SFDR Disclosures

MKP Capital Management, L.L.C. (the "Investment Manager") as a non-EU AIFM, is not directly subject to the SFDR or the Taxonomy. However, in order to enable certain funds (each a “Fund”) to be, or remain, registered or notified for marketing in certain EEA jurisdictions under the AIFMD national private placement regimes, certain limited disclosures must be made.

Sustainability Risks

A “sustainability risk” means an environmental, social or governance (“ESG”) event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of an investment. While the Investment Manager’s portfolio managers may in their absolute discretion take sustainability risks into account when making an investment decision in respect of the Funds, sustainability risk would not by itself prevent the Investment Manager from making any investment. Instead, sustainability risk forms part of the overall risk management processes, and is one of many risks which may, depending on the specific investment opportunity, be relevant to a determination of risk. However, the Investment Manager does not apply any absolute risk limits or risk appetite thresholds which relate exclusively to sustainability risk as a separate category of risk.

No consideration of the adverse impacts of investment decisions on sustainability factors

The SFDR requires the Investment Manager to disclose whether, and if so how, it considers the principal adverse impacts of its investment decisions on sustainability factors in accordance with a specific regime set out in Article 4 of SFDR. The Investment Manager does not consider the principal adverse impacts of its investment decisions on sustainability factors as none of the mandates for which it is investment manager, including the Funds, provides that such impacts be taken into account.

Transparency of remuneration policies

As a non-EU AIFM, the Investment Manager does not have a remuneration policy for the purposes of AIFMD. Accordingly, the Investment Manager does not disclose how is remuneration policy is consistent with the integration of sustainability risks for the purposes of Article 5 of SFDR.