Risk Disclosure

1. Purpose of This Disclosure

This document provides a general explanation of material risks connected with the Evolution Zenith website, platform tools, strategies, risk settings, exchange integrations and automated trading functions.

The risks described here are not exhaustive. Additional risks may arise from a specific asset, strategy, exchange, jurisdiction, account structure, network or market event.

Use of Evolution Zenith does not transfer responsibility for trading decisions, strategy configuration, connected accounts or risk limits to the platform.

This Disclosure should be read together with the Terms and Conditions, Disclaimer and applicable third-party exchange disclosures.

2. Risk of Partial or Total Loss

The value of a cryptocurrency, token, stablecoin, derivative or related trading position may fall rapidly, become illiquid or lose substantially all of its value.

Capital may be lost because of:

• adverse market movement;
• incorrect strategy assumptions;
• poor position sizing;
• leverage or margin liquidation;
• exchange failure or insolvency;
• custody or account-access problems;
• cybersecurity incidents;
• token, issuer or network failure;
• regulatory intervention;
• software, API or execution errors.

A stop-loss instruction, exposure limit or other control may reduce some risks but cannot guarantee that a position will close at the requested price or prevent a loss.

3. Suitability and Financial Circumstances

Cryptocurrency trading and automated trading may not be appropriate for every person or organisation.

Before using live capital, you should consider:

• your financial situation and income stability;
• your investment and trading experience;
• your ability to understand the selected strategy;
• your tolerance for volatility and loss;
• your liquidity requirements;
• your existing debts and financial commitments;
• your tax and regulatory obligations;
• whether independent professional advice is appropriate.

Funds required for housing, living expenses, debt repayment, tax obligations, emergency savings or short-term commitments should not be exposed to speculative trading risk.

4. Market and Volatility Risk

Cryptocurrency markets can move substantially within short periods. Prices may react to news, liquidity, market sentiment, regulation, technology events, large orders or activity on another trading venue.

High volatility can cause:

• rapid gains or losses;
• price gaps between market observations;
• unexpected strategy activation;
• stop orders executing far from the expected price;
• temporary disconnection between related markets;
• an increase in spread and execution costs;
• liquidation of leveraged positions.

Historical volatility does not establish the maximum possible future movement.

5. Liquidity, Spread and Slippage Risk

Liquidity is the ability to buy or sell an asset without causing a substantial change in price. Liquidity may vary by asset, exchange, trading pair, time and market condition.

When liquidity is limited:

• a market order may fill across several price levels;
• the bid-ask spread may widen;
• only part of an order may execute;
• an order may remain open longer than expected;
• a position may be difficult to close;
• the realised price may differ materially from the expected price.

Slippage can increase during rapid price movement, low-volume periods, exchange outages and large-order execution.

6. Leverage, Margin and Liquidation Risk

Some connected providers or products may permit leverage, margin, futures, perpetual contracts or other derivatives. Leverage magnifies exposure relative to the capital committed.

As a result:

• small market movements may create large account losses;
• positions may be liquidated automatically;
• additional margin may be required on short notice;
• fees and funding payments may accumulate;
• losses may exceed the amount initially allocated where legally and contractually possible.

Evolution Zenith does not guarantee that a risk setting will prevent exchange-side liquidation.

7. Automated Trading Risk

Automated trading may monitor conditions, apply rules and transmit instructions without requiring manual approval for every action.

Automation may therefore:

• open or close positions faster than a user can review them;
• repeat an unsuitable action across several markets;
• continue operating during unfavourable conditions;
• respond to inaccurate or delayed information;
• increase trading frequency and related costs;
• produce losses before a user notices a problem;
• remain active until manually paused, disabled or disconnected.

Automation does not reduce the need for monitoring. Users should review active strategies, open positions, order history, risk limits and exchange connection status.

8. Strategy and Model Risk

A trading strategy is based on assumptions about how a market may behave. Those assumptions may be incomplete, incorrect or no longer relevant.

A strategy may fail because:

• market conditions have changed;
• parameters are overfitted to historical data;
• the asset behaves differently from the tested market;
• signals react too slowly or too frequently;
• risk limits are inappropriate;
• correlated strategies create unintended concentration;
• transaction costs exceed the expected advantage;
• the strategy contains a logical or configuration error.

No strategy is appropriate for every market condition. A strategy that performed well previously may generate substantial future losses.

9. Backtesting, Simulations and Hypothetical Results

Backtests and simulated results are based on historical or modelled information. They do not represent actual live trading and do not guarantee future performance.

A simulation may not fully account for:

• real market spread;
• slippage and partial fills;
• exchange latency or rejected orders;
• changes in market liquidity;
• live fees, funding rates and network costs;
• data errors or unavailable historical information;
• psychological and operational decisions;
• provider, custody or regulatory events.

A user should not activate a strategy solely because a historical simulation appears profitable.

10. Execution and Order Risk

A submitted instruction may not produce the intended result. Order execution is controlled by the connected exchange, its order book, technical systems and applicable account rules.

Execution risks include:

• order rejection;
• partial execution;
• duplicate or delayed instructions;
• execution at a different price;
• market closure or trading suspension;
• minimum-order or precision restrictions;
• insufficient available balance;
• an open order remaining after a strategy is paused;
• different results across exchanges.

Users should verify actual orders and positions directly through the connected provider where necessary.

11. Exchange and Counterparty Risk

Connected exchanges and other providers are independent third parties. Evolution Zenith does not control their financial condition, operations or internal safeguards.

A provider may experience:

• insolvency or financial distress;
• account freezes or withdrawal restrictions;
• security breaches or theft;
• maintenance or unexpected downtime;
• regulatory action;
• changes to supported assets or countries;
• liquidity shortages;
• API changes or discontinuation;
• loss or delayed return of customer assets.

The availability of an integration does not constitute an endorsement, guarantee or assessment of the provider’s solvency, licensing, custody or security.

12. Custody and Access to Assets

Crypto assets may be held through an exchange, custodian, wallet provider or self-managed wallet. Each custody model has different risks.

Potential risks include:

• loss of account or wallet credentials;
• loss of a recovery phrase or private key;
• provider insolvency;
• unauthorised transfers;
• account verification delays;
• withdrawal restrictions;
• legal disputes concerning asset ownership;
• assets being unavailable during a critical market event.

Evolution Zenith is not a substitute for reviewing the custody arrangement and terms of the provider that actually holds or controls access to the assets.

13. API and Integration Risk

API integrations allow information and authorised instructions to move between Evolution Zenith and a connected provider.

An API connection may fail or behave unexpectedly because of:

• expired, revoked or incorrect credentials;
• insufficient or excessive permissions;
• provider rate limits;
• changes to the provider’s technical interface;
• delayed account synchronisation;
• network disruption;
• provider maintenance;
• incorrect account configuration;
• software incompatibility or defects.

Users should apply only the permissions required for the intended workflow. Withdrawal and transfer permissions should remain disabled where the provider permits a trading-only connection.

14. Market Data and Information Risk

Market data, account values, prices, charts and indicators may be delayed, incomplete, inaccurate or temporarily unavailable.

Differences may arise because:

• exchanges maintain separate order books;
• data providers use different calculation methods;
• an asset trades at different prices across venues;
• a connection has not fully synchronised;
• a provider corrects or revises data;
• a technical outage prevents a timely update.

Users should not assume that a displayed value is the price at which an order can immediately be executed.

15. Technology, Software and Availability Risk

Evolution Zenith and connected infrastructure depend on software, servers, networks, databases, hosting systems and third-party services.

The platform may experience:

• scheduled or unexpected maintenance;
• software bugs or configuration errors;
• server or database failure;
• internet or telecommunications disruption;
• slow response during high activity;
• incorrect display of a status or value;
• loss or delay of an instruction;
• incompatibility with a browser or provider;
• temporary or permanent feature discontinuation.

No online platform can guarantee uninterrupted or error-free availability.

16. Cybersecurity and Account Risk

Online trading accounts may be targeted by phishing, malware, credential theft, social engineering, session hijacking and other attacks.

A user may suffer loss if an attacker obtains access to:

• the Evolution Zenith account;
• the connected email account;
• the exchange account;
• API credentials;
• the authentication device;
• a wallet private key or recovery phrase.

Users should use unique passwords, available multifactor authentication, secure devices and restricted API permissions.

17. Stablecoin and Peg Risk

A stablecoin may be designed to track the value of a currency, commodity or another reference asset. The intended peg may fail temporarily or permanently.

Risks may include:

• insufficient or unavailable reserves;
• issuer or custodian failure;
• redemption restrictions;
• loss of market confidence;
• regulatory intervention;
• smart-contract or network failure;
• different prices across exchanges;
• liquidity becoming unavailable during stress.

The use of a stablecoin as a quote currency or account asset does not eliminate market or counterparty risk.

18. Concentration and Correlation Risk

A portfolio may appear diversified while remaining exposed to the same underlying market drivers.

Concentration may arise through:

• several positions in highly correlated crypto assets;
• multiple strategies using similar signals;
• dependence on one exchange or stablecoin;
• positions linked to the same blockchain or issuer;
• simultaneous exposure to the same market direction;
• several accounts using the same API or infrastructure.

Correlations may increase rapidly during market stress, reducing the protection expected from diversification.

19. Fees, Funding and Trading-Cost Risk

A strategy may generate a gross trading result that differs materially from the result after all costs.

Relevant costs may include:

• Evolution Zenith platform fees;
• exchange maker or taker fees;
• bid-ask spread;
• execution slippage;
• derivative funding payments;
• borrowing or margin costs;
• network and withdrawal fees;
• currency-conversion fees;
• taxes and accounting costs.

High-frequency or short-duration strategies may be particularly sensitive to transaction costs.

20. Legal and Regulatory Risk

Laws and regulatory treatment of cryptocurrency, automated trading, exchanges, stablecoins and derivatives may change.

Regulatory developments may affect:

• whether an asset or service remains available;
• account registration and identity requirements;
• trading, transfer or withdrawal restrictions;
• the status of an exchange or issuer;
• tax and reporting requirements;
• the availability of leverage or derivatives;
• cross-border access to a platform;
• the legal classification of a token.

A feature being technically available does not establish that its use is lawful in every jurisdiction.

21. Tax and Reporting Risk

Cryptocurrency transactions may create tax, accounting or reporting obligations. Rules vary by jurisdiction and may apply even where assets are not converted into conventional currency.

Automated trading may generate a large number of taxable or reportable events. Users are responsible for maintaining records and obtaining professional advice where needed.

Evolution Zenith does not guarantee that platform records contain every item required for a user’s tax return, accounting records or regulatory report.

22. User Responsibility and Risk Controls

The user remains responsible for deciding whether, when and how to use Evolution Zenith.

Before activating live trading, the user should:

Risk controls can reduce certain exposures but cannot remove market, exchange, technology or strategy risk.

23. Summary of Major Risk Categories