VaR (Value at Risk) literally means "value at risk", and its meaning means.

The maximum possible loss on a financial asset or portfolio of securities under normal market fluctuations.

The maximum retracement of a fund refers to the maximum range from the peak to the bottom of the historical curve of the fund's net value, that is, the maximum retracement of the return rate when the fund's highest net value reaches its lowest point.

The index of the fund's maximum drawdown represents the fund manager's ability to grasp risks and trends, and is an important measure of the fund's risk control ability.

The smaller the fund's maximum drawdown, the more stable the fund is.

More precisely, it refers to the maximum possible loss in the value of a certain financial asset or security portfolio in a specific period in the future under a certain probability level (confidence).