Risk Disclosure

Version 1.1 · Updated on September 17, 2026

Courtesy translation. This English version is provided for convenience only. The Spanish version is the only legally binding text and prevails in the event of any discrepancy (Terms and Conditions, clause 18.4). Read the Spanish version

Read this disclosure before using FARO Markets. It is part of the Terms and Conditions that you accept when you register.

1. What FARO Markets is and what it is not

FARO Markets is an automated market analysis service. It gathers public data, processes it with artificial intelligence, and delivers to you periodic reports on the assets you choose, for informational and educational purposes.

FARO Markets is not investment advice, does not issue individualized recommendations, does not execute transactions, and does not hold money, securities, or crypto assets in custody. The party that operates FARO Markets is not an investment adviser registered with the Comisión Nacional Bancaria y de Valores (National Banking and Securities Commission, “CNBV”), nor a securities market intermediary, nor a financial entity. No adviser-client relationship exists between you and FARO Markets. Consumer disputes are handled before the Procuraduría Federal del Consumidor (Federal Consumer Protection Agency, “PROFECO”), not before the Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (National Commission for the Protection and Defense of Financial Services Users, “CONDUSEF”).

2. You can lose money, even all of it

Investing in stocks, funds, metals, crypto assets, or any other asset involves the risk of partial or total loss of capital. Prices can move quickly and adversely for reasons that no analysis anticipates. If you trade with leverage or derivatives (for example, metals futures), you can lose more than you invested.

3. Risks by asset type

• Stocks and funds: issuer risk, sector risk, liquidity risk, exchange-rate risk on foreign assets, and fees that reduce returns.
• Crypto assets: in Mexico they are not legal tender and are not backed by the Banco de México (Bank of Mexico) or by the government; Mexican financial authorities have warned about their risks. They present extreme volatility, risk of loss due to failure or bankruptcy of the platforms where they are held in custody, risk of fraud, and a changing regulatory framework.
• Metals and futures: futures contracts have expiration dates, leverage, and margin calls; the spot price and the futures price can diverge.
• Funds: management fees, liquidity windows, and differences between the value of the fund and the value of its assets.
• Indexes: an index cannot be purchased directly: it is tracked through funds or derivatives that replicate it, with tracking differences, fees, and, for indexes of other countries, currency risk. Its level is expressed in points, not in money.
• Bonds through funds: the value of a bond fund falls when interest rates rise and is exposed to the credit risk of the issuers and to the liquidity of the fund.
• Memecoins and low-capitalization crypto assets: their price depends mainly on attention on social media; they can lose almost all of their value within hours, with reduced liquidity and a high risk of manipulation and fraud.
• Assets outside the catalog (On-Demand Queries): they may have less news coverage, lower liquidity, and scarcer information; the analysis is generated with the available data and may end without a conclusion.

4. Risks specific to automated analysis

• The reports are generated by an artificial intelligence model without human review before delivery. It may make mistakes, omit relevant information, misinterpret a news item, or produce statements that sound correct and are not.
• Price data, indicators, and news come from third parties and may arrive late, be incomplete, or be interrupted. When a data point is not available, the report says so; it is never invented.
• The labels buy, sell, hold, or avoid, the conviction level, and the horizon are outputs of the model, not guaranteed probabilities or instructions.
• The report does not know your full financial situation, your objectives, your horizon, your risk tolerance, or your tax situation. If you record your positions, they are used as context, not as the basis for a personalized recommendation.
• Plain language makes reading easier; it does not mean certainty.

5. Timing risk

Reports are delivered at the frequency you chose. The market keeps moving between one delivery and the next. FARO Markets does not monitor your portfolio in real time and does not alert you to movements between reports.

6. Historical hits and misses

The tracking of suggestions at 24 hours, 7 days, and 30 days shows past results calculated against market prices, without fees, taxes, spreads, or slippage. A favorable track record does not guarantee, or make more likely, that subsequent suggestions will be right. Past performance does not guarantee future results.

7. No guarantees

FARO Markets does not guarantee returns, results, accuracy, timeliness, completeness, or continuous availability of the service.

8. Before you decide

• Consult an investment adviser registered with the CNBV or authorized in your country, who does know your full situation.
• Invest only money that you can afford to lose.
• Verify prices and data directly with your broker or platform before trading.
• Diversify and do not make decisions based solely on an automated report.

9. Acknowledgment

By accepting the Terms and Conditions, you acknowledge that you have read and understood this Risk Disclosure, that investment decisions are exclusively yours, and that FARO Markets is not responsible for their results.