Risk Disclosure

Last Updated: August 2026

Read this document carefully before enabling live automated trading. If you do not understand any of these risks, do not use live mode.

1. You Can Lose Everything You Allocate

Automated trading on perpetual futures markets can result in the loss of your entire trading-wallet balance. The trading wallet is the maximum you can lose, and losses there are real, irreversible losses of your funds. Only allocate money you can afford to lose entirely.

2. The AI Is a Tool, Not a Guarantee

The AI agent executes a deterministic strategy — momentum and funding-carry signals with stop-losses and position caps. It is not intelligent in any human sense, it cannot anticipate black-swan events, and its past performance does not predict future results. Strategies that performed well historically can lose money going forward.

3. Market Risks

Volatility: crypto markets can move violently in minutes, triggering stop-losses far worse than the configured -2.5% under gaps or illiquidity.
Liquidation: leveraged positions can be liquidated by the exchange regardless of our stop-loss logic if prices gap through them.
Slippage: actual fills can be worse than the signaled price, especially in fast markets.
Funding costs: holding positions incurs funding fees that can erode returns.

4. Technology Risks

Software bugs: our code, Hyperliquid's systems, or the RPC/data providers we rely on can malfunction, causing missed stops or erroneous orders.
Exchange outages: Hyperliquid downtime can prevent the agent from managing positions, including closing them.
Data issues: delayed or incorrect market data can produce bad signals.

5. Security & Custody

The agent wallet can trade but never withdraw — however, losses through trading are still real.
The agent's signing key is encrypted at rest on our servers. A security breach of our infrastructure could in the worst case allow unauthorized trading (but not withdrawals) until you revoke the agent.
You are responsible for the security of your own wallet and keys.

6. Regulatory

Protocol Banks does not hold any financial-services license and does not provide investment advice, portfolio management, or custodial services. You are solely responsible for ensuring that using automated trading is legal in your jurisdiction.

7. Acceptance

By enabling live trading you acknowledge that you have read, understood, and accepted this Risk Disclosure and the Terms of Service. If you disagree with any part, remain in paper mode.

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