Company: RIV
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017710
Chunk: 59

Company: RIVERNORTH OPPORTUNITIES FUND, INC.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 59
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 of risk of volatility and loss
of principal than other investment options and may also be highly speculative and aggressive.

| 64 | www.rivernorth.com |

RiverNorth Opportunities Fund, Inc.

The 1940 Act imposes certain constraints upon
the operations of a BDC. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of U.S. private
companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high-quality debt investments
that mature in one year or less. Generally, little public information exists for private and thinly traded companies in which a BDC may
invest and there is a risk that investors may not be able to make a fully informed evaluation of a BDC and its portfolio of investments.
With respect to investments in debt instruments, there is a risk that the issuers of such instruments may default on their payments or
declare bankruptcy. Many debt investments in which a BDC may invest will not be rated by a credit rating agency and will be below investment
grade quality. These investments are commonly referred to as “junk bonds” and have predominantly speculative characteristics
with respect to an issuer’s capacity to make payments of interest and principal. Although lower grade securities are potentially
higher yielding, they are also characterized by high risk. In addition, the secondary market for lower grade securities may be less liquid
than that of higher rated securities. Certain BDCs may also be difficult to value since many of the assets of BDCs do not have readily
ascertainable market values.

Additionally, a BDC may only incur indebtedness
in amounts such that the BDC’s asset coverage ratio of total assets to total senior securities equals at least 200% after such incurrence.
These limitations on asset mix and leverage may affect the way that the BDC raises capital. BDCs compete with other entities for the types
of investments they make, and such entities are not necessarily subject to the same investment constraints as BDCs.

Index-based ETFs (and other index funds) in which
the Fund may invest may not be able to replicate exactly the performance of the indices they track or benchmark because the total return
generated by the securities will be reduced by transaction costs incurred in adjusting the actual balance of the securities. ETFs may
trade at a price above (premium) or below (discount) their NAV, especially during periods of significant market volatility or stress,
causing investors to pay significantly more