A Delaware Limited Liability Company
Boulder, Colorado, United States
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1. Past Performance: Past performance is NOT indicative of future results. The value of your investment may fluctuate. You may lose all or a substantial portion of your investment.
2. Gross vs. Net Performance: Performance shown gross of fees does not include management fees, incentive allocations, and expenses which would reduce returns.
3. Hypothetical Performance: Simulated or back-tested results have inherent limitations and do not represent actual trading. Results may have compensated for market factors like lack of liquidity.
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS TRADING PROGRAM NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT.
TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
💥 EXAMPLE OF POTENTIAL LOSS:
A strategy with 15% historical returns and 10% volatility could experience a 30%+ drawdown under adverse conditions. A $1,000,000 investment could decrease to $700,000 or less due to algorithmic failures.
Leverage amplifies both gains and losses. Use of margin, futures, options, swaps, and other derivatives can result in losses exceeding the amount invested.
💥 LEVERAGE EXAMPLE:
With 5:1 leverage, a 10% adverse move results in a 50% loss. A $1,000,000 investment using leverage could lose $500,000 from just a 10% price movement.
⚠️ LIQUIDITY EXAMPLE:
With a 90-day redemption notice and 25% quarterly gate, you could wait over a year to fully liquidate. During this time, your investment value could decline significantly.
💥 SYSTEM FAILURE EXAMPLE:
A one-hour outage during volatile conditions could prevent adjusting positions or executing stop-losses. Potential losses of 15%+ ($150,000 on a $1M investment) are possible.
💥 FLASH CRASH REFERENCE:
During the May 6, 2010 Flash Crash, the Dow Jones fell ~9% in minutes. If algorithms executed trades during such an event, a $1M investment could drop to $910,000, with losses potentially permanent if positions were liquidated.
⚠️ REGULATORY CHANGE EXAMPLE:
Prohibition of certain strategies could force rapid liquidation at unfavorable prices, resulting in losses of 20%+. A $1M investment could decline to $800,000 or less.
INVESTMENTS IN AI FUTURES FUND LLC ARE NOT BANK DEPOSITS AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), SECURITIES INVESTOR PROTECTION CORPORATION (SIPC), OR ANY OTHER GOVERNMENT AGENCY OR PRIVATE INSURANCE PROGRAM. YOU MAY LOSE ALL OR A SUBSTANTIAL PORTION OF YOUR INVESTMENT.
An investment in the Fund involves a HIGH DEGREE OF RISK. There is NO ASSURANCE that investment objectives will be achieved. Trading strategies involve the risk of LOSS OF ENTIRE INVESTMENT. Investors must be prepared to bear such losses.
💥 WORST-CASE SCENARIO:
In a worst-case scenario combining catastrophic market events, system failures, and regulatory actions: An investment of $1,000,000 could decline to $0.
Investments are offered only to "accredited investors" as defined in Regulation D. Generally: net worth exceeding $1,000,000 (excluding primary residence) OR annual income exceeding $200,000 ($300,000 jointly) for the past two years with reasonable expectation of similar income in current year.
Certain statements constitute "forward-looking statements" using terms such as "may," "will," "expect," "anticipate," "target," "project," "estimate," "intend," "believe," or similar terminology. Due to risks and uncertainties, actual results may differ materially. No representation or warranty is made as to future performance.
By investing in AI Futures Fund LLC, you acknowledge that you have read, understood, and accepted all risk disclosures in this document and the Fund's offering documents. You understand that: