Investing in Bitcoin and other cryptocurrencies is highly speculative, involving substantial risks that may not be suitable for all investors. Individuals must possess the financial capacity, sophistication, substantial experience, and willingness to bear the inherent risks of such investments, which include the possibility of losing their entire investment. Capital allocated to cryptocurrency investments should be discretionary and reserved solely for speculative purposes, with an understanding that past performance is not indicative of future results.

1. GENERAL

The information provided by Blue Chip Growth Fund should not be interpreted or construed as investment, tax, or legal advice. It also does not constitute a recommendation, an offer to sell, or a solicitation to buy any interest in cryptocurrency. Investments in cryptocurrency are complex and carry unique risks, making them unsuitable for many investors. Before engaging in any transactions, it is imperative to consult with financial, tax, or legal professionals to evaluate the appropriateness of cryptocurrency investments within your portfolio.

2. RISK OF CRYPTOCURRENCY INVESTMENTS

• Many cryptocurrencies have a relatively short performance history, resulting in heightened uncertainty about their long-term viability and investment performance. Lack of historical data complicates the evaluation of risks and potential returns.

• Cryptocurrency investments can incur significant costs, which may reduce overall returns. These include Custodial Fees, Liquidity Provider Fees, and Platform Fees, as described in the Digital Asset Fee Schedule available on our website. Transaction fees may fluctuate due to factors such as market volatility, blockchain congestion, and exchange rates.

• The value of cryptocurrencies is highly volatile and can quickly devalue to complete loss. Legislative or regulatory actions, market shifts, or technological failures could lead to a total loss of investment capital.

• Cryptocurrency investments are subject to evolving laws and regulations, which can impact their legality and value. Changes at the state, federal, or international level related to commodities and securities regulation, money transmission licensing,  and custodial requirements may impose significant restrictions or obligations, negatively affecting the transfer, use, or exchange of cryptocurrencies. Compliance and licensing costs may also increase as regulations become more stringent.

• Depending on jurisdiction, cryptocurrencies are classified as different asset classes. In many cases, cryptocurrency is not considered legal tender and is without insurance or backing by government. Common protections by such financial regulatory institutions such as the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC) may not apply. This exposes investors to higher risk in case of financial loss.
• Cryptocurrency transactions are generally irreversible, which means losses resulting from errors, fraud, or accidental transfers may be permanent. As such, recovery mechanisms are also generally unavailable.

• The completion of cryptocurrency transactions depends on when they are recorded on the blockchain ledger, which may differ from the time the transaction is initiated. This delay can affect the value of the transaction.

• The valuation of cryptocurrencies depends largely on the willingness of market participants to exchange fiat currency for digital assets. If market sentiment deteriorates, there is a real risk of complete and permanent devaluation. Additionally, market acceptance can be inconsistent; there is no assurance that vendors or service providers will continue to accept cryptocurrencies.

• The market for cryptocurrencies is extremely volatile. Prices may fluctuate dramatically in response to events such as government regulation, security breaches, or changes in market sentiment. Such volatility can lead to significant or total loss of investment within a short timeframe.
• The digital nature of cryptocurrencies makes them vulnerable to hacking, fraud, and cyber-attacks. Security breaches can result in a complete loss of assets or personal data. Investors must adopt strong security practices, such as using multi-factor authentication and secure wallets.

• The infrastructure supporting cryptocurrency investments, including exchanges, wallets, and blockchain networks, is subject to technological risks. Failures, downtime, or breaches of these services may limit access to your holdings or render your assets inaccessible.

• Blockchain technology itself may encounter unforeseen challenges, including software bugs, consensus failures, or network attacks. These technological issues could jeopardize the security and operability of cryptocurrencies, impacting your ability to trade or transfer assets.
• Cryptocurrencies may undergo “hard forks”—a significant change in a blockchain’s protocol that results in the splitting of the original blockchain into two separate networks. These events may cause significant volatility and uncertainty in the value and functionality of the affected cryptocurrencies. Additionally, Blue Chip Growth Fund or any affiliated service providers may choose not to support the new or derivative assets resulting from a hard fork. If a hard fork occurs, there is no guarantee that you will receive any resulting new digital assets.
• Changes to the underlying technology or protocol of a blockchain network may disrupt the value or usability of cryptocurrencies. These changes can include software updates, consensus algorithm adjustments, or other technological shifts that impact transaction processing and security.
• Cryptocurrency transactions may have tax implications that require accurate reporting to tax authorities. Laws regarding taxation are complex and vary by jurisdiction. Investors are responsible for understanding and fulfilling their tax obligations.

• Cryptocurrencies operate on a global scale, and international regulations may vary. Cross-border restrictions, bans, or jurisdictional legal conflicts could disrupt your ability to trade or access your digital assets.
• Our platform utilizes advanced security measures, including encryption, two-factor authentication, and regular cybersecurity audits. However, even robust security measures cannot completely eliminate the risks associated with digital assets.

3.  RISKS SPECIFIC TO CRYPTOCURRENCY INVESTMENTS IN AN IRA OR RETIREMENT ACCOUNT

• As with standard cryptocurrency investments, digital assets held within an IRA are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). This means that any losses incurred will not be recoverable through traditional governmental protection schemes.
• Retirement accounts are subject to a different set of regulations compared to traditional securities accounts. Cryptocurrency investments in IRAs may lack certain regulatory safeguards that typically protect more conventional IRA investments, such as stocks or mutual funds.
• Although gains or losses on cryptocurrency investments are typically tax-advantaged, noncompliance with IRS regulations can have severe tax penalties.
• The IRS imposes strict rules on what constitutes a prohibited transaction within an IRA. Using IRA-owned cryptocurrencies in a way that violates these rules, such as engaging in personal benefit transactions, could disqualify the IRA, resulting in significant tax liabilities and penalties.
• For Traditional IRAs, the IRS requires account holders to start taking Required Minimum Distributions (RMDs) starting at a certain age (73 as of 2024). This information is on occasion updated by the IRS and may be available through the IRS website. The client is responsible for understanding these requirements. 
• Cryptocurrency investments are typically more volatile and may not be easily liquidated to meet RMD obligations. A sudden drop in value or lack of market liquidity could make it difficult to fulfill these requirements without incurring substantial losses.
• Cryptocurrencies can be highly illiquid, especially during market downturns. If you need to convert digital assets to cash for distributions or other financial needs, you may face unfavorable pricing or delays.
• The extreme price volatility of cryptocurrencies introduces significant risks to retirement planning. Since retirement accounts are generally intended for long-term growth and stability, the high degree of fluctuation in cryptocurrency prices can pose a risk to achieving consistent, reliable returns.
• Managing cryptocurrency within an IRA may incur higher custodial, transaction, and account maintenance fees compared to traditional IRA investments like mutual funds or ETFs. These fees can erode the overall value of your retirement savings over time.
• The regulatory landscape for cryptocurrencies is continuously evolving, and changes in laws or regulations may impact the legality or treatment of cryptocurrency IRAs. Investors must stay informed about new developments and how they may affect their retirement accounts.
• Any changes in cryptocurrency regulations could potentially affect the status of your IRA, including the classification and treatment of digital assets for tax purposes.
• Given the complexities and risks involved, it is crucial to consult with financial or tax professionals who have experience with cryptocurrency and retirement planning. This ensures compliance with IRS regulations and helps formulate an appropriate investment strategy.

This disclosure does not encompass every potential risk related to investing in cryptocurrencies. For a more comprehensive understanding, review all governing documents, including the Customer Transaction Agreement, and stay informed about the latest terms and policies. Significant changes in our terms, fee structures, or regulations will be communicated through our official channels. Contact our support team for further information or to discuss any concerns