Risk disclosure

Preamble

This Risk Disclosure ("Disclosure") highlights significant risks associated with digital asset spot markets and with use of the DexRails Service, including automation and AI-assisted features. It does not describe every possible risk. By using the Service, you acknowledge that you have read and understood this Disclosure together with the Terms of Service and Disclaimer.

ARTICLE I — Market and volatility risk

1.1 Price risk. Digital assets can be extremely volatile. Prices may gap, flash crash, or become illiquid. You may lose your entire principal.

1.2 No insurance. DexRailsdoes not insure your balances. Exchange protections, if any, are governed by the exchange's terms and may not cover all losses.

ARTICLE II — Execution and liquidity risk

Live orders are subject to order-book depth, spreads, slippage, partial fills, rejections, latency, and exchange-specific rules. During stress periods, execution may differ materially from displayed quotes. Paper mode cannot replicate all real-world execution dynamics.

ARTICLE III — Automation and operational risk

Bots, schedules, webhooks, and AI-triggered workflows can place orders without real-time human review. Bugs, misconfiguration, clock skew, duplicate events, or model errors may cause unintended size, direction, frequency, or timing of orders — or failure to act when action was expected. You are responsible for monitoring positions and disabling automation when appropriate.

ARTICLE IV — Technology, security, and custody risk

The Service and third-party platforms may experience downtime, data loss, cyberattacks, or API changes. Compromise of your credentials or API Keys may lead to unauthorized trading or withdrawals on connected accounts. On-chain assets carry smart-contract, bridge, and key-management risks not specific to DexRails unless we offer a dedicated custody product described in writing.

ARTICLE V — Legal and regulatory risk

Laws and regulations affecting digital assets evolve. Actions that are permissible today may become restricted tomorrow. Tax treatment is uncertain in many jurisdictions. You may be subject to reporting, licensing, or prohibition of certain activities.

ARTICLE VI — Counterparty and platform risk

When you trade on an exchange, you bear the credit, operational, and insolvency risk of that exchange and its ecosystem partners. Assets held on exchanges may be commingled, rehypothecated, or subject to resolution proceedings in insolvency.

ARTICLE VII — Your responsibilities

You should use paper mode and small position sizes to validate behavior; maintain strong authentication; rotate API Keys; restrict key permissions where possible; review logs and confirmations; and maintain independent records for tax and compliance. You bear all asset risk and trading decisions.