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18.71. Risks Associated with the Use of or Trading in Derivatives

The Manager shall ensure that each Investment Compartment’s global exposure relating to financial derivative instruments does not exceed the total net value of its portfolio. The risk exposure is calculated taking into account the current value of the underlying assets, the counterparty risk, the future market movements and the time available to liquidate the positions.

While the use of derivatives will take place prudently under the limits and conditions prescribed by the AIF Law and the CySEC Directives, it nevertheless involves risks different from and in certain cases greater than the risks presented by more traditional investments. The following is a non-exhaustive list of related risks associated with the use of or trading in derivatives by an Investment Compartment.