Risk Disclosure

Last updated: 7 October 2026 · Effective date: 7 October 2026

This Risk Disclosure describes the principal risks of using Arithma's automated trading technology (the "Services") and of leveraged trading generally. It forms part of, and should be read together with, the Terms of Service. Please read it carefully before applying. If you do not understand any risk, seek independent professional advice.

Arithma provides technology only. Your funds remain on your own brokerage account. Arithma does not hold your funds, does not guarantee returns, and does not provide personalised investment advice.

1. You can lose money — including all of it

Trading leveraged financial instruments carries a high level of risk and can result in the loss of some or all of your invested capital. You should only trade with money you can afford to lose entirely. The Services do not eliminate this risk.

2. No guarantee of performance

• All performance figures on the Website — including any "total return", monthly averages, maximum-drawdown figures, and the strategy return ranges (Conservative, Basic, Aggressive) — are historical or hypothetical and relate to specific accounts and market conditions.
• The track record shown on the Website for the Aggressive portfolio comes from the ArithmaPrime master account, as tracked by Myfxbook. The master account runs on a broker demo server; its trades are copied 1:1 to a live account whose statements are not published, to protect client privacy. Results on any individual live account can differ from the master account because of slippage, spreads, commissions, execution quality, account size, and timing.
• Past performance is not a reliable indicator of future results.
• Backtested and simulated results have inherent limitations: they are produced with hindsight, do not represent actual trading, and may not reflect the impact of real market conditions, costs, or slippage.
• Different accounts may experience materially different results due to timing, deposit size, leverage, broker conditions, and configuration.

3. Leverage risk

The broker may offer leverage of up to 500x. Leverage magnifies both gains and losses; a small adverse market move can result in losses far exceeding the proportionate move and can rapidly deplete your account or trigger liquidation. High leverage is restricted or prohibited for retail clients in many jurisdictions. You are responsible for confirming the leverage you use is lawful and appropriate for you.

4. Automated / algorithmic trading risk

The ArithmaPrime connector trades automatically, without human intervention on each trade. This carries specific risks, including:

• Software and technical failure: bugs, errors, latency, downtime, or unexpected behaviour;
• Connectivity failure: loss of connection between the connector, the MT5 server, and the broker;
• Market-model risk: the strategies and risk engine (including the "ArithmaGuard" features) are based on assumptions that may fail in unforeseen or unprecedented market conditions;
• Machine-learning model risk: the models used to build the strategies and to adapt risk to the prevailing volatility regime are trained on historical data. They can misclassify market conditions, react late to regime changes, or behave unexpectedly in conditions absent from their training data;
• No discretionary override on every event: automated systems may act, or fail to act, faster or differently than a human would.

Risk-management features described on the Website (e.g., breaking-news shield, scheduled-event protection, daily loss limits, adaptive volatility engine, remote kill switch) reduce but do not eliminate risk and may not function as intended in all conditions.

5. Market, volatility, gap, and liquidity risk

Prices can move rapidly and unpredictably. Markets may gap through your intended price levels (including stop-loss levels), and liquidity may be insufficient to execute at expected prices, especially around news events, market opens/closes, and periods of stress.

6. Slippage and the Bybit Pro slippage-compensation feature

When orders execute at a price worse than intended, this is slippage. The broker (Bybit) offers, on its Pro plan, a feature whereby, if a stop-loss is set at a specific level and slippage causes the realised loss to exceed that stop-loss level, Bybit may compensate the portion of the loss exceeding the set stop-loss.

Important limitations:

• This feature is provided by Bybit, on Bybit's terms and eligibility conditions, and is not provided, underwritten, or guaranteed by Arithma.
• It applies only where a stop-loss has been set and the relevant conditions are met.
• It is not a guarantee against trading losses generally, and not protection of your capital. You can still lose the full amount down to your stop-loss (and, in extreme conditions, more).
• Bybit may change or withdraw the feature at any time.

You must confirm the current terms of this feature directly with Bybit. Do not rely on it as loss protection.

7. Counterparty and broker risk

Your funds and trades depend on the broker (Bybit). You are exposed to the broker's solvency, operational reliability, terms, and regulatory standing. Arithma is not an official partner of Bybit and does not control it; Arithma may receive referral compensation if you open an account via our referral link (see Section 10 — Conflicts of interest).

8. Cryptocurrency and funding risk

Deposits may involve USDT (a stablecoin) and currency conversion. This exposes you to cryptocurrency-specific risks, including price volatility, conversion costs and timing, blockchain/network risk, and evolving regulatory treatment of crypto assets in your jurisdiction.

9. Fees reduce returns

A performance fee of 40% of net new profits (subject to a high-water mark) applies. Fees reduce your net returns and apply to gains even in periods where your overall position may later decline (subject to the high-water mark mechanism). Consider the impact of fees before participating.

10. Conflicts of interest

Arithma may receive referral compensation from the broker when you open or fund an account through our referral link. This creates an incentive for us to recommend that broker. We disclose this so you can take it into account. You are free to choose your broker independently.

11. Regulatory and jurisdictional risk

The Services may not be available, suitable, or lawful in your country, and are not offered at all in the Restricted Jurisdictions listed in the Terms of Service. Algorithmic trading services, performance fees, and high leverage are regulated differently across jurisdictions. You are solely responsible for ensuring your use of the Services complies with the laws applicable to you, including licensing, suitability, and tax obligations.

12. Tax

You are responsible for determining and paying any taxes on your trading gains. Arithma does not provide tax advice.

13. No advice and your acknowledgement

Nothing on the Website or in the Services constitutes investment, legal, tax, or financial advice or a recommendation to trade. By using the Services you acknowledge that you:

• have read and understood this Risk Disclosure;
• understand you may lose all invested capital;
• are trading with your own funds at your own risk; and
• are not relying on any guarantee of profit or protection from Arithma.

14. Contact

Questions about these risks: support@arithma.pro