# Algorithm Updates and Limitations

**Algorithm Updates and Limitations Disclosure**

_Effective as of January 22, 2025 (the “Effective Date”)_  
Our firm utilizes proprietary algorithms to manage client portfolios and provide automated investment advice. We are committed to continuously improving our technology to serve you better. However, it is crucial that you understand the potential implications of these improvements and the inherent limitations of algorithmic investing.

We may periodically update, modify, or enhance the algorithmic code that powers our investment recommendations and portfolio management. These changes to our algorithm may materially affect your investment portfolio, including adjustments to asset allocation, changes in security selection criteria, modifications to rebalancing frequency or thresholds, and updates to risk assessment methodologies. Such changes could potentially result in increased trading activity in your account, shifts in sector or geographic exposures, and alterations to the types of securities held in your portfolio. While we strive to improve our services, there is no guarantee that algorithm changes will result in better performance or reduced risk for your specific portfolio.

It's important to understand that our algorithms rely on historical data and statistical models to make predictions and decisions. These models may not always account for unprecedented market conditions or changes in economic environments, which could lead to incorrect predictions or suboptimal investment decisions. Additionally, while our algorithms are designed to make decisions based on patterns and trends, they may not respond appropriately during times of heightened market volatility or unexpected events, potentially resulting in losses or missed opportunities during turbulent market conditions. There is also a risk that our algorithms may become too focused on historical data, leading to situations where the model performs well on past data but fails to predict future market movements accurately, resulting in strategies that do not adapt well to changing market conditions.

Furthermore, while our algorithms can process data quickly and without emotion, they lack the nuanced judgment that human investment professionals can apply in complex or unprecedented situations. This reliance on purely mathematical models may not fully capture factors like geopolitical risk, regulatory changes, or other qualitative considerations that could impact investment performance. It's also important to note that our algorithmic investment process is dependent on technology, including software and hardware infrastructure. Any malfunction, glitch, or cyberattack could cause unexpected disruptions or errors in investment decisions, potentially impacting your portfolio.

We may not provide advance notice of specific algorithm changes, as these are considered proprietary. However, our investment team regularly reviews and oversees the performance and operation of our algorithms to ensure they align with our investment philosophy and your stated objectives. We encourage you to regularly review your investment objectives and risk tolerance, and to contact us if you have any questions or concerns about your portfolio or our algorithmic investment process.

By continuing to use our robo-advisory services, you acknowledge and accept that changes to our algorithmic code may occur and could have a material impact on your investment portfolio. You also acknowledge the inherent limitations and risks associated with algorithmic investing.

# General Disclaimer

Interest Financial, LLC ("Interest Financial") is an SEC registered investment adviser. By using this website, you accept our Terms of Use and our Privacy Policy. Interest Financial's investment advisory services are available only to residents of the United States. Nothing on this website should be considered an offer, recommendation, solicitation of an offer, or advice to buy or sell any security. The information provided herein is for informational and general educational purposes only and is not investment or financial advice. Additionally, Interest Financial does not provide tax advice and investors are encouraged to consult with their personal tax advisors.

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Any historical returns, expected returns or probability projections are hypothetical in nature and may not reflect actual future performance. A balanced portfolio requires different investment strategies which Interest Financial does not provide. Brokerage services will be provided to Interest Financial clients through Alpaca Securities, LLC ("Alpaca") and Apex Clearing Corporation ("Apex"), who are SEC-registered broker-dealers and members [FINRA](http://finra.org/)/ [SIPC](http://sipc.org/). Member of SIPC. Securities in your account protected up to $500,000. For details, please see [www.sipc.org](http://www.sipc.org/). Although trading occurs free of commission, relevant SEC & FINRA fees may apply. Please visit [Commissions and Fees](https://www.grifin.com/legal/fees) for our full fee schedule.

Software platform services will be provided by Grifin, LLC ("Grifin") through its patent pending mobile and web software application configured to assist Interest Financial's clients in automatic purchases of securities. Interest Investments, Inc. ("Interest Investments") is the parent company of Interest Financial and Grifin.

grifin® is a registered trademark of Interest Investments, inc.. Other trademarks and logos which may be depicted on the website or app are the property of their respective owners and do not represent endorsements of any kind. Unless otherwise noted, Interest Financial, LLC, Grifin, LLC, and Interest Investments, Inc. are not partners, affiliates, or licensees of these companies.

Notwithstanding the use of services through Alpaca, Apex, and Grifin by Interest Financial, LLC, any investment advisor, trade related or brokerage questions shall be communicated to hello@interestfinancial.com. Any questions pertaining to the functionality or use of the Grifin mobile and web software application should be communicated via the chat functionality on the website or app.

All corporate logos and prices are for illustrative purposes only and are not a recommendation, an offer to sell, or a solicitation of an offer to buy any security.