Use and Risk Disclosures

IT IS VERY IMPORTANT THAT YOU READ AND FULLY UNDERSTAND THE FOLLOWING RISKS OF TRADING AND INVESTING IN YOUR SELF-DIRECTED CACHE SECURITIES SERVICES ACCOUNT.

All Customer Accounts are self-directed. Accordingly, unless Cache Securities LLC (“Cache Securities”) clearly identifies a communication as a recommendation, Customers are solely responsible for any and all orders placed in their Accounts and understand that all orders entered by them are unsolicited and based on their own investment decisions or the investment decisions of their duly authorized representative or agent. Consequently, any Customer of Cache Securities agrees that neither Cache Securities nor any of its employees, agents, principals, or representatives:

1. provide investment advice in connection with a Customer Account;
2. recommend any security, transaction or order;
3. solicit orders;
4. act as a market maker in any security;
5. make discretionary trades for your individual accounts; and
6. produce or provide research. To the extent research materials or similar information is available through the Cache Securities website or mobile application or the websites of any of its affiliates, these materials are intended for informational and educational purposes only and they do not constitute a recommendation to enter into any securities transactions or to engage in any investment strategies

Cache Securities LLC (“Cache Securities”) is a broker-dealer registered with the SEC, and is a member of the Financial Industry Regulatory Authority Inc. (“FINRA”) and of the Securities Investor Protection Corporation (“SIPC”), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). For additional information and an explanatory brochure, please see www.sipc.org. SIPC does not protect against a decline in the market value of stocks.

Cache Advisors LLC (“Cache Advisors”) is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration does not imply a certain level of skill or training. Cache Advisors is a wholly-owned subsidiary of Cache. Cache Advisors’ investment advisory services are available only to residents of the United States in jurisdictions where Cache is registered. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. 

Cache Securities and Cache Advisors do not make investment recommendations to customers; customers should consider their own investment objectives prior to investing. 

The content on this website is for informational purposes only and does not constitute a comprehensive description of Cache Advisors’ investment advisory services. Please refer to Cache Advisors’ Form ADV for important additional information. 

The purpose of this material is to inform, and it should not be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Cache does not make any recommendations for investors to buy and sell securities The investments mentioned may not be appropriate for all clients. All investments involve risk. Before making an investment decision, each investor should carefully consider the risks associated with the investment, and make a determination, based upon their own particular circumstances, that the investment is within their investment objectives, risk tolerance, tax, and financial situation. 

Certain investments are not appropriate for all investors. Before investing, you should consider your investment objectives and any fees charged by Cache Advisors.

Cache Financials Inc. (“Cache”), which operates this website, is neither a registered broker-dealer nor a registered investment adviser. Cache Financials does not give any investment advice, analysis, or recommendations with respect to any securities. By accessing this website, you agree to be bound by our terms of service and privacy policy.

These risk factors are not a complete enumeration or explanation of the risks involved in investing through Cache’s affiliated entities. platform. Cache does not recommend to investors to buy or sell an Exchange Fund or any other product. The investor is responsible for their own investment decisions. Prospective investors should review their own objectives and or consult with their own advisors prior to making any decision to invest through Cache.

The purpose of this material is to inform, and it should not be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. The investments mentioned may not be appropriate for all clients. All investments involve risk. Before making an investment decision, each investor should carefully consider the risks associated with the investment, and make a determination, based upon their own particular circumstances, that the investment is within their investment objectives, risk tolerance, tax, and financial situation.  

Exchange funds are intended only for eligible, long-term investors who are willing to forego liquidity and put capital at risk for substantial periods of time. Regulations require a minimum holding period to realize the potential advantages. They may also have higher fees than traditional investments. Cache's tax counsel believes that investors who contribute appreciated stocks to the fund will not incur federal income tax liability. Tax laws might change, so clients should consult their own tax and legal advisors.  Exchange Funds defer taxation however do not make the investment tax free as the investor will still be respnisible for their taxable event upon liquidation or other qualifying event.

Remember that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. The rate of return on investments can vary widely over time, especially for long-term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Any products discussed herein may be purchased only after a client has carefully reviewed the offering materials associated with each product.

To the extent, materials may contain testimonials. If testimonials are from customers, they are provided by a current Cache client and may not represent the experience of other customers. They are not guarantees of future performance or success. A conflict of interest exists in that the client has a business relationship with Cache. The testimonial is no guarantee of future performance or success. The client was not compensated for the testimonial.

IMPORTANT DISCLOSURES - GENERAL EXCHANGE FUND RISKS

The Cache Exchange Funds mentioned within are alternative investments. Regulations require specific eligibility criteria for participation.  Cache Exchange Funds are open to either accredited investors or qualified purchasers as specified in the offering documents. 

Accredited Investor- In the US, individuals can qualify if they have an annual income exceeding $200,000 individually, or $300,000 jointly with a spouse, for the past two years and expect the same amount in the current year. Alternatively, individuals can also qualify by having a net worth greater than $1 million, either individually or jointly with a spouse, excluding the value of their primary residence.  

A Qualified Purchaser status requires individuals to comply with certain financial thresholds associated with their investments. Specifically, an individual becomes a Qualified Purchaser when they hold at least $5 million in investments. Companies or investment managers or other types of organizations may also fit this category if they have investments valued at $25 million or more. 

These materials do not purport to be complete on any topic addressed. The information in these materials is provided to you as of the dates indicated, and Cache does not intend to update the information after its distribution, even in the event that the information becomes materially inaccurate. Cache makes no representations or warranties with respect to the accuracy of the information contained in this overview and expressly disclaims any and all liability relating to or resulting from the recipient's use of this presentation.

Forward-looking statements (including estimates, opinions, or expectations about any future event) in these materials are based on a variety of estimates and assumptions by Cache. There can be no assurance that any such estimates and assumptions will prove accurate, and actual results may differ materially. An investor may lose some or all of any invested capital.

Neither Cache nor any of its representatives have made or made any representation to any person regarding any forward-looking statements, and none of them intends to update or otherwise revise such statements to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying such forward-looking statements are later shown to be in error.

Past performance does not indicate future results and should not be used as a basis for an investor’s investment decision. Please carefully review your subscription agreement and the information contained within the Legal Documents, and review all of the specific offering documents for each investment product which contain important information about the fees you will pay, conflicts of interest, and relevant specific and general risks.  

Exchange Funds defer taxation on investments, but they do not eliminate the need to pay taxes on the sale of assets. Furthermore, to realize the benefits of tax deferral, you need to abide by the restrictions specified in your offering document. Please consult your tax advisor for information specific to your situation.

RISKS OF INVESTING IN EXCHANGE FUNDS

All investments entail some degree of risk. Investing in Exchange Funds involves certain risks and special investment considerations as set forth below. Investing a substantial portion of liquid assets in Exchange Funds exposes you to a greater degree of risk than investing a smaller percentage. 

You should carefully review the risks of investing in Exchange Funds and should evaluate the merits and risks of an investment in Exchange Funds in the context of your overall financial circumstances. Before you make an investment in an Exchange Fund, you should carefully review the offering documents and fully understand the associated risks involved.

Tax Considerations and Risks:

• When you invest in an Exchange Fund by exchanging your stocks or other securities, your taxes are not reduced but rather deferred. You will eventually need to pay taxes when you sell your shares. 
• While you participate in an Exchange Fund, you may owe taxes. If the Exchange Fund sells assets, receives dividends, or liquidates another investor’s interests in the Exchange Fund during the term in which you are invested, the Exchange Fund may allocate a gain from that sale because you are a limited partner in the Exchange Fund, and thus be required to pay the applicable taxes. 
• You are required to hold your interest in an Exchange Fund for the duration of the holding period. During this time, tax rates may fluctuate. In the future if taxes increase, it may be more advantageous to pay taxes you owe today instead of paying taxes at a later time. 
• Tax laws may change in the future, which may impact the favorable tax treatment of an investment in an Exchange Fund. While the benefits may be grandfathered in any new tax regulations, retroactive treatment is not guaranteed.

Investment Considerations and Risks:

• The value of shares held by an Exchange Fund may fluctuate or decline, reflecting a variety of factors. Changes in investor outlook and political and economic environments may have an impact on the Exchange Fund’s value. 
• An Exchange Fund’s performance is not guaranteed. There is no guarantee that an Exchange Fund will outperform the index it is designed to track. Additionally, it is possible that the positions you contribute will outperform the Exchange Fund. 
• Investments in diverse and sometimes complex strategies are sometimes affected in different ways and at different times by changing market conditions. Strategies may at times be unfavorable, compared to market conditions, for periods of time, which may have adverse consequences for the Exchange Fund’s portfolio. 
• When you redeem your shares in an Exchange Fund, you may receive an in-kind redemption in a form other than your initial contribution. 
• Exchange Funds typically have a portfolio of concentrated positions. If one or more of the positions in these holdings experience a significant decline in value, this can have an adverse impact on the overall performance of the Exchange Fund.

Liquidity & Redemption Considerations and Risks:

• Exchange Funds are not as liquid compared to other investment types, such as investing in stocks, ETFs, or other investment vehicles. Therefore, you should be prepared to maintain your position in an Exchange Fund for an extended period of time. If you require liquidity, an investment in an Exchange Fund may not be suitable for you. 
• Investing in an Exchange Fund through Cache Securities will subject you to a two-year lockup period on the shares you contribute to the Exchange Fund or shorter if specified in your offering documents. This means you will be unable to request a redemption for a period of two years. If you have short-term liquidity needs, you should consider carefully whether participation in an Exchange Fund is suitable to your needs. 
• To take advantage of the tax benefits of participating in an Exchange Fund, you are required to hold your shares in an Exchange Fund for at least seven years. 
• If you seek to redeem your shares after the lockup period but before the end of the holding period, you may receive your original contribution at a rate that is the lower of the contributed stock value or the fund’s net asset value. Additionally, early redemptions may be subject to penalty fees. You should carefully review the terms of the Exchange Fund documents before deciding to participate in an Exchange Fund.
• Exchange funds are intended only for eligible, long-term investors who are willing to forego liquidity and put capital at risk for substantial periods of time. Regulations require a minimum holding period to realize the potential advantages. They may also have higher fees than traditional investments. Cache's tax counsel believes that investors who contribute appreciated stocks to the fund will not incur federal income tax liability. Tax laws might change, so clients should consult their own tax and legal advisors.
• Diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. The rate of return on investments can vary widely over time, especially for long-term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Any products discussed may be purchased only after a client has carefully reviewed the offering materials associated with each product.
• The Cache Exchange Funds mentioned are alternative investments. Regulations require specific eligibility criteria for participation.  Cache Exchange Funds are open to either accredited investors or qualified purchasers who have eligibility criteria as specified in the offering documents. Click here to learn more. https://usecache.com/companion/accredited-investor-vs-qualified-purchaser
• Please carefully review your subscription agreement and the information contained within the Legal Documents, and review all of the specific offering documents for each investment product which contain important information about the fees you will pay, conflicts of interest, and relevant specific and general risks.  
• Exchange Funds defer taxation on investments, but they do not eliminate the need to pay taxes on the sale of assets. Furthermore, to realize the benefits of tax deferral, you need to abide by the restrictions specified in your offering document. Please consult your tax advisor for information specific to your situation.
• Forward-looking statements (including estimates, opinions, or expectations about any future event) in these materials are based on a variety of estimates and assumptions by Cache. There can be no assurance that any such estimates and assumptions will prove accurate.
• To the extent, materials may contain testimonials. If testimonials are from customers, they are provided by a current Cache client and may not represent the experience of other customers. They are not guarantees of future performance or success. A conflict of interest exists in that the client has a business relationship with Cache. The testimonial is no guarantee of future performance or success. The client was not compensated for the testimonial.
• .Accredited Investor- In the US, individuals can qualify if they have an annual income exceeding $200,000 individually, or $300,000 jointly with a spouse, for the past two years and expect the same amount in the current year. Alternatively, individuals can also qualify by having a net worth greater than $1 million, either individually or jointly with a spouse, excluding the value of their primary residence.  
• A Qualified Purchaser status requires individuals to comply with certain financial thresholds associated with their investments. Specifically, an individual becomes a Qualified Purchaser when they hold at least $5 million in investments. Companies or investment managers or other types of organizations may  also fit this category if they have investments valued at $25 million or more. 

BROKERAGE SERVICES

Brokerage customers who opt into the Brokerage Cash Sweep program have their eligible uninvested cash automatically swept to program banks discussed in the Legal Documents, Clearing Broker, Apex Sweep Program Bank List page.  Unrestricted cash intended for investing that hasn't yet been invested or spent is deposited where it becomes eligible for FDIC insurance up to a total maximum of $2.5 million. That’s up to $250,000 per program bank for each individual investing account and $500,000 for a joint investing account, including deposits already held at the bank in the same ownership capacity, subject to FDIC insurance coverage limits and any capacity limitations at the bank. While the FDIC insurance coverage limit at each bank is $250,000, $2,000 is reserved for accrued interest. If you opt out of one or more of the program banks, your FDIC insurance coverage may be reduced. More informaiton is available at Legal Documents, Clearing Broker, Apex FDIC Sweep Program Terms and Conditions.

Cache Securities provides security trading to self-directed customers. Cache Securities is a wholly-owned subsidiary of Cache.  Additional information about Cache Securities can be found on FINRA’s BrokerCheck. Clearing, execution and settlement of securities transactions is provided by Apex Clearing Corporation (“Apex”) an unaffiliated entitiy. For additional information on Cache Securities, please visit BrokerCheck at https://brokercheck.finra.org/

RISKS OF INVESTING IN STOCK AND ETFs

Investments always entail some degree of risk. Be aware that:

• Some investments in stock cannot easily be sold or converted to cash. You should check to see if there is any penalty or charge if you must sell an investment quickly.
• Some investment strategies utilize certain order types to fulfill buy or sell orders. Not all order types are available through Cache Securities. For instance, stop market orders are not available. A stop market order is an order to buy or sell a particular stock at market price if and when the price reaches a specified level. Stop market orders may help reduce risk. By trading stocks through Cache Securities, stop market orders will not be available to you to help you reduce your trading risk. 
• Investments in stock issued by a company with little or no operating history or published information involve greater risk than investing in a public company with an operating history and extensive public information. Stock investments are not federally insured against a loss in market value.
• The stock you own may be subject to tender offers, mergers, reorganizations, or third-party actions that can affect the value of your ownership interest. Pay careful attention to public announcements and information sent to you about such transactions. They involve complex investment decisions. Be sure you fully understand the terms of any offer to exchange or sell your shares before you act. In some cases, such as partial or two-tier tender offers, failure to act can have detrimental effects on your investment.
• The greatest risk in buying shares of stock is having the value of the stock fall to zero.
• Investors should consider the investment objectives and unique risk profile of an ETF carefully before investing. ETFs are subject to risks similar to those of other diversified portfolios. Leveraged and Inverse ETFs may not be suitable for all investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies.
• Although ETFs are designed to provide investment results that generally correspond to the performance of their respective underlying indices, they may not be able to exactly replicate the performance of the indices because of expenses and other factors. A prospectus contains this and other information about the ETF and should be read carefully before investing. Customers should obtain prospectuses from issuers and/or their third-party agents who distribute and make prospectuses available for review. ETFs are required to distribute portfolio gains to shareholders at year end. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. ETF trading will also generate tax consequences.
  

All securities trading, whether in stocks, exchange-traded funds (“ETFs”), options, exchange funds (“Exchange Funds”), or other investment vehicles, is speculative in nature and involves substantial risk of loss. Cache Securities encourages its Customers to invest carefully and to use the information available at the websites of the SEC at http://www.sec.gov, and FINRA at http://FINRA.org. Customers can review public companies’ filings at the SEC’s EDGAR page. FINRA has published information on how to invest carefully at its website. Cache Securities may also make some of this information available on the website (the “Platform”) operated by Cache Financials Inc. and its affiliates (together, “Cache Financials”).

Cache Securities believes it is very important that every Customer understands all of the risks of any form of trading or investing prior to trading or investing real dollars. Past performance is not indicative of future results. By investing their money and/or exchanging assets in securities through Cache Securities, Customers are taking full responsibility for all trading actions and should make every effort to understand the risks involved.

1. You may lose money trading and investing. For that reason, Customers should trade or invest only with money and/or assets they can afford to lose. Investing in securities involves HIGH RISK, and YOU can LOSE a lot of money or value. 
2. Past performance is not necessarily indicative of future results. All investments carry risk, and all trading decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not result in losses. All Customers are advised to fully understand all risks associated with any kind of trading or investing they choose to do.
3. Past performance does not indicate future results and should not be used as a basis for an investor’s investment decision. 

Cache Securities Specific Disclosures

Payment for Order Flow

Please be advised that Cache Securities may receive remuneration, compensation, or other consideration for directing client orders to particular broker-dealers or market centers for execution. Unpriced orders can be executed at prices superior to the displayed national best bid or offer and the time the order is received. The source and nature of any compensation received in connection with your particular transaction will be furnished upon request to Cache Securities.  

Cache Securities Customer Complaints

While Cache seeks to ensure the highest level of customer service and account management in the event that you have a complaint about the services offered by Cache Securities, please contact compliance@usecache.com or mail to Attn: Compliance at 921 Front Street 2nd Floor, San Francisco, CA 94111.

Cache Securities, LLC Statement of Financial Condition

Cache Securities' most recent financial condition is available upon request