RISK DISCLOSURE AND DISCLAIMER

1. No Financial Advice

The Scennyx platform (the "Platform" or "Service") is a mathematical visualization and analytical tool designed for educational purposes only. Scennyx is not a registered investment advisor, broker-dealer, financial custodian, or regulated financial services provider under any jurisdiction.

We do not provide personalized investment advice, recommendations, or trading signals. We do not recommend the purchase or sale of any specific financial instrument, cryptocurrency, or options strategy. All content provided through the Platform is for informational and educational purposes only and should not be construed as financial, investment, tax, or legal advice.

No Fiduciary or Advisory Duty

We do not owe you any fiduciary duty, advisory duty, or duty of care beyond providing the Platform on an "as is" basis. No client, advisory, or similar relationship exists between you and Scennyx. You acknowledge that we have no obligation to monitor your use of the Platform or provide guidance on any trading decisions.

2. High Risk of Options and Cryptocurrency Trading

Options and cryptocurrency trading involve an extremely high degree of risk and are not suitable for all investors. By using this Platform, you acknowledge the following risks:

Total Loss Risk

• You may lose 100% of your initial investment
• Options can expire worthless, resulting in complete loss of premium paid
• The risk of loss in options trading can be substantial and should be carefully evaluated

Leverage Risk

• Options provide leverage, which amplifies both potential gains and losses
• Small price movements in the underlying asset can result in disproportionately large losses
• Leverage can cause losses to exceed your initial investment

Unlimited Loss Potential

• Short (sold) options carry unlimited loss potential as the underlying asset price can theoretically move without limit
• Assignment and exercise of options can result in unexpected positions and losses
• Early assignment risk exists for American-style options

Time Decay (Theta)

• Options lose value as they approach expiration, even if the underlying price remains unchanged
• Time decay accelerates as expiration approaches
• Long options positions continuously lose time value

Other Material Risks

Implied Volatility (IV) crush:

Volatility can collapse after expected events, causing rapid option value decline

Gap risk:

Prices can gap through your intended exit points, especially over weekends or holidays

Liquidity risk:

Wide bid-ask spreads can make it difficult or costly to exit positions

Assignment risk:

Short options can be assigned at any time, forcing unexpected obligations

You should carefully consider whether options trading is suitable for you in light of your financial condition, risk tolerance, investment objectives, and experience level.

3. Specific Options Risks

Greeks Are Estimates

The Platform displays option Greeks (Delta, Gamma, Theta, Vega, Rho) calculated using standard mathematical models. These Greeks are theoretical estimates only and:

• Can change rapidly as market conditions evolve
• Are based on model assumptions that may not hold in practice
• Do not guarantee actual profit or loss outcomes
• May differ significantly from real market behavior during volatile periods
• Are only as accurate as the input data and model assumptions

Model Limitations

Our calculations use standard mathematical models, primarily the Black-Scholes model and its variants. These models:

• Assume constant volatility (which never occurs in reality)
• Assume continuous trading and no transaction costs
• May not account for "black swan" events or market discontinuities
• Are theoretical constructs that approximate, but do not perfectly predict, real-world pricing
• May produce unrealistic results for deep out-of-the-money or near-expiration options

The Platform's calculations are approximations. Actual market prices may differ materially from model outputs.

4. Accuracy of Data and User Responsibility

Manual Data Entry

The Platform relies on manual data entry by the user, including but not limited to:

• Spot Price of the underlying asset
• Strike Price
• Implied Volatility (IV)
• Days to Expiration
• Risk-free interest rate

You are solely responsible for the accuracy and timeliness of all data you input. Incorrect or outdated data will produce incorrect calculations.

No Real-Time Data

The Platform does not provide real-time market data. If you use delayed or inaccurate data, all calculations and visualizations will be correspondingly delayed or inaccurate.

No Warranty

We do not guarantee the accuracy, completeness, reliability, or timeliness of any calculation, data, or output provided by the Platform. All information is provided "as is" without warranty of any kind.

5. Cryptocurrency Market Risks

Cryptocurrency markets present unique and extreme risks:

Market Volatility

• Cryptocurrency prices can experience extreme and rapid volatility
• Prices can move 10%, 20%, or more within minutes or hours
• Volatility itself is highly volatile and unpredictable

24/7 Trading

• Cryptocurrency markets trade continuously without circuit breakers or trading halts
• Significant price movements can occur at any time, including weekends and holidays
• You may be unable to exit positions when desired

Structural Risks

Exchange insolvency:

Cryptocurrency exchanges can become insolvent, be hacked, or cease operations, potentially resulting in loss of funds

Custody risk:

Holding cryptocurrency involves custody risk, including theft, loss of private keys, and smart contract vulnerabilities

Regulatory uncertainty:

Cryptocurrency regulations are evolving and unclear; regulatory changes can materially impact prices and market structure

Liquidity risk:

Liquidity can evaporate rapidly during market stress, making it impossible to exit positions at expected prices

Counterparty Risk

When trading cryptocurrency options on centralized platforms, you face counterparty risk that the exchange or clearinghouse may default on its obligations.

6. Technology and Web3 Risks

By using this Platform and connecting your wallet via Web3 protocols, you acknowledge:

Software and Smart Contract Risks

• Risks associated with software bugs, errors, or vulnerabilities in the Platform
• Smart contract vulnerabilities or exploits in connected protocols
• Blockchain network failures, congestion, or forks
• Wallet software vulnerabilities or incompatibilities

User Responsibility for Security

• You are solely responsible for the security of your private keys and wallet access
• Lost or stolen private keys cannot be recovered
• We do not have access to your private keys or funds
• Phishing attacks, malware, and social engineering are constant threats

Non-Custodial Platform

Scennyx operates as a non-custodial platform. We:

• Are not party to any on-chain transactions you initiate
• Do not hold, custody, or control your digital assets
• Have no agency, partnership, joint venture, or similar relationship with wallet providers or blockchain networks
• Cannot reverse, cancel, or modify any blockchain transactions

All on-chain transactions are executed directly between you and the relevant blockchain protocol. We are not responsible for the performance, security, or functionality of third-party wallet software or blockchain networks.

No Insurance or Recovery

Digital assets are not insured by any government insurance program. If your wallet is compromised or you lose access to your private keys, your assets may be permanently lost.

7. Simulation vs. Live Trading

The Platform provides theoretical calculations and visualizations only. It does not:

• Execute live trades
• Interact with exchanges or order books
• Guarantee that theoretical calculations can be achieved in practice
• Account for slippage, transaction costs, or market impact

Real-world trading results will differ from Platform calculations due to execution costs, slippage, liquidity constraints, and market dynamics.

8. Past Performance and Backtesting

Past performance is not indicative of future results. Historical data, backtested strategies, and past market behavior do not predict future outcomes.

• Historical volatility does not predict future volatility
• Backtests may not reflect real-world trading conditions
• Market conditions change over time
• What worked in the past may not work in the future

Do not assume that historical patterns will repeat or that backtested strategies will be profitable in live trading.

9. No Regulatory Oversight and Regulatory Risk

Unregulated Status

This Service is not licensed or regulated as a financial services provider, investment advisor, broker-dealer, or commodity trading advisor under any jurisdiction.

Regulatory Risk and User Responsibility

Cryptocurrency and options trading may be restricted, prohibited, or subject to licensing requirements in certain jurisdictions. You are solely responsible for:

• Determining whether your use of this Service is legal in your jurisdiction
• Ensuring that your use complies with all applicable laws, regulations, and licensing requirements
• Determining and reporting any tax obligations arising from your trading activities
• Understanding the legal and regulatory status of cryptocurrency and options trading in your location
• Monitoring changes in applicable laws and regulations

We make no representation that the Service is appropriate or available for use in any particular jurisdiction. Use of the Service from jurisdictions where it is illegal is prohibited.

Anti-Money Laundering Notice

Scennyx does not provide money transmission services and does not operate as a money services business (MSB). We do not facilitate, process, or intermediate any financial transactions beyond subscription fee collection for access to our educational tools. However, we reserve the right to immediately terminate access to any account suspected of involvement in illicit financial activity, fraud, or any activity that violates applicable anti-money laundering laws or regulations.

10. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW:

Under no circumstances shall Scennyx, its developers, affiliates, or licensors be liable for any direct, indirect, incidental, consequential, special, or punitive damages arising from:

• Your use of or reliance on the Platform
• Any trading losses or investment losses
• Inaccurate data, calculations, or information
• Service downtime, errors, bugs, or technical malfunctions
• Third-party services or actions (exchanges, wallets, blockchain networks)
• Security breaches or loss of digital assets
• Regulatory or legal consequences of your trading activities

All trading and investment decisions are yours alone. You bear full responsibility for evaluating the risks and suitability of any investment or trading strategy.

Statutory Rights

The limitations and exclusions in this Section 10 do not affect statutory rights that cannot be excluded or limited under applicable consumer protection laws. Where applicable law prohibits limitation or exclusion of liability for gross negligence, fraud, or other conduct, such limitations and exclusions shall not apply to that conduct. Nothing in this Risk Disclosure excludes or limits our liability for death or personal injury caused by our negligence.

11. User Acknowledgment and Acceptance

Governing Law and Dispute Resolution

This Risk Disclosure is governed by and construed in accordance with the laws of the Dubai International Financial Centre (DIFC), United Arab Emirates, without regard to conflict of law principles. For complete dispute resolution procedures, including arbitration provisions and exceptions, please refer to Section 16 of our Terms of Service.

This Risk Disclosure should be read in conjunction with our Terms of Service and Privacy Policy, which contain additional important legal terms and conditions.

12. Do Your Own Research (DYOR)

Always conduct your own independent research and due diligence before making any trading or investment decisions.

• Do not rely solely on any single tool, model, or source of information
• Verify all data independently
• Understand the mechanics of any strategy before implementing it
• Start with small positions until you fully understand the risks
• Never trade with money you cannot afford to lose

© Scennyx, 2026. All rights reserved.