Performance and Earnings Disclosure
Draft — counsel review required
This document is a working draft prepared as a starting point for review by qualified U.S. counsel. It has not been reviewed or approved by an attorney, it is not legal advice, and it is not yet in force. Do not rely on it.
Every result is classified
Where Kernwell Systems presents results of any kind, each item is labelled with its type, and types are never combined into a single figure:
- Actual - founder: results from an account traded by the founder.
- Actual - student submitted: results submitted by a student. We do not independently audit customer-submitted results unless stated.
- Prop-firm result: results achieved in a proprietary trading firm evaluation or funded account, which differ materially from a personal brokerage account in rules, sizing, and payout structure.
- Simulated / paper: results from a simulated environment with no capital at risk.
- Hypothetical: results produced by applying rules to market data rather than by trading.
- Backtested: results produced by applying rules to historical data.
We do not aggregate these categories into a company-wide return figure, and we do not present them with identical visual treatment.
Hypothetical and backtested results
Hypothetical performance results have many inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading and may not be affected by brokerage or other slippage fees. Because the trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors such as lack of liquidity.
Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
DRAFT NOTE FOR COUNSEL: CFTC Regulation 4.41(b) prescribes specific disclaimer language for hypothetical performance results. The paragraphs above are a starting point only. Counsel must confirm the operative text, its placement, and whether the rule applies to this business at all.
Results are not typical and are not a promise
Where results are shown, they are the results of a specific person over a specific period under specific conditions. They are not typical, they are not a projection, and they should not be understood as what you can expect.
We do not claim that our students become profitable, that any program leads to funding or employment, or that any product produces income.
Testimonials
Testimonials reflect the experience of the individual giving them. Where a person received compensation or any more-than-nominal incentive in connection with a testimonial, that fact is disclosed with the testimonial.