General Disclosures

The securities employed in Client accounts within the Compound Foundation Portfolio are exchange-traded funds or other publicly registered funds ("ETFs"), which generally are registered investment companies under the Investment Company Act of 1940. Although Compound Advisers believes its selection process identifies ETFs with high liquidity, low expenses, and low tracking error, Compound Advisers’ selection process does not guarantee the quality of a particular ETF or that it will 1) be profitable, 2) properly track any comparable index, 3) trade in a liquid fashion, or 4) trade at or above its publicly-posted net asset value.

Compound Advisers reserves the right to change at any time the selection of ETFs that it recommends if, in Compound Advisers’ sole discretion, any ETF does not meet requirements for continued listing on the platform. Clients should be aware that changes in the selection of ETFs employed by Compound Advisers’ investment management service may result in the sale of their existing holdings and may subject them to additional tax liability.

ETFs are only one type of securities product, and Compound Advisers may make available to Clients other types of securities products that an investor may wish to consider as part of his or her overall financial plan. Other ETFs or investment products may provide different performance characteristics that will be disclosed if made available to you.

Clients who elect to customize the securities and allocations in their investment account(s) authorize Compound Advisers to effect securities transactions in their account in accordance with their election. However, such clients also understand and agree that Compound Advisers retains full discretion over the securities and allocations in their portfolio. In certain situations, the securities and allocations in a client’s portfolio may differ from securities and allocations elected by the client. A lack of liquidity, market conditions, unavailable pricing, software failure, tax considerations, wash sale prevention, and other factors may prevent Compound Advisers from effecting transactions in accordance with a client’s specified election. Clients should note that ETF categorization and descriptions are editorial and provided by Compound Advisers for your convenience. Clients should always read an ETF’s prospectus prior to making any investment decision.

An ETF typically includes embedded expenses that may reduce its net asset value, and therefore directly affect its performance and indirectly affect a Client’s portfolio performance or an index benchmark comparison. These expenses may include management fees, custodian fees, and legal and accounting fees. ETF expenses may change from time to time at the sole discretion of the ETF issuer. Compound Advisers discloses each ETF’s current information, including expenses, on the Site or App. ETF tracking error and expenses may vary.

Furthermore, ETF performance may not exactly match the performance of the index or market benchmark that the ETF is designed to track because 1) the ETF incurs expenses and transaction costs not incurred by any applicable index or market benchmark; 2) certain securities comprising the index or market benchmark tracked by the ETF may, from time to time, temporarily be unavailable; and 3) supply and demand in the market for either the ETF and/or for the securities held by the ETF may cause the ETF shares to trade at a premium or discount to the actual net asset value of the securities owned by the ETF.

Certain ETF strategies may from time to time include fixed income, commodities, foreign securities, American Depositary Receipts, or other securities for which expenses could be higher than otherwise charged for exchange-traded equity securities, and for which market quotations or valuation may be limited or inaccurate.

Clients should be aware that in some limited instances it may be difficult or impossible to trade the Clients’ securities. This liquidity risk may be caused by numerous factors, including but not limited to: 1) extreme market volatility, 2) a decision by exchange participants to withhold some or all of their quoted market bids, 3) exchange technical issues or exchange closure, 4) delisted or halted securities, and/or 5) a position across Client accounts that is large relative to the average daily trading volume of the security.

Performance information is presented net of all Compound management fees and expenses unless marked otherwise. Commissions are not considered since Clients on the Compound Advisers’ platform are not charged trading commissions by Compound. For all periods the performance information includes the reinvestment of dividends and interest unless otherwise noted.

Any comparison to traditional financial advisors is based on an evaluation of average fees and returns. Actual results may be different for each investor and there can be no guarantee of enhanced returns due to additional diversification, ETF selection, or the use of Compound Advisers’ investment management service.

Projected and/or hypothetical performance is intended to show only an expected range of possible investment outcomes based on historical average returns and standard deviation of each investment type contained in the investment mix recommended by Compound Advisers, but does not take into consideration the effect of taxes, changing risk profiles, or future investment decisions. Projected and/or hypothetical performance does not represent actual Client accounts or actual trades and may not reflect the effect of material economic and market factors. The actual transaction costs in Client accounts may be different.

Actual investors that become Clients may experience different results from any hypothetical results shown. There is a potential for loss, as well as gain, that is not reflected in the hypothetical information portrayed. The hypothetical performance results shown do not represent the results of actual trading using client assets but were achieved by means of the retroactive application of a model designed with the benefit of hindsight. Investors should carefully review the additional information presented by Compound Advisers as part of any hypothetical comparison.

ANY COMPARISONS TO INDICES ARE PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY. AN INDEX IS A BROADLY DIVERSIFIED, UNMANAGED GROUP OF SECURITIES, WHICH MAY INCLUDE ONLY LARGE CAPITALIZATION COMPANIES OR COMPANIES OF A CERTAIN SIZE. BROADLY BASED INDICES MAY BE SHOWN ONLY AS AN INDICATION OF THE GENERAL PERFORMANCE OF THE FINANCIAL MARKETS DURING THE PERIODS INDICATED. BECAUSE OF THE DIFFERENCES BETWEEN THE CLIENT ALLOCATIONS AND ANY INDICES SHOWN, COMPOUND ADVISERS CAUTIONS INVESTORS THAT NO INDEX IS DIRECTLY COMPARABLE TO THE PERFORMANCE SHOWN SINCE EACH INDEX HAS ITS OWN UNIQUE RESULTS AND VOLATILITY, AND SUCH INDICES, IF SHOWN, SHOULD NOT BE RELIED UPON AS AN ACCURATE COMPARISON

The return, composite and performance information shown on the Site or App uses or includes information compiled from third-party sources, including independent market quotations and index information. Compound Advisers believes the third-party information comes from reliable sources, but Compound Advisers does not guarantee the accuracy of the Site or App information and may receive incorrect information from third-party providers. Unless otherwise indicated, the information on the Site or App has been prepared by Compound Advisers and has not been reviewed, compiled or audited by any independent third-party or public accountant.

Recommendations and fees may vary for each Client. Compound's advisory fees for clients who are not Private Wealth Management clients are calculated based upon either  a predetermined flat-fee for a project or period, and/or the amount of assets being managed, while Compound's advisory fees for Private Wealth Management clients are determined based on a predetermined, recurring flat-fee (as detailed further in Compound Advisers’ Form ADV Part 2); however, management and/or other fees may be charged for investment products managed by outside companies, which are unaffiliated entities of Compound Advisers. Please see Compound's Client Agreements and further disclosures provided by those outside companies for further information.

Compound Advisers does not make any representations regarding the execution quality of orders placed with our executing broker-dealer partner. However, Compound Advisers does monitor the execution quality of transactions to ensure that Clients receive the best overall trade execution pursuant to regulatory requirements.

Brokerage services are provided by Charles Schwab & Co., Inc. ("Schwab," Member SIPC). Portfolio Line of Credit is a margin lending product offered exclusively to clients of Compound Advisers by Schwab. Margin lending can add to your overall investment risk, and you should consider the risks and benefits specific to margin when evaluating your overall financial strategy. Learn more about these risks in the Margin Handbook.

Compound Advisers does not represent in any manner that the tax consequences described as part of its tax-loss harvesting service will be achieved or that Compound Advisers’ tax-loss harvesting service, or any of its products and/or services, will result in any particular tax consequence. The tax consequences of the tax-loss harvesting service and other strategies that Compound Advisers may pursue are complex and uncertain and may be challenged by the IRS. The information with regard to this service was not prepared to be used, and cannot be used, by any investor to avoid penalties or interest.

Clients should confer with their personal tax advisors regarding the tax consequences of investing with Compound Advisers and engaging in the tax-loss harvesting service, based on their particular circumstances. Clients and their personal tax advisors are responsible for how the transactions conducted in an account are reported to the IRS or any other taxing authority on the Client’s personal tax returns. Compound Advisers assumes no responsibility for the tax consequences to any Client of any transaction.

The performance of the new securities purchased through the tax-loss harvesting service may be better or worse than the performance of the securities that are sold for tax-loss harvesting purposes. The utilization of losses harvested through the strategy will depend upon the recognition of capital gains in the same or a future tax period, and in addition may be subject to limitations under applicable tax laws, e.g., if there are insufficient realized gains in the tax period, the use of harvested losses may be limited to a $3,000 deduction against income and distributions. Losses harvested through the strategy that are not utilized in the tax period when recognized (e.g., because of insufficient capital gains and/or significant capital loss carryforwards), generally may be carried forward to offset future capital gains, if any. Compound Advisers only monitors for tax-loss harvesting for accounts within Compound Advisers. 

The client is responsible for monitoring their and their spouse's accounts outside of Compound Advisers to ensure that transactions in the same security or a substantially similar security do not create a “wash sale.” A wash sale is the sale at a loss and purchase of the same security or substantially similar security within 30 days of each other. If a wash sale transaction occurs, the IRS may disallow or defer the loss for current tax reporting purposes. More specifically, the wash sale period for any sale at a loss consists of 61 calendar days: the day of the sale, the 30 days before the sale, and the 30 days after the sale. The wash sale rule postpones losses on a sale, if replacement shares are bought around the same time. Compound Advisers may lack visibility to certain wash sales, should they occur as a result of external or unlinked accounts, and therefore Compound Advisers may not be able to provide notice of such wash sale in advance of the Client's receipt of the IRS Form 1099. 

The effectiveness of the tax-loss harvesting strategy to reduce the tax liability of the Client will depend on the Client’s entire tax and investment profile, including purchases and dispositions in a Client’s (or Client’s spouse’s) accounts outside of Compound Advisers and type of investments (e.g., taxable or nontaxable) or holding period (e.g., short- term or long-term). Except as set forth below, Compound Advisers will monitor only a Client’s (or Client’s spouse’s) accounts at Compound Advisers to determine if there are unrealized losses for purposes of determining whether to harvest such losses. Transactions outside of such accounts may affect whether a loss is successfully harvested and, if so, whether that loss is usable by the Client in the most efficient manner. A Client may also request that Compound Advisers monitor the Client’s spouse’s accounts or their IRA accounts at Compound Advisers to avoid the wash sale disallowance rule. A Client may request spousal monitoring online or by speaking with a Compound Financial Advisor. If Compound Advisers is monitoring multiple accounts to avoid the wash sale disallowance rule, the first taxable account to trade a security will block the other account(s) from trading in that same security for 30 days.

All statements made via social media sites sponsored or maintained by Compound are not intended as investment, tax or legal advice. Compound is not responsible for and does not endorse the content by other users or followers of the social media sites sponsored or maintained by Compound. Compound is also not responsible for the terms of use or privacy or security policies of any social media sites, and you use such sites at your own risk. Compound reserves the right to block any user or follower who posts, tweets or retweets content that is deemed inappropriate or offensive or constitutes spam, a testimonial, advice, recommendation, or advertisement for securities, products, or services or is promotional in nature. Compound also reserves the right to block users or followers whose posts, tweets or retweets contain offensive or inappropriate content or serve as promotional sites. Any opinions expressed by our users or followers are those of the persons submitting the comments and don't necessarily represent the views of Compound.

Testimonials may not be representative of the experience of other customers. Testimonials are not a guarantee of future performance or success.

All information provided by Compound’s online financial planning tool is for illustrative purposes only and you should not rely on such information as the primary basis of your investment, financial, or tax planning decisions. No representations, warranties or guarantees are made as to the accuracy of any estimates or calculations provided by the financial tool.

By using this website, you understand the information being presented is provided for informational purposes only and agree to our Terms of Use and Privacy Policy. Compound Advisers relies on information from various sources believed to be reliable, including clients and third parties, but cannot guarantee the accuracy and completeness of that information. Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security. Additionally, Compound Advisers or its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisors.