HFDX RISK DISCLOSURE AND DISCLAIMERS

1. INTRODUCTION AND SCOPE

This Risk Disclosure and Disclaimer (the “Disclosure”) sets out important information regarding the risks associated with accessing, using, or interacting with the HFDX protocol, related smart contracts, interfaces, and any associated products, features, or strategies (collectively, the “Protocol”)

HFDX is a decentralized, non-custodial protocol that enables users to engage in on-chain perpetual derivatives trading and to participate in certain liquidity-based or structured on-chain strategies, including liquidity loan notes and fixed-return or target-return mechanisms.

By accessing or using the Protocol in any manner, you acknowledge that you have read, understood, and agreed to be bound by this Disclosure in its entirety. If you do not fully understand or accept the risks described herein, you should not access or use the Protocol.

This Disclosure does not purport to identify all risks that may arise from your use of the Protocol. The digital asset ecosystem, decentralized finance protocols, and derivative instruments involve substantial risk and are not suitable for all users.

2. NO ADVICE OR RECOMMENDATIONS

Nothing provided by HFDX, whether through the Protocol, any user interface, documentation, communications, or otherwise, constitutes investment advice, financial advice, legal advice, tax advice, or trading advice of any kind.

HFDX does not make any recommendations regarding the suitability, profitability, or appropriateness of any transaction, strategy, or participation. Any information made available is provided solely for general informational purposes.

You acknowledge that you are acting on a self-directed basis and that you alone are responsible for evaluating the merits and risks associated with any activity undertaken using the Protocol. You should seek independent professional advice where appropriate before engaging in any digital asset or derivatives-related activity.

3. PERPETUAL DERIVATIVES AND TRADING RISKS

Perpetual derivatives are complex financial instruments that involve a high degree of risk. Such instruments are not suitable for all participants and may result in rapid and substantial losses.

Digital asset markets are characterized by extreme volatility, low liquidity in certain conditions, and rapid price movements. Prices may fluctuate significantly over short periods of time due to market sentiment, macroeconomic events, protocol-specific developments, regulatory announcements, or other unforeseen factors.

The use of leverage amplifies both gains and losses. Even small adverse price movements may result in the liquidation of positions, the loss of all posted collateral, or losses that exceed initial expectations. Liquidations may occur automatically and without prior notice based on the rules encoded in smart contracts.

There is no guarantee of profit, and past performance of any asset, market, or strategy is not indicative of future results.

4. LIQUIDITY LOAN NOTES AND FIXED-RETURN STRATEGIES

The Protocol may allow users to participate in liquidity loan notes, structured liquidity participation, or strategies described as offering “fixed”, “target”, or “expected” returns. Such terminology is descriptive only and does not imply a guarantee of return, capital protection, or risk-free participation.

All capital allocated to such strategies remains at risk. Returns may be affected by market volatility, counterparty behavior within the protocol, smart contract execution, liquidity conditions, and other systemic factors. In adverse circumstances, users may lose part or all of their allocated assets.

Participation does not create any fiduciary, trustee, advisory, or agency relationship between you and HFDX. HFDX does not manage assets on your behalf, does not exercise discretion over your funds, and does not assume responsibility for the outcome of any strategy.

5. SMART CONTRACT, BLOCKCHAIN, AND TECHNOLOGY RISKS

The Protocol operates through smart contracts deployed on public blockchain networks. Smart contracts may contain vulnerabilities, coding errors, or design limitations that could be exploited or cause unintended outcomes.

Blockchain transactions are typically irreversible. Errors, unintended transactions, or malicious exploits may result in permanent loss of assets.

You are solely responsible for maintaining the security of your wallet, private keys, seed phrases, and signing credentials. Loss of access credentials may result in irreversible loss of assets, and HFDX has no ability to restore or recover such access.

6. LIQUIDITY, ORACLE, AND SYSTEMIC RISKS

The availability of liquidity within the Protocol may vary significantly over time. Insufficient liquidity may prevent users from entering or exiting positions at desired prices or at all.

The Protocol may rely on third-party price oracles or external data sources. Failures, delays, inaccuracies, or manipulation of such data may result in incorrect pricing, unexpected liquidations, or other adverse outcomes.

Blockchain network congestion, forks, upgrades, or outages may disrupt Protocol functionality, delay transactions, or cause unexpected behavior.

7. CYBERSECURITY AND THIRD-PARTY RISKS

The Protocol, user interfaces, and underlying infrastructure may be subject to cybersecurity risks, including hacking, phishing attacks, malware, front-end compromises, and denial-of-service attacks.

HFDX does not control third-party services, wallets, networks, or infrastructure used to access the Protocol and is not responsible for losses arising from failures or exploits of such third parties.

8. REGULATORY AND JURISDICTIONAL CONSIDERATIONS

8.1 Regulatory Uncertainty

For questions regarding this Cookies Policy, please refer to the contact details provided in the Privacy Policy.

The regulatory treatment of digital assets, derivatives, and decentralized finance protocols is evolving and uncertain across many jurisdictions. Laws, regulations, or enforcement actions may be introduced or modified at any time, potentially affecting the legality, availability, or functionality of the Protocol.

Such changes may require modifications to the Protocol, restrict access for certain users, or result in the suspension or termination of certain features.

8.2 Jurisdiction-Specific Disclaimers

United States

The Protocol is not registered with the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or any other U.S. regulatory authority. Participation may involve instruments that could be considered securities, commodities, or derivatives under U.S. law. Access by U.S. persons may be restricted or prohibited. You are solely responsible for determining whether your use of the Protocol complies with applicable U.S. federal and state laws.

United Kingdom

The Protocol is not authorized or regulated by the Financial Conduct Authority (FCA). Participation may constitute engaging in unregulated activities involving cryptoassets or derivatives. Users do not benefit from the protections available under the UK regulatory regime, including the Financial Services Compensation Scheme or the Financial Ombudsman Service.

European Union

The Protocol is not authorized under MiFID II, MiCA, or any national competent authority framework. Participation may involve unregulated cryptoasset services or derivatives. Regulatory treatment may vary between EU member states, and you are responsible for ensuring compliance with applicable local laws.

United Arab Emirates

The Protocol is not licensed or regulated by the Virtual Assets Regulatory Authority (VARA), the Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA), or the Abu Dhabi Global Market (ADGM). Accessing the Protocol does not imply regulatory approval within the UAE, and protections available under UAE financial regulations do not apply.

Other Jurisdictions

The Protocol may not be lawful or accessible in certain jurisdictions. HFDX makes no representation that access to or use of the Protocol is permitted under the laws of any particular country. You are solely responsible for complying with all applicable laws, regulations, and restrictions in your jurisdiction.

9. NO WARRANTIES AND LIMITATION OF LIABILITY

The Protocol is provided on an “as is” and “as available” basis, without warranties of any kind, whether express or implied.

To the fullest extent permitted by law, HFDX disclaims all liability for any loss, damage, or expense arising from or related to your use of the Protocol, including loss of digital assets, profits, data, or opportunity.

10. ASSUMPTION OF RISK

By accessing or using the Protocol, you expressly acknowledge and accept that digital assets, derivatives, and decentralized finance involve significant risk, including the risk of total loss.

You confirm that you understand these risks and voluntarily assume full responsibility for any outcomes resulting from your participation.