Risk Disclosure Statement
Last Updated: August 1, 2025
Important Risk Warning
TURC is an experimental financial product that carries significant risks. You may lose some or all of your investment. This product is not FDIC insured and is not guaranteed by any government agency. Please read this entire disclosure carefully before investing and consult with your financial advisor.
1. General Investment Risks
All investments carry risk, and TURC is no exception. The value of your TURC holdings can fluctuate based on market conditions, interest rate changes, and other economic factors. You should not invest more than you can afford to lose.
Market Risk
TURC's underlying Treasury ETF holdings are subject to market volatility. Interest rate changes, inflation expectations, and broader economic conditions can cause the value of Treasury securities to decline, potentially resulting in losses to your principal investment.
Liquidity Risk
While TURC is designed to provide daily liquidity, there may be circumstances where redemptions are delayed or limited, particularly during periods of market stress or operational disruptions.
Credit Risk
Although backed by U.S. Treasury securities, TURC carries counterparty risk related to our custodial arrangements, banking relationships, and third-party service providers.
2. Interest Rate and Yield Risks
TURC's yield is not guaranteed and will fluctuate based on prevailing interest rates and market conditions.
Yield Fluctuation
- Daily yields may vary significantly and can be negative during certain market conditions
- Historical performance does not guarantee future results
- Yields may be lower than traditional savings accounts or money market funds
- Management fees and operational costs reduce net yields to investors
Interest Rate Sensitivity
Treasury securities are sensitive to interest rate changes. Rising interest rates typically cause bond prices to decline, which may result in temporary or permanent losses to your investment principal.
Yield Calculation Notice
Advertised yields are estimates based on current Treasury rates and may not reflect actual returns. Yields are calculated before fees and expenses, which will reduce your actual returns.
3. Technology and Operational Risks
TURC relies on complex technology systems and third-party services that may experience disruptions.
System Failures
- Technical outages may prevent access to your account or funds
- Cybersecurity breaches could result in loss of funds or personal information
- Software bugs or errors may cause incorrect account balances or transactions
- Third-party service provider failures may disrupt operations
Artificial Intelligence Risks
TURC's AI-powered features are experimental and may make errors in portfolio management, risk assessment, or transaction processing. AI systems can behave unpredictably, especially in novel market conditions.
4. Regulatory and Legal Risks
The regulatory landscape for digital currencies and fintech products is rapidly evolving and uncertain.
Regulatory Changes
- New regulations may restrict or prohibit TURC's operations
- Compliance costs may increase, reducing yields or requiring fee increases
- Regulatory enforcement actions could result in service disruptions
- Changes in tax treatment may affect the economic benefits of holding TURC
Legal Structure Risks
TURC's legal structure is complex and untested in bankruptcy or other legal proceedings. Your rights as a TURC holder may be unclear in various legal scenarios.
No FDIC Insurance
TURC is not a bank deposit and is not insured by the FDIC or any other government agency. You have no deposit insurance protection and may lose your entire investment.
5. Operational and Business Risks
TURC is operated by a financial technology company that faces various business risks.
Company Risk
- TURC's operating company may become insolvent or cease operations
- Key personnel departures could disrupt operations
- Funding constraints may limit product development or customer service
- Changes in business strategy may affect product features or availability
Custodial Risk
Your funds are held by third-party custodians who may experience operational problems, insolvency, or other issues that could affect your ability to access your investments.
6. Tax Considerations
TURC may have complex tax implications that vary based on your individual circumstances.
Tax Treatment Uncertainty
- The tax treatment of TURC yields and transactions is uncertain
- You may be required to pay taxes on yields even if you don't receive cash distributions
- Tax rates and rules may change, affecting the after-tax returns of your investment
- International tax implications may apply for non-U.S. residents
Important: You should consult with a qualified tax advisor regarding the tax implications of investing in TURC.
7. Third-Party Integration Risks
TURC integrates with external platforms and services that may pose additional risks.
JSIGN.org and KYRE.AI Dependencies
Our platform's integration with JSIGN.org for digital identity and KYRE.AI for automation creates dependencies on these third-party services. Disruptions to these platforms may affect TURC's functionality.
Payment Network Risks
The TURC debit card relies on payment networks (Visa, Mastercard) that may experience outages, impose restrictions, or terminate their relationship with TURC.
8. Concentration and Correlation Risks
TURC's Treasury-focused strategy creates concentration risks that may amplify losses during certain market conditions.
Treasury Concentration
- Heavy concentration in Treasury ETFs may amplify losses during Treasury market selloffs
- Lack of diversification across asset classes increases correlation risk
- Treasury market liquidity may deteriorate during stress periods
- Government fiscal policy changes may disproportionately affect Treasury values
9. Early-Stage Product Risks
TURC is a newly launched financial product with limited operating history.
Operational Maturity
- Systems and processes may not be fully tested under all market conditions
- Customer service capabilities may be limited during high-demand periods
- Product features may change or be discontinued without notice
- Performance track record is limited and may not be indicative of future results
Experimental Product Notice
TURC should be considered an experimental financial product. The business model, technology, and regulatory environment are all evolving rapidly and may change in ways that adversely affect your investment.
10. Risk Management and Mitigation
While we employ various risk management strategies, these measures cannot eliminate all risks:
Our Risk Controls
- Diversification across multiple Treasury ETF holdings
- Daily monitoring of portfolio risk metrics
- Stress testing and scenario analysis
- Regular independent audits and compliance reviews
- Cybersecurity measures and insurance coverage
Your Risk Management
- Only invest funds you can afford to lose
- Diversify your overall investment portfolio beyond TURC
- Monitor your account regularly for unauthorized activity
- Keep contact information current for important notifications
- Understand the product features and risks before investing
Acknowledgment Required
By opening a TURC account, you acknowledge that you have read, understood, and accept all risks outlined in this disclosure statement. You confirm that you can afford to lose your entire investment and that TURC is suitable for your financial situation and risk tolerance.
Questions About Risk
If you have questions about the risks associated with TURC, please contact us:
Email: email@turc.ai