RISK
DISCLOSURES

When you invest, your capital is at risk. The value of investments and any income from them can go down as well as up, and you may get back less than you invested. Past performance is not a reliable indicator of future returns.

This Risk Disclosure is a summary and does not cover every risk, feature, or possible outcome. Sidekick does not provide personal investment advice. If you are unsure whether investing, or a particular investment, is suitable for you, you should consider seeking advice from an independent financial adviser.

Where relevant, you should read the applicable product documents (for example, a Key Information Document (KID), prospectus, fund rules, or offering documents) before investing.

Key risks at a glance (summary)

These are the main risks. More detail is set out in the sections that follow.

• Capital at risk (see section 3): you could get back less than you invest, including losing most or all of your investment.
• Market and volatility risk (sections 1 & 3): markets can move quickly and unpredictably; portfolio values can fall sharply, especially over short periods.
• Liquidity and dealing risk (sections 1, 3 & 5): you may not be able to sell or redeem some investments when you want, or at a price you expect, particularly in stressed markets. Some funds may delay, limit, or suspend dealing/redemptions in exceptional conditions.
• Currency risk (section 3): foreign exchange movements can increase or reduce returns when measured in GBP.
• Issuer and counterparty risk (section 3): some products depend on an issuer or counterparty meeting its obligations; if they fail, you may lose money.
• Private markets risk (section 5): private assets may be valued infrequently and can be harder to sell; losses may become apparent over longer periods.
• Costs, tax and regulation (section 3 & 7): fees and transaction costs reduce returns; tax and regulatory changes can affect outcomes and product features.
• Platform and order-handling risk (section 4): prices can change between placing and executing an order; orders may be delayed, rejected, partially filled, or affected by outages or market disruption.
• Protections have limits (section 2): custody/nominee arrangements and the FSCS may apply in certain circumstances if a firm fails, but they do not protect you from market losses and eligibility/limits vary.

1) Key concepts you should understand

Volatility
Investment prices move over time. The size and speed of these movements are commonly referred to as volatility. Volatility can be driven by macroeconomic conditions (such as interest rates and inflation), geopolitical events, market sentiment, and factors specific to a company, sector, or asset class.Higher volatility can mean sharper or more frequent price movements, including short-term losses. This can materially affect your portfolio value, particularly over shorter time horizons.

Liquidity
Liquidity describes how easily an investment can be bought or sold (or redeemed) without significantly affecting its price. In stressed markets, liquidity can reduce, meaning you may not be able to sell when you want, or you may receive a worse price than you expect.

2) How your investments and cash are held

Sidekick does not hold client money and does not have client money permissions.

Listed investments and cash (Interactive Brokers)
Customers open and hold accounts in their own name with Interactive Brokers. Your listed investments and any cash balances are held in your Interactive Brokers account, and Interactive Brokers is responsible for custody and safeguarding arrangements in line with its regulatory obligations. Sidekick can facilitate portfolio management and dealing, but Sidekick does not hold your cash or investments.

Private market investments (Thompson Taraz nominee)
Private market investments are typically held via a nominee arrangement with Thompson Taraz, which holds the investment on your behalf as beneficial owner, in accordance with the nominee terms, the underlying fund documentation, and applicable law. These investments may be less liquid and may have dealing cycles, notice periods, or redemption limits that differ from listed investments.

If Sidekick fails
Because Sidekick does not hold client money, and your listed investments and cash are held with Interactive Brokers, Sidekick’s failure should not by itself prevent you from accessing those assets, subject to any operational steps to remove permissions. Private market holdings held via the Thompson Taraz nominee should normally remain yours as beneficial owner, subject to the nominee and fund terms.

3) General risks of investing

These risks can apply across many investment types:

• Capital risk – You may get back less than you invest, including losing most or all of your investment.
• Market risk – Markets can move sharply due to economic conditions, inflation, interest rates, geopolitics, or changes in sentiment.
• Inflation risk – Even if the value of an investment is stable in pounds, its real (inflation-adjusted) value can fall if inflation exceeds returns.
• Company and issuer risk – If a company, fund, issuer, or other entity connected to an investment experiences financial difficulty or fails, you may receive little or no return.
• Credit and counterparty risk – Some products rely on issuers or counterparties meeting obligations. If an issuer/counterparty fails, the investment may lose value.
• Liquidity risk – You may not be able to sell or redeem when you want, or at a price you expect.
• Valuation risk (especially private markets) – Some assets are valued periodically using models and assumptions rather than continuous market prices. Valuations may change materially when reassessed or realised.
• Currency risk – Foreign currency exposure can increase or reduce returns when measured in GBP.
• Costs and charges risk – Platform fees, fund charges, and transaction costs reduce returns and can materially affect outcomes over time, particularly during periods of low or negative performance.
• Tax and regulatory risk – Changes in regulation or tax treatment can affect returns, access, or the expected features of an investment.
• Operational and settlement risk – Trades depend on market infrastructure and counterparties. Delays, failures, or operational issues can affect execution, settlement, and when you receive cash or assets.
• Fraud and scam risk – Investment scams and impersonation fraud exist. Always verify communications and be cautious of unsolicited requests to transfer money or share security details.

4) Platform, pricing and order-handling risks

In fast-moving markets, prices can change quickly and unpredictably (including between market close and the next market open). The price you see before placing an order may differ from the price you receive when your order is executed.

There may be circumstances where you cannot place, amend, or cancel an order, or where orders are rejected, delayed, only partially filled, or executed at a price materially different from recent trading levels (for example, during market disruption, volatility, reduced liquidity, or service interruption).

5) Investment-type risks

Different investment types can experience different levels and sources of volatility and liquidity risk:

‍Shares (equities)
‍Shares represent ownership in a company. Prices can move quickly and may be affected by earnings, company announcements, competitive pressures, regulatory developments, and broader market movements.

‍Fractional shares (where available)
‍Fractional holdings provide economic exposure to part of a share but may have practical limitations. For example, there may be limited ability to transfer fractional holdings externally, and certain events (including some corporate actions) may be handled differently or involve rounding. You may need to sell fractional positions before closing your account.

‍Exchange Traded Funds (ETFs)
‍ETFs typically aim to track an index or asset class. Their price can fluctuate in line with underlying holdings and may also be affected by liquidity, tracking differences, and (where relevant) currency movements. In disrupted markets, spreads may widen and execution prices may be less favourable.

‍Money Market Funds (MMFs)
‍MMFs invest in short-term, high-quality debt instruments and are generally less volatile than equities. However, they are not risk-free. MMFs can be affected by interest rate changes, issuer credit risk, and stressed market conditions. In exceptional circumstances, some funds may apply liquidity management tools (for example, redemption delays, limits, or suspensions) in line with their rules and regulatory requirements.

‍Exchange Traded Notes (ETNs)
‍ETNs are unsecured debt instruments linked to a reference index or asset. They carry issuer credit risk (the issuer’s ability to meet its obligations) as well as market risk. Liquidity can depend on market demand and secondary market support, which may reduce during volatility.

‍Exchange Traded Commodities (ETCs)
‍ETCs are designed to track commodity prices, which can be highly volatile due to supply and demand, geopolitics, weather, and global economic activity. Some structures may also introduce additional risks (for example, counterparty risk or futures roll costs), which can affect returns.

‍Private market investments and LTAFs
‍Private market investments (including Long-Term Asset Funds (LTAFs)) are not continuously traded and are typically valued periodically rather than priced in real time. Less frequent pricing does not mean lower risk. Valuations may change significantly when assets are revalued or realised, and losses may become apparent over longer periods.These investments are inherently less liquid than listed assets. Redemptions may be available only at set intervals, may require notice, and may be limited or suspended in certain circumstances. You should be prepared to commit capital for longer periods and may not be able to access your money when you want.

‍Venture Capital Trusts (VCTs)
‍VCTs invest in smaller, early-stage businesses and can be higher risk. Although listed, prices may be volatile and secondary market liquidity may be limited. Returns can be affected by company failures, sentiment towards smaller companies, and changes in tax or regulatory treatment.

6) Managing risk

All investing involves risk and it is not possible to eliminate risk entirely. If you are not comfortable with the possibility of losing money, investing may not be appropriate for you.

Common approaches investors use to manage (but not remove) risk include:

• Diversification – Spreading exposure across assets, regions and sectors may reduce reliance on any single outcome, but it does not prevent losses.
• Time horizon – Longer horizons can allow more time to recover from downturns; shorter horizons can increase sensitivity to volatility.
• Understanding liquidity and time commitments – Some investments may require longer holding periods and may be difficult to sell.
• Monitoring and rebalancing – Periodic review can help keep a portfolio aligned with its intended risk profile, though it cannot prevent losses.

Sidekick does not provide personal recommendations. If you are unsure about suitability, consider independent financial advice.

7) Tax

Tax treatment depends on the account type, the investments you hold, and your personal circumstances. Tax rules can change.

• ISA – Income and capital gains within an ISA are generally not subject to UK income tax or capital gains tax.
• General Investment Account (GIA) – You may need to pay tax on dividends, interest, or capital gains, depending on your circumstances and allowances.
• VCTs and other tax-advantaged investments – Specific conditions apply and reliefs may change or be withdrawn.

Sidekick does not provide tax advice. If you are unsure about your position, consider speaking to a qualified tax adviser.

8) Income and distributions

Some investments may generate income (such as dividends or interest). Income is not guaranteed and may change, be reduced, or stop. Some funds may reinvest income automatically rather than paying it out.

Any income received (where applicable) will be reflected in your account statements. Sidekick does not control whether companies or funds choose to make distributions.

9) Corporate actions

Corporate actions are events initiated by companies or fund managers that may affect investors (for example, mergers, takeovers, share splits, rights issues, or fund restructures).

Some corporate actions are processed automatically. Others may require a response within a set timeframe. Not all corporate actions offer investor choice, and outcomes can vary depending on the investment structure and the options available. Where applicable and permitted, Sidekick will process corporate actions in line with the relevant terms and your account agreement.