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Regulatory

Important Disclosures

Effective April 2026  —  CleverAlpha Securities

CleverAlpha Securities — Broker-Dealer Disclosures

Registration & Regulatory Status

CleverAlpha Securities is a trade name (DBA) of Velocity Capital LLC, an SEC-registered broker-dealer. Velocity Capital LLC is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). CRD #171810 | SEC #8-69479. Registered office: 199 Water Street, 8th Floor, New York, NY 10038. You can verify our registration at FINRA BrokerCheck.

Customer Protection — SIPC

Customer accounts are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 per customer, including up to $250,000 for cash claims, in the event of firm failure. SIPC protection does not cover losses from market fluctuations or declines in the value of your securities. For more information, visit sipc.org or call SIPC at (202) 371-8300.

Not a Bank — Not FDIC Insured as a Firm

CleverAlpha Securities is a broker-dealer, not a bank or savings institution. Securities held in your brokerage account are NOT insured by the FDIC. However, brokered Certificates of Deposit (CDs) purchased through CleverAlpha Securities are issued by FDIC-insured banks and may be covered by FDIC insurance up to applicable limits (see CD-Specific Disclosures below).

Introducing Broker Relationship

Velocity Capital LLC may act as an introducing broker-dealer to Velocity Clearing LLC for certain account types. In this capacity, Velocity Clearing LLC may serve as the clearing firm and may hold customer assets. Velocity Clearing LLC is a separate legal entity from Velocity Capital LLC and CleverAlpha Securities.

Order Execution

CleverAlpha Securities is required to disclose its order routing practices and seek best execution for customer orders. Our Order Routing Disclosure (Rule 606) is available upon request. We may receive payment for order flow. Details are disclosed in our Customer Agreement.

Margin Trading

Trading on margin entails significant risk, including the risk of losing more than your initial investment. Margin requirements are set by FINRA and may be increased by CleverAlpha Securities at any time. A decline in the value of securities purchased on margin may require you to deposit additional funds immediately or have your securities sold at a loss. Before trading on margin, carefully read our Margin Disclosure Statement.

Options Trading

Options trading involves significant risks and is not appropriate for all investors. Before trading options, read the Characteristics and Risks of Standardized Options published by the Options Clearing Corporation (OCC). Options carry unique risks including the potential loss of the entire premium paid.

Certificates of Deposit (CD) — Specific Disclosures

Brokered CDs vs. Bank CDs

CDs offered through CDexplorer and CleverAlpha Securities are brokered CDs, which differ from CDs purchased directly at a bank. Brokered CDs are issued by banks and purchased in bulk by broker-dealers, who then offer them to individual investors. Unlike bank CDs, brokered CDs are tradeable securities that may be bought and sold in a secondary market prior to maturity.

FDIC Insurance

Brokered CDs are issued by FDIC-insured banks. FDIC insurance covers up to $250,000 per depositor, per ownership category, per FDIC-insured institution. Because CleverAlpha Securities may hold CDs from multiple banks on your behalf, you may be able to achieve FDIC coverage exceeding $250,000 by purchasing CDs from different issuing institutions. However, it is your responsibility to monitor your aggregate deposits at any single issuing institution. FDIC insurance does not protect against losses from selling a CD before maturity in the secondary market.

Interest Rate Risk

If you sell a CD in the secondary market before it matures, you may receive more or less than your original principal, depending on prevailing interest rates. When interest rates rise, the market value of existing CDs typically falls. When rates fall, the market value of existing CDs typically rises.

Call Risk

Some CDs are “callable,” meaning the issuing bank has the right to redeem the CD before its stated maturity date. Callable CDs typically offer higher rates to compensate for this risk. If a CD is called, you may not be able to reinvest the proceeds at the same rate.

Issuing Bank Credit Risk

While brokered CDs are covered by FDIC insurance up to applicable limits, amounts exceeding FDIC limits are subject to the credit risk of the issuing bank. In the event of bank failure, recovery of amounts exceeding FDIC limits is not guaranteed.

Liquidity Risk

While CDexplorer provides access to a secondary market for CDs, secondary market liquidity is not guaranteed. Market conditions, credit quality of the issuing institution, and prevailing interest rates may affect your ability to sell a CD at a favorable price prior to maturity. There is no guarantee that a buyer will be available for your CD in the secondary market.

No Early Withdrawal Penalty — But Market Risk Applies

Brokered CDs do not have traditional early withdrawal penalties. However, if you sell a CD in the secondary market before maturity, you are subject to market risk and may receive less than the face value of the CD.

Step-Rate and Variable-Rate CDs

Some CDs offer step-rate (escalating rate) or variable-rate structures. Step-rate CDs have rates that change at predetermined intervals. Variable-rate CDs have rates tied to a benchmark index and may fluctuate over time. These structures differ from traditional fixed-rate CDs and carry their own unique characteristics and risks.

CleverAlpha Asset Management — Investment Adviser Disclosures

Registration & Status

CleverAlpha Asset Management LLC is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). CRD #301620. Registered office: 5155 West Rosecrans Ave, Suite 320A, Hawthorne, CA 90250. Registration with the SEC does not imply any particular level of skill or training, nor does it constitute an endorsement by the SEC. Form ADV and our Brochure are available upon request or at SEC IAPD.

Investment Risk

All investing involves risk, including the possible loss of principal. Past performance is not an indication or guarantee of future results. Asset allocation and diversification strategies do not guarantee a profit or protect against loss in declining markets. The value of your investment will fluctuate based on market conditions.

Fee Disclosure

CleverAlpha Asset Management charges an annual advisory fee of 0.25% (25 basis points) on assets under management, subject to a minimum of $1 per month. Fees are disclosed in our Form ADV Part 2A (Brochure), which you will receive before or at the time of account opening. In addition to advisory fees, you may incur fund-level expenses (expense ratios) for the ETFs and other securities held in your account.

Not a Bank

CleverAlpha Asset Management is not a bank. Advisory accounts are not insured by the FDIC or any government agency. CleverAlpha Asset Management does not hold client assets directly; assets are held at a qualified custodian.

General Disclosures

No Tax or Legal Advice

Nothing on our websites or platforms constitutes tax advice, legal advice, or accounting advice. CleverAlpha is not a tax adviser or law firm. You should consult your own tax and legal advisers regarding the tax treatment of any investment and the legal implications of any transaction.

Third-Party Information

Our platforms may display data, rates, and information provided by third-party data providers. While we make reasonable efforts to ensure accuracy, we make no warranty as to the completeness, accuracy, or timeliness of third-party data. Rate information displayed is for informational purposes only and is subject to change without notice.

Forward-Looking Statements

Any forward-looking statements on our websites reflect our current expectations and assumptions. Actual results may differ materially due to market conditions, interest rate changes, regulatory changes, and other factors beyond our control.

Regulatory Resources