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Risk Disclosure Statement

Last Updated: June 23, 2026

TEMPLATE — REQUIRES REVIEW BY A QUALIFIED U.S. ATTORNEY BEFORE PUBLICATION This document is a template that contains [PLACEHOLDER] tags that must be replaced with accurate company-specific information before use. It is drafted in a U.S.-first posture (the primary market) and is not legal advice. The authors are not lawyers. A qualified U.S. securities/technology attorney must review and finalize this document — including the governing-law and entity choices — before it is published or relied upon.

Effective Date: [PLACEHOLDER: MM/DD/YYYY] Last Updated: June 23, 2026

Company: [PLACEHOLDER: Legal Entity Name] ("we", "us", "our") Platform: Nitix — Options Strategy Backtesting Platform (live trading is on the roadmap and not yet available — see Section 8) Contact: [PLACEHOLDER: legal@nitix.app]

1. Important Notice

This risk disclosure is provided to help you understand the risks involved in using the Nitix platform and in trading options. Please read it carefully before using the Platform.

By using Nitix, you acknowledge that you have read, understood, and accept the risks described in this document. If you do not understand any part of this disclosure, you should consult a qualified financial advisor before proceeding.

2. Not Financial Advice

Nitix is not a financial adviser, investment adviser, broker-dealer, or registered investment company. The Platform currently provides tools for backtesting options strategies (live trading is a planned, future feature that is not yet available — see Section 8), but:

  • Nothing on the Platform constitutes a recommendation to buy, sell, hold, or transact in any security, option, or financial instrument
  • Strategy templates, backtest results, and analytics are provided for educational and informational purposes only
  • The Platform does not provide personalized investment advice tailored to your financial situation
  • No communication from Nitix, its employees, or its affiliates should be interpreted as financial or investment advice

You should consult a qualified, licensed financial advisor before making any investment or trading decisions.

3. Options Trading Involves Substantial Risk

Options trading involves a high degree of risk and is not suitable for all investors. The risk of loss in trading options can be substantial. You should carefully consider whether trading options is appropriate for you in light of your:

  • Investment experience
  • Financial resources
  • Risk tolerance
  • Investment objectives

3.1 Specific Risks of Options Trading

  • Total loss of investment: Option buyers can lose the entire premium paid for an option contract
  • Unlimited loss potential: Selling naked (uncovered) call options can result in losses that are theoretically unlimited
  • Substantial losses on uncovered puts: Selling naked put options can result in losses substantially exceeding the premium received
  • Leverage risk: Options are leveraged instruments — small price movements in the underlying security can cause disproportionately large gains or losses
  • Time decay (theta): Options are wasting assets whose value declines as expiration approaches, even if the underlying price remains unchanged
  • Illiquidity risk: Certain options contracts may have low trading volume, wide bid-ask spreads, or no active market, making them difficult or impossible to close at a fair price
  • Early assignment risk: American-style options may be assigned at any time before expiration, potentially creating unexpected positions or margin requirements
  • Gap risk: Overnight and weekend price gaps can cause losses that significantly exceed your account balance
  • Volatility risk: Changes in implied volatility can dramatically affect option prices independent of the underlying security's price movement
  • Exercise and settlement risk: Automatic exercise at expiration or physical settlement obligations may result in unwanted positions or financial obligations

4. Backtesting Results Are Hypothetical

All backtesting results displayed on the Platform are hypothetical, simulated performance results. They are generated by computer models using historical data and do not represent actual trading.

4.1 Inherent Limitations of Backtesting

  • Past performance does not guarantee future results. A strategy that performed well in historical backtesting may produce significant losses in live markets
  • Benefit of hindsight: Backtests are conducted with the benefit of knowing what happened in the past — real-time traders do not have this advantage
  • Execution assumptions: Backtests assume execution at specified prices; real-world execution involves slippage, partial fills, and bid-ask spread costs
  • Survivorship bias: Historical data may exclude delisted, bankrupt, or otherwise failed instruments, making past performance appear better than it was
  • Look-ahead bias: Backtesting models may inadvertently use information that was not available at the time of the simulated trade
  • Transaction costs — the engine computes GROSS; an optional cost layer is user-set. The backtesting engine does not apply any costs inside the simulation (no brokerage, exchange/regulatory fees, taxes, slippage, or bid-ask spread). The Platform offers an optional results-page tool to apply a user-defined brokerage-per-order and slippage estimate that recomputes net P&L. Unless you configure it, results are gross, pre-cost figures that overstate net live results. Even when configured, the adjustment is a post-processing estimate applied to fills (it changes P&L but not which stop-loss/target levels trigger), so net results remain approximate, and real-world costs may exceed your estimate and reduce actual returns.
  • Liquidity assumptions: Backtests typically assume unlimited market liquidity; in reality, large orders may move prices or be only partially filled
  • Margin requirements: Backtested results may not accurately reflect real-time margin requirements, margin calls, or forced liquidation by your broker

4.2 Hypothetical Performance Disclaimer

As a matter of best practice, we present back-tested information in a manner informed by the principles underlying the SEC's Marketing Rule (Rule 206(4)-1 under the Investment Advisers Act of 1940) governing hypothetical and back-tested performance, even though [PLACEHOLDER: Legal Entity Name] is not a registered investment adviser and the Platform does not provide investment advice (see Section 2). Hypothetical or simulated performance results have inherent limitations:

  • They are designed with the benefit of hindsight
  • They do not involve actual financial risk and do not reflect the impact of real-time market and economic factors, liquidity, or the operational and emotional realities of live trading
  • No representation is being made that any account will or is likely to achieve profits or losses similar to those shown
  • There are frequently significant differences between hypothetical performance results and actual results subsequently achieved by any particular trading program
  • One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight

5. Past Performance Does Not Guarantee Future Results

Past performance, whether actual or simulated, is not indicative of future results. Markets are dynamic and influenced by countless unpredictable factors including:

  • Economic conditions and policy changes
  • Geopolitical events
  • Regulatory changes
  • Market sentiment and behavioral factors
  • Technological disruptions
  • Natural disasters and pandemics

A strategy, model, or approach that was profitable in the past may become unprofitable at any time without warning.

6. Margin Risks

If you trade options using a margin account:

  • You may lose more than your initial investment. Margin trading amplifies both gains and losses
  • Margin calls: Your broker may issue a margin call requiring you to deposit additional funds or securities on short notice. Failure to meet a margin call may result in the forced liquidation of your positions at a loss
  • Forced liquidation: Your broker may liquidate positions in your account without prior notice to you if margin requirements are not maintained
  • Changing margin requirements: Exchanges and brokers may increase margin requirements at any time, particularly during periods of high volatility, potentially requiring additional capital you may not have
  • Cross-margin risk: Losses in one position may affect the margin available for other positions, creating a cascading effect

7. Pattern Day Trader Rules

If your account is subject to pattern day trader (PDT) regulations (applicable to U.S. accounts regulated by FINRA/SEC):

  • A pattern day trader is defined as anyone who executes four or more day trades within five business days, provided that the number of day trades represents more than 6% of your total trading activity for that same five-day period
  • Pattern day traders must maintain a minimum account equity of $25,000 at all times
  • If your account falls below $25,000, you will be restricted from day trading until the minimum equity is restored
  • Your broker may restrict your account if they determine you are engaging in pattern day trading without meeting the minimum equity requirement
  • These FINRA rules, and your broker's implementation of them, may change; you are responsible for understanding and complying with the rules applicable to your account

8. Live Trading Risks

NOT YET AVAILABLE. Live trading (connecting a brokerage account to execute orders) is a planned, roadmap feature and is not currently offered. The Platform today provides backtesting and analytics only. This Section is provided as a forward-looking disclosure of risks that will apply if and when live-trading functionality is released; it does not represent a currently available service. The scope described here is consistent with the Terms of Service and the Financial Disclaimer. We will update these documents and obtain any required consents before any live-trading feature is made available.

If and when you use the Platform's live trading features:

  • Technical failures: Internet connectivity issues, Platform downtime, or broker API outages may prevent you from placing, modifying, or canceling orders
  • Latency: There may be delays between when you submit an order and when it is executed, during which market prices may change significantly
  • System errors: Software bugs, data feed errors, or calculation inaccuracies may produce incorrect signals or display incorrect information
  • Third-party failures: The Platform relies on third-party brokers, data providers, and infrastructure providers — failures in these services are beyond our control
  • Order execution: We do not guarantee that any order will be executed at the displayed price, or at all
  • Account security: Unauthorized access to your account or broker connection could result in unauthorized trades — you are responsible for maintaining the security of your credentials
  • Broker API disconnection and outages: your broker's API or trading platform, the data feed, or the exchange itself may disconnect, freeze, rate-limit, or be unavailable — including during fast or volatile markets — preventing you from placing, changing, or canceling orders or from seeing accurate positions and P&L, and such failures may occur without notice
  • Backtest-vs-live data discrepancies: the historical data used in backtesting may differ from the live data available when you trade (different source, depth, timing, or corporate-action and split adjustments), so live results may diverge materially from backtested results for reasons unrelated to strategy quality
  • Bring-your-own-broker custody: in the bring-your-own-broker model, your funds and positions remain in your own brokerage account under your broker's control and agreements; we do not hold or transfer your funds, and any loss caused by your broker, its execution, or its margin or risk policies is between you and your broker

9. No Guarantee of Results

[PLACEHOLDER: Legal Entity Name] makes no representations, warranties, or guarantees regarding:

  • The profitability of any strategy generated, analyzed, or backtested on the Platform
  • The accuracy, completeness, or timeliness of market data, calculations, Greeks, or analytics
  • The suitability of any strategy for your particular financial situation, goals, or risk tolerance
  • The future performance of any security, index, options strategy, or trading approach
  • The availability, uptime, or error-free operation of the Platform
  • The achievement of any specific investment outcome

There is no guarantee that you will profit from using the Platform. You may lose some or all of your invested capital.

10. Consult a Financial Advisor

We strongly recommend that you:

  • Consult with a qualified, licensed financial advisor before making any investment or trading decisions
  • Understand your own risk tolerance, investment objectives, and financial situation
  • Only trade with capital that you can afford to lose entirely
  • Implement appropriate risk management strategies (position sizing, stop losses, diversification)
  • Stay informed about applicable regulations in your jurisdiction
  • Regularly review and adjust your trading approach based on changing market conditions

11. Jurisdiction-Specific Notices

11.1 United States (SEC / FINRA / OCC) — Primary Market

  • Options trading is regulated by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA); standardized options are issued and cleared by the Options Clearing Corporation (OCC)
  • Before trading options, you should read the OCC's standardized options disclosure document, "Characteristics and Risks of Standardized Options" (the Options Disclosure Document)
  • Pattern day trader rules apply to margin accounts (see Section 7)
  • Options trading privileges require broker approval based on your trading experience, financial profile, and the approval level your broker assigns
  • Equity and ETF options are generally American-style and physically settled; broad-based index options (e.g., SPX) are generally European-style and cash-settled — assignment and settlement mechanics differ
  • You are responsible for your own taxes; U.S. tax treatment of options is complex and subject to change — consult a qualified tax professional

11.2 European Economic Area / United Kingdom / Switzerland (Data Protection)

  • For users in the EEA, the UK, or Switzerland, our handling of your personal data is governed by the GDPR, the UK GDPR, and the Swiss revised Federal Act on Data Protection (revDSG / nFADP) as applicable — see our Privacy Policy
  • This Risk Disclosure addresses trading risk, not financial-services licensing in your jurisdiction; the Platform does not solicit or provide investment services in the EEA/UK/Switzerland and you remain responsible for compliance with local financial-services and tax law

11.3 Other Jurisdictions

[PLACEHOLDER: Include additional jurisdiction-specific risk disclosures as applicable. Note: India is used internally for product validation only and is not a market the Platform is offered to or marketed in; consult a qualified attorney before extending the Services to any additional jurisdiction.]

12. Acknowledgment

By using the Nitix Platform, you confirm that:

  • You have read and understood this Risk Disclosure Statement
  • You understand that options trading involves substantial risk of loss
  • You understand that backtesting results are hypothetical and do not guarantee future performance
  • You will not hold [PLACEHOLDER: Legal Entity Name] responsible for any trading losses
  • You will seek independent professional advice where appropriate
  • You are solely responsible for your investment and trading decisions

13. Contact

For questions about this Risk Disclosure Statement:

  • Company: [PLACEHOLDER: Legal Entity Name]
  • Email: [PLACEHOLDER: legal@nitix.app]
  • Address: [PLACEHOLDER: Principal place of business / registered agent address]

REMINDER: This is a template document. All [PLACEHOLDER] tags must be replaced and the document must be reviewed by a qualified U.S. attorney before publication.