Quant Alpha LLC – Disclosures

Quant Alpha LLC ("Quant Alpha" or "the Firm") is a technology-driven advisory firm that intends to provide investment advisory services exclusively through an online platform. Quant Alpha is not currently registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or with any state securities authority, and it is not currently providing advisory services to, or soliciting, any clients.

Quant Alpha plans to seek registration with the SEC under the "Internet Investment Adviser" exemption (Rule 203A-2(e)). That exemption would permit the Firm to register even if it does not meet the usual assets-under-management threshold, provided all advisory services are delivered through an operational interactive website, with client-specific advice generated by software-based models and algorithms rather than through in-person, telephone, or other offline channels. Quant Alpha will not provide advisory services under this exemption unless and until its registration is effective and it satisfies all applicable conditions.

Nothing on this website is an offer, solicitation, or recommendation to buy or sell any security or investment product, or to engage Quant Alpha for advisory services. Any future advisory services will be made available only after Quant Alpha has obtained the required registration or authorization, and only to individuals and entities legally eligible to receive investment advice in their jurisdiction.

Quant Alpha is an independent firm and is not controlled by, or affiliated with, any other investment adviser. If and when the Firm becomes registered, its Form ADV (Parts 1 and 2) will be available on the SEC's Investment Adviser Public Disclosure (IAPD) website. Registration, if obtained, would not imply any particular level of skill or training, nor an endorsement by the SEC or any state securities authority.

Advisory Services Overview

The following describes the investment advisory services Quant Alpha LLC intends to offer if and when it becomes registered. Quant Alpha is not currently registered as an investment adviser, is not currently offering these services, and is not soliciting or accepting clients. Nothing below is an offer or solicitation.

Quant Alpha intends to offer risk-managed, growth-oriented investment strategies focused on the Nasdaq-100 Index. The planned approach centers on model-driven portfolios that track or replicate the Nasdaq-100, with leveraged variations for different risk profiles. Under the intended model, a client would select a strategy (for example, conservative versus aggressive) suited to their risk tolerance; that selection, together with information provided through the website, would form the basis of the advice the platform delivers.

Portfolios would be managed using the Firm's proprietary algorithm and quantitative models, meaning accounts would be managed and rebalanced by an algorithm rather than a human stock-picker. The algorithm's design is based on the Firm's quantitative research and risk-management principles, including assumptions about market behavior and volatility. Those assumptions have limitations: the models assume that historical market patterns and volatility trends can inform future risk management, which may not hold in all conditions, and the algorithm may underperform during unusual or prolonged market regimes it did not anticipate. The algorithm would execute trades or rebalancing automatically according to predetermined rules (for instance, reducing exposure during high volatility or adjusting leverage in low-volatility conditions), and it may not account for unforeseen events or nuances a human adviser might weigh.

The Firm would continuously monitor and refine its algorithms. While day-to-day decisions would be automated, Quant Alpha's investment team would oversee the process and the models' outcomes. Human involvement in individual accounts would be limited, generally confined to maintaining the algorithm's proper function or to extraordinary circumstances. In rare cases, such as extreme market disruptions or technical issues, the Firm would reserve the right to pause trading or override the algorithm to protect client interests, with disclosure to affected clients as appropriate.

The intended services would be discretionary: a client would grant Quant Alpha authority to execute trades in their account according to the selected strategy and the algorithm's signals. Quant Alpha does not intend to provide comprehensive financial planning, tax advice, or to consider assets held outside the Quant Alpha-managed account. The advice would be limited in scope to the assets and strategy held with the Firm. Clients should view these services as one component of an overall financial plan and seek additional professional advice for matters outside their scope, such as tax or estate planning.

Client Eligibility & Jurisdictional Limitations

The following describes eligibility criteria that would apply if and when Quant Alpha becomes registered and begins offering services. Quant Alpha is not currently registered, is not currently offering advisory services, and is not soliciting or accepting clients.

Under the intended model, services would be provided through the website and email communications. To open an account, a client would need to be at least 18 years of age (or the age of majority in their jurisdiction) and legally able to enter into an investment advisory agreement. Services would be offered only to residents of the United States and other jurisdictions supported by the Firm's intended third-party custodian, Interactive Brokers LLC ("IB"). Quant Alpha would not solicit or accept clients in locations where it is not legally permitted to operate or where IB cannot provide brokerage or custody services, which may exclude certain countries or regions in compliance with international regulations and IB's policies. Nothing on this website is intended as an offer or solicitation in any jurisdiction where such an offer is not authorized or where the Firm is not in compliance with local laws. If you are accessing this site from outside the supported areas, you do so on your own initiative and are responsible for compliance with any local laws and regulations.

Under the intended model, clients would be responsible for ensuring the information they provide is truthful and current. Because advice would be generated from the data a client supplies (such as risk profile or strategy selection), a client would need to promptly update the Firm, through the website interface or by contacting us, if their financial situation, investment objectives, or restrictions change. The platform may rely solely on questionnaire responses or selections to generate advice; if those inputs are incomplete or inaccurate, the resulting recommendations may not be suitable. Clients would have the ability to update their profile or strategy selection, and it would be the client's responsibility to do so whenever circumstances or preferences change.

Custody, Brokerage & Custodian Information

The following describes the custody and brokerage arrangements Quant Alpha LLC intends to use if and when it becomes registered and begins offering services. Quant Alpha is not currently registered, is not currently offering advisory services, and is not soliciting or accepting clients.

Quant Alpha would not take physical custody of client assets. Under the intended model, all client accounts and assets would be held with Interactive Brokers LLC ("IB"), a third-party qualified custodian and broker-dealer. IB is a member of FINRA and SIPC (Securities Investor Protection Corporation), which provides protection for securities and cash in customer accounts (up to certain limits) in the event of broker-dealer insolvency. SIPC protection does not cover investment losses due to market fluctuations. A client would open a brokerage account in their own name with IB and would grant Quant Alpha limited trading authority on that account to implement the chosen strategy. Under this arrangement:

Account Statements: Clients would receive trade confirmations and account statements directly from IB (electronically or by mail, per their preferences). We would encourage clients to review all statements from the custodian. Quant Alpha may also provide periodic reports or performance summaries through its website, but the official records of an account would be maintained by IB. Clients would be urged to compare any Quant Alpha report against IB's statements and to promptly notify Quant Alpha and IB of any discrepancy.
Third-Party Custodian Agreement: A client would also agree to IB's account terms and disclosures, which govern the relationship with the broker (for example, margin account agreements where leverage is used). Quant Alpha would be independent from IB: the Firm has selected IB for its electronic trading platform and global reach but is not affiliated with IB and does not control its operations. IB would charge brokerage commissions and/or fees for transactions, custodial services, margin interest (if margin is used), and other standard account fees per its fee schedule. These costs would be separate from and in addition to Quant Alpha's advisory fees. The Firm would aim to minimize trading costs in strategy execution, but clients would be responsible for any fees charged by IB or product providers (for example, ETF expense ratios).
No Custody of Client Funds: Quant Alpha's access to a client's IB account would be limited to trading authorization and fee deduction (with the client's prior consent). The Firm would not be able to withdraw or transfer assets to third parties, except for payment of its advisory fee as outlined in the client agreement or as the client directs to their own bank. The client would retain full ownership of the account and could monitor activity in real time via IB's online portal.

Fees and Compensation

The following describes the fee structure Quant Alpha LLC intends to use if and when it becomes registered and begins offering services. Quant Alpha is not currently registered, is not currently offering advisory services, and is not soliciting or accepting clients.

Quant Alpha intends to operate as a fee-only adviser, compensated solely by advisory fees paid by clients, without commissions or compensation from any fund, broker, or third party for recommending particular investments. The advisory fee would typically be structured as an annual percentage of assets under management (AUM) in a client's account (billed monthly). Performance fees would apply only to Qualified Clients and would be billed quarterly, subject to a fixed hurdle rate and a perpetual look-back high-water mark. Specific fee rates and billing details would be provided in the Firm's Form ADV Part 2A (Firm Brochure), once registered, and in each client's Investment Advisory Agreement.

In addition to the advisory fee, a client may incur other costs associated with investing through Quant Alpha's program, including brokerage commissions, transaction fees, and custodial fees charged by Interactive Brokers; internal expenses of any investment products used (for example, an exchange-traded fund's expense ratio); and, where applicable, margin interest on leveraged positions (where the strategy and account type involve borrowing). All such costs would be borne by the client. Quant Alpha would aim to be transparent about all fees; clients would be directed to their client agreement and IB's fee schedule for details. The Firm would not increase its advisory fee without providing advance written notice and obtaining any required client consent. Questions about fees would be welcome.

Investment Strategy and Risks

The following describes the strategies and risks associated with the services Quant Alpha intends to offer if and when it becomes registered and begins offering services. Quant Alpha is not currently registered, is not currently offering advisory services, and is not soliciting or accepting clients.

Investment Focus: Quant Alpha intends to focus on strategies tied to the Nasdaq-100 Index, which is composed primarily of technology and growth-oriented companies. The strategies are designed for growth and would involve active risk-management techniques (such as adjusting exposure based on market volatility or trends). Depending on the chosen strategy, the Firm may employ leverage (through margin borrowing or leveraged ETFs) to amplify exposure in seeking higher returns. Each strategy would vary in risk level: a more conservative version might limit or avoid leverage and reduce exposure in high-risk periods, whereas an aggressive version could use higher leverage and tolerate larger swings. All strategies would share a common philosophy of attempting to participate in the Nasdaq-100's growth potential while managing downside risk through quantitative signals.

No Guarantee of Results: Investing in securities involves risk of loss. All investments carry risk, and a client may lose money, including principal invested. While the strategies are described as "risk-managed," this does not imply risk elimination or guaranteed outcomes. Past performance is not indicative of future results. There is no assurance that the strategies would achieve their objectives or that any performance targets would be met. Market conditions change over time, and future market behavior may differ from the historical patterns a model is based on. Clients should be prepared for periods of volatility and potential drawdowns.

Specific Risk Factors: A client using a Quant Alpha strategy would acknowledge and accept the following risks, among others:

Market Risk: Portfolio value would fluctuate with the markets. Because the focus is on Nasdaq-100-related investments, poor performance or volatility in the technology and growth sector would directly affect an account. Broad market downturns or recessions can cause significant declines in portfolio value, even with risk-management measures in place.

Concentration Risk: The Nasdaq-100 is a concentrated index, heavily weighted toward the technology sector and a relatively small number of mega-cap companies. A focus on this index means a portfolio may lack diversification into other sectors (for example, energy or financials) or asset classes (such as bonds). This concentration can lead to higher volatility and risk than a fully diversified portfolio, and there may be periods when the Nasdaq-100 underperforms other segments of the market.

Leverage Risk: Strategies employing leverage entail magnified risk, increasing gains and losses proportionally. For example, 2x leveraged exposure to the index means a 10% market decline could result in roughly a 20% loss before any risk-management actions. Margin and leveraged ETFs also introduce costs (interest or fund fees) and the potential for margin calls. In extreme scenarios, a highly leveraged portfolio could lose most or all of its value if not properly managed. Risk controls would aim to limit excessive losses but cannot guarantee avoidance of all large losses, especially during abrupt market moves.

Algorithm/Model Risk: Investment decisions would be driven by the Firm's algorithm and quantitative models. A model could be flawed or fail to perform as expected in all conditions. For example, the algorithm might rebalance based on its rules without regard to sudden fundamental news or extreme events. Unusual conditions (prolonged low-liquidity periods, structural market changes, or events outside historical data) could cause the strategy to not protect as intended or to miss opportunities. The Firm would seek to mitigate this through ongoing research and performance monitoring, but some model risk is unavoidable.

Operational and Technology Risk: Because the intended services would be provided online with trades executed electronically, technical issues could occur, including outages of the Firm's website or IB's systems, software errors, cybersecurity breaches, or other failures. The Firm would maintain contingency plans and security measures to minimize these risks. A technology problem could delay trade execution or temporarily limit access to services; in such events, the Firm would work to resolve issues quickly and may take appropriate action (including manual intervention or contacting clients) to safeguard accounts.

Regulatory Risk: Changes in laws, regulations, or regulatory interpretation could affect the Firm's ability to operate as envisioned. For example, the SEC's internet adviser rule requires strict adherence to an online-only model; if the Firm's business model were to deviate or the rule were further changed, it might need to adjust its services or transition clients to a different arrangement (such as state registration if it could no longer rely on the exemption). The Firm would notify clients of any material regulatory changes affecting its services or client requirements.

We provide these disclosures so that a prospective client can understand the scope and limitations of the intended services. You should consider your own financial situation and risk tolerance carefully. These offerings would not be appropriate for everyone: if you require frequent human interaction or holistic financial planning, a traditional adviser may be more suitable.

Index Trademark Disclaimer

Nasdaq-100® is a registered trademark of Nasdaq, Inc. Quant Alpha LLC is not affiliated with Nasdaq, Inc., and the strategy is not sponsored, endorsed, sold, or promoted by Nasdaq. Nasdaq makes no representation regarding the advisability of investing in this product.

Conflicts of Interest & Other Disclosures

The following describes conflicts of interest and related matters that would apply to the services Quant Alpha LLC intends to offer if and when it becomes registered and begins offering services. Quant Alpha is not currently registered, is not currently offering advisory services, and is not soliciting or accepting clients.

If and when it becomes a registered adviser, Quant Alpha would act as a fiduciary to its clients, placing client interests above its own and seeking to minimize conflicts of interest. Because the Firm does not intend to receive third-party compensation (no commissions, referral fees, or kickbacks), advice would be driven by the strategy's objective criteria and a client's stated goals. As with any investment adviser, conflicts can nonetheless arise; the Firm would disclose material conflicts here and in its Form ADV, including:

Quant Alpha may aggregate client orders when trading, to support fair execution for clients following the same model. In rare cases, different strategies or model updates could mean not all accounts are traded identically (for example, where a new strategy feature is rolled out gradually). The Firm would manage such situations with policies designed so that no client or group is systematically disadvantaged.
The Firm's principals and employees may invest personal funds in the same or similar securities as clients. This is intended to align interests but could be viewed as a conflict if personal trades were executed at different times than client accounts. The Firm's policy would be that client trades take priority and that any personal trading occurs alongside or after client trades, never in advance (no front-running).
The Firm may have an incentive to grow its business and AUM, which could indirectly encourage taking more risk to improve short-term performance. The Firm would mitigate this by adhering to its stated strategy rules and risk parameters and to its regulatory obligation to act in clients' best interests.
Quant Alpha does not intend to receive compensation from Interactive Brokers aside from technology or research credits commonly available to advisers using its platform, if any. The Firm would select IB for its capabilities; clients should be aware that IB would serve as custodian. The Firm would periodically review this arrangement to confirm IB's execution quality, fees, and security remain competitive, and would not be locked in from changing custodians if that clearly benefited clients.

The Firm does not intend to use hidden fees or soft-dollar arrangements, and would inform clients of any material conflict that arises.

Quant Alpha does not provide tax, accounting, or legal advice. Any tax-related information (such as general tax treatment of ETFs or capital gains) would be for informational purposes only and not tailored to a client's situation. Clients should consult a qualified tax adviser or attorney for advice in those areas.

Finally, any performance figures or testimonials shown on this website have important limitations. Because the Firm has not launched, any performance data would be back-tested or hypothetical, would be labeled clearly, and would be presented with context. Hypothetical and back-tested results have inherent biases, do not reflect actual trading, and may differ significantly from real results. Past or projected performance is not a guarantee of future results. Any testimonials would reflect individual experiences and would not guarantee similar outcomes for others. When registered and marketing its services, the Firm intends to comply with the SEC's marketing rule (Rule 206(4)-1).

Client Responsibilities

The following describes responsibilities that would apply to clients if and when Quant Alpha becomes registered and begins offering services. Quant Alpha is not currently registered, is not currently offering advisory services, and is not soliciting or accepting clients.

Under the intended model, alongside the Firm's commitment to manage investments diligently, clients would also have responsibilities to help ensure a sound advisory relationship:

Provide Accurate Information: A client would need to provide true and complete information about their financial situation and update it when changes occur. The algorithm's suitability depends on the quality of the information provided, and the Firm could not be responsible for inappropriate recommendations resulting from misleading or incomplete data.
Use the Platform as Intended: The interactive website would be the medium for advice. Clients would engage with the platform for all advisory interactions, including reviewing recommendations, strategy changes, and account monitoring. Clients would be asked not to seek individualized investment advice from Quant Alpha staff outside the platform, as staff would not be permitted to give advice outside the digital program. For example, an emailed question amounting to "what should I do with my portfolio now?" would typically be met with a direction to log in for the model's guidance or to update inputs. This would support the Firm's adherence to the online-only advice model and equal treatment of clients.
Confidentiality of Access: A client would be responsible for maintaining the confidentiality of login credentials and not sharing account access. A client who suspects their account has been compromised should notify the Firm immediately. (Refer to the Terms of Use for more on account security.)
Review Communications: The Firm would deliver important information electronically (website notifications or email). Clients would be expected to promptly review any alerts, updates, or disclosures. Where the Firm announces a strategy change or an important disclosure update, it would be in the client's interest to be aware of it.
Understand the Strategy: The Firm would aim to explain its strategies in clear language. Clients should make an effort to understand, at least at a high level, the strategy they are following, and ask when anything is unclear. An informed client is better able to stay with a strategy over the long term.
Compliance and Legal Use: A client would agree to use the services in compliance with all applicable laws and regulations, and not to use the platform for illicit purposes, reverse-engineer the algorithms, or engage in abusive behavior. (See Terms of Use for more on prohibited activities.)

Important Notices

No Offer in Unauthorized Jurisdictions: Information on this site is intended for U.S. persons and those in jurisdictions where Quant Alpha would be permitted to offer services if and when it becomes registered. It is not intended for any person in a country or state where such an offer or solicitation would be contrary to law or regulation. Quant Alpha's website is limited to the dissemination of general information about the Firm's intended advisory approach. Publication of this website should not be construed as a solicitation or advertisement for investment advisory services to any person, and no such services are currently offered.

Retention of Records: If and when it becomes a registered adviser, Quant Alpha would maintain records of client communications, transactions, and advice provided through its platform, including archival of advice generated by its software for each client, as required under the Investment Advisers Act and related regulations. Such records would be kept in compliance with applicable SEC rules, typically for no less than five years. The Firm mentions this to indicate that, when operating, client interactions and advice would be documented and available for regulatory review.

Recognition of Risks: A client using the Firm's services would acknowledge having received and reviewed these Disclosures, including the description of intended services, strategies, and risk factors. Investing involves risk, and Quant Alpha does not guarantee any outcome. Any decision to invest with Quant Alpha would be made voluntarily and with awareness of the relevant risks.

Regulatory Status: Quant Alpha is not currently registered with the SEC as an investment adviser. The Firm intends to seek registration and, if and when its registration becomes effective, would be subject to the Investment Advisers Act of 1940 and related SEC rules. At that time, the Firm intends to maintain policies and procedures designed to comply with applicable requirements, including internet adviser conditions, fiduciary duties, marketing rules, the custody rule, and privacy regulations (see Privacy Policy below). A registered adviser is subject to examination by the SEC. The Firm's Chief Compliance Officer would be responsible for overseeing and updating its compliance program. For any compliance-related question, please contact support@quantalpha.net.

Contact Information

If you have any questions about these disclosures or need additional information, you can contact us at:

Quant Alpha LLC
Email: support@quantalpha.com