Risk Disclosure Statement — CryptoBur

Effective Date: 2026-05-12 Version: 1.0 Operator: SAVOK AI, Inc., a California corporation ("SAVOK", "we", "us", "our") Product: CryptoBur — infrastructure platform for AI-driven cryptocurrency trading bots ("CryptoBur", the "Service") URL: https://cryptobur.com/legal/risk-disclosure

§2. HIGH RISK WARNING

HIGH RISK WARNING: CRYPTOCURRENCY TRADING INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR EVERY INVESTOR. THE USE OF ALGORITHMIC OR AI-DRIVEN TRADING STRATEGIES AMPLIFIES THIS RISK. YOU MAY LOSE ALL OR SUBSTANTIALLY ALL OF YOUR CAPITAL. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. NEVER TRADE WITH MONEY YOU CANNOT AFFORD TO LOSE.

ALGORITHMIC AND AI-DRIVEN TRADING CAN PRODUCE LOSSES FASTER THAN MANUAL TRADING. UNDER ADVERSE MARKET, NETWORK, EXCHANGE, OR MODEL CONDITIONS, YOUR ENTIRE PORTFOLIO BALANCE MAY BE EXHAUSTED IN MINUTES. CRYPTOCURRENCIES ARE A NEW AND INSUFFICIENTLY TESTED TECHNOLOGY. YOU ASSUME ALL TRADING RISK.

§1. Purpose & Acknowledgment

1.1 Purpose. This Risk Disclosure Statement ("Disclosure") supplements the CryptoBur Terms of Service ("ToS") and Privacy Policy. It identifies the principal categories of risk associated with using CryptoBur. It does not modify, replace, or limit any provision of the ToS; in the event of any conflict, the ToS controls.

1.2 Acknowledgment. By creating an account, signing in, connecting an exchange API key, configuring an AI provider, deploying any trading strategy, or otherwise using CryptoBur, you acknowledge that you have read, understood, and accepted the risks described in this Disclosure.

1.3 Not an Exhaustive List. The risks identified below are illustrative and not exhaustive. Other risks — including risks that are not currently foreseeable — may apply. You are solely responsible for evaluating the suitability of cryptocurrency trading and of any strategy you choose to deploy.

1.4 Eligibility. You represent that you are at least 18 years of age, of legal capacity in your jurisdiction, not located in or a national of any sanctioned country, and not listed on any U.S. or other applicable sanctions list. CryptoBur is not directed to children or persons in restricted jurisdictions.

1.5 No Solicitation. Nothing on the CryptoBur website, in the Service, or in any related communication constitutes an offer to sell, a solicitation to buy, or a recommendation to trade any cryptocurrency, security, derivative, or other instrument.

§3. Market Risks

• 3.1 Volatility. Cryptocurrency markets are extremely volatile; price movements of 10–30% within hours are common, and intra-day moves of 50% or more have occurred for major and minor assets.
• 3.2 24/7 Trading. Unlike traditional securities markets, cryptocurrency markets never close — your strategy continues to execute around the clock, including overnight, on weekends, and on holidays when you may not be monitoring it.
• 3.3 Flash Crashes. Bitcoin, Ether, stablecoins, and altcoins have experienced flash crashes of 30% to over 99% within minutes; your strategy may execute orders during such dislocations at extremely unfavorable prices.
• 3.4 Liquidity Risk. Low-volume tokens may exhibit wide bid-ask spreads, severe slippage, or no available bid; you may be unable to exit a position at any reasonable price.
• 3.5 Market Manipulation. Pump-and-dump schemes, spoofing, wash trading, oracle manipulation, MEV/sandwich attacks, and coordinated social-media campaigns remain prevalent in cryptocurrency markets and can mislead automated strategies.
• 3.6 Regulatory Risk. A new regulation, enforcement action, exchange delisting, court ruling, or asset reclassification can cause a market or specific asset to crash overnight; your strategy will not anticipate such events.
• 3.7 Black Swan Events. Exchange insolvencies, stablecoin de-pegs (e.g., UST collapse, May 2022), bridge and protocol exploits (e.g., Curve/Vyper, July 2023; Ronin, March 2022; Wormhole, February 2022), key-opinion-leader interventions, and macroeconomic shocks can move markets violently and without warning.
• 3.8 Gap Risk. Because cryptocurrency markets trade continuously, large overnight or weekend gaps still occur around exchange downtime, regional holidays, or major news; stop-losses are not guaranteed to fill at the trigger price.
• 3.9 Funding-Rate and Perpetual-Futures Risk. If you trade perpetual futures or other derivatives, funding rates can swing sharply, liquidation cascades can occur, and insurance-fund or auto-deleveraging mechanisms may close your positions adversely.

§4. Exchange-Specific Risks

• 4.1 Exchange Insolvency. Centralized exchanges have failed catastrophically (e.g., FTX, Celsius, Voyager, BlockFi, Mt. Gox); your exchange may suspend withdrawals, enter bankruptcy, or become insolvent, in which case you — not CryptoBur — bear the loss of any assets held there.
• 4.2 Exchange Hacks. Exchanges have been hacked for hundreds of millions of dollars (e.g., Mt. Gox, Coincheck, KuCoin, Bitfinex); your funds at the exchange are not insured by FDIC, SIPC, or any equivalent scheme.
• 4.3 Withdrawal Restrictions. Exchanges may freeze withdrawals or trading during periods of high volatility, regulatory investigation, proof-of-reserves discrepancies, or internal operational issues.
• 4.4 API Reliability. Exchange APIs experience downtime, rate-limiting, latency spikes, and degraded performance during exactly the high-volatility periods when reliable execution matters most; missed signals and missed exits can occur.
• 4.5 API Key Compromise. Despite our AES-256-GCM encryption of your API keys, key leakage from any party — you, us, the exchange, your device, your password manager, or a third-party browser extension — can lead to total loss of funds on that exchange. You are solely responsible for restricting your API key permissions (e.g., disabling withdrawal scope) and rotating keys regularly.
• 4.6 Exchange Account Closure. Your exchange may close your account, restrict your jurisdiction, demand additional KYC, or seize funds for alleged AML or sanctions reasons, independent of CryptoBur.
• 4.7 Order Routing and Fee Surprises. Exchanges may change fee schedules, alter order types, adjust margin or leverage limits, or change matching-engine behavior without prior notice; this can degrade strategy performance overnight.

§5. Algorithmic Trading Risks

The following risks (adapted from established algorithmic-trading disclosures) apply to any automated strategy and are amplified for AI-driven strategies.

• 5.1 Design Risks. Your strategy may contain logical errors, incorrect assumptions, mistuned thresholds, edge cases, or untested branches. A strategy that appears profitable in backtest may fail in live conditions even with no code changes.
• 5.2 Loss of Internet or Cloud Connectivity. Outages of your home internet, your mobile carrier, our cloud providers (Cloudflare, Supabase, Vercel, NVIDIA, or others), DNS, or the exchange will interrupt execution and may prevent your strategy from entering or exiting positions, sending alerts, or honoring stop-losses.
• 5.3 Poor Algorithm Design. Overfitting, look-ahead bias, survivorship bias, in-sample / out-of-sample contamination, runaway loops, machine-gun-orders behavior, and unhandled exceptions are common in retail-built strategies.
• 5.4 Unexpected Market Conditions. Your strategy may never have been tested against a Bitcoin crash, a regulatory ban, a stablecoin de-peg, a layer-1 outage, a long exchange halt, or a major liquidity drain. Markets evolve; old strategies decay.
• 5.5 Data Issues. Exchange feeds may publish dirty, delayed, missing, or fictitious candles; price feeds may diverge between venues; on-chain oracles may report stale or manipulated prices; corporate-action-equivalent events (forks, snapshots, rebases, airdrops) may not be handled by your strategy.
• 5.6 Execution Issues. Order submissions, modifications, and cancellations may be rejected, delayed, or partially filled. Slippage may exceed expectations. Exchange-side latency may cause stale quotes. Stop-loss orders may not protect you in a fast market.
• 5.7 Malicious Activities. Criminal activity — including SIM-swap, social engineering, phishing, credential stuffing, malicious browser extensions, supply-chain attacks on dependencies, and compromise of exchange or email accounts — can cause your strategy to fail, your funds to be stolen, or your personal information to be leaked.
• 5.8 Loss of All Funds. In the worst case, the combined effect of these risks can result in the loss of all funds and holdings in your exchange account. Algorithmic-trading losses can occur far faster than in manual trading. You should continuously monitor any live strategy.
• 5.9 Concurrency and Race Conditions. Multiple strategies, multiple exchanges, or multiple API sessions running against the same account may compete for balance, double-fill, or unintentionally hedge each other. You are responsible for understanding the interaction of every active strategy.
• 5.10 Backtest ≠ Live. Backtests use historical data with full hindsight, perfect fills, and no impact; live results may differ materially or even reverse sign.

§6. AI-Specific Risks

CryptoBur orchestrates trading decisions through Large Language Models ("LLMs") and other AI systems that you select and pay for separately. AI introduces risks that are distinct from, and additional to, traditional algorithmic-trading risks.

• 6.1 LLM Hallucinations. Language models routinely generate confident but fabricated content — including made-up indicators, fictitious news, invented price levels, and non-existent market structure — and may issue trade signals based on such fabrications.
• 6.2 Model Degradation and Deprecation. Your AI provider may downgrade, deprecate, rate-limit, change behavior of, or retire the model you depend on, with or without notice. A strategy tuned to one model may behave very differently on its replacement.
• 6.3 Prompt-Injection Attacks. Untrusted content that an AI strategy consumes (news headlines, on-chain memos, social-media text, exchange announcements, even data fields in market feeds) may contain instructions that hijack the AI's reasoning and cause adverse trades.
• 6.4 API Provider Downtime. Outages, rate limits, or capacity constraints at DeepSeek, Groq, NVIDIA, OpenAI, Anthropic, or any other AI provider you configure will prevent CryptoBur from generating decisions; positions may go un-managed during the outage.
• 6.5 Cost Surprises and Token Consumption. AI inference is metered. Token consumption may exceed your expectations; under user-supplied-key billing, you pay directly to the AI provider, and runaway prompts (large context, frequent calls, retry loops) can produce material charges independent of trading P&L.
• 6.6 Output Variance and Non-Determinism. The same prompt may produce different decisions across runs due to temperature, sampling, model version drift, and context-window cutoff differences. Reproducibility of past behavior is not guaranteed.
• 6.7 Training Data Cutoff. AI models have a training-data cutoff and limited or no awareness of recent market events, exchange listings, hacks, regulatory actions, or token-economic changes. The model may reason from stale facts.
• 6.8 Bias from Public Crypto Discourse. Models trained on cryptocurrency Twitter, Reddit, Telegram, and similar venues may absorb hype cycles, groupthink, shill content, and other low-quality signals as if they were neutral information.
• 6.9 Adversarial Inputs. Sophisticated actors — including hostile traders, manipulated indices, fake news outlets, and AI-generated content farms — may publish material specifically designed to fool AI traders into adverse positions.
• 6.10 Tool-Use and Agent Risk. AI agents that call tools (e.g., place orders, fetch balances, withdraw to whitelisted addresses) can chain mistakes; a single misinterpreted instruction can result in repeated, rapid, and unintended actions.
• 6.11 Provider Terms. Each AI provider has its own terms of service, usage policies, content policies, and data-handling rules. CryptoBur is not responsible for changes to, or enforcement of, those terms by the AI provider.

§7. CryptoBur Platform Risks

• 7.1 Software Bugs. Despite testing, CryptoBur software may contain bugs that result in unintended trades, duplicated trades, missed exits, mis-calculated positions, incorrect fee accounting, mis-displayed P&L, or other errors.
• 7.2 Cloud and Infrastructure Outages. CryptoBur depends on Cloudflare, Supabase, third-party data feeds, and other infrastructure providers. We do not currently offer a service-level agreement (SLA); we provide no uptime guarantee.
• 7.3 Encryption and Key Management. If a master encryption key, secrets-store, or operator credential were compromised — by intrusion, insider action, mis-configuration, or supplier failure — encrypted user data, including exchange API keys, could be at risk.
• 7.4 Account Takeover via OAuth. CryptoBur uses Google sign-in. If your Google account is compromised, an attacker can sign into your CryptoBur account; secure your Google account with a strong password and hardware-key two-factor authentication.
• 7.5 No Insurance. SAVOK does not maintain FDIC insurance, SIPC coverage, fidelity bonds, or any trade-related insurance covering user losses. There is no insurance pool, guarantee fund, or compensation scheme.
• 7.6 Beta and Early-Stage Software. CryptoBur is early-stage. Expect bugs, downtime, missing features, breaking changes, feature deprecations, schema migrations, and rapid release cycles. Behavior that is correct today may change tomorrow.
• 7.7 Discontinuation. SAVOK may, at any time and in its sole discretion, suspend, modify, or discontinue CryptoBur in whole or in part — including without notice for safety, legal, or operational reasons.
• 7.8 Data Loss. Logs, trade history, configuration backups, and analytics may be lost, truncated, or corrupted. You are responsible for maintaining your own copies of any data you value.
• 7.9 Third-Party Dependencies. Open-source libraries, indicator packages, signal feeds, and community-contributed strategies may contain bugs, malicious code, or licensing issues. CryptoBur does not audit them.

§8. Regulatory & Tax Risks

• 8.1 Tax Liability. In most jurisdictions, each trade — including crypto-to-crypto trades, stablecoin conversions, and certain DeFi interactions — is a taxable event. You are solely responsible for tracking, reporting, and paying any applicable taxes. CryptoBur is not a tax-reporting service.
• 8.2 Jurisdiction Changes. Your country, state, province, or municipality may restrict, ban, license, tax, or otherwise regulate cryptocurrency trading at any time, with retroactive or prospective effect.
• 8.3 KYC/AML at Your Exchange. Your exchange may require additional identity verification, source-of-funds documentation, or proof-of-residence; may freeze your account; and may report your activity to tax or law-enforcement authorities. CryptoBur has no control over any of this.
• 8.4 OFAC and Sanctions. Trading certain assets (privacy coins, sanctioned protocols, sanctioned bridges) or with certain counterparties may violate U.S. or other sanctions laws. You are solely responsible for sanctions compliance. You represent that you are not located in, ordinarily resident in, or a national of any U.S.- or other-applicable-sanctions-restricted jurisdiction.
• 8.5 Not Registered. SAVOK and CryptoBur are not registered with, licensed by, or supervised by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), the National Futures Association (NFA), the Financial Industry Regulatory Authority (FINRA), the California Department of Financial Protection and Innovation (DFPI) for any money-transmission or adviser activity, or any equivalent regulator in any other jurisdiction.
• 8.6 Securities Risk. Some cryptocurrencies and tokens may be deemed securities under U.S. or foreign law. Trading such instruments via API may carry additional legal implications — including unregistered-broker, dealer, or transfer-agent exposure — for which you, not CryptoBur, are responsible.
• 8.7 Derivatives Restrictions. Perpetual futures, margined products, and other derivatives are restricted or prohibited for U.S. persons on many exchanges. You are responsible for ensuring that your use of any derivative product complies with applicable law.
• 8.8 Travel-Rule and Reporting Obligations. Withdrawals from your exchange to external wallets may trigger travel-rule, FATF, or local reporting obligations.

§9. What CryptoBur Is NOT

CryptoBur is a software-infrastructure product. To remove any ambiguity:

• CryptoBur is NOT an investment adviser, and SAVOK is not a registered investment adviser under §202(a)(11) of the Investment Advisers Act of 1940 or any state-law equivalent. CryptoBur does not give investment advice, does not recommend any cryptocurrency, and does not opine on the value of any asset.
• CryptoBur is NOT a broker-dealer.
• CryptoBur is NOT a money transmitter, money services business (MSB), virtual-asset service provider (VASP), or payment processor.
• CryptoBur is NOT a financial planner.
• CryptoBur is NOT a custodian. Your funds remain at your chosen exchange, in your account, at all times. We never hold, control, or have signing authority over your assets.
• CryptoBur is NOT a fiduciary. We owe you no duty of loyalty, no duty of care, and no fiduciary duty of any kind.
• CryptoBur is NOT endorsed by, affiliated with, partnered with, or sponsored by any cryptocurrency exchange, LLM provider, cloud provider, data vendor, or regulatory body. References to third parties (e.g., DeepSeek, Groq, NVIDIA, OpenAI, Anthropic, Binance, Coinbase, Kraken) are for descriptive purposes only.
• CryptoBur does NOT guarantee profits, performance, accuracy, uptime, latency, fills, or any other outcome.

§10. Final Disclaimer

EVERY TIME YOU USE CRYPTOBUR YOU AGREE THAT IN ALL CASES SAVOK AI, INC., ITS DIRECTORS, OFFICERS, EMPLOYEES, CONTRACTORS, AGENTS, AFFILIATES, SUPPLIERS, AND LICENSORS BEAR NO RESPONSIBILITY FOR ANY TRADING LOSSES, MISSED OPPORTUNITIES, OPPORTUNITY COST, OR FINANCIAL DAMAGES INCURRED. SAVOK AI, INC. OFFERS NO GUARANTEES OR EXPECTATIONS OF PROFITABILITY, ALGORITHM PERFORMANCE, AI ACCURACY, EXECUTION QUALITY, OR PLATFORM STABILITY.

PAST RESULTS — INCLUDING ANY BACKTEST, PAPER TRADE, SIMULATION, LEADERBOARD, OR LIVE TRACK RECORD — ARE NOT INDICATIVE OF FUTURE RESULTS. CRYPTOCURRENCIES ARE A NEW AND INSUFFICIENTLY TESTED TECHNOLOGY. ALGORITHMIC AND AI-DRIVEN TRADING CAN LOSE MONEY FASTER THAN YOU CAN INTERVENE. YOU ACKNOWLEDGE THAT YOU MAY LOSE SOME OR ALL OF YOUR FUNDS, AND YOU ACCEPT THIS RISK ENTIRELY.

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE", WITHOUT WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, ACCURACY, OR UNINTERRUPTED OPERATION. YOU USE CRYPTOBUR AT YOUR OWN RISK.

§11. Your Responsibilities

You agree that you, and not SAVOK, are responsible for each of the following:

• 11.1 Risk Capital Only. Trade only with money you can afford to lose entirely. Do not trade with rent money, emergency funds, retirement assets, borrowed funds, or money owed to others.
• 11.2 Position Sizing & Risk Limits. Configure appropriate position-size caps, leverage limits, daily-loss limits, and stop-losses before deploying any strategy live.
• 11.3 Pre-Deployment Review. Read, understand, and test any strategy — whether your own, AI-generated, or community-shared — before allocating real capital. Paper-trade first.
• 11.4 Continuous Monitoring. Monitor live strategies regularly. Do not "set and forget". Be prepared to intervene, halt the bot, or revoke API keys at any time.
• 11.5 Backups. Maintain your own backups of trading data, configurations, and any output you value.
• 11.6 Account Security. Use a strong, unique password for your Google account; enable hardware-key or app-based 2FA; secure your exchange credentials, recovery phrases, and email; restrict exchange API-key permissions (no withdrawals, IP-allowlists where supported).
• 11.7 AI Provider Account. Manage your own AI-provider account, billing limits, key rotation, and usage caps.
• 11.8 Exchange Compliance. Comply with the terms of service of every exchange you connect, including any restrictions on automated or algorithmic trading.
• 11.9 Tax Compliance. Understand and meet your tax obligations, including capital-gains, ordinary-income, foreign-account, and information-reporting requirements where applicable.
• 11.10 Professional Advice. Consult licensed financial, legal, and tax advisors before making investment decisions. Nothing in CryptoBur — including AI output — is a substitute for personalized professional advice.
• 11.11 Sanctions Screening. Ensure that you, the assets you trade, the counterparties you interact with, and the jurisdictions you operate in are not subject to applicable sanctions.
• 11.12 Truthful Information. Provide accurate registration and KYC information to your exchange, and accurate sign-up information to CryptoBur.

§12. Acknowledgment Checkbox Language

The following text is the exact acknowledgment text presented at sign-up and at any later time you connect a new exchange or AI provider:

☐ I have read and understood the Risk Disclosure Statement. I acknowledge that cryptocurrency trading, especially with algorithmic and AI-driven strategies, carries substantial risk of loss, that I may lose all of my capital, and that past performance is not indicative of future results. I am 18 years of age or older and not located in a sanctioned jurisdiction. I agree to the Terms of Service, Privacy Policy, and Risk Disclosure Statement.

§13. Changes to This Disclosure

We may update this Disclosure from time to time. Material changes will be posted at https://cryptobur.com/legal/risk-disclosure with a revised effective date and, where practical, notified by email. Continued use of CryptoBur after the effective date of any update constitutes acceptance of the updated Disclosure.

§14. Contact

For questions about this Disclosure (not for personalized advice):

• SAVOK AI, Inc.
• 2108 N St, Ste N, Sacramento, CA 95816
• Email: legal@cryptobur.com
• Effective Date: 2026-05-12 | Version 1.0