Risk Warning

You can lose money

The value of stocks, funds and other investments can fall as well as rise, and you can lose some or all of what you invest. How an investment did in the past does not tell you how it will do in the future. Only invest what you can afford to lose.

Fractionax is a simulator today

In paper mode, every portfolio and trade on Fractionax is simulated and no real money is involved. Paper trading is useful for learning, but it can mislead you:

• It leaves out real costs, taxes, delays and the price effect of placing real orders.
• It does not test how you would feel or act when real money is falling.
• A good simulated result does not mean the same approach would have worked, or will work, with real money.

Data can be wrong or late

Prices, company filings, analyst views, news and economic data come from third parties, and some come from public pages that are not official feeds. They can be delayed, incomplete, revised, blocked or wrong. A figure on Fractionax may be out of date when you read it. Check anything important at its original source.

Models are not predictions

Fractionax values assets and scores them with models. A model rests on assumptions about the future, and the future can differ a great deal.

• Valuation ranges show what would follow from stated assumptions. They are not forecasts.
• Scores and proposals are unreviewed unless a page says a person has reviewed them.
• Models are tested on past data, and a model that fits the past can fail on what comes next.
• The platform covers a small number of large companies and funds, and most of the stocks are technology and communication companies, so results can be concentrated in a few themes.
• Exposure to market styles, such as value or momentum, describes how an asset behaved in the past. It does not say how it will behave.

The AI assistant can be wrong

The assistant uses an AI model. It can make mistakes, state things with more confidence than it deserves and miss what matters to you. It may say what it would buy or sell in your simulated portfolio, based on the goals you gave it. That is a simulation, not regulated financial advice, and it does not know your whole financial situation. Think for yourself, and speak to a qualified adviser before you invest real money.

Risks in the markets

• Market risk: broad falls in prices can hit most investments at once.
• Concentration: holding a few assets, or assets that move together, increases the chance of a large loss.
• Volatility: prices can swing sharply in a short time.
• Interest rates: changes in rates can move the prices of bonds, government securities and shares.
• Company risk: a company's results, management or legal position can change quickly.

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 real-world assets such as property or lending for purchase today, and any example you see of a property is an illustration with made-up figures, not a real asset. If such assets are offered, they bring further risks:

• They may be hard to sell, and there may be no market when you want one.
• Their value is estimated, not quoted, and estimates can be wrong.
• A token may not give you the legal rights you expect over the asset behind it, and those rights may be hard to enforce.
• You may depend on companies that hold the asset or run the platform, and they can fail.
• Blockchains and smart contracts can fail or be attacked, and mistakes can be impossible to reverse.
• Laws and rules differ between countries and can change, and they can restrict what you may hold.

Real trading mode

Real trading mode, where it is on, uses real money to buy and sell tokens that track US stocks and funds. It carries every risk above and these:

• A token is not a share. It is a claim issued by a company, and it may not give you the rights of a shareholder, such as voting.
• The issuer has powers over the token. It can pause all transfers, freeze an account, and move or destroy tokens in any wallet. If it does, you may be unable to sell, or lose the tokens.
• The token's price can differ from the stock's. This is most likely when the US market is closed, when few people are trading the token, or when the market is moving fast. You may pay more, or receive less, than the stock's price suggests.
• Some tokens are thinly traded. A large trade can move the price against you, and a small token market may have no buyer when you want to sell.
• Splits, dividends and other corporate actions are applied by changing a multiplier on the token, not by sending you more tokens. Your balance as shown in a wallet may not match the number of shares it represents.
• Trades are final. A transaction on a blockchain cannot be reversed, and sending funds to the wrong address or the wrong network loses them.
• A trade can fail after you sign it. You may still pay the network fee.
• The price can move between the quote and the trade. The limit you set caps that movement, and if it is passed, the trade fails.
• Software, services and blockchains can fail or be attacked, including the swap service and the network.
• You alone control your wallet. If you lose access to it, or someone else gets access, no one can recover your money.
• The tokens are not available to US persons, and rules in your country may restrict or tax them. You are responsible for following them.

Fractionax checks each trade against your limits and against the stock's market price before it prepares it. These checks reduce some risks and cannot remove them.

Wallets and technology

Signing in creates wallets for your account through Privy. In real trading mode you can trade from that wallet, or connect a wallet of your own, such as Phantom, Jupiter or Solflare. Technology can fail: software has faults, services go down, and criminals target accounts. A wallet app, browser extension or the site you connect it to can be fake or compromised, so connect only wallets you installed from the maker's own site. Keep your sign-in details and recovery phrase safe, be wary of anyone who contacts you offering to help, and never share them with anyone.

Not advice, and not regulated services

Fractionax does not give regulated financial, investment, legal or tax advice, and nothing on it takes your circumstances into account. It does not hold your money or assets. In real trading mode it prepares a transaction that you sign and send to a blockchain, and it does not place a trade for you. Laws about investing differ by country, and you are responsible for following the ones that apply to you.

Before you rely on anything here

• Check important facts at their original source.
• Spread your money across different kinds of investment.
• Only invest what you can afford to lose.
• Speak to a qualified, independent adviser about your own situation.