Investors considering investment in the opportunities presented by Faraday should be aware of and assume the risks inherent in acquiring an equity interest in an early-stage innovative company, including, but not limited to, the following:

1. Liquidity risk: consisting in the difficulty in finding a buyer of the assets or their shares at the time and / or at the desired price.

2. Market risk: consisting in the oscillation, including depreciation, of the market value that the assets may experience during its tenure period, including its sale to a third party, if applicable (past profit do not guarantee potential future profits).

3. Operational risk: inherent to newly created companies, it consists in the possibility of financial losses incurred, which can be caused by failures or insufficiencies in the company’s processes, people, internal systems, technology or by the occurrence of unforeseen external events, among others.

4. Default risk: the risk of non-payment of contributions or payment of dividends, interest or capital invested by the portfolio company.

The risks of a total loss of investment associated with participating in innovative startups are significant, with the potential to lose 100% of the invested capital. Therefore, we encourage diversification, in regards to business models, industry and geography, of the opportunities presented. While past performance is no guarantee for future returns, we nonetheless, we have been able to consistently deliver attractive returns to our Partners in our 10-year history.