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Risks & Disclosures

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IMPORTANT DISCLAIMER: PLEASE READ CAREFULLY BEFORE INVESTING

This page provides essential information about the potential risks associated with investing in Plutus Capital LP. Plutus Management LLC, a cryptocurrency hedge fund. Investing in cryptocurrencies and crypto-related assets involves inherent risks, and prospective investors are strongly encouraged to consider these risks carefully before making any investment decisions. As well as read our Offering Memorandum.

  1. Volatility Risk: Cryptocurrencies are known for their extreme price volatility. The value of your investment in the fund can fluctuate significantly, resulting in potential losses.

  2. Regulatory Risk: Regulatory changes, updates, or actions can impact the legality, use, and value of cryptocurrencies and related investments. The fund may be subject to regulatory changes that affect its operations and holdings.

  3. Market Liquidity: Cryptocurrency markets may lack liquidity, making it challenging to buy or sell assets without negatively affecting prices. This could impact the fund's ability to execute trades.

  4. Cybersecurity Risks: Cryptocurrencies and digital assets are susceptible to hacking, fraud, and other cybersecurity threats. The security of the fund's assets may be compromised, leading to losses.

  5. Operational Risks: Technical issues, network disruptions, or problems with the underlying blockchain technology can affect the fund's operations, potentially causing losses.

  6. Counterparty Risks: If the fund engages in trading or lending activities with third parties, there is a risk of default or insolvency by these counterparties.

  7. Custody Risks: Inadequate security measures can expose the fund's assets to theft or loss. Proper custody solutions are crucial to mitigate this risk.

  8. Lack of Consumer Protections: Unlike traditional financial markets, the cryptocurrency space may lack investor protections, including insurance and regulatory safeguards.

  9. Taxation Risks: The tax treatment of cryptocurrencies varies by jurisdiction and may lead to unexpected tax liabilities for investors.

  10. Diversification Risks: The fund's portfolio may be concentrated in specific cryptocurrencies or sectors, increasing the risk of losses if those assets underperform.

  11. Technology Risks: Changes or upgrades to the underlying blockchain technology could impact the fund's investments or operations.

  12. Geopolitical Risks: Political and regulatory developments in various countries can impact the value and use of cryptocurrencies.

  13. Lack of Information: The crypto market is relatively new and may lack the same level of information and analysis as traditional markets, making it challenging to assess investment opportunities accurately.

  14. Past Performance Not Indicative of Future Results: Past performance of the fund or cryptocurrencies is not a guarantee of future performance.

  15. Unpredictable Market Factors: Unforeseen events, market sentiment, and speculative activities can influence cryptocurrency prices and market dynamics.

  16. Loss of Private Keys: The risk of losing access to crypto assets if private keys are lost or compromised, with no possibility of recovery.

  17. Third-Party Risks: The fund may rely on third-party service providers (e.g., exchanges, wallet providers) whose operations and security are beyond our control.

  18. Legal Risks: Legal disputes, regulatory actions, or legal challenges could impact the fund's investments or operations.

  19. Investment Strategy Risks: Specific risks associated with the fund's investment strategy, such as leverage or derivatives trading.

  20. Risk of Total Loss: Investors should understand that they could lose their entire investment, and they should only invest what they can afford to lose.

This disclaimer is not exhaustive, and there may be other risks associated with cryptocurrency investments not explicitly mentioned here.

Investing in cryptocurrencies and crypto hedge funds carries a high level of risk, and you should consult with financial professionals and perform your due diligence before making investment decisions. The information provided here is for informational purposes only and should not be considered as financial advice. You should consult your financial advisor or legal counsel for specific guidance.

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Past performance is not indicative of future results. The value of investments can go up as well as down. All investments carry risks, and there is no guarantee that any investment strategy will be successful.

By proceeding with an investment in Plutus Capital LP. Plutus Management LLC, you acknowledge that you have read and understood the risks associated with cryptocurrency investments, as outlined in this disclaimer, and you accept these risks. 

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LEGAL DISCLAIMER NEITHER AN OFFER TO SELL NOR ANY SOLICITATION OF AN OFFER TO PURCHASE SECURITIES IS MADE BY THIS PRESENTATION. NO SUCH OFFER OR SOLICITATION SHALL BE MADE UNLESS ACCOMPANIED BY A CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM, AND THEN ONLY TO ACCREDITED INVESTORS. THE FUND’S LIMITED PARTNERSHIP INTERESTS (THE “INTERESTS”) WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIESACT”), OR ANY STATE SECURITIES LAWS OR THE LAWS OF ANY FOREIGN JURISDICTION. THE INTERESTS WILL BE OFFERED AND SOLD
UNDER THE EXEMPTION PROVIDED BY SECTION 4(2) OF THE ACT AND REGULATION D PROMULGATED THEREUNDER AND OTHER EXEMPTIONS OF SIMILAR IMPORT IN THE LAWS OF THE STATES AND OTHER JURISDICTIONS WHERE THE OFFERING WILL BE MADE. THE INFORMATION CONTAINED HEREIN IS THE CONFIDENTIAL AND PROPRIETARY INFORMATION OF PLUTUS MANAGEMENT LLC. THE RECIPIENT AGREES ANY REPRODUCTION, DISSEMINATION OR DISCLOSURE OF THE INFORMATION CONTAINED HEREIN WOULD CAUSE PLUTUS MANAGEMENT LLC IRREPARABLE HARM AND IS STRICTLY PROHIBITED.
IRS Circular 230 Notice: To the extent the above constitutes tax advice, under IRS Circular 230, PLUTUS MANAGEMENT LLC is obligated to inform you that it cannot be relied upon by you or any other taxpayer to avoid penalties.

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