> For the complete documentation index, see [llms.txt](https://mainstreet-finance.gitbook.io/mainstreet.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mainstreet-finance.gitbook.io/mainstreet.finance/legal-and-compliance/general-risk-disclosures.md).

# General Risk Disclosures

**Last Revised on April 14, 2026**

Please consider information in this Risk Disclosure Statement ("Statement") as a general overview of the risks associated with the services offered by Main St Finance Ltd and its affiliates (the "Services"), including our **msY yield strategy, options box spread strategy, and other delta-neutral approaches**, made for your awareness only. We do not intend to provide investment or legal advice through this Statement and make no representation that the Services described herein are suitable for you or that information contained herein is reliable, accurate or complete.

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#### Technology Risk

The risks of crypto assets being transacted via new technologies (including distributed ledger technologies) include, among other things, anonymity, irreversibility of transactions, accidental transactions, transaction recording, and settlement. Transactions in crypto assets on a blockchain rely on the proper functioning of complex software, which exacerbates the risk of access to or use of crypto assets being impaired or prevented.

Additionally, the **msY system** involves complex smart contract interactions and integrations that may be vulnerable to technical failures, smart contract exploits, or other unforeseen circumstances. The minting, redemption, yield accounting, and distribution mechanisms add additional layers of technical complexity and potential points of failure.

Moreover, there is risk of failures, defects, hacks, exploits, protocol errors, or unforeseen circumstances that might occur in connection with a crypto asset or the technologies on which the crypto asset is based.

#### Options Market Risks

Options markets in cryptocurrency have unique characteristics that may create additional risks beyond those present in traditional cryptocurrency trading. **msY seeks to generate yield primarily through options box spread strategies executed across Deribit and other crypto exchanges.** While box spreads are generally designed to express a defined payoff structure and reduce directional exposure, they still depend on market structure, execution quality, exchange operations, and liquidity conditions.

Options prices can be affected by numerous factors including time to expiration, interest rates, market sentiment, margin requirements, and the pricing relationships between the component legs of a box spread. During periods of market stress, dislocation, exchange outages, sudden repricing, or liquidity withdrawal, box spread pricing may become inefficient, execution may deteriorate, and expected yield may be reduced or disrupted. Additionally, crypto options markets may have lower liquidity than traditional finance venues, particularly for certain expiries or strikes, which can increase slippage, widen spreads, and complicate position management.

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#### Strategy Risks Related to msY

The **msY strategy** involves specific risks that users should be aware of:

**Liquidity Risk:** Liquidity conditions on Deribit and other crypto exchanges may deteriorate, making it harder to enter, maintain, unwind, or roll box spread positions efficiently.

**Execution Risk:** Because box spreads require coordinated execution across multiple option legs, incomplete fills, slippage, latency, or exchange-specific order book fragmentation may reduce expected returns or create temporary unwanted exposures.

**Redemption Timing Risk:** Redemptions or liquidity events may depend on the timing of position settlement, exchange withdrawals, or portfolio rebalancing, which may create delays under stressed conditions.

**Yield Variability:** Yield generated by msY may fluctuate based on implied funding conditions embedded in box spreads, exchange-specific pricing, capacity constraints, and broader market structure.

**Exchange Concentration Risk:** If a meaningful portion of strategy execution occurs on one venue, such as Deribit, operational or financial issues affecting that venue may impair performance, access to collateral, or settlement.

**Operational Complexity Risk:** Managing multiple exchange accounts, collateral balances, settlement cycles, and risk controls across venues introduces additional operational and reconciliation risk.

#### Options Box Spread and Delta-Neutral Strategy Risks

The **options box spread and delta-neutral strategies employed by Main St to support msY** involve sophisticated trading techniques across crypto options venues, including **Deribit and other crypto exchanges**. While these strategies are designed to minimize directional market exposure and target relatively predictable yield, they are subject to specific risks including but not limited to:

**Box Spread Pricing Risk:** The implied yield available through box spreads may compress, disappear, or become unattractive due to changing market conditions, competition, or exchange-specific distortions.

**Execution and Legging Risk:** A box spread consists of multiple options positions that must be established and managed precisely. Delays or mismatches in execution may result in unintended exposures or lower-than-expected returns.

**Liquidity Risk:** Limited liquidity in relevant strikes or expiries may impair the ability to open, close, or roll box spread positions efficiently.

**Counterparty and Exchange Risk:** Potential failure, insolvency, withdrawal restrictions, or operational disruption of Deribit or other crypto exchanges involved in execution or custody may negatively affect assets, collateral access, or strategy continuity.

**Margin and Collateral Risk:** Changes in exchange margin requirements, collateral haircuts, eligible collateral policies, or forced liquidation frameworks may affect the economics or safety of the strategy.

**Settlement Risk:** Options settlement mechanics, expiry handling, or exchange-specific procedures may create operational or financial risks, particularly during volatile periods.

**Model Risk:** Internal pricing, execution, and risk models may perform differently than expected, particularly during unusual volatility regimes or liquidity stress.

**Capacity Risk:** As assets under management grow, the available opportunity set in crypto options box spreads may become more limited, which could reduce strategy efficiency or yield.

**Cross-Venue Operational Risk:** Executing across multiple crypto exchanges may create added complexity related to transfers, collateral fragmentation, monitoring, reconciliation, and incident response.

**Yield Distribution Risk:** Fluctuations in realized strategy performance, fees, execution costs, and market opportunities may affect the yield generated by msY.

These strategy-specific risks may affect the underlying performance of the assets supporting **msY** and should be considered alongside general crypto asset risks.