-IPO shares usually cannot be sold at all before a listing, and may be subject to transfer restrictions, the issuer's consent or other holders' rights;
• after a listing, lock-up periods can stop you selling for months, while the price can move sharply in either direction, including below the price you paid;
• later share sales by insiders and new share issues can push the price down; and
• any price history or chart is indicative, and the scenarios shown for these holdings are not predictions.

15. Borrowing within products

Some products, or the funds and vehicles behind them, borrow money to invest. Borrowing magnifies gains and, equally, losses, and lenders may force sales at bad prices.

16. Counterparty, custody and operational risk

An investment can depend on other parties: issuers, fund managers, custodians, administrators and banks. If one of them fails, or its systems, controls or people fail, you may lose money or be unable to access it. Operational and cyber-security events can also disrupt markets and platforms, including this one.

17. Investing before your money has cleared

If, by arrangement, we make an investment before the money for it has reached us, the amount not yet received is an outstanding balance that you owe us. The investment can lose value while you owe the balance, and you remain liable for the full balance even if it does. If you do not pay, we may take the steps set out in the Terms of Use to recover it, which can include using the proceeds of your other investments. Do not agree to this unless you are comfortable that you can pay.

18. Technology and information risk

Information on the Platform may be delayed, estimated or wrong, and the Platform may be unavailable at times, including when you need it. It is not a substitute for formal confirmations and statements. Criminals impersonate firms like ours: never share your password, and check the address in your browser before you sign in.

19. Currency

Amounts on the Platform are recorded in US dollars. You can choose to view them in another currency, but that conversion uses indicative rates, is for convenience only, and is not the rate at which anything is bought, sold or settled. If you hold or measure your wealth in another currency, exchange-rate movements can increase or reduce the value of your investments to you.

20. Inflation

Inflation reduces the buying power of returns. An investment that grows more slowly than inflation loses value in real terms, and fixed payments such as bond coupons are particularly exposed.

21. Concentration

Putting a large share of your wealth in one product, sector, region or asset class increases the impact if it performs badly.

22. Tax

Tax treatment depends on your personal circumstances and where you live, and may change. Details of your account may be reported to tax authorities under international information-exchange arrangements. We do not provide tax advice, and the Platform is not available to US Persons.

23. Law, regulation and sanctions

Laws, regulations and sanctions can change in ways that affect your investments. To comply with them we may have to delay, refuse, freeze or reverse a payment, restrict an account, or be unable to deal in a particular investment, and we may be prohibited from telling you why.

24. Cross-border risk

We are a company in the Cayman Islands, our agreements are governed by its law, and many products are issued or held elsewhere. If something goes wrong, enforcing your rights may be slower, harder and more expensive than it would be in the country where you live, and protections you would have there may not apply.

25. No deposit or compensation scheme

Investments made through the Platform are not bank deposits. Do not assume that any deposit protection, investor compensation or similar scheme applies to them; check each product's documents. Regulation by the Cayman Islands Monetary Authority does not protect you against investment loss.

26. Is this right for you?

These investments are intended for High Net Worth, Sophisticated and Professional investors who understand the risks and can bear the loss of what they invest. Only invest money you can afford to lose. If you are unsure, take independent financial, tax and legal advice before proceeding. The Platform is not available to US Persons.