Agricultural Risk Disclosure

IMPORTANT NOTICE: INVESTMENTS IN LIVESTOCK SYNDICATIONS AND FRACTIONAL RANCH UNITS ARE HIGH-RISK, SPECULATIVE INVESTMENTS. THEY ARE NOT BANK DEPOSITS, ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC), AND CARRY THE RISK OF COMPLETE LOSS OF INVESTED CAPITAL. Before subscribing to any livestock syndication on Rodeo Capital, you must carefully evaluate the following material operational, climatic, biological, and commodity market risks: 1. BIOLOGICAL & ANIMAL HEALTH HAZARDS Investments on Rodeo Capital represent direct fractional title to living, biological organisms. Livestock are subject to disease, injury, and natural mortality: (a) Infectious Diseases: Herds can contract Bovine Respiratory Disease (BRD), infectious bovine rhinotracheitis (IBR), bovine viral diarrhea (BVD), bloat, clostridial infections, and parasitic conditions despite standard Beef Quality Assurance (BQA) vaccination regimens; (b) Small Ruminant Risks: Pastured sheep and meat goats carry additional biological vulnerabilities, including internal parasite proliferation (Haemonchus contortus) and localized predator exposure (coyotes, bobcats); (c) Insurance Limitations: While Rodeo Capital mandates broad-form commercial mortality insurance on all syndicated herds, insurance policies carry specific deductibles (typically 3%–5% of insurable herd value), policy exclusions, and claim investigation horizons. Insurance does not reimburse lost weight gain or anticipated profits. 2. CLIMATIC HAZARDS, WEATHER EXTREMES & EXTENDED DROUGHT Pasture grazing and backgrounding operations depend directly on seasonal precipitation and forage availability: (a) Drought Deficits: Extended drought reduces carrying capacity and degrades native grass protein volume. In drought conditions, host ranchers must purchase supplemental hay, grain, or protein supplements, substantially elevating operational expenses and diminishing net investor payouts; (b) Extreme Weather Events: Severe winter blizzards, sub-zero freezes, extreme summer heat stress, and sudden flash floods can cause elevated death loss, stunted daily weight gains, or delayed marketing schedules; (c) Wildfire Hazard: Western rangelands are susceptible to wildfires that can destroy perimeter fencing, grazing forage, and livestock water infrastructure. 3. COMMODITY PRICE VOLATILITY & BASIS RISK The financial return of every livestock syndicate depends on the terminal cash price received when cattle, sheep, or goats are marketed at packing plants, feedlots, or auction facilities: (a) Live Cattle & Feeder Futures Fluctuations: Market prices fluctuate constantly based on macroeconomic consumer beef demand, international trade tariffs, feed grain (corn/soy) futures prices, and packing plant processing capacity; (b) Gain vs. Price Compression: Even if a herd achieves exceptional Average Daily Gain (ADG), a sharp decline in broader commodity market prices between initial placement and final harvest can compress margins or result in an overall financial loss; (c) Basis Risk: Local cash prices at regional auction barns or regional packers may trade at a discount to national CME futures benchmark prices. 4. ILLIQUIDITY AND ABSENCE OF SECONDARY MARKET (a) No Redemption Affordance: Fractional livestock units cannot be redeemed, withdrawn, or cancelled prior to the completion of the project lifecycle and the marketing of the underlying herd; (b) Restricted Securities: Units are restricted securities under Rule 144 of the Securities Act of 1933. No public secondary trading exchange exists, and transfers are subject to strict legal restrictions and managing operator consent; (c) Fixed Production Duration: Projects range in duration from 6 months (backgrounder/stocker steer programs) to 36 months (heifer development and breeding herds). You must have the financial capacity to lock up your committed capital for the entire term. 5. OPERATOR DEPENDENCE & HUSBANDRY RISK Rodeo Capital vets partner ranches rigorously, but the performance of each syndication depends on the individual management capability, veterinary diligence, and operational integrity of the host rancher. Management turnover, labor shortages, illness, or equipment failure at the host ranch can adversely impact herd performance. 6. LAND TENURE & WATER INFRASTRUCTURE HAZARDS Ranch operations utilize deeded land, state grazing leases, and federal Bureau of Land Management (BLM) allotments: (a) Lease Renewal Risks: Private pasture leases or public grazing permits may be modified, restricted, or revoked due to environmental regulations or conservation mandates; (b) Water Failure: Grazing depends on functional solar pumps, windmills, and municipal pipelines. Severe mechanical failure or depleted aquifers during peak summer months can force premature emergency herd relocation at significant expense. 7. PROJECTIONS ARE AGRICULTURAL ESTIMATES, NOT GUARANTEES All return benchmarks, target internal rates of return (IRR), projected cash payouts, and weight-gain schedules displayed on the Platform are forward-looking agricultural modeling estimates. They are calculated using historical pasture gain models and conservative commodity prices. THEY DO NOT CONSTITUTE GUARANTEED RESULTS OR PROMISES OF PROFIT. PAST RANCH PERFORMANCE IS NEVER A GUARANTEE OF FUTURE HARVEST OUTCOMES. YOU SHOULD NOT INVEST CAPITAL YOU CANNOT AFFORD TO LOSE IN ITS ENTIRETY.