Risk Warnings and Disclaimers Statement

Neutral Trade is powered by blockchain and smart contract technology operated in a decentralized environment and is not regulated by any authority. Please note that this Statement explains some principal risks but is not an exhaustive list of all possible risks. Before depositing into a vault, or otherwise entering into a transaction, you should therefore be satisfied that you fully understand the precise nature of the transaction, how it works, the extent of your exposure to risks and the potential losses that you could incur. You should also read the relevant product specific terms, including but not limited to the Terms of Use. This Statement also does not deal with issues of taxation or other legal consequences pertaining to any transactions which you may enter into.

General Risk

Subscribing for any Digital Asset related products or services involves a high degree of risk. The value of Digital Assets may not be backed or supported by any government. As such, Digital Assets may suffer significant volatility in value. If you wish to trade Digital Asset related products, you should carefully read and understand the nature, terms and risk of the relevant Products and carefully consider the risk exposure. You must have the financial ability, sophistication, experience, tolerance, and willingness to bear the risks of any Digital Asset related products or services, and a potential total loss of the underlying assets. Digital Asset products and services are not suitable for you. Before acquiring a Digital Asset product or service, please carefully review your financial situation, experience and objectives for engaging in the transaction, ability to bear risks and other relevant circumstances to determine whether such products or services is suitable for you. You should consult professional advisors (including legal, tax, financial and accounting) as may be appropriate. By entering into any Transaction, you agree that you assume all the risk of your Transactions and that we will not be responsible for any losses you may suffer.

Token Issuer Default Risks

Unless expressly stated otherwise, Neutral Trade does not issue Digital Assets. Digital Assets are issued by third parties. You should read the applicable terms, information and risk disclosures provided by the applicable issuers carefully before entering into any Transaction. You should note that the offering document or product information provided by the issuer have not been subject to scrutiny by any regulatory body. For any Digital Assets authorised by a regulator, you should note that authorisation does not imply any official recommendation or endorsement of the asset by such regulator, nor does it guarantee the commercial merits of such asset or its performance. In the event that a Digital Asset issuer becomes insolvent and defaults on their issued products, you will be considered as unsecured creditors and will have no preferential claims to any assets held by the issuer. You should therefore pay close attention to the financial strength and credit worthiness of the Digital Asset issuers and conduct their own assessment on the potential of their project. Since Digital Assets are not legal tender and Digital Asset products are not backed by assets or any government and authorities, in the event of issuer bankruptcy or ceasing of operations, their Digital Assets issued may no longer have any value and you can lose their entire investment. We make no representations or warranties about whether any Digital Asset underlying a vault on Neutral Trade will always continue to be traded. You should seek independent professional advice before making any investment decision.

Vault Diligence

We do not provide any guarantees or endorsements regarding any Vaults. The information provided on our website and/or our platform is for general information and education purposes only and we make no representations or warranties with respect to the accuracy or completeness of such information and it is not a recommendation to deposit into any Vault. You should not consider such information as investment advice. It is your responsibility to assess the quality, legitimacy and value of any Vault. We advise you to exercise caution and perform your own independent research and due diligence before engaging in any trading activities.

Liquidity and Conversion Risks

Where digital asset transactions are denominated in particular Digital Assets or fiat currencies (if and where applicable) other your primary reference asset, or where you convert Digital Assets upon carrying out a Transaction, there is a risk of the exchange markets moving against the investor, resulting in maturity or any earlier dealing the net proceeds may be significantly less than the initial amount in your primary reference asset, and any income or gains may be entirely negated. The value of a Digital Asset may be derived, among other things, from the continued willingness of market participants to exchange fiat currency (if and where applicable) for that Digital Asset, this means that the value of a particular Digital Asset may decline, or be completely and permanently lost should the market for that Digital Asset disappear. You should further note that there is no assurance that a market that existed for a particular Digital Asset will continue to exist in the future, or that a person who accepts a Digital Asset as payment today will continue to do so in the future. Liquidity risk is the risk of losses attributable to a lack of liquidity (for example very few active market participants) in a particular market. This is usually indicated by wide bid / offer spreads and very few transactions being carried out in a particular product or market. The risk is that changes in the underlying market price may be infrequent but very large, and that it is not possible to unwind or transfer a particular transaction in a timely manner, at near the price the investor had expected, or at all. Such liquidity risk in an asset may be caused by the absence of buyers, limited buy/sell activity or lack of or underdeveloped secondary markets for certain Digital Assets. You should note that there is no assurance that a person who accepts a Digital Asset as payment, will continue to do so in the future. You may also suffer loss as a result of depreciation of the value of the fiat currency (if and where applicable) paid as a result of foreign exchange controls imposed by the country issuing the foreign currency. Repayment or payment of amounts due to the investor may be delayed or prevented by exchange controls or other actions imposed by governmental or regulatory bodies over currencies which they control or regulate. Market risk Digital Asset trading venues are relatively new and, in most cases, largely unregulated. They are typically not subject to the same robust regulation as platforms in traditional financial markets, and are not typically required to protect customers to the same extent that regulated securities exchanges or futures exchanges are required. Digital asset platforms may therefore be more exposed to theft, fraud, failure, security breaches, market manipulation and insider dealing, compared to established, regulated exchanges for securities, derivatives and other currencies. In particular, some digital asset venues have collapsed or closed due to the above issues. As a result, the prices of Digital Assets may be subject to larger and/or more frequent sudden decline than assets traded on more traditional exchanges.

Market liquidity Risks

Due to market conditions or other circumstances, you may not be able to withdraw your holding in a Vault as quickly as you would like. If trading is suspended, the subscription and redemption of a Digital Asset may also be suspended. It may also be difficult or impossible to liquidate a position in Digital Assets under certain circumstances. Certain Airdrops, Forks or Network Events may occur rapidly and affect our ability to conduct a Transaction. Information relating to such events may be difficult to ascertain ahead of time and may be subject to limited oversight by any third party who is capable of intervening to stabilise the network. Neutral Trade is not liable for any loss that you may suffer to the extent that you cannot dispose of your holding due to issues arising from the market liquidity.

Volatility Risks

The volatility and unpredictability of the price of Digital Assets relative to other digital Assets or fiat currencies (if and where applicable) may result in significant losses over a short period of time. Such fluctuations could affect the price of any Digital Assets. Digital Assets may decrease in value or lose all of its value due to various factors including discovery of wrongful conduct, market manipulation on trading, lending or other dealing platforms, change to the nature or properties of the Digital Asset, governmental or regulatory activity, legislative changes, suspension or cessation of support for a Digital Assets or other exchanges or service providers, public opinions, or other factors outside of our control. Technical advancements, as well as broader economic and political factors, may cause the value of Digital Assets to change significantly over a short period of time. Digital Assets are highly risky and you should exercise caution when trading any Digital Assets.

Not a Bank Deposit under Applicable Laws

Any fiat currencies (if and where applicable) or Digital Assets held by us for your benefit are not held as “deposits” within the meaning of any Applicable Law and are not eligible for any public or private deposit insurance protection or other protection programmes of a similar nature. For the avoidance of doubt, Neutral Trade is not regulated by any authority.

Jurisdiction Risks

Residents, Tax residents or persons having a relevant connection with certain jurisdictions are excluded from carrying out Digital Asset transactions. Changes in the investor’s place of domicile or the Applicable Laws may result in the investor violating legal or regulatory requirements of the applicable jurisdiction. The investor is responsible for ensuring that any digital asset transaction is, and remains lawful despite changes to Applicable Laws, the investor’s jurisdiction of residence and circumstances.

Country Risks

If a Digital Asset transaction is made in respect of Digital Assets issued by a party subject to foreign laws or transactions made on markets in other jurisdictions, including markets formally linked to a domestic market, recovery of the sums invested and any profits or gains may be reduced, delayed or prevented by exchange controls, debt moratorium or other actions imposed by the government or other official bodies. Before conducting any Digital Asset transaction, the investor should satisfy himself/herself as to the sufficiency of his understanding of any rules or laws relevant to the particular Digital Asset transactions. You should note that their local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where the investor’s transactions have been effected. It is the sole responsibility of the investor to obtain independent advice about the different types of redress available in both the investor’s home jurisdiction and other relevant jurisdictions before starting to trade. If the investor’s jurisdiction of residence imposes restrictions on Digital Asset transactions, we may be required to discontinue your access , and may not be permitted to transfer any Digital Assets back to you or permit you to transfer Digital Assets to yourself or others, until such time as the regulatory environment permits us to do so.

Legal and Regulatory Risks

Legal and documentation risks include the risk that transactions and/or their related framework arrangements may not be legally enforceable or that the conduct of the parties violates applicable laws and regulations. You understand and acknowledge that the regulatory status of Digital Assets, Vaults and relevant products and services is currently unsettled, varies among jurisdictions and is subject to significant uncertainty. There is also legal uncertainty on whether Digital Assets can be regarded as “property” under the Applicable Laws. This may affect the nature and enforceability of your interest in such Digital Asset. Legislative and regulatory changes or actions relating to Digital Assets at a state or international level may adversely affect or restrict, as applicable, the use, transfer, exchange, and value of Digital Assets, as well as the provision of Neutral Trade’s services. You are solely responsible for knowing and understanding how the laws applicable to you or your property, rights or assets or tax the Digital Assets you trade, the Vaults you deposit in or the leverage you provide (if applicable).

Regulatory Measures

Digital Assets may be overseen by the legal and regulatory authorities of a number of jurisdictions globally. We may receive notices, queries, warnings, requests or rulings from one or more authorities upon short notice, or may even be ordered to suspend or terminate any action in connection with any Digital Assets as a whole without prior notice. Furthermore, many aspects of the Digital Assets involve untested areas of law and regulation, and could be subject to new laws or regulations. Therefore, their legal and regulatory outcome in all relevant jurisdictions is not possible to predict. The planning, development, marketing, promotion, execution or otherwise of the Digital Assets may be seriously affected, hindered, postponed or terminated as a result of such new laws and/or regulations. Since regulatory policies can change with or without prior notice, any existing regulatory permissions for or tolerance of Digital Assets in any jurisdiction may be withdrawn without warning. Cryptographic-tokens and cryptocurrencies could be deemed from time to time as a commodity or digital commodity, a digital asset or even as money, securities or currency in various jurisdictions and therefore the Digital Assets could be prohibited from being entered into, traded or held in certain jurisdictions pursuant to local regulations. In turn, the Digital Assets could be deemed to be a regulated or restricted product. There is no guarantee that the Digital Assets can maintain any particular legal or regulatory status in any particular jurisdiction at any time.

Digital Assets or Vaults may be Complex Products

Digital Assets or Vaults may be complex products by virtue that the terms, features and/or risk are not understood due to the complex structure, novelty and reliance on technological features. You should take steps to understand the nature of such complex products and the risks involved.

Commissions and Fees

The investor should obtain details of all fees, costs, charges, expenses and commissions updated from time to time for which he/she will be liable before conducting any Digital Asset transaction or subscripting into any Vault. If any of the foregoing is unclear to the investor, it is the responsibility of the investor to clarify such fees, costs, charges, expenses and commissions before entering into the Digital Asset transaction. The fees, costs, charges, expenses and commissions to be paid by the investor will vary depending on a variety of factors, including the nature of the investor’s relationship with Neutral Trade in relation to the relevant services, the transaction size, complexity and type of asset.

Tax Treatment and Accounting

Some Digital Asset transactions may be subject to the tax laws and regulations in an applicable jurisdiction. The tax treatment and accounting of Digital Assets is a largely untested area of law and practice that is subject to change. Tax treatment of Digital Assets may vary amongst jurisdictions. If you are unsure about the tax implications of your Digital Asset transactions, you should seek independent professional advice before carrying out a Digital Asset transaction.

Insolvency Risk

The insolvency or default of any exchanges or brokers involved with the Services and Products may lead to your trading positions being liquidated or closed out without your consent. In such circumstances where, for example, the exchange’s or broker’s assets are subject to insolvency proceedings, you may lose the assets that you have invested.

Conflicts of Interest

We or other Digital Asset trading service providers may be acting as agents for you as well as acting as principals against you. We or other relevant service providers may facilitate the initial distribution of Digital Assets (such as, initial coin offerings), secondary market trading, or both, in manners similar to a traditional exchange, alternative trading system or securities broker. If these operations are not under the purview of any regulator, it would be difficult to detect, monitor and manage conflicts of interest.

Money-laundering risk

Digital Assets are generally transacted or held on an anonymous basis. In particular, Digital Asset platforms which allow conversions between Digital Assets and fiat currencies (if and where applicable) are inherently susceptible to higher risks of money laundering and terrorist financing. Digital Asset investments may be the subject of law enforcement action as a result of criminal activities and you may not be able to recover any of their investments as a result.

Cryptographic Protection

Cryptography is evolving and there can be no guarantee of security at all times. Advancement in cryptography technologies and techniques, including but not limited to code cracking, the development of artificial intelligence and/or quantum computers, could be identified as risks to all cryptography-based and/or blockchain based systems including the underlying assets of the digital assets. The security of our platform cannot be guaranteed as the future of cryptography or security innovations is unpredictable.

Abandonment or Development Failure

Due to the technically complex nature of our platform, we could face difficulties from time to time that may be unforeseeable and/or unresolvable. Accordingly, the development of the platform could fail, terminate or be delayed at any time for any reason (including but not limited to a lack of funds).

Loss of Private Key is Permanent and Irreversible

You should note that the investor alone is responsible for securing his/her private key for any address with respect to Digital Assets. Any loss of control of the private key by the investor will permanently and irreversibly deny the investor access to such Digital Assets and a means of proving their ownership in the Digital Assets. Neither Neutral Trade nor any other person will be able to retrieve or protect the Digital Assets not held by Neutral Trade. Once lost, the investor will not be able to transfer such Digital Assets to any other address or wallet. This means that the investor will also not be able to realize any value or utility that the Digital Assets may hold now or in future.

Cyber-attacks and Fraudulent Activity, including Theft of Digital Assets

There may be attempts to steal Digital Assets on the platform. The nature of Digital Assets exposes the investor to an increased risk of fraud or cyber-attack. Neutral Trade’s platform and website may be targeted by malicious persons who may attempt to steal Digital Assets or fiat currencies (if and where applicable), or otherwise intervene in a Digital Asset transaction. This includes (but is not limited to) interventions by way of distributed denial of service, sybil attacks, phishing, social engineering, hacking, smurfing, malware, double spending, majority-mining, consensus-based or other mining attacks, misinformation campaigns; Forks; and spoofing. These malicious persons may target an investor in an attempt to steal any asset held by the investor, or to claim any asset that the investor may have purchased. This may involve unauthorised access to your wallet, log-in details or access method for your wallet, as well as unauthorised access to your computer, smartphone and any other devices. Your are solely responsible for protecting himself/herself against such actions. Neutral Trade’s platform and website may also be vulnerable to exploitation of vulnerabilities in smart contracts and other code, as well as to human error. Cyber-attacks resulting in the hacking of Digital Asset platforms and thefts of Digital Assets are common. Victims may have difficulty recovering any losses resulting from these attacks. This could result in significant loss and/or other impact that may materially affect an investor’s interests. The above events may affect the features, function, operation, use, access or other properties of the Digital Assets, your wallet, Neutral Trade’s platform and website.

Code Flaws

While we adopt quality assurance procedures to help ensure the source codes as accurately as possible reflect their intended operation, the flawlessness of the source codes, some of which are open source codes, cannot be guaranteed. They may contain bugs, defects, inconsistencies, flaws or errors, which may disable some functionality, create vulnerabilities or cause instability. Such flaws may compromise the predictability, usability, stability, and/or security of the platform. Open source codes rely on transparency to promote community-sourced identification and solution of problems within the code.

Unpermissioned, Decentralized and Autonomous Ledger

Neutral Trade’s platform is being developed to serve various distributed ledger systems which are unpermissioned protocols that could be accessed and used by anyone. In addition to the use of decentralized ledgers, we intend to make use of supporting technologies that also operate on decentralized ledgers. The utility and integrity of our platform relies on the stability, security and popularity of these decentralized ledgers. Risks arising from relying on such distributed ledger technology include the existence of technical flaws in the technology, targeting by malicious persons, majority-mining, consensus-based or other mining attacks, changes in the consensus protocol or algorithms, decreased community or miner support, rapid fluctuations in value of relevant digital assets, the existence or development of competing networks, platforms and assets, flaws in the scripting language, disputes between developers, miners and/or users and regulatory action. We are envisaged to be an open, decentralized community and its composition can include users, supporters, developers and other participants worldwide who may or may not be connected with us in any manner. The platform is intended to be decentralized and autonomous in nature as far as its maintenance, governance and evolution are concerned.

Compromised Security

We rely on open source software and unpermissioned decentralized distributed ledgers including but not limited to the Solana and Ethereum blockchain. Accordingly, anyone may intentionally or unintentionally compromise the core infrastructural elements of our platform and its underlying technologies. This may consequently result in the loss of any Digital Assets held on the platform and may cause our system to fall.

Inadequacy of Network

The ramp up of the platform may be accompanied by sharp increases in transaction numbers and demand for processing power. If the demand for processing power outgrows that forecasted, the network of the platform could be destabilized and/or stagnated. This may create opportunities for fraudulent activities including but not limited to false or unauthorized transactions (such as "double-spending") to arise. All these may adversely impact the usability, stability and security of the platform.

Reliance on the Internet and Other and Technology-related Risks

Operation of Neutral Trade’s Vaults and Digital Asset transactions rely heavily on the internet and other technologies. However, the public nature of the internet means that either parts of the internet or the entire internet may be unreliable or unavailable at any given time. Further, interruption, delay, corruption or loss of data, the loss of confidentiality in the transmission of data, or the transmission of malware may occur when transmitting data via the internet and/or other technologies. The result of the above may be that your Digital Asset transaction is not executed according to your Instructions, at the desired time, or not at all. No authentication, verification or computer security technology is completely secure or safe. The internet or other electronic media (including without limitation electronic devices, services of third-party telecom service providers such as mobile phones or other handheld trading devices) are an inherently unreliable form of communication, and such unreliability may be beyond Neutral Trade’s control. Any information (including any document) transmitted, or communication or transactions made, over the internet or through other electronic media (including electronic devices, services of third party telecommunication service providers such as mobile phones or other handheld trading devices or interactive voice response systems) may be subject to interruption, transmission blackout, delayed transmission due to data volume, internet traffic, market volatility or incorrect data transmission (including incorrect price quotation) or stoppage of price data feed due to the public nature of the internet or other electronic media.

Past Performance and Indicated Returns not Indicative

You acknowledge and agree that the past performance of any Neutral Trade’s Vaults, or otherwise any of Neutral Trade’s Products or Services, is not an indication of future performance. In providing the Services and Products, Neutral Trade does not guarantee the performance of any Services or Product and does not provide any financial or legal advice to you. Any indicated potential returns are subject to change at any time without notice due to fluctuations in market conditions, regulatory changes, or other unforeseen events. You are solely responsible for determining the suitability of the Services or Product for you.

Transactions Deemed Executed Only when Recorded or Confirmed

Some Digital Asset transactions may be deemed to be executed only when recorded and confirmed, which may not necessarily be the time at which you initiate the transaction.

Irreversible Transactions

Transactions in Digital Assets may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable. You should note that once a transaction has been verified and recorded on a blockchain, loss or stolen Digital Assets generally will not be reversible. This means accidental or fraudulent transactions in respect of Digital Assets may not be recoverable.

Counterparty Risk

Most trading, lending or other dealing platforms, custodians of Digital Assets or other Digital Asset service providers are private companies which may be unregulated or only subject to light-touch regulation (e.g. for payment purposes). As such, they may not be subject to the same robust regulation and transparent rules as service providers or products in traditional financial markets, posing additional counterparty risks for Digital Asset related products, and may be exposed to market manipulative and abusive activities. There is a risk that these counterparties may become insolvent.

DISCLAIMER OF WARRANTIES

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEUTRAL TRADE, ITS VAULTS, AND ITS WEBSITE ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT ANY WARRANTY OF ANY KIND, AND NEUTRAL TRADE HEREBY SPECIFICALLY DISCLAIMS ALL WARRANTIES WITH RESPECT TO ITS PRODUCTS AND SERVICES, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING THE IMPLIED WARRANTIES AND/OR CONDITIONS OF TITLE, MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE, AND/OR NON-INFRINGEMENT. NEUTRAL TRADE DOES NOT WARRANT THAT ITS PRODUCTS AND SERVICES, INCLUDING ACCESS TO AND USE OF ITS WEBSITE, WILL BE CONTINUOUS, UNINTERRUPTED, TIMELY, COMPATIBLE WITH ANY SOFTWARE, SYSTEM, OR OTHER SERVICES, SECURE, COMPLETE, FREE OF HARMFUL CODE, OR ERROR-FREE. NO ADDITIONAL DUTIES SHALL BE IMPLIED. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEUTRAL TRADE SHALL NOT ASSUME ANY FIDUCIARY DUTY OR OBLIGATION TO USERS.