Company: ADAMM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001273685-25-000028
Chunk: 156

Company: ADAMAS TRUST, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 156
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•Our operating partners could subject us to liabilities in excess of those contemplated or prevent us from taking actions which are in the best interests of our stockholders.

•Our real estate and real estate-related assets are subject to risks particular to real property.

•Due diligence as a part of our acquisition or underwriting process may be limited, may not reveal all of the risks associated with such assets and may not reveal other weaknesses in such assets, which could lead to material losses.

•The lack of liquidity in certain of our assets may adversely affect our business.

•The use of models in connection with the valuation of our assets subjects us to potential risks in the event that such models are incorrect, misleading or based on incomplete information.

•Our investments in residential loans are difficult to value and are dependent upon the borrower’s ability to service or refinance their debt. 

•Competition may prevent us from acquiring assets on favorable terms or at all.

•System failures and other operational disruptions in our information and communications systems and those of our third-party service providers could significantly disrupt our business.

Risks Related to Debt Financing and Our Use of Hedging Strategies

•Our access to financing sources may not be available on favorable terms or at all.

•The repurchase agreements that we use to finance our investments may require us to provide additional collateral, which could reduce our liquidity and harm our financial condition.

•We leverage our equity, which can exacerbate any losses we incur on our current and future investments and may reduce cash available for distribution to our stockholders.

•If we are unable to leverage our equity to the extent we currently anticipate, the returns on certain of our assets could be diminished, which may limit or eliminate our ability to make distributions to our stockholders.

•We directly or indirectly utilize non-recourse securitizations and recourse structured financings and such structures expose us to risks that could result in losses to us.

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•If a counterparty to our repurchase transactions defaults on its obligation to resell the pledged assets back to us at the end of the transaction term or if we default on our obligations under the repurchase agreement, we may incur losses.

•Our use of repurchase agreements to borrow funds may give our lenders greater rights in the event that either we or a lender files for bankruptcy.

•Negative impacts on our business may cause us to default on certain financial covenants contained in our financing arrangements.

•Hedging against interest rate and market value changes as well as other risks may materially adversely affect our business