Company: RIV
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017710
Chunk: 78

Company: RIVERNORTH OPPORTUNITIES FUND, INC.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 78
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 As an Underlying Fund writes covered calls over more of its portfolio, its ability to benefit from
capital appreciation becomes more limited and the risk of NAV erosion increases. To the extent an Underlying Fund experiences NAV erosion
(which itself may have an indirect negative effect on the market price of interests in the Underlying Fund), the Underlying Fund will
have a reduced asset base over which to write covered calls, which may eventually lead to reduced distributions to shareholders such as
the Fund. The writer of an option has no control over the time when it may be required to fulfill its obligation as a writer of the option.
Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation
under the option and must deliver the underlying security at the exercise price.

To the extent that an Underlying Fund engages
in selling options that trade in over-the-counter markets, the Underlying Fund may be subject to additional risks. Participants in these
markets are typically not subject to the same credit evaluation and regulatory oversight as members of “exchange based” markets.
By engaging in option transactions in these markets, an Underlying Fund may take credit risk with regard to parties with which it trades
and also may bear the risk of settlement default. These risks may differ materially from those involved in exchange-traded transactions,
which generally are characterized by clearing organization guarantees, daily marking-to-market and settlement, and segregation and minimum
capital requirements applicable to intermediaries. Transactions entered into directly between two counterparties generally do not benefit
from these protections, which may subject an Underlying Fund to the risk that a counterparty will not settle a transaction in accordance
with agreed terms and conditions because of a dispute over the terms of the contract or because of a credit or liquidity problem. Such
“counterparty risk” is increased for contracts with longer maturities when events may intervene to prevent settlement.

The Fund or an Underlying Fund may enter into
futures contracts in U.S. domestic markets or on exchanges located outside of the United States. Foreign markets may offer advantages,
including trading opportunities or arbitrage possibilities, not available in the United States. Foreign markets, however, may have greater
risk potential than domestic markets. For example, some foreign exchanges are principal markets, so that no common clearing facility exists
and an investor may look only to the broker or counterparty for the performance of the contract. Unlike trading on domestic commodity
exchanges, trading on foreign commodity exchanges is not regulated by the Commodity Futures Trading Commission