Risk Disclosures

Client Information Gathering

Through our XoomFi Portal you will determine whether the Program is suitable for your financial situation and get a recommended asset allocation model based on your responses to our risk tolerance questionnaire and other information that you provide or elect to aggregate. We have compiled the questions on the risk tolerance questionnaire, along with the parameters for creating a model recommendation based on your risk profile.

The Program restricts you to the asset allocation model corresponding to your risk profile, although you can cause the Program to change your allocation model by updating your risk profile information.  The Program manages all your Account assets as a single investment portfolio with a unified investment strategy and allocation model, based on the information and inputs described above.

Information Sources

The main information sources for market statistics, financial and other performance data on which the Program relies are third party data vendors. We pay these vendors access fees for their data services.

Reliance on Client Information

The Program relies on the accuracy and completeness of the information you communicate to us in determining the appropriate asset allocation model for, and making ongoing investment decisions on behalf of, your Account.  That information must be true, accurate and complete, in any communications you have with us or as reported directly to us or through a third party. While the Program will ask you to update or confirm your investment goals and objectives and other personal information at least annually, we recommend that you review your investment goals on quarterly basis and update any information whenever it changes significantly. If any of your information is false, materially inaccurate, or incomplete, the Program’s ability to help you achieve your investment goals and objectives may be materially compromised. Moreover, we will not change your Account’s prevailing asset allocation model unless and until you update your information, nor does the Program consider information that you do not input or communicate in formulating your model recommendation.

The risks and limitations of the XoomFi automated process for equity selection and rebalancing may result in the purchase of underperforming equities and the sale of better performing equities to achieve the targeted allocation, which, in some market conditions, may create capital gains tax liabilities.

The XoomFi algorithm selects and assigns relative weighting of the equities in each of the Portfolios to achieve specific investment objectives, including diversification. Removing a specific equity from any of the Portfolios may change the weightings of equities in the resulting altered portfolio in a way that deviates from our investment objectives and may adversely impact performance..

Risks and returns for XoomFi equity or portfolio of equities are constantly changing. Hence, it is difficult to categorically and definitively state the risks and returns for the three XoomFi investment strategies and portfolios - Balanced, Turbo, and Ultra.

Our Program goal is for each of these three strategies to:

1. Provide a consistent income stream and deliver yields greater than fixed income investment yields
2. Manage the trades for equity appreciation and to build and grow the equity base over time 
3. Deliver Returns - combination of Yields + Equity Appreciation - to outperform the leading indices

There are no guarantees that we will be able to meet each or any of these program goals every single trading day or every month or every quarter. Some of these goals may even be conflicting goals and at odds with each other. Based on our trading experience with this strategy, over time, the XoomFi active trading and trade management strategy will meet these program goals.

• Options involve risk and are not suitable for all investors.  For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized  Options  by calling (312) 542-6901.
• There is a substantial risk of loss of capital when you invest in stocks and options.
• Past performance is not indicative of future results.
• IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.