Risk disclosure

The first way to lose money is the obvious one: what the vault holds falls in value.

Prices fall

Listed and digital assets can fall quickly, by more than their history suggests, and can stay down for years.

Leverage accelerates it

Leverage in a vault book multiplies gains and losses alike. A book at three times exposure needs a 33% adverse move to be wiped out, not a 100% one.

Correlation stops helping

Positions that look independent tend to move together in a crisis. Diversification is weakest exactly when you need it.

Concentration

Some vaults hold a small number of positions on purpose. One bad name can define the year.

Overnight and weekend gaps

Digital assets trade continuously; listed markets do not. A vault holding both can open against a move it could not act on.

Currency

A vault reporting in one currency and holding assets in another carries that exchange rate whether or not it is hedged.

The second way is that the process producing the returns stops working, or stops being followed.

Regime shift

Rules calibrated on one market can fail when the market changes character. A model does not know that its world has moved.

A stop is not a fill

A published stop level is an intention. In a gap or a halt the fill can be far worse, or absent.

Key person

Many vaults depend on one person. Illness, departure or a licence issue can end a strategy mid-position.

Style drift

A manager under pressure may take risk the mandate never described. The book is published so you can catch this early.

Capacity

A strategy that worked at small size can decay as assets grow, because its own trades move the price.

Backtest flattery

Simulated records are built with hindsight. Treat any curve that has never traded live as an argument, not evidence.

The third way is that the money is right there on the screen and you still cannot reach it.

Lockups

Redemptions wait for the lockup and the dealing calendar. You may not exit on the day you decide to.

Notice periods

A notice period means the price you get is struck after you commit, not when you ask.

Gating

Where too many holders redeem at once, a vault may scale redemptions back under its published gate. You get part of your money and queue for the rest.

Suspension

A manager who cannot value or realise positions in an orderly way may suspend dealing entirely.

Underlying illiquidity

A vault can be more liquid on paper than the instruments it holds. That difference shows up under stress.

Exit cost

Selling into a thin market costs money. The redemption fee exists to leave that cost with the person leaving, not the holders who stay.

The fourth way is that someone else in the chain fails while holding your assets.

Custodian failure

Assets held by a custodian depend on that custodian's solvency and segregation. Segregation language is a promise, not a physical wall.

Venue failure

An exchange or broker can halt withdrawals, be hacked, or become insolvent with vault assets on it.

Stablecoin de-pegging

A stable unit of account can stop being stable. Cash held in a token carries the token's credit risk.

Bilateral exposure

Derivatives and lending leave the vault owed money by a named counterparty. If that party fails, the exposure is real regardless of the mark.

Settlement timing

Money in transit between a venue, a custodian and the vault is exposed for as long as it is in transit.

The fifth way is that the machinery breaks.

Smart contract defects

On-chain vault logic can contain bugs. An audit lowers that risk; it does not remove it.

Oracle and pricing failures

A wrong price feed can trigger liquidations, mis-strike a valuation, or mis-state your holding.

Chain conditions

Congestion, reorganisations and outages can delay a deposit or a redemption past the dealing window.

Keys and access

Loss or compromise of a key can be irreversible. Nothing on a chain can be recalled after it has settled.

Platform outage

Orbit can be unavailable. Being unable to reach the interface does not pause a market or a lockup.

Fraud

Impersonation, fake support and fake vault links exist. We never ask for a seed phrase, a key or a password.

The sixth way is slower and easier to miss: costs eat a return that never becomes yours.

Running fees do not wait for gains

Management and custody fees accrue on net asset value whether the vault is up or down.

Profit share is asymmetric

A manager's profit share is deducted from positive periods. It does not share your losses.

High-water marks reset slowly

After a drawdown the manager earns no performance fee until the loss is recovered, which can change how the book is run.

Compounding works both ways

A fee drag of two points a year is a quarter of the capital over a decade, before any market loss.

Taxes are yours

Fees shown are before any tax that applies where you live.

The seventh way is that the rules change under the position.

Rules change

Digital-asset regulation is moving. A product, a venue or an asset that is available today may not be tomorrow.

Access can be withdrawn

A change in your residence or in local law can leave you unable to subscribe, or required to redeem.

Recourse is limited

Where a manager or venue sits outside your jurisdiction, enforcing a claim may be slow, expensive or impossible.

Investor protection may not apply

Compensation schemes that cover bank deposits or listed securities typically do not cover this.

The last section is about what the numbers on the screen actually are.

Past performance

Every chart on Orbit is historical or simulated. It is not a forecast and not an offer.

Slippage against the manager's own book

Vault fills can differ from the manager's own trading. Read the trade tape before you deposit.

Annualised figures

A rate annualised from a short window overstates both good and bad periods. Check the window before you compare.

Survivorship

Rankings show what still exists. Strategies that closed are not competing for the top of the list.

Verification is not endorsement

A verification mark says the identity and the books are what they claim to be. It says nothing about future returns.

This is a demo

Managers, institutions, licence marks and results shown here are illustrative. No client money is held and no order reaches a venue.