Risk disclosure

Trading, Investment, Automation & AI Risk Disclosure

READ THIS DOCUMENT CAREFULLY Trading and investing can result in substantial financial loss. AI and automated execution can increase rather than eliminate risk. Do not activate real-money trading unless you understand both the financial product and the technology involved.

1. Purpose This Risk Disclosure explains important risks associated with:

• securities;
• equities;
• foreign exchange;
• CFDs;
• derivatives;
• cryptocurrency;
• leveraged products;
• margin;
• futures;
• automated trading;
• algorithmic strategies;
• AI-generated trading analysis;
• third-party broker integrations;
• market data. This document cannot describe every risk.

2. You can lose money The value of financial instruments can rise or fall. There is no assurance that you will:

• recover invested capital;
• make a profit;
• achieve historical returns;
• achieve simulated returns. You should trade only with money you can afford to lose.

3. Leverage Leverage magnifies exposure. A relatively small market movement can therefore create a disproportionately large gain or loss. Depending on:

• instrument;
• broker;
• jurisdiction;
• margin rules; you may lose your entire allocated capital rapidly. For some products and jurisdictions, losses may exceed the amount initially committed unless your provider offers negative-balance protection. Understand your broker's margin and liquidation rules.

4. Margin calls and liquidation If account equity becomes insufficient, your broker may:

• reject new trades;
• close positions;
• liquidate positions automatically;
• demand additional margin. Liquidation may occur at an unfavourable price. EvoRayn cannot guarantee that you will have an opportunity to intervene before broker liquidation.

5. CFDs Contracts for Difference are complex leveraged instruments. Risks include:

• leverage;
• spreads;
• overnight financing;
• gaps;
• counterparty exposure;
• rapid liquidation. CFDs may be unsuitable for many retail users.

6. Forex Foreign-exchange markets involve:

• leverage;
• rapid price movement;
• currency risk;
• macroeconomic announcements;
• central-bank intervention;
• liquidity changes;
• geopolitical events;
• around-the-clock market exposure.

7. Cryptocurrency Cryptoassets can be exceptionally volatile. Additional risks may include:

• exchange failure;
• custody failure;
• hacking;
• token collapse;
• protocol vulnerabilities;
• forks;
• liquidity failure;
• regulatory intervention;
• market manipulation;
• stablecoin de-pegging. Crypto markets may operate continuously.

8. Futures and derivatives Derivative products may have:

• leverage;
• expiration;
• settlement;
• rollover;
• funding;
• basis;
• liquidity;
• margin risks not present in ordinary cash equities. Users must understand the relevant contract before trading.

9. Short selling Short positions may behave differently from long positions. Certain short positions can theoretically expose a trader to losses that are not limited by the original amount invested. Brokers can also:

• recall borrow;
• change margin;
• restrict short selling;
• force closure.

10. Volatility Prices can change suddenly due to:

• economic data;
• company results;
• breaking news;
• political events;
• central-bank decisions;
• regulatory action;
• social-media activity;
• market sentiment. High volatility can make displayed prices obsolete within seconds or milliseconds.

11. Gaps Markets may move from one price to another without trading at intermediate prices. A stop-loss is therefore not a guarantee of the selected exit price.
12. Slippage The price requested and price executed can differ. Slippage can occur during:

• high volatility;
• low liquidity;
• market opening;
• news events;
• large orders;
• network latency.

13. Liquidity An instrument may not have enough buyers or sellers to execute at your expected price. Illiquid markets can produce:

• large spreads;
• partial fills;
• rejected orders;
• severe slippage.

14. Market closures Trading may be halted due to:

• exchange rules;
• volatility controls;
• public holidays;
• regulatory orders;
• technical problems;
• corporate events. You may be unable to close a position when desired.

15. Broker execution Orders are executed by third-party brokers or venues. EvoRayn cannot guarantee:

• broker uptime;
• execution speed;
• exact price;
• order acceptance;
• availability of an instrument;
• margin treatment.

16. Broker and counterparty risk A broker, exchange, liquidity provider, custodian or counterparty may:

• fail;
• become insolvent;
• restrict withdrawals;
• freeze accounts;
• suspend instruments;
• experience a cyberattack. Regulatory protections differ by provider and jurisdiction.

17. API risk EvoRayn communicates with external providers electronically. Failures can include:

• API downtime;
• changed API specifications;
• duplicate responses;
• delayed responses;
• stale data;
• rejected requests;
• authentication expiration;
• rate limits. These failures can affect trading.

18. Network risk Internet or device failure may prevent:

• receiving information;
• modifying a strategy;
• cancelling an order;
• disabling automation;
• receiving an alert. Maintain independent access to your broker where possible.

19. Automated trading risk Automation can magnify operational errors. An incorrect:

• strategy setting;
• position size;
• symbol;
• leverage value;
• entry rule;
• exit rule can be repeated automatically. Monitor automated systems. Do not assume "automated" means "safe."

20. Runaway automation Software bugs or unexpected data can cause a strategy to submit more transactions than intended. EvoRayn may implement safeguards, but no safeguard should be considered infallible. You should also use broker-side:

• maximum exposure;
• margin controls;
• order limits;
• account alerts where available.

21. AI risk Artificial intelligence does not know the future. AI-generated outputs may contain:

• factual errors;
• hallucinations;
• incorrect assumptions;
• outdated information;
• flawed calculations;
• incorrect interpretations;
• overconfident conclusions. Do not rely on AI merely because its explanation sounds persuasive.

22. Confidence-score risk A high confidence score is not necessarily a high probability of success. Unless EvoRayn explicitly labels an output as a statistically calibrated probability and explains the calibration method, confidence means only the model's relative conviction under its methodology. A 90% score does not automatically mean a 90% probability of profit.
23. Model risk A model that performed well historically can fail when:

• market structure changes;
• volatility changes;
• correlations change;
• a rare event occurs;
• underlying data changes;
• market participants adapt.

24. Overfitting A strategy can appear highly successful in historical testing because it was inadvertently fitted to historical noise. Such a strategy may fail immediately in new market conditions.
25. Backtesting Backtests are hypothetical. They may not accurately model:

• slippage;
• spreads;
• order-book depth;
• commissions;
• financing;
• taxes;
• execution delay;
• liquidity;
• market impact;
• rejected trades. Past or simulated results do not guarantee future results.

26. News and sentiment News or sentiment information may be:

• incomplete;
• incorrect;
• delayed;
• manipulated;
• misunderstood by algorithms. Breaking events may make an existing analysis obsolete.

27. Market-data risk Market data can contain:

• missing observations;
• incorrect prices;
• delays;
• timestamp errors;
• vendor errors. Displayed information should not be assumed to be the official execution record.

28. Position-sizing risk A suggested position size depends on assumptions. If:

• account balance is wrong;
• volatility changes;
• stop distance changes;
• leverage differs;
• broker rules differ; the suggested size may be inappropriate.

29. Correlation Different positions can behave as a single concentrated exposure. For example, multiple technology shares, cryptocurrency assets or USD-related forex positions may share common risk. Diversification cannot eliminate market loss.
30. Concentration Large exposure to:

• one asset;
• one sector;
• one country;
• one strategy;
• one currency increases concentration risk.

31. Currency risk If an asset or account is denominated in a different currency from your home currency, exchange-rate movements can affect returns.
32. Regulatory risk Governments and regulators can:

• prohibit products;
• restrict leverage;
• suspend trading;
• impose taxes;
• change crypto rules;
• restrict transfers. Legal changes can occur rapidly.

33. Tax Trading can have tax consequences. Novaros does not provide tax advice unless explicitly stated through an appropriately qualified service. Seek professional advice relevant to your jurisdiction.
34. Cybersecurity Threats include:

• phishing;
• malware;
• credential theft;
• SIM swapping;
• compromised email accounts;
• malicious browser extensions;
• broker-account attacks. Protect credentials and devices.

35. Mobile-device risk A lost or compromised phone can expose financial information or account access. Use:

• device locking;
• biometrics where available;
• strong passwords;
• current operating-system security updates.

36. Alerts are not guaranteed Alerts can be delayed or lost due to:

• notification permissions;
• battery optimisation;
• provider outages;
• network failure;
• device settings. Do not rely on push alerts as your only risk-management mechanism.

37. Practice trading limitations Practice trading does not reproduce the psychological and operational effects of risking real money. Practice profits have no cash value.
38. Suitability Some instruments are inappropriate for inexperienced users. You are responsible for understanding an instrument before using it unless the law imposes a different duty on an authorised provider.
39. Borrowed funds Using borrowed money to trade materially increases financial risk. Losses do not eliminate repayment obligations to a lender.
40. No guaranteed stop loss Unless a broker expressly provides a guaranteed stop product, stop orders can execute at worse prices than requested.
41. Orders can remain open Connectivity problems may create uncertainty about whether an order was:

• submitted;
• rejected;
• filled;
• partially filled;
• cancelled. Verify ambiguous orders directly with the broker before submitting replacements.

42. Simultaneous access Actions taken directly in a broker application may interact with EvoRayn automation. For example, manually closing a position can alter the assumptions of an automated strategy.
43. System updates Software updates may affect:

• strategy behaviour;
• broker integration;
• analytics. Material algorithm changes should be reviewed before relying on automation.

44. Emergencies If EvoRayn is unavailable and you need to manage a real-money position, use your broker's official platform or contact the broker directly.
45. User acknowledgement By using real-money functionality, you acknowledge that:

• you have read this Risk Disclosure;
• trading involves risk of substantial loss;
• leverage can accelerate losses;
• AI can be wrong;
• automation can fail;
• a confidence score does not guarantee a result;
• paper results do not guarantee real results;
• EvoRayn does not hold your trading funds;
• broker and market risks remain applicable;
• you are responsible for understanding the products you trade.

46. Questions Contact: support@evorayn.com