Risk Disclosure

General Investment Risks

All investments carry inherent risk. This includes the potential for partial or total loss of invested capital. Past performance is not indicative of future results. Market conditions, economic factors, and unforeseen circumstances can significantly impact investment returns.

LYVA INVEST provides advisory services based on thorough analysis and professional expertise. However, no advisory service can eliminate investment risk or guarantee positive returns. Clients must be prepared to accept the possibility of loss when making investment decisions.

Real Estate Investment Risks

Real estate investments are subject to market volatility, location-specific risks, regulatory changes, and economic conditions. Property values can decrease as well as increase. Real estate is typically illiquid, meaning it cannot be quickly converted to cash without potential loss of value.

Additional risks include tenant default, property damage, unexpected maintenance costs, changes in local market conditions, and shifts in neighborhood desirability. Financing conditions and interest rate changes can significantly impact real estate investment returns.

Off-market opportunities, while potentially advantageous, may involve limited due diligence information compared to publicly marketed properties. Thorough independent verification is essential before committing to any real estate investment.

Portfolio and Securities Risks

Securities investments including stocks, bonds, and funds are subject to market risk, volatility, and potential loss of principal. Individual securities can lose substantial value due to company-specific factors, sector conditions, or broader market movements.

Concentrated positions, while potentially offering higher returns, carry significantly elevated risk compared to diversified portfolios. A single position's poor performance can materially impact overall portfolio value.

Currency risk applies to international investments. Exchange rate fluctuations can increase or decrease returns when converted to your base currency. Political and economic instability in foreign markets presents additional risks.

Art Investment Risks

Art investments are highly specialized and carry unique risks. The art market lacks the transparency and liquidity of traditional financial markets. Valuations can be subjective and may vary significantly between appraisers.

Authentication risk is inherent to art investment. Despite due diligence, questions regarding authenticity or provenance can emerge, potentially eliminating or severely reducing an artwork's value.

Art is illiquid. Selling artwork typically requires finding qualified buyers, which can take considerable time. Transaction costs including auction fees, insurance, transportation, and storage can be substantial.

Market trends in art are unpredictable. Artist reputation, cultural movements, and collector preferences shift over time. What is highly valued today may not maintain value in future market conditions.

Liquidity Risk

Many investments recommended by LYVA INVEST, particularly real estate and art, are illiquid assets. Converting these investments to cash may require extended time periods and may only be possible at unfavorable prices during certain market conditions.

Clients should only invest capital that they can afford to have tied up for extended periods. Emergency liquidity needs should be met through other means, not through liquidation of long-term investments.

Leverage and Financing Risks

Investments made with borrowed money amplify both potential gains and potential losses. If an investment financed with debt declines in value, you may still be obligated to repay the full loan amount plus interest, resulting in losses exceeding your initial investment.

Interest rate changes can significantly impact the cost of financing and the attractiveness of leveraged investments. Rising interest rates can turn profitable investments into losses.

Regulatory and Tax Risks

Changes in tax laws, financial regulations, or property regulations can materially affect investment returns. What is tax-advantaged today may not remain so in the future. Regulatory changes can impact property usage, development rights, and operational requirements.

International investments may be subject to different regulatory frameworks and tax treatments. Professional tax and legal advice should be obtained before making significant investment decisions.

Suitability and Personal Circumstances

Investment recommendations are made based on information provided by clients regarding their financial situation, investment objectives, time horizon, and risk tolerance. Changes in personal circumstances may affect the suitability of existing investments.

Clients are responsible for informing LYVA INVEST of any material changes in their financial situation, investment goals, or risk tolerance that might affect investment recommendations.

No Guarantee of Results

LYVA INVEST makes no guarantees regarding investment performance. Historical performance data, projections, and hypothetical scenarios do not guarantee future results. Actual results may differ materially from any projections or examples provided.

Market conditions, economic factors, and individual circumstances vary significantly. What has worked for other clients may not be appropriate or successful for your specific situation.

Independent Verification

Clients are encouraged to conduct independent due diligence and seek additional professional advice before making investment decisions. This includes consulting with legal counsel, tax advisors, and other specialists appropriate to your situation.

LYVA INVEST provides advisory services but does not replace the need for independent verification and professional consultation tailored to your specific circumstances.

Acknowledgment

By engaging LYVA INVEST's advisory services, you acknowledge that you have read, understood, and accepted these risk disclosures. You confirm that you are making investment decisions with full awareness of the risks involved and that you have the financial capacity to sustain potential losses.