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A General Investment Risks Warning 

Hornet Corporation, LLC

111 Imperial Bvd

Hendersonville, Tennessee 37075

info@hornetcorp.com

888-783-3099

Last Updated: 01/01/2024

Risk of Loss

Investing in oil and gas drilling ventures, facilitated by Hornet Corp, entails inherent risks. Investors should be cognizant of the Risk of Loss, where the potential exists for the loss of invested capital. This risk stems from the volatile nature of oil and gas prices, which can fluctuate significantly due to market conditions, geopolitical events, and regulatory changes. It is imperative for investors to carefully evaluate the possibility of financial loss and consider risk mitigation strategies as part of their investment approach.

Market Volatility

The oil and gas industry is susceptible to Market Volatility, characterized by sudden and substantial fluctuations in commodity prices. Investors should acknowledge the inherent uncertainty in oil and gas markets, influenced by supply and demand dynamics, geopolitical tensions, and macroeconomic factors. The volatility in market prices can significantly impact the value of investments, necessitating a thorough understanding of market dynamics and risk management techniques.

Illiquidity

Investments in private placements, such as those offered by Hornet Corp, may encounter challenges related to Illiquidity. Investors should be aware that these investments often have extended holding periods and limited avenues for liquidity. Illiquidity may restrict investors' ability to access their funds promptly and may entail restrictions on transferring or selling their investments. As such, investors should carefully assess their liquidity needs and investment horizon before committing funds to private placements.

Lack of Diversification

Investing in the oil and gas industry may result in a Lack of Diversification within an investor's portfolio. Unlike diversified investment portfolios that spread risk across various asset classes, concentrated investments in a single industry may expose investors to heightened volatility and risk. It is essential for investors to evaluate their portfolio allocation and consider diversifying across different industries and asset classes to mitigate concentration risk.

Regulatory and Environmental Risks

The oil and gas industry is subject to Regulatory and Environmental Risks, which can impact operations and investment returns. Changes in regulations governing exploration, production, and environmental practices may affect the cost of doing business and project economics. Additionally, environmental incidents or liabilities can result in financial losses and reputational damage. Investors should stay abreast of regulatory developments and assess the potential impact on their investments.

Geopolitical Events and Technical Challenges

Geopolitical Events and Technical Challenges further contribute to the complexity and risk profile of oil and gas investments. Geopolitical tensions, conflicts, or disruptions in oil-producing regions can disrupt supply and demand dynamics, leading to price volatility. Moreover, technical challenges such as drilling complexities and equipment failures can affect the success and profitability of drilling ventures. Investors should consider these geopolitical and technical risks when evaluating investment opportunities.

Hornet Corp's Emphasis on Risk

Hornet Corp prioritizes the disclosure of risks associated with oil and gas investments to safeguard the interests of potential and existing partners. Through transparent risk disclosure, Hornet Corp aims to ensure that investors are adequately informed to make sound investment decisions aligned with their financial objectives. By fostering transparency and trust in its investment offerings, Hornet Corp seeks to protect the interests of all stakeholders involved.

For inquiries or information, contact Hornet Corp at:

Address: 111 Imperial Blvd, Hendersonville, TN 37075

Email: info@hornetcorp.com

Phone: (888) 783-3099

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