Company: RIV
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017710
Chunk: 76

Company: RIVERNORTH OPPORTUNITIES FUND, INC.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 76
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 Risks

The Fund and the Underlying Funds may invest in
options and futures contracts. The use of futures and options transactions entails certain special risks. In particular, the variable
degree of correlation between price movements of futures contracts and price movements in the related securities position of the Fund
or an Underlying Fund could create the possibility that losses on the hedging instrument are greater than gains in the value of the Fund’s
or Underlying Fund’s position. In addition, futures and options markets could be illiquid in some circumstances and certain over-the-counter options could have no markets. As a result, in certain markets, the Fund or an Underlying Fund might not be able to close out
a transaction without incurring substantial losses. Although the Fund’s or an Underlying Fund’s use of futures and options
transactions for hedging should tend to minimize the risk of loss due to a decline in the value of the hedged position, at the same time
it will tend to limit any potential gain to the Fund or an Underlying Fund that might result from an increase in value of the position.
There is also the risk of loss by the Fund or an Underlying Fund of margin deposits in the event of bankruptcy of a broker with whom the
Fund or Underlying Fund has an open position in a futures contract or option thereon. Finally, the daily variation margin requirements
for futures contracts create a greater ongoing potential financial risk than would purchases of options, in which case the exposure is
limited to the cost of the initial premium. However, because option premiums paid by the Fund or an Underlying Fund are small in relation
to the market value of the investments underlying the options, buying options can result in large amounts of leverage. This leverage offered
by trading in options could cause the Fund’s or an Underlying Fund’s NAV to be subject to more frequent and wider fluctuation
than would be the case if the Fund or Underlying Fund did not invest in options.

Options transactions may be effected on securities
exchanges or in the over-the-counter market. When options are purchased over-the-counter, the Fund or an Underlying Fund bears the risk
that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. The counterparties
to these transactions typically will be major international banks, broker-dealers and financial institutions. Such options may also be
illiquid, and in such cases, the Fund or an Underlying Fund may have difficulty closing out its position. Banks, broker