Risk Disclosure

1. Nature of Cryptocurrency Trading Risks

Cryptocurrency markets are characterized by extreme price volatility, low liquidity in certain assets, and rapid market movements. Unlike traditional financial markets, cryptocurrency trading is largely unregulated, 24/7, and subject to unpredictable events including regulatory changes, technological failures, and market manipulation.

Key characteristics of crypto markets:

• Prices can fluctuate by double-digit percentages in minutes or hours
• Markets operate continuously without trading halts or circuit breakers
• Many assets have thin order books and limited liquidity
• Historical performance does not predict future results
• Regulatory status varies widely by jurisdiction and can change rapidly

2. Specific Risks of Using HYPX

2.1 Market and Trading Risks

• Volatility Risk: Sudden price swings can trigger stop-losses, liquidations, or slippage far beyond expected levels
• Liquidity Risk: During periods of market stress, you may not be able to exit positions at desired prices or at all
• Slippage: Actual execution prices may differ significantly from expected prices, especially during high volatility
• Gap Risk: Prices can "gap" over your stop-loss levels, resulting in larger-than-anticipated losses
• Leverage Risk: If your strategies use leverage (margin trading), losses can exceed your initial investment
• Correlation Risk: Assets assumed to be uncorrelated may move together during market stress

2.2 Automation and Execution Risks

• Strategy Logic Errors: Errors in your bot configuration or strategy logic can result in unintended trades or losses
• Over-Trading: Bots may execute more trades than intended, incurring excessive fees and slippage
• Execution Delays: Network latency, API rate limits, or platform congestion can delay order execution
• Order Rejection: Exchanges may reject orders due to insufficient balance, position limits, or technical issues
• Runaway Strategies: Malfunctioning automation could place orders repeatedly or in unintended quantities
• Backtesting Limitations: Historical backtests do not account for real market conditions, slippage, or changing market dynamics

2.3 Technical and Infrastructure Risks

• Platform Downtime: HYPX, exchanges, or blockchain networks may experience outages, preventing you from managing positions
• API Failures: Exchange APIs may become unavailable, rate-limited, or return incorrect data
• Software Bugs: Despite testing, software errors may cause unexpected behavior or data loss
• Connectivity Issues: Internet outages or network problems can disrupt automated trading
• Data Feed Errors: Inaccurate or delayed market data can lead to poor trading decisions
• Smart Contract Risks: Bugs or vulnerabilities in blockchain smart contracts can result in loss of funds

2.4 Security Risks

• Exchange Security: Exchanges may be hacked, become insolvent, or freeze withdrawals
• API Key Compromise: If your API keys are stolen or misused, unauthorized parties may execute trades on your account
• Phishing and Social Engineering: Attackers may impersonate HYPX or exchanges to steal credentials
• Wallet Security: Loss of private keys or seed phrases results in permanent loss of funds
• Insider Threats: While we implement security controls, internal or external actors could potentially compromise systems

2.5 Regulatory and Legal Risks

• Regulatory Uncertainty: Cryptocurrency regulation is evolving and may restrict or prohibit certain activities
• Tax Obligations: Automated trading generates taxable events; you are responsible for compliance with tax laws
• Jurisdictional Restrictions: Services may become unavailable in your jurisdiction due to regulatory changes
• Exchange Delisting: Assets may be delisted from exchanges, making them illiquid or worthless
• Sanctions Risk: Interacting with sanctioned entities or addresses could result in legal liability or frozen funds

2.6 Third-Party Risks

• Exchange Counterparty Risk: Exchanges may default, become insolvent, or refuse to process withdrawals
• Stablecoin Risk: Stablecoins may lose their peg, become illiquid, or be subject to regulatory action
• Oracle and Data Provider Risks: Price feeds and market data may be manipulated or inaccurate
• Payment Processor Risk: Payment providers may freeze accounts or reverse transactions

3. No Investment Advice or Guarantee of Profit

HYPX is a software tool, not a financial advisor. We do not provide investment advice, portfolio management, or recommendations tailored to your financial situation. All trading decisions are made solely by you.

We make no guarantees regarding:

• Profitability of any strategy or bot
• Accuracy of backtests, simulations, or historical data
• Future performance of strategies based on past results
• Suitability of the Services for your financial objectives
• Availability or performance of the Services at any given time

⚠️ Past performance is not indicative of future results. Backtests are based on historical data and do not reflect real trading conditions, slippage, fees, or changing market dynamics.

4. You Are Solely Responsible for Your Trading

By using HYPX, you acknowledge and accept full responsibility for:

• All trading decisions, strategy configurations, and bot settings
• Monitoring your positions, balances, and risk exposure
• Setting appropriate stop-losses, position sizes, and risk limits
• Ensuring you understand how your strategies and bots operate
• Compliance with applicable laws, regulations, and tax obligations
• Securing your account, API keys, and wallets
• Any losses or consequences resulting from your use of the Services

You should regularly review your active strategies, positions, and account balances. Do not rely solely on automated systems without oversight.

5. Suitability and Financial Capability

Cryptocurrency trading and automated strategies are not suitable for everyone. Before using the Services, you should carefully consider:

• Your financial situation, investment objectives, and risk tolerance
• Whether you can afford to lose the funds you allocate to trading
• Your understanding of cryptocurrency markets, blockchain technology, and trading strategies
• Your ability to monitor and manage automated trading systems

You should not:

• Trade with money you cannot afford to lose
• Use borrowed funds or leverage beyond your risk capacity
• Rely on trading as your sole source of income
• Invest based on FOMO (fear of missing out) or emotional decision-making

If you are uncertain about the suitability of the Services or any particular strategy, we strongly recommend seeking independent financial, legal, or tax advice from qualified professionals.

6. Disclaimer of Warranties and Limitation of Liability

The Services are provided "as is" and "as available" without warranties of any kind. HYPX does not guarantee uninterrupted operation, error-free performance, or suitability for any particular purpose.

To the maximum extent permitted by law, HYPX and Huzzah Labs Limited disclaim all liability for:

• Trading losses, missed opportunities, or adverse market movements
• Errors in strategy execution, data feeds, or software bugs
• Downtime, outages, or interruptions in service availability
• Actions or omissions by third parties (exchanges, payment providers, etc.)
• Unauthorized access or security breaches not caused by our negligence
• Changes in laws, regulations, or market conditions

For full details, please refer to our Terms of Service.

7. Regulatory Status and Investor Protections

HYPX is not a regulated financial institution. We are not licensed as a broker, investment advisor, commodity trading advisor, or any other regulated financial services provider. The Services are not subject to oversight by financial regulators such as the SEC, FCA, CFTC, or equivalent authorities.

As a result, you do not benefit from investor protection schemes such as:

• Deposit insurance (e.g., FDIC, FSCS)
• Investor compensation schemes
• Regulatory dispute resolution mechanisms
• Segregated client funds or fiduciary obligations

Your funds remain in your own exchange accounts or wallets. HYPX does not custody or control your assets.

8. Risk Management Best Practices

To help mitigate risks when using HYPX, we recommend the following practices:

• Start Small: Begin with small position sizes and low-risk strategies until you are comfortable with the platform
• Use Stop-Losses: Always set stop-loss orders to limit potential losses
• Diversify: Do not concentrate all capital in a single strategy, asset, or exchange
• Monitor Regularly: Check your positions, balances, and bot activity frequently
• Understand Before Using: Ensure you fully understand how each strategy and bot operates before activating it
• Test in Paper Trading: Use demo or paper trading modes to test strategies before deploying real capital
• Limit API Permissions: Use API keys with trade-only permissions (no withdrawal rights) and enable IP whitelisting where supported
• Keep Software Updated: Ensure you are using the latest version of HYPX for security patches and bug fixes
• Secure Your Account: Enable two-factor authentication (2FA), use strong unique passwords, and protect recovery methods
• Have an Exit Plan: Know how to quickly disable bots and exit positions in case of emergency

9. Updates to This Disclosure

We may update this Risk Disclosure from time to time to reflect new risks, regulatory changes, or Service updates. The "Last updated" date at the top indicates the most recent revision.

Continued use of the Services after updates constitutes acknowledgment and acceptance of the revised Risk Disclosure. We encourage you to review this page periodically.

10. Acknowledgment and Consent

By using HYPX, you acknowledge that:

• You have read, understood, and accept all risks described in this Risk Disclosure
• You are solely responsible for your trading decisions and their outcomes
• You can afford to lose the capital you allocate to cryptocurrency trading
• You will not hold HYPX or Huzzah Labs Limited liable for trading losses or adverse outcomes
• You have sought independent advice if needed and determined that the Services are suitable for you

⚠️ If you do not agree with these terms or do not fully understand the risks, you must immediately stop using the Services.

11. Contact and Support

If you have questions about the risks associated with using HYPX, need clarification on any aspect of this disclosure, or wish to report a concern, please contact us:

Huzzah Labs Limited
Email: support@hypx.app
Risk & Compliance: compliance@hypx.app

Last modified: 24 February 2026