What could cause ARKY's Net Asset Value (NAV) to decline over time?

NAV erosion can occur when one or more positions breach their maturity barrier, requiring ARKY to absorb the downside performance of the underlying stock. It can also result from reinvestment at less favorable terms after early calls, or from a broad market environment in which barrier breaches are widespread. Active management is specifically focused on minimizing this risk by adjusting strike levels, maturities, and position structures as conditions evolve. There is no guarantee, however, that active management will fully prevent NAV erosion, particularly during sustained or severe market downturns. In this type of economic environment where the entire market is down, it is to be expected that ARKY’s portfolio would behave similarly. The Fund is subject to a daily mark to market which is the value of each position each day, not what ARKY originally paid for it or what we may receive at maturity.