BetFund

Important: Read Before Investing

Investing in BetFund involves significant risk. You could lose some or all of your deposited Bitcoin. This document explains the key risks you should understand before depositing funds.

1. Betting Risk

The Fund generates returns by placing sports bets. Sports betting is inherently uncertain. Even with a statistical edge, the Fund will experience losing periods — sometimes extended ones. Past performance, including historical win rates and returns, does not guarantee future results.

• Individual bets can and will lose.
• The Fund may experience drawdowns (peak-to-trough declines) of 20% or more.
• Extended losing streaks are statistically expected and do not necessarily indicate strategy failure.

2. No Capital Protection

Your deposit is not insured, guaranteed, or protected by any government, institution, or insurance scheme. There is no deposit guarantee. If the fund loses money, you bear your proportional share of the loss.

3. Bitcoin Volatility

The Fund is denominated entirely in Bitcoin (BTC). Even if the Fund generates positive BTC returns, the fiat value of your investment may decrease due to Bitcoin price movements. Conversely, Bitcoin appreciation may amplify gains. The Operator does not hedge Bitcoin/fiat exposure.

4. Liquidity Risk

While withdrawals are available at any time in principle:

• The Fund's capital is deployed on a betting platform. Large simultaneous withdrawals may require the Operator to withdraw from the platform, which may take time.
• The Lightning Network and Boltz bridge must be operational for withdrawals to process.
• Network congestion or third-party service outages may temporarily delay withdrawals.

5. Operational Risk

• Single operator: The Fund is managed by a single individual. Operator incapacity could delay operations.
• Technical failures: Software bugs, server outages, or API changes on the betting platform could disrupt operations or cause losses.
• Smart contract risk: The deposit/withdrawal bridge interacts with smart contracts on the RSK network. Smart contract vulnerabilities could result in loss of funds.
• Platform risk: The betting platform is a third party. Platform insolvency, rule changes, or account restrictions could affect fund capital.

6. Counterparty Risk

The Fund holds capital on a third-party betting platform. If that platform becomes insolvent, restricts the Operator's account, or changes its terms, some or all fund capital could be lost or frozen.

7. Regulatory Risk

Sports betting and cryptocurrency regulations vary by jurisdiction and may change. Regulatory changes could restrict the Fund's ability to operate, process deposits/withdrawals, or continue in its current form.

8. Concentration Risk

The Fund follows a single betting strategy focused on draw outcomes in football (soccer). It does not diversify across multiple sports, strategies, or asset classes. Poor performance of this specific strategy directly impacts the entire fund.

9. Suitability

This Fund is suitable only for investors who:

• Understand and accept the risks of sports betting.
• Can afford to lose their entire deposit.
• Have a long-term investment horizon (months, not days).
• Are comfortable with Bitcoin-denominated returns.
• Do not rely on this investment for essential expenses.

10. Acknowledgment

By depositing funds, you acknowledge that you have read and understood this risk disclosure, that you are investing at your own risk, and that the Operator has made no guarantees about future performance.