Risk Disclosure Statement

1. Cryptocurrency Trading Risks

1.1 Price Volatility

Cryptocurrency prices are extremely volatile. Prices can fluctuate significantly within very short periods, including intraday. Digital assets may lose all or substantially all of their value in a short period. Historical price performance is not indicative of future price performance.

1.2 Regulatory Uncertainty

The regulatory landscape for cryptocurrencies is evolving rapidly and varies significantly across jurisdictions. New laws, regulations, or enforcement actions could materially and adversely affect the value of cryptocurrencies, your ability to trade, or the operation of the Platform. Regulatory actions could restrict or prohibit cryptocurrency trading in certain jurisdictions without prior notice.

1.3 Technical Risk

Cryptocurrencies rely on blockchain technology and cryptographic protocols that may contain undiscovered vulnerabilities or be subject to attacks. Risks include but are not limited to: 51% attacks, smart contract exploits, protocol-level bugs, hard forks that may affect asset values, and network congestion that may delay transactions. Sending cryptocurrency to incorrect addresses may result in permanent and irreversible loss.

2. Leveraged and Margin Trading Risks

2.1 Amplified Losses

Leverage amplifies both potential gains and potential losses. A small adverse price movement can result in a disproportionately large loss relative to your initial margin. With leverage of up to 100x offered on certain products, a 1% adverse price movement could result in the loss of your entire margin deposit.

2.2 Liquidation

If the value of your position falls below the maintenance margin requirement, your position may be automatically liquidated at the prevailing market price, which may be significantly worse than your expected liquidation price, particularly during periods of high volatility or low liquidity. Liquidation may occur without prior notice.

2.3 Margin Calls

You may be required to deposit additional funds (margin) to maintain your positions. Failure to meet margin requirements may result in the forced closure of your positions at a loss. In volatile market conditions, margin calls may occur rapidly and without adequate time to respond.

3. Forex Trading Risks

3.1 Leverage Risk

Foreign exchange trading typically involves significant leverage. While leverage can increase potential returns, it also magnifies potential losses. The foreign exchange market operates 24 hours a day during the trading week, and prices can change rapidly in response to economic, political, and geopolitical events.

3.2 Counterparty Risk

Forex trading on the Platform involves counterparty risk. The Platform acts as an intermediary, and the execution and settlement of your trades depend on the solvency and performance of the Platform and its liquidity providers. Counterparty failure could result in the loss of your funds.

3.3 Interest Rate Risk

Changes in interest rates by central banks can have a significant and often unpredictable impact on currency exchange rates. Interest rate differentials between currencies may change, affecting the cost of holding open positions (swap/rollover fees).

4. AI Trading Bot Risks

4.1 Model Limitations

AI and machine learning models are based on historical data and statistical patterns. They have fundamental limitations in predicting future market movements. Models may fail to account for unprecedented events, regime changes in market behavior, or structural shifts in the underlying markets.

4.2 Past Performance Does Not Equal Future Results

Backtested and historical performance results have inherent limitations and should not be relied upon as indicators of future performance. Actual trading results may differ materially from simulated results due to factors including but not limited to slippage, market impact, liquidity constraints, and changing market conditions.

4.3 Black Swan Events

AI models cannot predict rare, unprecedented events (commonly known as “black swan” events) such as major regulatory actions, exchange collapses, geopolitical crises, or other extreme market disruptions. During such events, AI bots may incur significant and rapid losses.

4.4 Overfitting

AI models may be overfit to historical data, meaning they perform well on past data but poorly on new, unseen data. While we employ techniques to mitigate overfitting (cross-validation, regularization, out-of-sample testing), no model is immune to this risk.

4.5 Data Quality

The performance of AI models depends on the quality, completeness, and timeliness of input data. Data feed errors, delays, gaps, or inaccuracies may cause models to generate incorrect signals, leading to losses.

5. Copy Trading Risks

5.1 Leader Performance

The past performance of a copy trading leader is not indicative of their future performance. A leader's strategy may stop being profitable at any time. Leader performance statistics displayed on the Platform are historical and do not guarantee similar results for followers.

5.2 Execution Slippage

There will always be a delay between when a leader executes a trade and when the same trade is replicated in your account. This delay can result in different execution prices (slippage), which may be significant during periods of high volatility. Your actual results will differ from the leader's results.

5.3 Strategy Changes

Leaders may change their trading strategy, risk parameters, or asset allocation at any time without notice. A leader who has historically been conservative may adopt a significantly riskier strategy. You should regularly monitor leaders you are copying and adjust your allocations accordingly.

6. Token and Staking Risks

6.1 Smart Contract Risk

NXT Token and staking functionality rely on smart contracts deployed on blockchain networks. Smart contracts may contain bugs, vulnerabilities, or be subject to exploits that could result in the loss of staked tokens or rewards. While our smart contracts undergo third-party audits, no audit can guarantee the absence of all vulnerabilities.

6.2 Impermanent Loss

If you participate in any liquidity provision or yield farming involving the NXT Token, you may be exposed to impermanent loss, which occurs when the price ratio of paired assets changes compared to when you deposited them. This can result in a lower value upon withdrawal compared to simply holding the assets.

6.3 Regulatory Risk

Regulatory authorities in various jurisdictions may classify tokens differently. Changes in regulatory classification or enforcement actions could affect the value, transferability, or utility of the NXT Token. We cannot guarantee that the NXT Token will not be classified as a security or otherwise regulated in any particular jurisdiction.

Acknowledgment