Risk Disclosure Statement

The content of this website is for informational purposes only and does not constitute an offer or solicitation to invest in any financial products or services. Sixteen01 Capital Incorporated is authorized and regulated by the British Virgin Islands Financial Services Commission as an Approved Manager under the Securities and Investment Business Act, 2010. Access to this website does not create any client relationship, nor does it constitute the provision of investment advice. Offerings are limited to jurisdictions where Sixteen01 Capital is lawfully permitted to operate.

Investment Risks

Investing in financial products, including but not limited to securities, funds, and other investment vehicles, carries significant risk. The value of investments and the income derived from them may fluctuate, and investors may not recover the full amount of their original investment. Past performance, whether backtested or live, is not a reliable indicator of future results. There is no guarantee that any investment objective will be achieved. Investors should carefully consider their investment objectives, risk tolerance, and financial situation before making any investment decisions.

Specific Risks Include, but Are Not Limited to:

  • Market Risk: The prices of securities, commodities, and other investments can decline in response to overall market conditions or specific events, leading to potential losses.
  • Liquidity Risk: Certain investments may be difficult or impossible to sell at a desired time or price, especially during times of market stress
  • Credit Risk: The issuer of a security or counterparty to a transaction may fail to meet their financial obligations, leading to a default or loss.
  • Currency Risk: Investments in foreign markets or securities denominated in foreign currencies are subject to exchange rate fluctuations, which may affect the value of the investment.
  • Interest Rate Risk: Changes in interest rates may negatively impact the value of fixed-income securities or other interest-sensitive investments.
  • Leverage Risk: Investments that involve leverage, such as borrowing or derivatives, can magnify both gains and losses, leading to increased volatility. Use of leverage may result in losses greater than the original investment. Margin calls may occur without notice.
  • Political and Regulatory Risk: Changes in laws, regulations, tax policies, or political conditions can affect the performance of investments and the ability to liquidate assets.
  • Crypto-Asset Risk: The strategy involves cryptoassets, which are subject to extreme price volatility, technological uncertainty, and potential regulatory enforcement. Events such as network failures, protocol changes, exchange hacks, or loss of private keys may significantly affect performance.
  • Funding Rate Variability Risk: A portion of the strategy depends on arbitrage related to crypto derivatives funding rates. These rates are highly volatile and unpredictable, which may reduce returns or result in losses.
  • Counterparty Risk (Exchanges and Custodians): Sixteen01 Capital does not act as a custodian and relies on third-party providers. Clients bear full risk of third-party service failures, including insolvency, cyberattack, or regulatory seizure.
  • Operational and Technological Risk: The implementation of the strategy involves proprietary algorithms, API-based trading, and technology infrastructure that may fail due to bugs, outages, cyberattacks, or human error.
  • Regulatory Risk in the Crypto Space: The legal and regulatory environment for digital assets is evolving rapidly and may change without notice. New rules could affect the strategy’s legality, tax treatment, or access to markets and instruments. Approval by the BVI FSC does not imply any form of investor protection or guarantee of performance.

No Guarantee

Investments made through Sixteen01 Capital do not offer any guarantee of returns, and the value of investments may go up or down. There can be no assurance that any investment strategy will be successful. Investors may experience losses, including the loss of principal.

Foreign Investment Risks

Investing in markets outside the British Virgin Islands may expose investors to additional risks, including but not limited to political instability, differing regulatory environments, and foreign exchange risk. In particular, investments in emerging markets may carry heightened risks due to less developed market infrastructure and regulatory oversight.

Non-Deposit Products

Products offered by Sixteen01 Capital are not bank deposits and are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other governmental or financial institution. They are subject to investment risks, including the possible loss of the principal amount invested.

Professional Advice

This website does not provide legal, tax, accounting, or investment advice. Investors are strongly encouraged to seek professional advice before making any investment decisions. Sixteen01 Capital does not take into account the specific financial circumstances or needs of individual clients when providing information on this website. Please be advised that investing in financial products involves risk. You should only invest if you fully understand the risks involved and are prepared to accept the possibility of losing some or all of your investment. Suitability assessments are not conducted unless required by law or contract. Investors must determine appropriateness independently.

Investments in crypto assets are highly speculative and involve a substantial risk of loss. You should only invest capital you can afford to lose.