Risk Disclosure

Trading and holding digital assets involves substantial risk of loss. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition, investment experience, risk tolerance, and investment objectives. Past performance is not indicative of future results. The value of digital assets can increase or decrease dramatically in short periods of time. You may lose some or all of your invested capital. Only invest what you can afford to lose. This Risk Disclosure Statement does not disclose all of the risks associated with digital assets and related services. This document is designed to provide you with a general overview of the principal risks. You should not interpret the absence of any particular risk in this document as indicating that the risk does not exist.

Digital assets are among the most volatile asset classes in existence. Prices can move by 10%, 50%, or more in a single day in either direction. Factors contributing to volatility include: • Speculative trading: A significant portion of trading volume in digital assets is speculative, which amplifies price swings. • Thin liquidity: Many digital assets have limited trading volume, making prices more susceptible to large individual trades. • Sentiment and news: Social media, regulatory announcements, and macroeconomic events can trigger rapid price movements. • Market manipulation: Digital asset markets may be subject to manipulation by large holders ("whales"), coordinated trading schemes, or fraudulent activity. • Correlation risk: During periods of market stress, digital assets may become highly correlated, reducing diversification benefits. There is no guarantee that any digital asset will hold any particular value or recover from a price decline.

The regulatory landscape for digital assets is rapidly evolving and highly uncertain. Regulatory changes may materially affect the value, legality, or availability of digital assets: • Governments may restrict, prohibit, or heavily regulate the use, trading, or holding of digital assets. • Tax treatment of digital assets varies by jurisdiction and may change without notice. • Regulatory actions against specific assets may cause their value to decline significantly or become worthless. • Klaverchain may be required to restrict or terminate services in certain jurisdictions due to regulatory requirements. • You are solely responsible for ensuring that your use of Klaverchain's services complies with the laws of your jurisdiction. Klaverchain does not provide legal or regulatory advice. You should consult a qualified legal professional regarding the regulatory status of digital assets in your jurisdiction.

Digital assets and blockchain networks involve complex technology that may be subject to failures, bugs, and attacks: • Software vulnerabilities: Bugs in smart contracts, wallet software, or exchange infrastructure may result in loss of funds. • Network failures: Blockchain networks may experience outages, forks, or protocol changes that affect asset values or accessibility. • Hacking and theft: Despite our security measures, no platform is immune to cyberattacks. Successful attacks could result in loss of customer funds. • Private key risk: If you use self-custody wallets, loss or theft of private keys means permanent, unrecoverable loss of assets. • Protocol changes: "Hard forks" and other protocol upgrades may split blockchain networks, creating new assets and uncertainties about the original asset's value. Klaverchain employs industry-standard security measures but cannot guarantee that its systems will be free from all security vulnerabilities.

Some digital assets may have limited trading volume, making it difficult to buy or sell large positions at desirable prices: • Wide bid-ask spreads: Illiquid markets may have large differences between the prices at which you can buy and sell, increasing transaction costs. • Price impact: Large orders in illiquid markets may significantly move the price against you during execution. • Market hours: Unlike traditional securities, digital asset markets operate 24/7 but may experience periods of low liquidity during off-peak hours. • Delisting risk: Klaverchain may delist assets at any time. Delisted assets may become difficult or impossible to trade on other platforms. • Withdrawal restrictions: In extreme market conditions or during technical issues, withdrawals may be temporarily restricted.

When you hold assets on the Klaverchain platform, you are exposed to risks associated with our operations: • Insolvency risk: If Klaverchain becomes insolvent, your ability to recover assets held on the platform may be limited. Digital assets held with Klaverchain may not be covered by government-backed deposit insurance programs such as FDIC. • Operational risk: System outages, errors, or failures may prevent you from executing trades or accessing your funds at critical times. • Custodial risk: Assets held on a centralized exchange are in the custody of the exchange. You do not hold private keys to your assets unless you withdraw to a self-custody wallet. • Third-party risk: We rely on third-party service providers including custody partners, payment processors, and data providers. Failures by these parties could affect our services.

If you use leveraged products, futures, or margin trading available on our platform: • Amplified losses: Leverage magnifies both gains and losses. A small adverse price movement can result in losses exceeding your initial margin deposit. • Forced liquidation: If your position moves against you, your position may be automatically liquidated at a loss to prevent further losses. • Funding rates: Perpetual futures contracts involve periodic funding payments that can accumulate into significant costs over time. • Complexity: Derivatives are complex instruments. You should ensure you fully understand how they work before trading. You should not trade leveraged products unless you can afford to sustain a total loss of the funds invested. Leverage products are not suitable for all investors. Trading leveraged derivatives carries a high risk of rapid loss.

Tax treatment of digital asset transactions is complex and varies significantly by jurisdiction: • Buying, selling, trading, staking, earning, or receiving digital assets may be taxable events in your jurisdiction. • Tax laws applicable to digital assets are evolving and may be applied retroactively. • Record-keeping obligations for digital asset transactions may be onerous, and failure to comply may result in penalties. You are solely responsible for determining and satisfying your tax obligations in connection with your use of Klaverchain's services. Klaverchain does not provide tax advice. We strongly recommend consulting a qualified tax professional.

If you hold stablecoins or use decentralized finance (DeFi) integrations: • Stablecoin de-pegging: Stablecoins may lose their peg to the underlying asset. This has occurred with algorithmic stablecoins and may occur with collateral-backed stablecoins under extreme conditions. • Issuer risk: Fiat-backed stablecoins are dependent on the solvency and redemption practices of the issuing entity. Regulatory actions against issuers could affect redemption. • Smart contract risk: DeFi protocols are governed by smart contracts that may contain bugs or vulnerabilities leading to loss of funds. • No recourse: Transactions on decentralized protocols are typically irreversible and there is no customer support or dispute resolution mechanism.

Concentrating your portfolio in a small number of digital assets, or in digital assets as an asset class, increases your exposure to adverse events: • A single asset may fail or become worthless due to technical, regulatory, or competitive factors. • Digital asset markets may be correlated with each other, particularly during market downturns. • We recommend that you only allocate a portion of your overall portfolio to digital assets and that you maintain diversification across asset classes. Klaverchain does not provide investment advice. Nothing on our platform should be construed as a recommendation to buy, sell, or hold any particular asset.

Klaverchain is a trading platform. We are not a registered investment adviser, broker-dealer, financial planner, or commodity trading advisor. Nothing on our platform constitutes: • Investment, financial, or trading advice. • A recommendation to buy, sell, or hold any digital asset. • A prediction of future asset prices or returns. Any market data, charts, news, or analysis available on our platform is provided for informational purposes only. You should make your own independent assessment of the suitability and risks of any investment. If you are unsure about any aspect of digital asset investing, you should seek independent financial advice from a qualified professional.

By using the Klaverchain platform, you acknowledge that: • You have read and understood this Risk Disclosure Statement. • You understand that digital asset trading involves substantial risk of loss. • You are making your own independent investment decisions and are not relying on Klaverchain for investment advice. • You are financially able to bear the risks involved, including the potential total loss of invested funds. • You will seek independent professional advice where appropriate.