Principal risks.

1. A fall in the gold price Both series

   Prices move every day. Gold, and gold companies, lose value when it falls.

   Gold Series II holds each lot only for the length of one trade. Gold Series I spreads across the industry.

   A fall can still cause a loss.

2. Counterparty failure Gold Series II

   A refiner, dealer or bank pays late or not at all, or a supplier does not deliver.

   Every counterparty is checked first. Part of a purchase price can be held back until the refinery’s assay.

   A failure can still cost the series money and time.

3. Loss, or gold below the agreed quality Gold Series II

   Metal can be lost in transit, or assay below what was agreed.

   Gold is weighed and sampled before export and assayed again at the refinery.

   A loss may not be insured. Where there is insurance, it has limits.

4. Changes in local rules Gold Series II

   In emerging-market jurisdictions, export rules, permits, banking and currency can change quickly.

   Jurisdictions are chosen, and dropped, on export rules, banking channels, security and sanctions.

   A change can stop or delay trading.

5. No early withdrawal Both series

   Gold Series II has no withdrawals during its term. Gold Series I has a lock-up, then one exit date a year.

   Every date is fixed in writing. In Gold Series I, a 25% limit per date avoids forced sales.

   Your money may be committed for a year, or for two years or more.

6. Holdings that are hard to sell Gold Series I

   Private companies, mineral land and loans cannot be sold quickly, and are valued by the Manager.

   Listed shares, physical gold and gold ETPs sit alongside them.

   A reported value can differ from what an asset would fetch if sold.

7. Concentration in one industry Gold Series I

   All holdings depend on gold and mining.

   The portfolio spans the chain, from exploration to the vault.

   A downturn across the industry would affect most holdings at once.

8. Key people and a first fund Both series

   The Manager depends on a small team led by one key person, and has not run a pooled fund before.

   If anything happens to Nerijus Makselis, Edward Irías Pastora takes charge, and members may vote on what follows.

   Losing a key person would still affect the fund.

9. Unaudited statements Both series

   Statements are prepared by the Manager.

   The valuation rules are in the documents, and members can require an audit.

   Numbers are not checked by an outside auditor unless members ask.

10. Tax Both series

    Each series issues a Schedule K-1. Income can be taxable even when it is reinvested.

    K-1s are sent every year.

    Your treatment depends on your circumstances. Take advice from your own tax adviser.

Online fraud: the Manager never changes bank details by email. If in doubt, call on a number you already have.