Disclaimer
Understand model assumptions, estimation limits and decision risks when interpreting Finocturne's calculations and educational content.
Last updated:
On this page
Education and the limits of advice
Finocturne's tools, cases, guides and results provide education and general information. They are not personalized investment, financial, legal or tax advice, a buy or sell recommendation, a suitability assessment, a return promise or an executable quote.
We do not know your complete financial position, risk tolerance, obligations or regulatory requirements. Important decisions require your circumstances and appropriate qualified professional guidance, rather than a single website result.
Formulas, inputs and assumptions
A mathematically correct result can still rely on unsuitable assumptions. Check cash-flow signs, currency, percentages, nominal versus effective rates, payment timing and frequency. Annual, monthly and quarterly data cannot simply be mixed without adjustment.
Each tool's simplified settings determine its scope. Costs, terms and risks not expressly included should not be assumed to be fully modeled. Scenario comparisons isolate assumptions for teaching; real-market variables do not necessarily change independently.
Compounding, present value and annuities
Time-value models generally assume specified interest or return rules remain applicable over the chosen periods and use defined payment times. Beginning versus end payments, compounding frequency and reinvestment methods change the result.
A constant-growth illustration is neither a deposit contract nor a performance forecast. Actual returns can fluctuate, be negative or be unavailable for reinvestment, and contributions or withdrawals can be interrupted. Unless expressly modeled, results do not represent purchasing power after inflation, taxes and fees.
NPV, IRR, MIRR and DCF
NPV and DCF are sensitive to discount rates, cash flows, growth and terminal values. A valuation is not a guaranteed transaction price. Free cash flows and discount rates must use consistent definitions, and perpetual-growth models have conditions of applicability.
Non-conventional cash flows can have multiple IRRs or no usable IRR. Different scales and timing can produce conflicting IRR and NPV rankings. MIRR uses specified finance and reinvestment rates without eliminating forecast risk. No single metric guarantees the best decision.
Bond yields, prices and interest-rate risk
Bond prices, YTM, duration and convexity depend on assumed cash flows, coupon frequency, settlement and other conventions. YTM is an implied rate consistent with price and contractual cash flows, not the realized return for every holding period.
Default, calls, liquidity, spreads, trading costs, taxes and coupon reinvestment affect outcomes. A duration-based linear approximation is primarily useful for small yield changes; larger moves and non-parallel curve shifts can depart from it. The same simplified model is not appropriate for every bond.
Returns, risk and performance measures
Historical, hypothetical and model-estimated returns do not guarantee future performance. A historical case concerns its stated period and definitions, not selected winning years or a permanent outcome. An arithmetic average is not a compound annual growth rate.
Beta, CAPM Alpha, Sharpe Ratio and correlation measure different aspects and depend on period, frequency, benchmark and model. A simplified one-period Alpha is not a reliable historical regression estimate or proof of manager skill. Volatility and a single ratio cannot capture every investment risk.
Inflation, costs, currencies and sources
Inflation, taxes, fees, exchange rates, trading restrictions and policies vary over time and by circumstance. Educational TWD/USD language defaults are not live currency conversion; identical figures in different currencies are not equivalent without conversion.
Official and third-party sources can revise data and definitions. Read fixed historical research with its observation period and verification date; it is not a live quote. Do not assume automatic updates unless the page explicitly provides them.
Precision, technical limits and verification
Floating-point arithmetic, display rounding, numerical root-finding and extreme inputs can produce differences. Browsers, devices, bugs and service interruptions can affect display and operation. Charts aid understanding and should be read with their underlying assumptions and data.
For material amounts or unusual transactions, check original documents, an independent calculation and qualified advice. Report suspected errors to contact@finocturne.com with the tool name, steps and example figures, without sensitive personal financial information.
Financial decisions and responsibility
Investing and borrowing can cause losses. You must assess your capacity and whether information applies to you. This statement guarantees neither a financial product nor an outcome. Responsibility depends on the Terms of Use, facts and applicable law.
This statement cannot exclude liability or restrict rights that cannot legally be waived. See the Privacy Policy for data handling and consent choices. Changes to this statement will be reflected in its update date.