Risk Disclosure Statement

1. Introduction

This Risk Disclosure Statement ("Statement") is provided by CoinShares AI ("Company," "we," "us," or "our") to inform you of the material risks associated with using our automated cryptocurrency trading platform (the "Platform"). This Statement does not disclose all risks and other significant aspects of trading in cryptocurrencies or using automated trading systems.

You should not engage in cryptocurrency trading unless you fully understand all the associated risks and have the financial resources to withstand potentially significant losses. We strongly advise you to seek independent professional advice before making any trading decisions.

2. General Cryptocurrency Trading Risks

2.1 Volatility Risk

Cryptocurrency markets are extremely volatile. Prices can fluctuate significantly within very short timeframes, including seconds or minutes. The value of your investment can decrease rapidly and substantially. Historical price movements and trends are not reliable indicators of future performance.

2.2 Market Risk

Cryptocurrency markets are influenced by numerous factors including:

• Global economic conditions and monetary policies
• Regulatory announcements and government actions
• Technology developments and security breaches
• Market manipulation and coordinated trading activity
• Social media sentiment and news coverage
• Whale movements (large holders buying or selling)
• Exchange listings and delistings
• Network congestion and transaction fees

2.3 Liquidity Risk

Cryptocurrency markets may experience periods of low liquidity, making it difficult to execute trades at desired prices. During high volatility or market stress, liquidity can evaporate rapidly, resulting in:

• Inability to exit positions at intended prices
• Significant slippage between expected and executed prices
• Delayed order execution or order failures
• Wider bid-ask spreads increasing trading costs

2.4 Regulatory Risk

The regulatory environment for cryptocurrencies is evolving and uncertain. Changes in laws, regulations, or government policies could:

• Significantly impact the value of cryptocurrencies
• Restrict or prohibit cryptocurrency trading in certain jurisdictions
• Impose additional compliance requirements or taxes
• Affect the legality or operability of our Platform
• Lead to the closure or restriction of exchanges

2.5 Technology Risk

Cryptocurrency trading depends on complex technology systems that may be subject to:

• Software bugs, glitches, or errors
• Hardware failures
• Internet connectivity issues
• Cyberattacks and security breaches
• Blockchain network congestion or failures
• Smart contract vulnerabilities

3. Automated Trading System Risks

3.1 System Performance Risk

Our AI-powered automated trading system is designed to analyze markets and execute trades automatically. However, past performance does not guarantee future results. The system's performance may vary significantly due to:

• Changing market conditions that differ from historical patterns
• Black swan events and unprecedented market situations
• Algorithm limitations in adapting to new market dynamics
• Overfitting to historical data

3.2 Technical Failure Risk

Automated trading systems may experience technical failures including:

• System crashes or unplanned downtime
• Delayed trade execution or missed trading opportunities
• Incorrect trade execution (wrong size, direction, or timing)
• Connection failures between our system and exchanges
• Data feed errors leading to incorrect trading decisions
• Software bugs that may not be immediately detected

3.3 Algorithm Risk

Our trading algorithms are based on mathematical models and historical data analysis. These algorithms:

• May not accurately predict future market movements
• Could make trading decisions that result in losses
• May perform poorly in unusual or extreme market conditions
• Cannot account for all market factors or black swan events
• May be subject to model risk and assumption errors

3.4 Execution Risk

Even when our system generates accurate signals, trade execution may be affected by:

• Latency between signal generation and order placement
• Exchange execution delays or failures
• Slippage due to market movement during execution
• Insufficient liquidity at target prices
• Exchange rate limits or trading restrictions

4. Financial Risks

4.1 Loss of Capital

You can lose part or all of your invested capital. There is no guarantee of profits, and historical performance is not indicative of future results.

• Your trading capital may decrease significantly in a short period
• Losses may exceed your expectations
• You may not be able to recover losses through subsequent trades
• Commission charges will reduce your overall returns

4.2 Leverage Risk

While our system may use strategic position sizing, leveraged trading in cryptocurrency markets carries enhanced risks:

• Amplified losses that can exceed your initial investment
• Rapid depletion of trading capital during adverse market moves
• Potential for liquidation of positions at unfavorable prices

4.3 Counterparty Risk

Your funds are exposed to counterparty risks including:

• Exchange insolvency or bankruptcy
• Exchange hacks or security breaches
• Withdrawal restrictions or delays
• Exchange regulatory issues or shutdowns

5. Operational Risks

5.1 Cybersecurity Risk

Despite our security measures, there are inherent cybersecurity risks:

• Unauthorized access to accounts through phishing or social engineering
• Malware or keyloggers compromising login credentials
• SIM swapping attacks targeting two-factor authentication
• Platform vulnerabilities that could be exploited

5.2 Infrastructure Risk

Our Platform depends on various infrastructure components that may fail:

• Server outages or data center failures
• Network connectivity issues
• Database failures or data corruption
• Third-party service provider failures

5.3 Business Continuity Risk

CoinShares AI, as a business, is subject to operational risks that could affect service availability:

• Business failure or discontinuation of services
• Regulatory action against the company
• Key personnel departures
• Financial difficulties affecting operations

6. No Guarantees or Representations

7. Your Responsibilities

Before using our Platform, you should:

• Carefully assess your financial situation and risk tolerance
• Only invest money you can afford to lose entirely
• Understand how cryptocurrency trading and automated systems work
• Review and understand all Platform documentation and policies
• Seek independent financial, legal, and tax advice
• Monitor your account activity regularly
• Implement proper security measures for your account
• Keep informed about market conditions and regulatory changes

8. Study Mode Disclaimer

Our Study Mode provides a simulated trading environment using virtual funds. Please note:

• Study Mode performance may not reflect actual live trading results
• Virtual trading does not involve the psychological pressures of real money trading
• Market conditions during Study Mode may differ from Live Mode conditions
• Order execution in Study Mode may not accurately reflect real market execution
• Study Mode success does not guarantee Live Mode success

9. Risk Acknowledgment

10. Questions and Concerns

If you have any questions about the risks described in this Statement or need clarification before using our Platform, please contact us:

We strongly encourage you to fully understand all risks before trading. Do not trade if you are uncertain about any aspect of cryptocurrency trading or automated trading systems.