Risk Disclosure

PLEASE READ THIS RISK DISCLOSURE CAREFULLY BEFORE USING THE PLATFORM.

General Investment Risk

Investing in securities involves substantial risk of loss. The value of any investment may decline, and you may lose some or all of the money you invest. There is no guarantee that any investment strategy, screening methodology, or analytical framework will result in profitable outcomes.

Past performance of any model, screen, or signal is not indicative of future results.

Graham-Dodd Intrinsic Value Models

The intrinsic value estimates generated by QuantumCompass — including Graham Number, Earnings Power Value (EPV), Net Current Asset Value (NCAV), and Liquidation Value — are outputs of mathematical models based on historical financial statements. These models:

• Are based on accounting data that may contain errors or may not reflect economic reality
• Use simplifying assumptions that may not hold in all market conditions
• Were developed from principles established in the 1930s–1950s that may not apply equally to modern business models, particularly technology and asset-light businesses
• May produce significantly different results depending on the quality and recency of underlying financial data
• Should not be interpreted as predictions of future stock prices

A stock trading below its modeled intrinsic value is not guaranteed to increase in price.

Margin of Safety

The margin of safety is a quantitative estimate of the discount between a stock's current market price and its modeled intrinsic value. It does not account for qualitative factors such as management quality, competitive position, or industry dynamics, and does not predict when or whether the market price will converge to intrinsic value.

Merger Arbitrage Risk

Merger arbitrage involves purchasing shares of a company that is the subject of an announced acquisition in anticipation of the transaction closing. This strategy carries significant risks:

• Deal termination risk — Announced transactions may be terminated for any reason. Upon termination, the target company's stock price will typically decline significantly, often to or below pre-announcement levels.
• Regulatory risk — Antitrust and other regulatory bodies may block or impose conditions on transactions.
• Financing risk — Acquirers relying on debt financing may be unable to complete financing.
• Timing risk — Delays in deal closing reduce annualized returns and increase exposure to deal-break risk.
• Spread compression — Market prices may move to near the offer price before closing, leaving little return while maintaining full downside risk if the deal breaks.

The P(close) probability estimates displayed on the Platform are outputs of a quantitative model and are not predictions. Actual deal closure rates may differ materially from modeled probabilities.

Data Risk

QuantumCompass sources financial data from Financial Modeling Prep (FMP) and the SEC EDGAR system. This data may contain errors, omissions, or delays, and is provided by third parties over whom QuantumCompass has no control. QuantumCompass LLC makes no warranty regarding the accuracy or completeness of any data displayed on the Platform.

Not Investment Advice

QuantumCompass LLC is not a registered investment adviser. Nothing on the Platform constitutes personalized investment advice. The composite scores, tier rankings, buy/pass signals, and other outputs of the Platform are quantitative tool outputs — not recommendations.

You are solely responsible for your investment decisions.

Acknowledgment

By using the Platform, you acknowledge that:

• You have read and understood this Risk Disclosure Statement
• You understand that investing involves risk of loss
• You are using the Platform for informational and research purposes only
• You will not hold QuantumCompass LLC responsible for any investment losses
• You will consult a qualified financial professional before making investment decisions