Company: RIV
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017710
Chunk: 86

Company: RIVERNORTH OPPORTUNITIES FUND, INC.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 86
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 income or total return or protect the value of portfolio securities; to serve as a cash management tool; and to adjust portfolio
duration.

There are risks in the use of swaps. Swaps could
result in losses if interest or foreign currency exchange rates or credit quality changes are not correctly anticipated. Total return
swaps could result in losses if the reference index, security, or investments do not perform as anticipated. Total return swaps involve
an enhanced risk that the issuer or counterparty will fail to perform its contractual obligations. Total return swaps may effectively
add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on the full notional amount of the
swap. To the extent the Fund or an Underlying Fund enters into a total return swap on equity securities, the Fund or the Underlying Fund
will receive the positive performance of a notional amount of such securities underlying the total return swap. In exchange, the Fund
or the Underlying Fund will be obligated to pay the negative performance of such notional amount of securities. Therefore, the Fund or
the Underlying Fund assumes the risk of a substantial decrease in the market value of the equity securities. The use of swaps may not
always be successful; using them could lower fund total return, their prices can be highly volatile, and the potential loss from the use
of swaps can exceed the fund’s initial investment in such instruments. Also, the other party to a swap agreement could default on
its obligations or refuse to cash out the fund’s investment at a reasonable price, which could turn an expected gain into a loss.

RiverNorth Opportunities Fund, Inc.

Currently, certain categories of interest rate
swaps are subject to mandatory clearing, and more are expected to be cleared in the future. The counterparty risk for cleared derivatives
is generally expected to be lower than for uncleared over-the-counter derivative transactions as each party to a transaction looks only
to the central clearing house for performance of obligations under the transaction. However, there can be no assurance that a clearing
house, or its members, will satisfy the clearing house’s obligations to the fund or that the fund’s use of swaps will be advantageous.

Warrant Risks The Fund and the Underlying Funds may invest in warrants. Warrants are securities giving the holder the right, but not the obligation, to buy the stock of an issuer at a given price (generally higher than the value of the stock at the time of issuance) during a specified period or perpetually. Warrants do not