This Risk Disclosure Statement describes certain material risks associated with investments, securities transactions, market strategies, corporate financing, venture capital, mergers and acquisitions, initial public offerings, capital-market activities, profit-sharing arrangements, and related services or information discussed by Palisander Inc (“Palisander,” “we,” “us,” or “our”).

This disclosure is general in nature. It does not identify every possible risk and does not replace the terms, disclosures, suitability considerations, or risk factors contained in a specific agreement, offering document, transaction document, brokerage disclosure, or professional engagement.

Before making an investment or transaction decision, you should carefully evaluate your objectives, financial position, experience, risk tolerance, liquidity requirements, legal restrictions, and ability to bear loss.

1. General Investment Risk

All investments involve risk.

The value of an investment may rise or fall, and an investor may lose some or all of the amount invested.

There is no assurance that an investment, strategy, recommendation, transaction, financing arrangement, or commercial opportunity will:

• Produce a profit

• Preserve invested capital

• Achieve a target return

• Generate regular income

• Obtain financing

• Complete within an expected period

• Be accepted by investors, lenders, regulators, or exchanges

• Remain liquid

• Be suitable for a particular person

• Perform consistently under changing market conditions

You should invest only funds that you can afford to place at risk.

2. No Guaranteed Returns

Palisander does not guarantee:

• Investment profits

• Capital preservation

• A specific rate of return

• A minimum account value

• Financing approval

• Transaction completion

• IPO completion

• Exchange acceptance

• Regulatory approval

• A particular valuation

• A particular share price

• A particular timetable

• Recovery of losses

• Any other financial or commercial result

Any target, estimate, forecast, model, scenario, expected return, price objective, or projected outcome is uncertain and may not be achieved.

3. Past Performance

Past performance does not guarantee future results.

Historical returns may not reflect:

• Current market conditions

• Current liquidity

• Current fees or expenses

• Current tax treatment

• Changes in strategy

• Changes in economic conditions

• Changes in interest rates

• Changes in regulation

• The effect of future deposits or withdrawals

• The experience of another investor

An investor’s actual result may be materially different from a historical, modelled, hypothetical, or illustrated result.

4. Market Risk

Market prices may fluctuate rapidly because of developments including:

• Economic data

• Interest-rate changes

• Inflation

• Company performance

• Industry conditions

• Investor sentiment

• Political events

• Geopolitical conflict

• Public-health emergencies

• Natural disasters

• Regulatory action

• Market disruption

• Changes in liquidity

• Technology failures

• Unexpected news

Market prices may decline even where the underlying company or investment has not experienced a material change in its business.

5. Volatility Risk

Some securities, industries, markets, and strategies may experience significant short-term price movements.

Volatility may be increased by:

• Low trading volume

• Limited public information

• Concentrated ownership

• Short-term speculation

• Market stress

• Earnings announcements

• Regulatory developments

• Unexpected company news

• Leveraged trading

• Algorithmic trading

• Social-media activity

High volatility may result in substantial gains or losses over a short period.

6. Liquidity Risk

An investor may be unable to purchase, sell, transfer, or close an investment at the desired time or price.

Limited liquidity may result in:

• Delayed execution

• Wider bid-and-ask spreads

• Price discounts

• Partial order execution

• Inability to exit a position

• Greater transaction costs

• Material loss during stressed market conditions

Private securities, restricted securities, small-company securities, structured products, alternative investments, and investments without an active market may be particularly difficult to sell.

7. Concentration Risk

Holding a substantial portion of a portfolio in one company, security, industry, country, asset class, strategy, or economic theme may increase the effect of adverse developments.

Concentrated portfolios may experience greater losses than portfolios spread across multiple unrelated investments.

Diversification may help manage certain risks, but it cannot eliminate market loss or guarantee a profit.

8. Issuer and Company-Specific Risk

The value of a security may be affected by circumstances relating specifically to the issuer, including:

• Poor financial performance

• Declining revenue

• Increased expenses

• Debt obligations

• Loss of customers

• Loss of key personnel

• Product failure

• Litigation

• Fraud

• Governance weaknesses

• Accounting irregularities

• Regulatory investigation

• Cybersecurity incidents

• Insolvency or bankruptcy

Equity investors may lose their entire investment if an issuer fails.

9. Small-Capitalization and Early-Stage Company Risk

Small, emerging, or early-stage companies may be more vulnerable than established companies.

Risks may include:

• Limited operating history

• Unproven business models

• Dependence on a small management team

• Limited financial resources

• Limited access to financing

• High cash-burn rates

• Customer concentration

• Limited market share

• Weak internal controls

• Limited public information

• Greater share-price volatility

• Increased risk of business failure

Early-stage investments may require a long holding period and may never produce liquidity or a return.

10. Venture Capital and Private Investment Risk

Venture capital, private equity, and other private investments are speculative and may involve substantial risk.

Such investments may:

• Be illiquid for an extended period

• Lack an established secondary market

• Be difficult to value

• Be subject to transfer restrictions

• Require additional capital

• Be diluted by future financing

• Depend on a future acquisition or public offering

• Provide limited financial reporting

• Result in complete loss

There is no assurance that a private company will complete an IPO, obtain additional funding, be acquired, or become profitable.

11. IPO and Newly Listed Security Risk

Investments in newly listed companies may involve heightened uncertainty.

Risks may include:

• Limited trading history

• Significant price volatility

• Uncertain market demand

• Limited public-company experience

• Lock-up expirations

• Insider selling

• Valuation uncertainty

• Underwriting and allocation risk

• Delayed or cancelled listings

• Regulatory review

• Incomplete or changing information

Regulatory review of an offering document does not mean that a regulator has approved the investment or determined that the investment is suitable.

12. Corporate Financing Risk

A proposed financing may not be completed.

Potential reasons include:

• Insufficient investor or lender interest

• Unsatisfactory due diligence

• Valuation disagreement

• Weak financial performance

• Unacceptable commercial terms

• Regulatory restrictions

• Legal issues

• Market deterioration

• Documentation delays

• Failure to obtain approvals

• Changes in management or strategy

Obtaining financing may result in interest expense, restrictive covenants, collateral requirements, loss of control, dilution, or other obligations.

13. Debt and Credit Risk

Debt instruments and lending arrangements may be affected by:

• Borrower default

• Credit-rating changes

• Interest-rate movements

• Reduced collateral value

• Subordination

• Covenant breaches

• Restructuring

• Bankruptcy

• Limited recovery

• Illiquidity

A borrower’s ability to repay may deteriorate rapidly, and a creditor may recover less than the amount owed.

14. Interest-Rate Risk

Changes in interest rates may affect:

• Bond prices

• Borrowing costs

• Company valuations

• Financing availability

• Real-estate values

• Currency values

• Economic activity

• Investor demand

Fixed-income securities generally may decline in value when market interest rates rise.

Longer-duration securities may be more sensitive to interest-rate changes.

15. Inflation Risk

Inflation may reduce the real purchasing power of investment income and principal.

Inflation may also:

• Increase operating costs

• Reduce consumer demand

• Increase interest rates

• Affect company margins

• Reduce bond values

• Change market valuations

An investment return may be positive in nominal terms but negative after considering inflation, taxes, and fees.

16. Currency and Foreign-Exchange Risk

Investments denominated in a foreign currency may be affected by changes in exchange rates.

Currency movements may:

• Increase or reduce investment returns

• Increase transaction costs

• Affect company earnings

• Affect the value of foreign assets

• Cause losses even where the underlying investment increases in local-currency terms

Currency markets may be volatile and may be affected by central-bank policy, capital controls, political developments, and market intervention.

17. International and Emerging-Market Risk

International investments may involve risks not ordinarily associated with domestic investments.

These may include:

• Different accounting standards

• Different disclosure standards

• Political instability

• Currency restrictions

• Capital controls

• Expropriation

• Sanctions

• Trade restrictions

• Foreign taxation

• Reduced investor protections

• Limited legal remedies

• Market-closure risk

• Settlement delays

• Custody risk

Emerging markets may experience greater volatility, lower liquidity, and increased political or regulatory uncertainty.

18. Political, Legal, and Regulatory Risk

Changes in laws, regulations, government policy, taxation, sanctions, trade rules, licensing requirements, or enforcement priorities may materially affect an investment or transaction.

A business model or strategy that is lawful at one time may become restricted, uneconomic, or prohibited.

Government action may occur without sufficient advance notice and may affect:

• Market access

• Ownership rights

• Capital transfers

• Trading activity

• Financing

• Corporate structure

• Tax treatment

• Transaction completion

19. Tax Risk

Tax treatment depends on individual circumstances and may change.

Investments and transactions may result in:

• Income tax

• Capital-gains tax

• Withholding tax

• Transfer tax

• Stamp duty

• Estate or inheritance tax

• Reporting obligations

• Foreign-account reporting

• Tax penalties

Palisander does not provide tax advice unless expressly agreed in writing and legally permitted.

You should obtain independent tax advice before entering into a transaction.

20. Mergers and Acquisitions Risk

Mergers, acquisitions, disposals, and corporate restructurings may fail or produce results different from those expected.

Risks include:

• Inaccurate valuation

• Incomplete due diligence

• Hidden liabilities

• Financing failure

• Regulatory delay

• Shareholder opposition

• Contractual disputes

• Integration difficulties

• Loss of customers or employees

• Cultural incompatibility

• Synergy shortfalls

• Increased debt

• Transaction costs

• Post-completion litigation

There is no assurance that a transaction will close or create the anticipated value.

21. Valuation Risk

The value of an investment, business, or transaction may be uncertain.

Valuations may be based on:

• Estimates

• Forecasts

• Comparable companies

• Comparable transactions

• Discounted cash-flow models

• Assumed growth rates

• Assumed discount rates

• Limited financial information

• Unaudited information

Small changes in assumptions may produce materially different valuations.

The price accepted by a buyer, seller, investor, lender, exchange, or market may differ significantly from an estimated value.

22. Leverage and Margin Risk

Borrowing money or using margin may magnify gains and losses.

Leverage may result in:

• Losses greater than the initial amount invested

• Margin calls

• Forced liquidation

• Increased financing costs

• Rapid account-value changes

• Reduced ability to hold a position

• Loss during temporary market volatility

A broker may sell assets without advance approval where margin requirements are not met.

Leverage should be used only by persons who understand the risks and can bear substantial loss.

23. Derivatives Risk

Options, futures, swaps, contracts for difference, and other derivative instruments may involve complex and substantial risks.

These risks may include:

• Leverage

• Rapid loss

• Expiration risk

• Counterparty risk

• Basis risk

• Liquidity risk

• Settlement risk

• Model risk

• Volatility risk

• Assignment or exercise risk

Some derivative positions may result in losses exceeding the initial amount paid.

24. Short-Selling Risk

Short selling involves the sale of a security that the investor does not own.

Potential losses from a short position may be unlimited because the price of the security may continue to rise.

Additional risks include:

• Borrowing costs

• Inability to borrow the security

• Mandatory return of borrowed securities

• Short squeezes

• Forced purchase

• Dividend-payment obligations

• Regulatory restrictions

25. Execution and Timing Risk

A recommendation, instruction, or decision may not be executed at the expected price or time.

Execution may be affected by:

• Market volatility

• Low liquidity

• Broker restrictions

• Trading halts

• Exchange closures

• Internet failure

• Platform failure

• Delayed communication

• Order rejection

• Price gaps

• Partial execution

• Slippage

A delay between receiving information and executing a transaction may materially affect the result.

26. Brokerage and Custody Risk

Client assets may be held by independent brokers, banks, custodians, exchanges, or other financial institutions.

Risks may include:

• Operational failure

• Insolvency

• Unauthorized activity

• Cybersecurity incidents

• Withdrawal restrictions

• Account freezing

• Settlement failure

• Custody errors

• Regulatory action

Palisander is not responsible for the independent acts, omissions, solvency, security, or performance of a third-party broker or custodian, except where liability cannot legally be excluded.

27. Counterparty Risk

A counterparty may fail to perform a contractual obligation.

Counterparties may include:

• Brokers

• Banks

• Custodians

• Borrowers

• Lenders

• Issuers

• Buyers

• Sellers

• Trading platforms

• Service providers

A default may result in delay, reduced recovery, legal expense, or total loss.

28. Operational and Technology Risk

Investment and transaction activity may depend on technology, systems, personnel, infrastructure, and service providers.

Failures may include:

• Software errors

• Hardware failure

• Data corruption

• Communication outages

• Power interruption

• Incorrect data

• Human error

• Processing delays

• Unauthorized access

• Inadequate internal controls

• Business-continuity failure

Operational controls may reduce risk but cannot eliminate it.

29. Cybersecurity and Fraud Risk

Cyberattacks, phishing, impersonation, account takeover, malware, and payment fraud may cause loss or unauthorized disclosure.

Fraudsters may imitate:

• Palisander

• Financial institutions

• Company executives

• Government bodies

• Professional advisers

• Transaction counterparties

You should independently verify:

• Email addresses

• Website domains

• Payment instructions

• Bank-account details

• Contract numbers

• Identity and authority

• Unexpected requests for sensitive information

Never provide passwords, private keys, seed phrases, or one-time security codes through an unverified communication channel.

30. Data and Information Risk

Information used in research or analysis may be:

• Incorrect

• Incomplete

• Delayed

• Outdated

• Misinterpreted

• Based on estimates

• Subject to revision

• Obtained from third parties

Palisander may rely on information that it reasonably believes to be reliable but cannot guarantee the accuracy or completeness of every source.

A decision should not be based solely on one data point, report, model, or communication.

31. Model, Algorithm, and Artificial Intelligence Risk

Analytical models, quantitative methods, algorithms, and artificial intelligence systems may produce inaccurate, incomplete, biased, or unexpected results.

Risks may arise from:

• Poor-quality data

• Incorrect assumptions

• Coding errors

• Model overfitting

• Changing market relationships

• Lack of transparency

• Incorrect interpretation

• Cybersecurity failure

• Human oversight failure

Technology-assisted analysis should not be treated as a guarantee or as a replacement for appropriate professional judgment.

32. Forward-Looking Information

Forecasts and forward-looking statements are based on assumptions and information available when prepared.

Actual results may differ because of:

• Market changes

• Economic conditions

• Company performance

• Financing availability

• Regulatory action

• Competition

• Technology changes

• Political events

• Unexpected costs

• Changes in management

• Other unknown factors

Palisander has no obligation to update forward-looking information unless required by law.

33. Fees and Expense Risk

Fees and expenses reduce investment returns.

Potential costs may include:

• Advisory fees

• Profit-sharing fees

• Brokerage commissions

• Bid-and-ask spreads

• Custody fees

• Financing charges

• Legal fees

• Accounting fees

• Tax costs

• Foreign-exchange charges

• Transaction expenses

• Fund-level expenses

A strategy must generate sufficient returns to offset its costs before producing a net profit.

34. Profit-Sharing Arrangement Risk

A profit-sharing arrangement does not eliminate investment risk or guarantee a profit.

Where an executed profit-sharing agreement applies:

• The client remains exposed to market loss

• The client retains responsibility for the client’s account

• The calculation depends on accurate account records

• Contributions and withdrawals may affect the calculation

• Fees and transaction costs may reduce Net Profit

• Disputes may arise concerning valuation or reconciliation

• Payment obligations may arise after a profitable settlement period

• Negative performance may be carried forward under the agreement

• The arrangement may create incentives or conflicts that should be understood

The signed agreement governs the actual calculation, settlement period, payment obligations, termination rights, and dispute procedures.

35. Client-Controlled Account Risk

Where the client controls and operates the client’s own brokerage account, the client remains responsible for:

• Accepting or rejecting information

• Placing orders

• Selecting order types

• Monitoring positions

• Managing leverage

• Maintaining sufficient margin

• Reviewing confirmations

• Protecting account credentials

• Complying with brokerage rules

• Evaluating suitability

Palisander is not responsible for a loss caused by a client’s execution decision, delay, failure to follow an agreed process, or use of an unauthorized broker, except where liability cannot lawfully be excluded.

36. Suitability and Risk Tolerance

Different investors have different:

• Financial objectives

• Income requirements

• Investment horizons

• Liquidity needs

• Tax positions

• Legal restrictions

• Levels of experience

• Ability to bear loss

A strategy that is appropriate for one person may be inappropriate for another.

You should not enter into an investment or transaction unless you understand it and have determined that the risk is acceptable for your circumstances.

37. Conflicts of Interest

Conflicts may arise where Palisander or another participant:

• Receives a fee linked to a transaction

• Receives a profit-sharing fee

• Has a relationship with another participant

• Holds an interest in an investment

• Provides services to different parties

• Receives referral compensation

• Has an incentive connected with a particular outcome

Material conflicts applicable to a formal engagement should be addressed through the relevant agreement or disclosure.

You should review the applicable fee and conflict disclosures before proceeding.

38. No Regulatory Endorsement

A company registration, regulatory filing, CRD number, SEC file number, reporting status, exemption, or appearance in a public database does not mean that a regulator has:

• Approved Palisander

• Endorsed Palisander

• Verified every statement made by Palisander

• Approved a particular investment

• Guaranteed the safety of an investment

• Guaranteed the accuracy of a forecast

• Guaranteed a client’s result

Users should independently review official public records and source documents.

39. Legal and Jurisdictional Restrictions

An investment, security, agreement, or service may not be lawful or available in every jurisdiction.

You are responsible for understanding restrictions applicable to:

• Your country

• Your state or province

• Your tax residence

• Your citizenship

• The location of the issuer

• The location of the transaction

• The financial product involved

Palisander may decline or restrict an engagement where required by law, regulation, internal policy, or risk considerations.

40. Force Majeure and Extraordinary Events

Investment and transaction outcomes may be affected by events outside the control of the parties, including:

• War

• Terrorism

• Civil unrest

• Natural disaster

• Pandemic

• Cyberattack

• Exchange closure

• Government intervention

• Sanctions

• Capital controls

• Banking failure

• Communications failure

• Market suspension

These events may delay performance, prevent execution, restrict access to funds, or cause substantial loss.

41. Independent Professional Advice

You should obtain independent advice from appropriately qualified professionals concerning:

• Investment suitability

• Legal obligations

• Tax consequences

• Accounting treatment

• Regulatory requirements

• Corporate structure

• Financing documents

• Transaction documentation

• Estate planning

• Cross-border implications

Palisander’s services do not replace advice that must be provided by a licensed attorney, accountant, tax professional, broker, custodian, or other specialist.

42. Responsibility to Review Documents

Before signing an agreement or entering into a transaction, you should carefully review:

• The complete agreement

• Fee provisions

• Calculation methods

• Risk factors

• Termination provisions

• Conflict disclosures

• Offering documents

• Financial statements

• Brokerage disclosures

• Tax considerations

• Dispute-resolution provisions

• Privacy and data-processing provisions

You should not sign a document that you do not understand.

43. Risk Acknowledgement

By using this website, submitting an enquiry, accessing investment-related information, or entering into a separate agreement with Palisander, you acknowledge that:

• Investment and transaction activity involves risk

• Loss of capital is possible

• Returns are not guaranteed

• Projections may not be achieved

• Market conditions may change without notice

• Liquidity may be limited

• Third parties may fail

• Fees and taxes reduce returns

• You are responsible for evaluating suitability

• You should obtain independent advice where necessary

• A signed agreement may contain additional risks and obligations

44. Relationship With Other Documents

This Risk Disclosure Statement should be read together with:

• The Terms of Service

• The Privacy Policy

• The Legal Disclaimer

• The applicable electronic-signature disclosure

• Any engagement letter

• Any profit-sharing agreement

• Any offering or transaction document

• Any product-specific disclosure

• Any brokerage or custody agreement

Where a signed agreement contains more specific risk provisions, those provisions apply to the relevant engagement.

45. Changes to This Risk Disclosure

Palisander may update this Risk Disclosure Statement to reflect:

• Changes in services

• New investment products

• New transaction types

• Market developments

• Legal or regulatory changes

• Operational or technology developments

The updated version will be published on this page with a revised “Last Updated” date.

46. Contact

Questions regarding this Risk Disclosure Statement may be submitted through the Palisander Contact page.

Written correspondence may be addressed to:

Palisander Inc
14 Wall Street, Suite 2000
New York, New York 10005
United States

Please include “Risk Disclosure Enquiry” in the subject line or correspondence heading.