RISK DISCLOSURE FOR THE USE OF THE "ALGOTUN" PLATFORM

Date of revision: "05" July 2026 · Version: 1.6

Place of publication: https://algotun.com/legal/risk · An integral part of the Public Offer

Summary — 8 points that are important to understand before starting trading

1. You can lose your entire deposit. Cryptocurrency trading is high-risk; when using leverage, losses exceeding the amount of funds initially deposited to the Exchange are possible.

2. Algotun is software, not a financial service. It is not licensed by the Bank of Russia; it does not provide investment, tax, or legal advice; it does not assess the suitability of trading for your profile.

3. Past results ≠ future returns. Backtests, demo results, and trading history are not a forecast.

4. Non-custodial model. The Contractor does not store Your funds. Trading takes place in Your exchange account; the bankruptcy, freezing, or hacking of an Exchange (Mt.Gox, FTX, BitZlato) is beyond the Contractor's control.

5. Algorithms may fail. A change in the market regime, code errors, incorrect parameter settings, slippage, and flash-crashes can cause significant losses even when the Platform is operating correctly.

6. Cybersecurity is on You. Phishing, SIM-swaps, API key leakage, and malware are the main sources of real user losses. Use TOTP / hardware keys, Trade-only API keys with withdrawal disabled, and IP whitelisting.

7. The User's legal responsibility. You independently comply with Federal Law No. 173-FZ (currency regulation), No. 259-FZ, No. 331-FZ (prohibition of payment in digital currency in the Russian Federation), and the Tax Code of the Russian Federation (personal income tax on trading is on You).

8. Risk of the non-resident nature of the Exchange. Most cryptocurrency exchanges are registered outside the Russian Federation. Regulatory actions by foreign jurisdictions or sanctions restrictions may lead to the blocking of access to the exchange account.

IMPORTANT — READ BEFORE USING THE PLATFORM

YOU MAY LOSE ALL DEPOSITED FUNDS. Trading in cryptocurrencies and crypto-derivative instruments is highly speculative. The use of leverage and automatic execution multiplies both the potential return and the speed and scale of possible losses.

Algotun is software. It is not a licensed financial service and not a source of investment, legal, or tax advice. Past results — in backtests or in real trading — are not a guarantee of future returns.

You are solely responsible for your trading decisions, synergy settings, and the funds you connect to the Platform. Do not use funds the loss of which would critically affect your financial position.

1. GENERAL PROVISIONS

1.1. This Risk Disclosure (hereinafter — the "Disclosure") is an official warning by the Contractor about the risks associated with the use of the "Algotun" software (hereinafter — the "Platform") and the conduct of trading operations on exchanges. As of the date of this revision, the Platform is used for trading on cryptocurrency exchanges, and therefore the risks set out below are described in relation to cryptocurrency markets. When the Platform connects other exchanges, markets, and financial instruments (including traditional stock, derivatives, commodity ones), additional risks characteristic of the respective markets and instruments may apply to the relations of the Parties.

1.2. The list of risks is not exhaustive: other risks may exist and arise as markets, technologies, and regulation develop.

1.3. By activating the Platform, connecting API keys, or commencing use of the functionality, the User confirms that they:

—have familiarized themselves with this Disclosure, the Public Offer, and the Privacy Policy;

—are aware of the specifics of cryptocurrency markets and possess sufficient knowledge to work with automated trading systems;

—use the Platform at their own risk, on their own behalf, and with funds the loss of which will not lead to critical life consequences;

—have independently assessed the suitability of the Platform for their financial goals and circumstances.

1.4. Connection with the Public Offer and limitation of liability. This Disclosure is an integral part of the Public Offer. The Contractor's aggregate liability is limited in the manner established by clause 5.1 of the Public Offer (the amount actually paid by the User for one (1) month immediately preceding the occurrence of the event that gave rise to the claim). This Disclosure does not create additional liability for the Contractor.

1.5. Non-custodial nature. The Contractor does not store the User's monetary funds, digital assets, private keys, or seed phrases. All assets are held in the User's accounts on third-party Exchanges. The freezing, blocking, or loss of funds on an Exchange is governed by the rules of the respective Exchange and is beyond the Contractor's control.

2. MARKET AND FINANCIAL RISKS

2.1. Volatility. The prices of digital assets can change by tens of percent within a few minutes. Algorithms may behave unpredictably in conditions of abnormal volatility, lack of liquidity, or coordinated market manipulation by third parties.

2.2. Liquidity and slippage. The liquidity of cryptocurrency markets may decline sharply, especially for low-capitalization assets, on smaller exchanges, or during stress events. Orders may not be executed, may be executed partially, or may be executed with significant slippage. Historically, cases of deviation of the execution price from the calculated price of up to 30–50% during flash-crashes have occurred. Slippage is an inherent property of cryptocurrency markets and does not qualify as a violation of the terms of use of the Platform.

2.3. Margin trading and futures. When using leverage instruments, the User assumes:

—the risk of a multiple increase in losses relative to the volume of their own funds;

—the risk of forced closing of positions by the Exchange (liquidation) upon reaching a critical margin level;

—the risk of a negative balance on the exchange account (in the absence of a "negative balance protection" mode at the Exchange);

—the risk of the Exchange changing the margin parameters, funding rates, and contract specifications without prior notice.

The Platform does not monitor the sufficiency of collateral on the Exchange's side and is not liable for losses arising from the liquidation of positions.

2.4. Stablecoins and underlying assets. Stablecoins (USDT, USDC, and others), wrapped tokens, and other "pegged" assets may de-peg from the underlying rate, prove non-convertible, or be blocked by the issuer or state authorities. Algorithms relying on stablecoins as an underlying asset may behave unpredictably during such events.

2.5. Complete loss of the deposit. The User is aware that the use of automated trading strategies may lead to the complete loss of the deployed capital as a result of market movements, technical limitations of the Exchange, the behavior of the algorithm in abnormal conditions, or a combination thereof.

3. STRATEGY AND ALGORITHM RISKS

3.1. "Black box." The decision-making logic of the Algorithm may be opaque and not amenable to interpretation in real time. The User may not be able to predict or explain individual trading decisions.

3.2. Regime shift and strategy decay. Strategies that have historically demonstrated high effectiveness may cease to work upon a change in market conditions (a bull/bear transition, a change in the volatility regime, new regulation, migration of assets between exchanges). Strategy decay is a material and continuous risk.

3.3. Backtesting biases. Historical tests are subject to a number of biases:

—Overfitting — over-optimization to past data that does not work in the future;

—Look-ahead bias — the unintentional use of data unavailable at the moment of decision-making;

—Survivorship bias — the exclusion of delisted assets;

—Data quality — gaps, inconsistencies, features of specific Exchanges.

Past results — in backtests, paper trading, or real trading — are NOT a reliable indicator of future returns.

3.4. Software errors. The Platform's software is provided on an "as is" basis and may contain errors, undocumented features, and unforeseen behavior in abnormal conditions.

3.5. User parameters. The strategy parameters (position size, leverage, stop-loss / take-profit levels, asset whitelist) are set by the User. Configuration errors — accidental ones, typos, misunderstanding of the parameter logic — may cause significant losses for which the Contractor is not liable.

3.6. Concentration. Using one strategy on one trading pair, on one Exchange with substantial capital increases the risk of catastrophic loss upon a failure at any point in the chain.

4. TECHNICAL AND OPERATIONAL RISKS

4.1. Dependence on third-party infrastructure. The Contractor is not liable for:

—delays in the operation of the Internet, temporary unavailability of the Exchanges' API interfaces, changes to their API, regulations, listing policy, or tariffs;

—failures at the hosting provider, data center, or CDN provider.

4.2. Counterparty risk of the Exchange. The User assumes the risk of insolvency (bankruptcy), hacker attacks, regulatory actions, freezing, or confiscation of assets on the side of the Exchange on which the funds are held. Historical examples — Mt.Gox, QuadrigaCX, FTX, Celsius, BitZlato, and others — show that funds held on an Exchange may be lost in whole or in part even with impeccable operation of the Platform. The Contractor is not liable for the said circumstances.

4.3. Software failures of the Platform. Cloud provider outages, server errors, race conditions, resource exhaustion, and compatibility problems with future versions of the Exchanges' API are possible.

4.4. Cessation of the Contractor's operation. The Contractor is an individual — self-employed, and is entitled for any reason (commercial, regulatory, personal) to cease the provision of services with the notice established by the Public Offer. The User should not concentrate a critical infrastructure dependence on the availability of the Platform; the User must be able to manage the exchange account independently at any time.

4.5. Experimental (beta) functionality. Individual functions of the Platform may be marked as "experimental," "beta," or "pre-release." Such functions are provided for testing and may contain a greater number of errors, have unstable behavior, or be disabled without prior notice. The use of experimental functions is at the User's risk.

4.6. Force majeure. The Parties are released from liability for the non-performance of obligations as a result of force majeure circumstances (Article 401 of the Civil Code of the Russian Federation): mass cyberattacks, data center outages, actions of state authorities, changes in legislation that have made the use of cryptocurrency infrastructure impossible, epidemics, military operations.

5. REGULATORY AND LEGAL RISKS

5.1. Evolution of the legislation of the Russian Federation. The legal framework of cryptocurrencies, digital financial assets, and related operations continues to take shape. The following may affect the legal relations of the Parties:

—Federal Law No. 259-FZ of 31 July 2020 "On Digital Financial Assets, Digital Currency…" — the procedure for the issuance and circulation of digital financial assets and digital currency;

—Federal Law No. 331-FZ of 14 July 2022 — the prohibition of the use of digital currency as a means of payment in the territory of the Russian Federation; violation entails administrative liability (Article 14.62 of the Code of Administrative Offenses of the Russian Federation);

—Federal Law No. 173-FZ of 10 December 2003 "On Currency Regulation and Currency Control" — the obligation of citizens of the Russian Federation to notify the tax authorities of accounts in foreign payment systems and of operations thereon; the obligation to report on the movement of funds;

—The Tax Code of the Russian Federation — the procedure for taxation of operations with digital currency; the current letters of the Federal Tax Service and the Ministry of Finance;

—Decisions of the Bank of Russia and other authorized bodies concerning restrictions on the operation of cryptocurrency exchanges and related services;

—Regulatory and sanctions measures of foreign jurisdictions in respect of Russian users of cryptocurrency exchanges.

A change in legislation may restrict or terminate the ability to use the Platform or its individual functions.

5.2. Absence of licenses and regulatory approvals. The Platform is not licensed and is not supervised by the Bank of Russia, Rosfinmonitoring, or other regulators of the Russian Federation or foreign jurisdictions. Access to the Platform is not a regulated financial service.

5.3. The User's tax responsibility. The User independently declares and pays personal income tax (PIT) on income received from operations with digital currency and crypto-assets on third-party Exchanges, in the manner established by the Tax Code of the Russian Federation. The Contractor does not act as a tax agent in respect of the User's income from trading, does not generate tax reporting on behalf of the User, and does not provide documents replacing a 2-NDFL certificate or other tax reporting documents. The User is advised to consult a qualified tax adviser.

5.4. Risk of the non-resident nature of the Exchange. Most cryptocurrency exchanges are registered outside the Russian Federation (the Cayman Islands, the Seychelles, Singapore, Dubai, etc.). The actions of foreign regulators, sanctions restrictions, and changes to the Exchange's KYC/AML policy in respect of Russian residents may lead to the blocking of access to the exchange account, refusal of withdrawal of funds, or forced conversion of assets. These circumstances are not controlled by the Contractor.

5.5. Disclaimer of investment adviser status. The information provided by the Platform (statistics, backtests, algorithm settings, historical data, educational materials) is of a solely reference and technical nature and is not:

—an individual investment recommendation (IIR) within the meaning of Federal Law No. 39-FZ "On the Securities Market";

—an offer or proposal to buy / sell any financial instrument or digital asset;

—a guarantee, forecast, or promise of future returns or preservation of capital.

6. CYBERSECURITY RISKS ON THE USER'S SIDE

6.1. A significant part of the actual losses of users of cryptocurrency services is connected not with the operation of the Platform, but with the compromise of the credentials, devices, or means of communication of the User themselves. The main risks include:

—Phishing — fake emails, websites, and messages imitating the Contractor or the Exchange. The Contractor never requests from the User the password to the Platform, the full API secret, or the seed phrase of a crypto-wallet, and does not offer to install third-party software.

—Compromise of the password of the exchange account as a result of reuse or a weak password.

—API key leakage through compromised devices, code repositories (for example, GitHub), screenshots, messengers, or copying via the clipboard.

—SIM-swap attacks that bypass two-factor authentication via SMS — it is recommended to use TOTP (Google Authenticator, Authy) or hardware keys (YubiKey, FIDO2).

—Malware on the User's device that intercepts keystrokes, browser sessions, or clipboard contents.

—Fake support channels on social networks and in messengers. Use only the official channels published on the website https://algotun.com.

6.2. Recommended practices:

—use a unique, strong password for the Platform and for each Exchange;

—enable two-factor authentication (TOTP or a hardware key, not SMS);

—restrict API keys to trading-only permissions (Read + Trade), disable Withdrawal, Internal Transfer, Sub-account management;

—use IP whitelisting on the Exchange's API keys where it is supported;

—keep the operating system, browser, and protective tools up to date;

—avoid using the Platform on shared, public, or untrusted devices.

6.3. The Contractor is not liable for losses arising as a result of the compromise of the User's credentials, exchange account, devices, or means of communication, except for cases where such losses are directly caused by the Contractor's intentional actions or gross negligence.

7. USER'S STATEMENT AND CONFIRMATION

7.1. By activating the Platform, connecting API keys, or commencing use of the functionality, the User states and warrants that they:

—have fully familiarized themselves with this Disclosure, the Public Offer, and the Privacy Policy;

—use for trading solely their own free monetary funds, the loss of which will not lead to critical life consequences;

—understand the specific risks of leverage, including the possibility of losses exceeding the amount of the initial funds on the Exchange;

—have independently assessed the suitability of the selected trading strategies for their financial position, goals, and risk tolerance;

—do not rely on the Platform as the sole source of information for making financial decisions;

—comply with the tax and currency legislation of the Russian Federation applicable to them, and do not violate sanctions restrictions;

—accept all the specified risks in full and waive claims against the Contractor in the event of financial losses not connected with the Contractor's intentional actions or gross negligence, within the limits of the limitation of liability established by clause 5.1 of the Public Offer.

7.2. Confirmation of this Disclosure is a mandatory condition for access to the automatic trading functionality of the Platform. If the User does not agree with the provisions of this Disclosure, they are obliged not to use the automatic trading functionality of the Platform.

8. CONTACT INFORMATION

On matters related to understanding the risks or the terms of use of the Platform before starting trading, the User contacts the Contractor at: info@algotun.com.

Contractor's details:

Full name: Alexander Sergeevich Borodin

Taxpayer Identification Number (INN): 323401195508

Tax status: Payer of the tax on professional income (self-employed), Federal Law No. 422-FZ

Website: https://algotun.com