Presidio Trading announced today its plan to spin out its cryptocurrency markets tail risk strategy as a standalone fund¹. The decision to launch this fund comes as a result of the strategy's strong performance through 2022, so far. "Many current and prospective investors in our multi-strategy fund were interested in learning about our tail risk strategy and if we could provide them with access to the strategy through a standalone vehicle”, said Christopher Kvamme, Founder and CEO of Presidio Trading. “But it’s not just other funds and investors who can benefit from protection against nonlinear drops in cryptocurrency markets. I think this new fund will be valuable to the entire crypto-ecosystem; exchanges, payment processors, project endowments, and really anyone with significant exposure to crypto.”

Tail Risk strategies have gained popularity over the last decade as investors seek to emulate the returns of funds like Mark Spitznagel’s Universa Investments. Cryptocurrency markets seem like a perfect fit for such funds given the constant turmoil and volatility. However, few, if any, funds of this sort exist. "It’s possible that no one has done this because derivatives markets have only recently become mature and liquid enough”, explains Kvamme.

Presidio Trading’s new fund will utilize its existing tail risk strategy with some slight changes. Kvamme elaborates: “Our tail risk strategy works by creating a portfolio that attempts to maximize the geometric mean return when combined with how we anticipate our other strategies to perform, given various market conditions. Take June of this year² for example, a month where ETH fell 44% and BTC fell 37%³. Presidio Trading’s existing private fund had under 1% of its NAV allocated to the tail risk strategy which returned about 560%, so the fund’s 1% allocation to the tail risk strategy generated returns, calculated on the basis of the fund’s entire capital, equal to +4.7% for that month⁴. The fund’s other strategies lost about 0.77%, so the losses incurred by the other strategies were more than covered by the gains from the tail risk strategy. However, while the tail risk strategy can have positive returns when cryptocurrency markets decline, it is generally designed in a way that results in it experiencing losses when cryptocurrency markets are performing well. In order to try to provide the new fund’s investors with similar protections, the strategy will be tweaked to provide broader protection; most likely by covering a cryptocurrency index”.

Presidio Trading is planning to open this fund to accredited investors in the first quarter of 2023, with limited capacity. “Regardless of whether there will be more contagion in the near future, it is important for people in the space to understand that they need to manage their risk. Avoiding large losses is the most important factor in raising a fund’s CAGR and ultimately the log wealth of its investors.", added Kvamme.

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¹ This press release is not an offer to sell securities of any investment fund or a solicitation of offers to buy any such securities. Securities of the current and future funds (the “Funds”) managed or advised by Presidio Trading LLC (“Presidio Trading”) are offered to selected investors only by means of a complete offering memorandum and related subscription materials (the “Offering Documents”) which contain significant additional information about the terms of an investment in one or more of the Funds. Any decision to invest must be based solely upon the information set forth in the Offering Documents, regardless of any information investors may have been otherwise furnished, including this press release. The information in this press release was prepared by Presidio Trading and is believed by Presidio Trading to be reliable and has been obtained from public sources believed to be reliable. Presidio Trading makes no representation as to the accuracy or completeness of such information. Opinions, estimates, projections, and strategy description in this press release constitute the current judgment of Presidio Trading and are subject to change without notice. Any projections are only estimates and actual results will differ and may vary substantially from the projections or estimates shown. This press release is not intended as investment advice or a recommendation to purchase or sell any commodity or security. Presidio Trading has no obligation to update this press release or to otherwise notify a reader thereof if any matter stated herein, changes or subsequently becomes inaccurate. An investment in any strategy, including the tail risk strategy described herein, involves a high degree of risk. There is the possibility of loss and all investment involves risk including the loss of principal.

² June was selected because it was a recent month where digital asset performance was down generally, and thus illustrates how the tail risk strategy performs when markets are down. Historical performance of the strategy over longer periods is available upon request.

³ References to specific cryptocurrencies, digital, assets, indices or other measures of relative market performance over a specified period of time may be presented to show general trends in the markets for the applicable period and are not intended to imply that any Fund’s portfolio is or will be benchmarked to any specific asset, group of assets, or indices either in composition or level of risk. Market data relating to indices or data relating to the performance of specific assets

during specific time periods is provided for comparative purposes only.

⁴ Performance results are presented for informational purposes only and reflect the impact that material economic and market factors had on Presidio Trading’s decision-making process. No representation is being made that any investor or portfolio will or is likely to achieve profits or losses similar to those shown in this press release. Net monthly returns are net of all fees to the investor; however, performance of individual investors may vary based upon differing management fee and incentive allocation arrangements, and the timing of contributions and withdrawals. Performance numbers and other portfolio data were prepared by Presidio Trading and have not been compiled, reviewed, or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. The information provided is historical and is not a guide to future performance. This press release cannot and does not guarantee or predict a similar outcome with respect to any future investment. Presidio Trading makes no implications, warranties, promises, suggestions, or guarantees whatsoever, in whole or in part, that by participating in any investment of or with Presidio Trading you will experience similar investment results or earn any money whatsoever.