Risk Disclosure Statement
1. Purpose and Scope
1.1 This document informs the Client of the inherent risks associated with transactions involving
crypto-assets, the use of DeFi Protocols, and other digital-economy instruments, and records the
Advisor’s disclaimer of any guarantee of profitability, capital preservation, or achievement of
investment results. It confirms that the Client is aware of these risks, knowingly accepts them,
and understands that all decisions on executing transactions and selecting strategies are made
independently by the Client.
1.2 Capitalized terms have the meanings given in the Investment Advisory Agreement. This
document is an integral part of that Agreement and applies together with it; in case of any
inconsistency, the Investment Advisory Agreement prevails.
1.3 The Advisor’s services are exclusively analytical and advisory. They do not constitute
discretionary portfolio management, custodial, brokerage, or any other activity involving the
disposition of the Client’s assets, and imply no guaranteed financial result. No information
provided by the Advisor is to be construed as an individualized investment recommendation
within the meaning of securities legislation or comparable provisions in any jurisdiction.
2. Risks of Crypto-Asset Transactions and DeFi Protocols
2.1 This Section informs the Client of the inherent risks of the crypto-asset market and of using DeFi
Protocols. The categories below are general and non-exhaustive; such risks may materialize at
the same time and amplify one another. The Advisor cannot predict, control, or eliminate them,
and their occurrence does not depend on the quality of the recommendations provided.
2.2 Market risk. Crypto-asset prices are highly volatile and may move sharply over short periods due
to shifts in supply and demand, news flow, macroeconomic factors, and the actions of major
participants. Such movements may produce substantial gains or losses, including total loss of
invested capital.
2.3 Liquidity and execution risk. On some venues or at certain times there may be insufficient
counter-orders, making prompt execution at the desired price impossible. Trades may fill only
partially or at prices that deviate from expectations because of changing conditions or technical
limits of trading systems.
2.4 Valuation and settlement risk. Because crypto-assets trade across many independent venues,
price data may differ, quotation sources update with delays, and PnL methodologies may yield
different figures. Actual returns may therefore differ from preliminary calculations, and the final
outcome is affected by exchange fees, network charges, and confirmation speed.
2.5 Technological risks of DeFi Protocols include the following:
• smart contracts may contain coding errors or vulnerabilities whose exploitation can cause loss
of assets;
• protocols may be governed by a community or a limited group of administrators able to
change conditions, suspend, or shut down the protocol without the Client’s consent;
• oracle failures, MEV-extraction attacks, and other technical factors may affect calculation
accuracy and protocol stability;
• bridges and cross-chain mechanisms carry the risk of loss or delay of funds during transfers
between networks;
• hard forks and other blockchain updates may alter asset-circulation rules and affect value.
2.6 Derivatives and leverage. Using borrowed funds or margin amplifies both potential profit and
possible loss. On sharp market moves, positions may be closed automatically without prior
notice, which may cause total loss of posted collateral and additional costs.
2.7 Stablecoins. Stablecoins may deviate from their declared benchmark. Issuers may change
redemption procedures or reserve structures and, in some cases, suspend operations or block
specific addresses. Algorithmic stabilization does not guarantee the peg under stress, which may
lead to significant losses.
2.8 Centralized services. Exchanges, custodial, and other platforms may suspend operations
temporarily or permanently, change rules, restrict access to assets, or suffer hacks, technical
failures, or insolvency. The Advisor is not responsible for the actions of such third parties or the
consequences of their decisions.
2.9 Legal and tax risk. The legal framework for crypto-assets and DeFi instruments is still
developing. Changes in law, administrative practice, and regulatory approaches may affect the
legality, use, and taxation of such assets. The Client’s tax obligations depend on the Client’s
status and jurisdiction and must be assessed independently by the Client.
2.10 The Client confirms awareness of the above risks, understands their possible consequences
— including total loss of invested funds — and fully accepts them. The Advisor does not
guarantee identification of all potential threats and bears no responsibility for their occurrence.
3. No Profit Guarantees and Risk Warning
3.1 The Advisor operates solely by providing analytical and advisory information. None of the
services, materials, reviews, strategies, forecasts, or assessments provided contain or may be
regarded as a guarantee of capital preservation, profit generation, a specific rate of return,
limitation of losses, or any other financial result.
3.2 Any quantitative benchmarks, targets, scenario models, historical-performance examples, and
illustrative results are provided for illustration only, to explain the principles behind certain
strategies. They do not account for all market factors and are not a promise, offer, or obligation
to achieve similar results in future.
3.3 The Client’s actual performance and losses may differ significantly from expectations due to
market conditions, technical factors, the Client’s own decisions, and other circumstances beyond
the Advisor’s control. The Client acknowledges that past performance does not indicate future
results.
3.4 The Advisor is not responsible for any divergence between actual results and the forecasts,
scenarios, or models in analytical materials, nor for lost profit, indirect losses, or reduction in asset value caused by market or technological change or by the actions of third parties or regulators.
3.5 The Client confirms that investment decisions are made independently, based on the Client’s
own understanding of market conditions, acceptable risk level, and objectives. The Advisor
assumes no fiduciary duties and does not act as a trustee or discretionary manager of the
Client’s assets.
Client Acknowledgments and Representations
4.1 The Client confirms that, before receiving the Advisor’s services, they have reviewed this
Statement, understand its provisions, and acknowledge that crypto-asset transactions and the
use of DeFi Protocols carry a heightened level of uncertainty and risk, including the possibility of
total loss of invested funds.
4.2 The Client acknowledges that:
• they have sufficient knowledge and understanding of how the crypto market, decentralized
protocols, and related instruments function;
• they can independently assess the proposed strategies, their potential profitability, and level of risk;
• where needed, they may seek advice from independent financial, tax, and legal advisors, on
their own initiative and at their own risk.
4.3 The Client confirms that all investment decisions are made independently, without coercion,
influence, or interference from the Advisor, based on the Client’s own objectives, strategy, and
acceptable risk level. The Advisor makes no decisions on the Client’s behalf, does not dispose of
the Client’s assets, and exercises no discretionary or fiduciary management.
4.4 The Client acknowledges that the materials, forecasts, models, reports, and recommendations
provided are exclusively informational and analytical, do not constitute an individualized
investment recommendation or an offer to buy or sell any asset, and contain no guarantee of any
rate of return or capital preservation.
4.5 The Client accepts and fully understands that actual results may differ from projections due to
market fluctuations, technological failures, third-party actions, regulatory changes, tax
consequences, and other circumstances beyond the Advisor’s control.
4.6 The Client confirms that they accept all the above risks in full, bear personal responsibility for the
results of their decisions, and undertake not to bring claims against the Advisor in connection
with losses arising from the realization of the market, technological, legal, or other risks
described here.
4.7 The Client confirms that they act as an independent investor and acknowledges that the Advisor
does not verify or assess the Client’s qualification, investment experience, or financial
sophistication. The services are of a general analytical and educational nature and do not
constitute individualized investment advice. The Client assumes full responsibility for ensuring
that participation in the Service suits their experience, knowledge, and financial capacity. The
Advisor is not liable for losses or misunderstandings arising from the Client’s lack of experience,
qualification, or comprehension of the risks involved in virtual-asset markets.
Priority of this Statement
5.1 This Statement is an integral part of the Investment Advisory Agreement and applies together
with it. In case of any discrepancy between this document and other sources — including oral
explanations, correspondence, advertising materials, presentations, analytical reports,
demonstrative calculations, or marketing publications — the Investment Advisory Agreement and
this Statement prevail.
5.2 The Client acknowledges that any oral comments, examples, forecasts, or assessments
provided during consultations, meetings, demonstrations, or correspondence are exclusively
explanatory and illustrative and do not amend, supplement, or replace the written terms of the
Investment Advisory Agreement and this document.
5.3 The Client’s confirmation of having received, reviewed, and understood this Statement is a
mandatory condition for commencing the Advisor’s services. Absent such confirmation, the
Advisor may decline to provide services until the Client’s written consent to these terms is
obtained.
5.4 In case of any disagreement over content or interpretation communicated orally, through
correspondence, or in marketing materials, the Parties acknowledge that the governing source is
the text of the Investment Advisory Agreement and this Statement as accepted by the Client.
Acceptance and Acknowledgment
6.1 The Client confirms that they have carefully reviewed this Statement, fully understand its terms
and the nature and extent of the risks of crypto-asset transactions and DeFi Protocols, including
the possibility of total loss of invested capital.
6.2 By accepting the Investment Advisory Agreement, the Client confirms that they knowingly,
voluntarily, and fully agree with all provisions of this document and undertake to comply with
them.