Risk Disclosure

1. General Investment Risk

2. Market Risk

• Price volatility — Asset prices can move dramatically within minutes. Leverage amplifies both gains and losses.
• Liquidity risk — In extreme market conditions, liquidity may be insufficient to execute trades at expected prices (slippage).
• 24/7 markets — Crypto markets operate continuously. Significant price movements can occur outside normal trading hours, including while you are asleep or unable to monitor positions.
• Market events — Economic announcements, regulatory actions, exchange hacks, macroeconomic shocks, or unexpected events can trigger rapid market movements that impact strategy performance.
• Correlation breakdown — Strategies designed for normal market conditions may underperform or generate losses during periods of extreme market stress or structural regime changes.

3. Strategy and Algorithm Risk

• Past performance is not indicative of future results. Backtested and historical returns do not guarantee future performance.
• Model assumptions — Strategies are built on assumptions about market behavior. If markets behave in ways not anticipated by the model, performance may deviate significantly.
• Overfitting risk — A strategy optimized on historical data may not perform as well in live markets.
• Regime changes — Strategies may perform well in certain market regimes (trending, range-bound, low-volatility) and poorly in others. AlphaSet's models are regime-aware but cannot guarantee adaptation to every possible market condition.
• Strategy updates — AlphaSet may modify, update, or retire Alphas over time. Past strategy configurations are not subject to guarantee.
• No guaranteed returns — AlphaSet does not guarantee any specific level of return. Projected or displayed performance figures are estimates only.

4. Technology and Platform Risk

• API disruptions — Connectivity between AlphaSet and your Exchange relies on API availability. API outages, rate limits, or changes by the Exchange may delay or prevent trade execution.
• Platform downtime — AlphaSet may experience scheduled or unscheduled maintenance. Trades may not execute as expected during downtime.
• Execution latency — Market conditions can change between signal generation and order execution, resulting in fills at prices different from intended.
• Software bugs — Despite extensive testing, bugs or errors in software may cause unexpected behavior. Zeno JSC cannot guarantee error-free operation.
• Connectivity failures — Internet outages, power failures, or infrastructure issues affecting you or Zeno JSC can disrupt service.

5. Counterparty and Exchange Risk

• Exchange solvency risk — If a connected Exchange becomes insolvent, freezes withdrawals, or fails, you may be unable to access your funds. Zeno JSC has no control over or liability for Exchange operations.
• Exchange security risk — Exchange hacks or security breaches may result in loss of funds held on that Exchange.
• Exchange policy changes — Exchanges may change their API terms, trading pairs, or fee structures without notice, affecting Alpha performance.
• Account restrictions — Exchanges may freeze or restrict your account due to their own compliance processes, independent of AlphaSet.

6. Regulatory and Legal Risk

• Regulatory changes — Laws and regulations governing digital assets or algorithmic trading may change in your jurisdiction, potentially restricting or prohibiting your use of AlphaSet.
• Tax obligations — Gains from algorithmic trading may be subject to capital gains tax or other taxes in your jurisdiction. You are solely responsible for calculating and reporting your tax obligations.
• Jurisdiction restrictions — Use of AlphaSet may be restricted or prohibited in certain jurisdictions. You are responsible for ensuring compliance with the laws of your country of residence.
• No legal or tax advice — Zeno JSC does not provide legal or tax advice. Consult qualified advisors in your jurisdiction.

7. Leverage, Futures, and Per-Alpha Risk Profile

• Positions can be liquidated automatically if margin requirements are not met.
• In extreme market conditions, losses may exceed your initial capital.
• Liquidation occurs on the Exchange without prior notice to AlphaSet.

8. Non-Custodial Risk

• You bear full responsibility for the security of your Exchange account credentials and API keys.
• If your Exchange account credentials are compromised by a third party, AlphaSet cannot prevent unauthorized actions on your Exchange account.
• Revoking API access from AlphaSet will stop AlphaSet from managing your positions. Open positions may remain on your Exchange account and should be managed manually.

9. Acknowledgment

1. You have read and understood this Risk Disclosure in full.
2. You are aware that automated trading involves significant risk of capital loss.
3. You are investing only capital you can afford to lose.
4. You have assessed the suitability of AlphaSet for your own financial situation, risk tolerance, and investment objectives.
5. You have sought independent financial advice if you were uncertain about any of the above.
6. Zeno JSC shall not be held liable for any losses arising from the risks described in this document.