Risk Disclosure

1. General Trading Risk

Automated trading strategies can generate losses as well as gains. Market conditions can change rapidly, and algorithms that have performed well historically may perform poorly in the future. Profitability is not assured. You may lose your entire invested capital.

2. Cryptocurrency Market Risk

Cryptocurrency markets are characterized by:

• High volatility - prices can move dramatically in short time periods.
• Low liquidity - some markets may have insufficient depth to fill orders at expected prices.
• Market manipulation - cryptocurrency markets are largely unregulated and susceptible to manipulation.
• 24/7 operation - markets operate continuously, including when you are not monitoring your algorithms.

2A. Brokerage, Securities, and Options Risk

Alpaca and all securities, options, and broker-connected actions remain non-public while the full-launch verdict is NO_GO. If separately approved for an allowlisted canary or later launch, relevant risks include:

• Market-session, halt, short-sale, margin, buying-power, settlement, and order-type restrictions.
• Partial fills, rejected or replaced orders, price gaps, slippage, and delayed or missing market data.
• Corporate actions, dividends, assignments, exercises, expirations, and broker account adjustments.
• Options can expire worthless, be assigned early, or create losses exceeding the premium paid.
• Market-data entitlements can differ by account and may not include every exchange or options feed.

3. Algorithmic and Technical Risk

• Software bugs in your algorithm code may cause unintended trading behavior.
• Smart contracts can contain bugs, be exploited, or behave differently than expected.
• Network outages or latency may prevent orders from being placed or cancelled.
• Exchange outages may prevent access to your positions or funds.
• Stale market, oracle, account, or portfolio data may cause inaccurate previews or rejected orders.
• Cancel requests can fail, arrive late, or be unavailable during exchange incidents.
• Backtests do not guarantee live execution performance. Slippage, fees, and market impact differ in live environments.
• Platform infrastructure failures may cause algorithm downtime.

4. DeFi Protocol Risk

Uniswap, Aave, and all other DeFi actions remain non-public while the full-launch verdict is NO_GO. If separately certified and enabled for an allowlisted canary or later launch, strategies that interact with decentralized protocols, bridges, vaults, lending markets, staking systems, or swaps may expose you to:

• Smart contract bugs, exploits, admin-key changes, governance changes, or emergency pauses.
• Liquidity disappearing or withdrawals being delayed, queued, limited, or unavailable.
• Oracle errors, price manipulation, liquidation, bad debt, borrow-rate changes, or vault losses.
• Token approval, allowance, bridge, routing, gas, and wallet-signing risks.

5. Leverage and Liquidation Risk

Hyperliquid perpetual contracts involve leverage. Leveraged positions can be liquidated if the market moves against your position and your margin falls below the maintenance requirement. Liquidation may occur rapidly and result in the complete loss of your position's margin. User-configured risk limits and Mattheus policy checks can reduce exposure, but they cannot prevent all liquidation or loss scenarios.

6. Funding Rate Risk

Perpetual contract funding rates can be positive or negative and can change direction suddenly. Strategies that rely on funding rate income may become unprofitable if funding rates flip. High negative funding rates can erode position value faster than anticipated.

7. Hyperliquid Execution and API Wallet Risk

Hyperliquid execution depends on API-wallet permissions, venue APIs, account state, signer readiness, and risk-policy checks. Relevant risks include:

• Agent wallet permissions - approved Hyperliquid agent wallets can place, cancel, and reduce or close orders for the approved account until expired, locally revoked, rotated, or replaced at the venue.
• Market impact and slippage - large or fast orders may move the market or fill at worse prices than previewed.
• Outage risk - Hyperliquid, RPC, network, or Mattheus incidents may delay order placement, cancellation, or account reconciliation.
• Margin and leverage configuration - incorrect assumptions about leverage, isolated margin, reduce-only behavior, or position state can increase loss risk.

8. Onchain Protocol Risk

Uniswap and Aave write actions remain disabled for public launch until their full lifecycles are certified and approved. If enabled later, swap and lending workflows are exposed to additional risks:

• Smart contract risk - bugs or exploits in protocol contracts may result in loss of funds.
• Oracle risk - price oracles used by lending protocols may be manipulated or malfunction.
• Liquidity risk - swaps, withdrawals, and unwinds may be delayed or execute at unfavorable prices during periods of low liquidity.
• Borrow-rate changes - lending and borrowing rates may change quickly and turn a strategy unprofitable.
• Health factor and liquidation risk - collateralized borrow positions may be liquidated if health factor falls below the protocol threshold.
• Approval and bridge risk - token approvals, bridge transfers, and cross-system deposits may expose funds to contract, routing, or operational failures.
• Vault withdrawal delays - vaults may have queues, epochs, cooldowns, or liquidity limits that delay exits.

9. AI and Strategy Generation Risk

AI-generated research, strategies, code, workflow suggestions, and risk summaries can be wrong, stale, incomplete, delayed, overfit, or inappropriate for your account. Market conditions can change between preview and execution. You must review all generated strategies, inputs, assumptions, limits, and execution previews before approval. Mattheus does not provide investment advice, financial advice, tax advice, or legal advice.

If you enable AI memory or personalization, stored preferences, conversation summaries, lessons, and inferred context may also be inaccurate, incomplete, or out of date. Expired or stale items are excluded from normal retrieval, but you should still review the context shown to you. You can disable personalization and export or delete stored context in data-privacy settings. Memory never grants execution authority and cannot bypass approval, policy, signing, certification, or account controls.

10. Execution Outcome Risk

Transactions and orders may fail, be delayed, be rejected, or settle at unexpected prices. Execution may fail due to RPC, protocol, liquidity, gas, market, signer, venue, account, policy, or infrastructure issues. Some transactions may be irreversible once submitted.

11. Regulatory Risk

Regulatory treatment of algorithmic trading, securities, options, digital assets, derivatives, DeFi, and prediction markets varies by jurisdiction and is evolving rapidly. Regulatory changes may affect your ability to access certain markets or the legal status of your activity. It is your responsibility to ensure compliance with laws, venue rules, broker requirements, and account restrictions applicable to your jurisdiction.

12. No Investment Advice

Mattheus is software infrastructure. Mattheus does not provide personalized investment advice, financial advice, tax advice, or legal advice. Algorithm templates, AI outputs, documentation, and previews are informational software outputs. Nothing on the platform should be construed as a recommendation to trade any particular instrument. You are solely responsible for your trading decisions.

13. Risk Management

Mattheus provides configurable risk controls that you should configure appropriately. We recommend:

• Starting with the minimum capital allocation to validate your algorithm.
• Setting conservative daily loss caps and per-action size limits.
• Monitoring your algorithms during initial live deployment.
• Never allocating capital you cannot afford to lose entirely.