Disclosures

What Fractionax does and does not do

Fractionax is a software platform for researching assets and practising with a simulated portfolio. It also has a real trading mode, which is off unless it is switched on and you turn it on. Fractionax:

• does not hold your money or your assets,
• does not place a trade for you: in real trading mode it prepares a transaction that you review, sign in your own wallet, and send to the Solana blockchain,
• does not give regulated financial, investment, legal or tax advice, and
• does not know your full financial situation.

When the assistant says what it would buy or sell, it is describing a simulated portfolio, or pointing you to the real trading screen where you decide. Nothing on Fractionax is an offer, or an invitation, to buy or sell any security or other asset.

Simulated results

Simulated results have many limits. They are not the results of real trading. No money is at risk, so they cannot show how you would feel or act when real money is falling. They leave out real costs and taxes, the delays of real orders and the effect orders would have on prices. A simulated result may look better than real trading would have been, and no simulated account is certain to achieve a similar result.

How real trading works

In real trading mode you buy and sell tokens that track US stocks and funds. The steps are:

• You choose a token and an amount. We ask Jupiter for a quote and run our checks: that you have a current risk profile, and your limits and the stock's price.
• If every check passes, we build a transaction and show you the details. It is valid for about a minute.
• You confirm, and your wallet signs it. The wallet is the one made for your account or one of your own that you connected. Before we send anything, we check that what you signed is exactly what we showed you.
• We send it to the Solana network, then read the result from the blockchain and record the price you actually got.

Today the tokens come from xStocks, which are issued by Backed. We only trade tokens on a list we have verified against the blockchain, never an address supplied by anyone else, because look-alike tokens with the same names exist. The tokens carry features that let their issuer pause transfers, freeze accounts and move tokens, and scale the number of shares they represent for splits and dividends. We read these from the blockchain for each trade. The tokens are not offered to US persons.

Where the data comes from

We use third-party sources, and some of them are public web pages that are not official data feeds. They can be delayed, incomplete, revised or withdrawn.

• Prices, daily price history and market figures: TradingView, kept in our own database. Stock splits and the S&P 500 total return index: Yahoo Finance. Fund holdings: the funds' own published holdings.
• Company filings and financial statements: the US Securities and Exchange Commission's EDGAR system.
• Interest rates and economic series: the Federal Reserve Bank of St. Louis (FRED), and the US Treasury.
• Analyst ratings and price targets: public pages of financial news and data websites. The firms named are not connected to Fractionax, and we do not check or endorse their views. Each shows where it was published.
• News headlines: public news feeds, shown with the name of the publisher and a link to the original.
• Market style factors: the Kenneth R. French Data Library (Eugene F. Fama and Kenneth R. French).
• Charts: the Lightweight Charts library, by TradingView.
• Real trading: quotes and transactions from Jupiter, reads and sends through the Solana network, and token details from the blockchain itself.

Company and product names are the property of their owners. Showing a name does not mean the owner endorses or is connected with Fractionax.

How our figures are made

Valuations, scores and proposals come from models that rest on stated assumptions. They are unreviewed proposals unless a page says a person has reviewed them. We test models on past data, which cannot show how they will do on what comes next.

Exposure to market styles follows research by Jensen, Kelly and Pedersen, "Is There a Replication Crisis in Finance?", Journal of Finance, 2023, and by Fama and French. Exposures describe how an asset has behaved. They are not forecasts, and some are measured through funds that only roughly follow the published factor, which the page says.

How your risk profile is used

Your risk profile comes from a questionnaire with two parts: how you feel about risk, and what your situation can take. The result is the lower of the two, because that is the cautious reading, and a few answers hold it down further. For example, money you may need within a year is never rated above conservative.

• Your level sets starting limits for a fall in a year, for the share in one holding and one sector, and for the ups and downs of your portfolio. You can copy them into your goals, and change them.
• Each asset is compared with these using its own price history over the last year: how much it swings and its worst fall. The verdict, and the largest share of a portfolio we suggest, describe the past and are not a forecast.
• The assistant reads your profile before it suggests or sizes anything, and trades you draft carry a warning when an asset is riskier than your profile. A warning does not stop a trade.
• We ask you to look at your profile again when it is a year old, when you change the goals you copied from it, and when markets have fallen sharply since you took it. Real trading cannot be turned on, and a real trade cannot be made, without a current risk profile.

The questionnaire is a general tool. It is not an assessment of suitability and it does not take your whole financial situation into account.

Artificial intelligence

The assistant uses an AI model provided by Anthropic. It can make mistakes, and its answers are not checked by a person before you see them. Every answer carries a note saying it is AI-generated and for a simulated portfolio. What you write to it is sent to Anthropic, as the Privacy Policy explains.

Tokenized and real-world assets

Fractionax studies how real-world assets, such as property and private lending, might be tokenized and assessed. It does not offer property or lending assets for purchase. Any asset you see described, such as a sample commercial property, is an illustration with made-up figures. The only assets that can be traded in real trading mode are tokens that track US stocks and funds, as described above. If other assets are offered in future, they will come with their own documents and risks, and with any approvals the law requires.

Where it can be used

The law differs between countries, and parts of Fractionax may not be suitable or allowed where you live. You are responsible for following the laws that apply to you.

Changes

We will update this page when what we do changes, and change the date at the top.