RISK DISCLOSURES RELATED TO VIRTUAL CURRENCIES

This is not a complete description of the risks born by Alt Tab Capital Optimized I Ltd (the “Offshore Feeder Fund”), Alt Tab Capital Optimized Fund U.S., LLC (the “Onshore Feeder Fund”), and the Alt Tab Capital Optimized Fund Ltd. (the “Forerunner Fund”) (the Onshore Feeder Fund and the Offshore Feeder Fund shall hereinafter be referred to collectively as the “Feeder Funds”). Prospective investors must review the more complete description of risks in the respective private placement memorandums.

ALT TAB CAPITAL LTD. IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. ALT TAB CAPITAL LTD. HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN THE FORERUNNER FUND. ALTHOUGH NFA HAS JURISDICTION OVER ALT TAB CAPITAL LTD., YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY ALT TAB CAPITAL LTD.

Unique Features of Crypto Currencies and the Opaque Spot Market

Crypto currencies are not legal tender in the United States and many question whether they have intrinsic value. The price of many crypto currencies is based on the agreement of the parties to a transaction. Furthermore, crypto currency balances are generally maintained as an address on the blockchain and are accessed through private keys, which may be held by a market participant or a custodian. Although crypto currency transactions are typically publicly available on a blockchain or distributed ledger, the public address does not identify the controller, owner, or holder of the private key. Unlike bank and brokerage accounts, virtual currency exchanges and custodians that hold crypto currencies do not always identify the owner. The opaque underlying or spot market poses asset verification challenges for market participants, regulators, and auditors and gives rise to an increased risk of manipulation and fraud, including the potential for Ponzi schemes, bucket shops, and pump-and-dump schemes. This opacity in the underlying spot market may adversely affect the ability of the Forerunner Fund to effectuate trades in digital asset derivatives and thus lead to losses in the Forerunner Fund and, in turn, in the Feeder Funds.

Future Regulatory Change is Impossible to Predict

Commodity interest markets are subject to comprehensive statutes, regulations, and margin requirements. In addition, the CFTC and many exchanges are authorized to take extraordinary actions in the event of a market emergency, including, for example, the retroactive implementation of speculative position limits or higher margin requirements, the establishment of daily price limits, and the suspension of trading. Future actions of this nature and changes to rules governing the markets for commodity interests could make certain trading strategies, including those employed by the Manager, obsolete.

The regulation of commodity interest and crypto currency transactions is a rapidly changing area of law and is subject to modification by government and judicial action. Specifically, crypto currencies currently face an uncertain regulatory landscape in the United States and many foreign jurisdictions. In the United States, crypto currencies are not subject to federal regulatory oversight but may be regulated by one or more state regulatory bodies. In addition, many virtual currency derivatives are regulated by the CFTC, and the SEC has cautioned that many initial coin offerings are likely to fall within the definition of a security and subject to U.S. securities laws. One or more jurisdictions may, in the future, adopt laws, regulations or directives that affect crypto currency networks and their users. Such laws, regulations or directives may impact the price of crypto currencies and their acceptance by users, merchants and service providers. The effect of any future regulatory change on the Manager’s trading programs or on the performance of the Forerunner Fund or the Feeder Funds is impossible to predict but could be substantial and adverse.

Cybersecurity and Crypto Currency Wallets

The cybersecurity risks of crypto currencies and related “wallets” or spot exchanges include hacking vulnerabilities and a risk that publicly distributed ledgers may not be immutable. A cybersecurity event could result in a substantial, immediate, and irreversible loss for market participants that trade crypto currencies. Even a minor cybersecurity event in a crypto currency is likely to result in downward price pressure on that product and potentially other crypto currencies.

Furthermore, crypto currencies and digital asset derivatives are controllable only by the possessor of unique private keys relating to the addresses in which the cryptocurrencies are held. The theft, loss, or destruction of a private key required to access a crypto currency or digital asset derivative is irreversible, and the Forerunner Fund would not be capable of restoring such private keys. A custodian’s loss of access to its private keys or its experience of data loss relating to the crypto currency and digital asset derivative holdings of the Forerunner Fund could adversely affect the NAV of the Forerunner Fund and in turn that of the Feeder Funds. Any loss of private keys relating to digital wallets used to store assets of the Forerunner Fund could result in the loss of the assets controlled by such private keys. Although the Forerunner Fund and its custodian(s), if any, assiduously keep the private keys both private and safe from loss, it is possible that one will be lost, destroyed, or illicitly copied. Such an event would trigger a loss of value by the Forerunner Fund and in turn potentially by the Feeder Funds.

Technology

The relatively new and rapidly evolving technology underlying crypto currencies introduces unique risks. For example, a unique private key is required to assess, use or transfer a crypto currency on a blockchain or distributed ledger. As described above, the loss, theft or destruction of a private key may result in an irreversible loss. The ability to participate in forks could also have implications for investors. For example, a market participant holding crypto currency position through a crypto currency exchange may be adversely impacted if the exchange does not allow its customers to participate in a fork that creates a new product. These events as well as other technological issues could lead to a loss of value of the Forerunner Fund and in turn by the Feeder Funds.

Volatility

A principal risk in commodity interest trading is the tremendous volatility (or rapid fluctuation) in the market prices of commodities. The profitability of the Feeder Funds and the Forerunner Fund will partly depend on the Manager’s ability to anticipate and act upon fluctuations in market prices. Commodity interest prices are affected by a wide variety of factors that are complex and difficult to predict, such as changing supply and demand relationships, weather, government trading and fiscal policies, national and international political events (including terrorist activity), changes in national and international interest rates and rates of inflation; currency devaluations and revaluations, emotions of the market participants, changes in interest and currency exchange rates, and any report or data released regarding COVID-19 and the accessibility of a vaccine.

Furthermore, the price of a crypto currency is based on the perceived value of the crypto currency as well as the cost of “mining” the crypto currency (if the currency may be mined), which makes these products highly volatile. Certain crypto currencies have experienced a daily price volatility of more than 20%. The volatility and rapid and substantial price movement of crypto currencies could result in substantial losses. None of these factors can be controlled by the Manager, and no assurance can be given that the Manager’s services will result in profitable trades for Forerunner Fund or that the Feeder Funds will not incur substantial losses.

Commodity Interest Markets May Be Illiquid

At any time and from time to time, the Manager may be unable to liquidate positions held in the accounts of the Forerunner Fund due to “thin” trading in a particular contract, or suspension of trading in that contract. Furthermore, crypto currencies and digital asset derivatives can be traded through privately negotiated transactions and through numerous exchanges and intermediaries around the world. The lack of a centralized pricing source poses a variety of valuation challenges. In addition, the dispersed liquidity may pose challenges for market participants trying to exit a position, particularly during periods of stress. Trading in a contract may be indefinitely suspended due to factors including “limit moves” in a market, regulatory action, cybersecurity issues, or terrorist or other catastrophic events. During an illiquid period in which trading is thin, suspended, or halted, the Forerunner Fund— and thus indirectly the Feeder Funds — may be exposed to adverse market moves indefinitely, and significant or catastrophic losses could result.

Cookie Policy

Our website uses cookies to distinguish you from other users of our website. This helps us to provide you with a good experience when you browse our website and also allows us to improve our site. For information about how we collect, use, and share other types of information, please read our privacy policy.

I. What is a Cookie?

A cookie is a small file of letters and numbers that we store on your browser or the hard drive of your computer if you agree. Cookies contain information that is transferred to your computer's hard drive. You can find out more about cookies at http://www.allaboutcookies.org.

II. Cookies that We Use

We use the following cookies:

Strictly necessary cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website, use a shopping cart or make use of e-billing services. Without these cookies, our website may not work properly or at all. We do not track your personal data with the strictly necessary cookies. Therefore, we are not legally obliged to receive your consent to use these cookies on our website.

Analytical or performance cookies

These allow us to recognise and count the number of visitors and to see how visitors move around our website when they are using it. This helps us to improve the way our website works, for example, by ensuring that users are finding what they are looking for easily.

Functionality cookies

• These are used to recognise you when you return to our website. This enables us to personalise our content for you and remember your preferences.
• There are also two different types of cookies based on when they expire.

Session cookies

Session cookies are those that expire at the end of your browser session, which is when you exit your browser. These cookies remember the page you visit and therefore support navigation. These cookies will no longer functional once you close your browser. Therefore, these cookies are not usually stored beyond the browser session.

Persistent cookies

Persistent cookies are stored on your equipment between browsing sessions. They therefore enable our website to "recognise" you on his return, to remember your preferences. They may also be used to track the user's browsing activity across different websites and to build up a detailed profile of his browsing behaviour for targeting advertising. For this reason, persistent cookies are generally considered to be more privacy-intrusive than session cookies. There are two different types of cookies based on who planted them on our website.

First-party cookies

First-party cookies are planted by AltTabl on this website. This involves assigning a unique identity to the user by setting the cookie to either the user's browser and/or his hard drive with a view to tracking the user's journey on the website. We use first-party cookies for session management and personalisation.

Third-party cookies

Third-party cookies are cookies planted by third-parties other than us.

III. Your Rights

You can always change your cookie preferences at any time. If you change the settings on your web browser or delete your cookies, you will be presented with the consent option again the next time you visit our Sites. If you are concerned about having cookies on your computer, you can set your browser to refuse all cookies or to indicate when a cookie is being set, allowing you to decide whether to accept it. You can also delete cookies from your computer. However, if you choose to block or delete cookies, certain features of our website may not operate correctly.

Find out how to manage cookies on popular browsers:

• Google Chrome
• Microsoft Edge
• Mozilla Firefox
• Opera
• Apple Safari

To find information relating to other browsers, please visit the browser developer's website.