Risk Disclosure Statement

Last updated: June 15, 2026

This Risk Disclosure Statement summarizes the substantial risks of using EX7 Capital Corp.’s software and of trading futures and options on futures. Read it carefully, together with our Terms of Service and Privacy Policy.

1. PURPOSE OF THIS DISCLOSURE

This statement is provided by EX7 Capital Corp. ("EX7", "we", "us", or "our") to inform you of the substantial risks associated with (i) trading futures contracts and options on futures, (ii) using algorithmic-trading software, (iii) relying on backtested or hypothetical performance results, and (iv) participating in proprietary trading firm ("prop firm") challenges.

In this document, the "Service" means the ex7capital.com software and tools, as that term is defined in the Terms of Service.

EX7 is impersonal analytical software — in plain words, a complex "calculator" — built for quantitative research of futures contracts listed on the Chicago Mercantile Exchange ("CME"). EX7 is a software publisher providing impersonal, non-personalized tools to the general public. EX7 is not a broker-dealer, futures commission merchant, introducing broker, commodity pool operator, commodity trading advisor, investment adviser, registered investment adviser, portfolio manager, derivatives adviser, or custodian. EX7 does not execute, route, or copy orders, does not custody funds or other assets, and does not know your individual financial situation, investment objectives, risk tolerance, or trading experience. Nothing in the Service constitutes personalized advice or a recommendation.

You are solely responsible for your trading decisions and outcomes.

2. GENERAL FUTURES TRADING RISK

TRADING FUTURES AND OPTIONS ON FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. YOU MAY LOSE MORE THAN YOUR INITIAL INVESTMENT. LEVERAGE CAN WORK AGAINST YOU AS WELL AS FOR YOU. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

Specific risk factors include:

• Leverage. Futures contracts are highly leveraged. Small adverse price movements can result in losses substantially exceeding the margin posted.
• Margin calls. Losses may exceed margin and you may be required to deposit additional funds on short notice. Failure to meet a margin call may result in forced liquidation of your positions at unfavorable prices.
• Liquidity and volatility. Futures markets can move sharply and gap. There may be no opportunity to exit a losing position.
• Lock limits. Some futures contracts have daily price limits that, if reached, may prevent you from exiting a position.
• Overnight risk. Holding positions overnight or over weekends exposes you to gap risk from news, geopolitical events, and other catalysts.
• Counterparty and clearing risk. Although exchange-traded futures are centrally cleared, clearing houses and counterparty firms are not immune to failure.
• Cost of trading. Commissions, exchange fees, market-data fees, slippage, and platform fees reduce gross trading results and may turn a profitable strategy into a losing one in practice.

You should only trade with risk capital — funds whose loss will not jeopardize your financial well-being. You should consult your own qualified financial, tax, and legal advisers before trading futures.

This Risk Disclosure Statement is informational and does not substitute for the standardized risk disclosure documents your broker is required to provide you under CFTC Regulation 1.55, NFA rules, or equivalent Canadian provincial rules. You should read those broker disclosures carefully before opening or funding any account.

3. HYPOTHETICAL AND BACKTESTED PERFORMANCE DISCLAIMER (CFTC Regulation 4.41(b) AND NFA 9025)

The following language is required by the U.S. Commodity Futures Trading Commission under CFTC Regulation 4.41(b) and is reproduced verbatim:

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

The verbatim two-paragraph block above reproduces the CFTC Regulation 4.41(b) hypothetical-performance disclaimer. EX7's design and marketing practices are additionally modeled on NFA Interpretive Notice 9025 and NFA Compliance Rule 2-29; this Statement does not purport to reproduce the additional prescribed wording that NFA Interpretive Notice 9025 may require for any particular algorithmic-system or marketing presentation, and counsel will confirm any 9025-specific language applicable to in-product and marketing surfaces. [counsel to confirm: whether any NFA Interpretive Notice 9025 prescribed disclaimer text must be added as a separately labeled block.]

You acknowledge that every backtest result, simulated profit factor, simulated Sharpe ratio, simulated drawdown figure, equity curve, and similar artifact displayed by the Service is hypothetical, prepared with the benefit of hindsight, and not actual trading. Backtests do not involve financial risk and cannot fully account for emotional, liquidity, latency, or execution factors that affect live trading.

EX7 makes no representation or warranty that any strategy that performed in any particular way in any backtest will perform similarly in live trading.

EX7 separately implements engineering rules that surface the assumptions inside every backtest report, including:

• Per-instrument commission assumptions (illustrative current defaults shown in each backtest report; for example, MCL, MNQ, and NQ/ES/CL each carry distinct per-side commissions). The current assumptions are displayed in-product and are subject to change;
• 2-tick slippage applied on both entry and exit (2-sided);
• Conservative resolution when a stop and target are both reachable within the same bar (the stop is assumed to fill first);
• Deterministic seeding;
• Sample-size and walk-forward consistency floors that downgrade or refuse small-sample strategies.

These engineering rules represent good-faith efforts to reduce overfitting and hindsight bias. They do not eliminate the inherent limitations of hypothetical performance.

4. ALGORITHMIC TRADING — SPECIFIC RISKS

Algorithmic and systematic trading carry risks beyond those of discretionary futures trading. EX7's tools allow users to design, audit, and dispatch alerts for their own strategies. EX7 dispatches alerts only; it does not route, place, execute, or copy orders. The following risks apply:

• Slippage and fills. Simulated fills are not real fills. Even with conservative slippage assumptions, real-world fill quality varies with volatility, depth, and venue. There is no guarantee of order priority or fill quality at your broker.
• Latency. Browser-native software is not colocated with exchange matching engines. Live signals dispatched from EX7 are subject to internet, broker, and exchange latency that does not appear in backtests.
• Signal-delivery reliability. Alerts may be delivered late, dropped, duplicated, or arrive out of order. A duplicated alert can prompt a double entry or double exit; a dropped or delayed alert can cause a missed entry or a missed exit. EX7 does not guarantee that any alert will be delivered, delivered once, or delivered in sequence.
• Stale-signal and time-decay risk. A dispatched signal references market conditions at the moment it was generated. By the time you receive and act on it, the market may have moved materially, so the price you obtain may differ substantially from the price referenced in the signal.
• Manual-execution lag. EX7 dispatches alerts; you place your own orders at your own broker (see Section 7). The interval between a signal being generated and your manually placing an order is a material, EX7-specific risk that does not appear in any backtest and can change the realized outcome of a strategy.
• Data quality. Historical market data may contain errors, gaps, timestamp artifacts, or revisions. Data providers occasionally restate or correct historical series. The accuracy of any backtest is bounded by the accuracy of the underlying data. Separately, live signals may be computed from delayed, sampled, or third-party data feeds and may diverge from the prices and timestamps observable at your own broker or on the exchange consolidated feed.
• Overfitting and curve-fitting. Backtest results derived from a small number of trades, or from extensive parameter optimization, are susceptible to overfitting. Strong backtest performance on a small sample is not a reliable predictor of future results. Furthermore, searching across many strategies, parameters, instruments, or iterations increases the probability that some results appear strong purely by chance (selection / data-snooping bias). EX7's deflated Sharpe ratio implementation and other platform safeguards attempt to correct for multiple testing but reduce, and do not eliminate, this risk.
• Look-ahead bias. Even with careful engineering, strategies may inadvertently use information that would not have been available in real time. You must verify your own strategies.
• Survivorship bias. Historical samples may exclude delisted instruments, retired contracts, or failed venues, biasing results upward.
• Regime change. Markets shift over time. A strategy that performed in one liquidity, volatility, or correlation regime may fail in another. Historical performance during one regime is no guarantee of performance during a different one.
• Concentration risk. Algorithmic systems can take large or correlated positions quickly. Sizing rules in EX7 are illustrative defaults only; you remain responsible for risk management.
• API and infrastructure outages. Brokers, data vendors, alert channels (email, Telegram, SMS, push), and EX7 itself can experience downtime. EX7 dispatches alerts only; it does not route or place orders. If your alert channel or broker is unavailable, your own orders at your broker may not be placed or filled. EX7 does not guarantee uptime during market hours.
• Model risk. EX7's software, like any software, may contain bugs. Outputs may be inaccurate. EX7 disclaims liability for computational errors to the maximum extent permitted by law and recommends that all strategies be validated through paper trading before any live capital is committed.
• Connectivity risk. Your local internet, computer, broker connection, mobile network, and notification channels can fail at any time, including at critical moments.
• AI-assisted strategy generation. The VIX feature uses artificial intelligence to draft strategies. AI output is probabilistic, may be inaccurate or not original, and is a draft for your review, not advice. You must independently verify and paper-trade any AI-assisted strategy before live use (see Terms of Service Section 8.4).

You acknowledge that no audit or backtest performed by you using EX7's tools is a substitute for the prudent risk-management decisions you must make in live trading.

5. PROP-FIRM CHALLENGE TOOLS — SPECIFIC RISKS

The Service includes optional tools for evaluating compatibility between user strategies and the published rules of proprietary trading firm ("prop firm") challenges. The following risks apply:

• Rule changes. Prop firm rules change frequently and without notice. EX7's stored rules are a snapshot as of a stated date. You are responsible for checking the live rules of any prop firm you engage with.
• Pass/fail simulation is not a guarantee. Passing a simulated prop firm challenge in EX7 does not guarantee passing a real challenge. Live conditions differ from simulation in fill quality, slippage, news, market microstructure, and emotional factors.
• Rule mechanics EX7 may not fully model. A snapshot evaluation may not fully capture prop-firm-specific mechanics that frequently fail a real challenge even when a strategy "passes" in simulation, including consistency rules, the precise method by which trailing or intraday drawdown is calculated (which may differ from EX7's snapshot and from end-of-day methods), scaling plans, news-window and news-trading restrictions, and minimum-trading-day requirements. You must read and model the live rules yourself.
• Payout and counterparty risk. A prop firm may delay, deny, or fail to make a payout; may refuse or restrict a withdrawal; or may breach, reset, or close an account on a technical rule violation. The firm itself may become insolvent. EX7 has no control over and is not responsible for any prop firm's solvency, contractual conduct, or payouts.
• Prop firm regulatory status varies. Some prop firms are sim-only contests; some route to real brokers; some have been subject to enforcement action by the CFTC, the NFA, or other regulators. EX7 does not endorse any specific prop firm and is not responsible for the regulatory status, solvency, contractual practices, or payouts of any prop firm.
• Contest characterization. In some U.S. states, prop firm challenges may implicate gambling, consumer-protection, or other regulatory regimes. EX7 does not characterize prop-firm challenges as investing.
• Affiliate disclosure. EX7 does not recommend or endorse any prop firm. If EX7 receives affiliate revenue from a prop firm, that relationship is disclosed wherever that firm is named, listed, presented, or linked in the Service (not at any "point of recommendation," because EX7 makes no recommendations).

You are responsible for reading and understanding the contractual terms of any prop firm with which you engage. EX7's scorer is informational only. A compatibility or pass/fail score is a worked analytical example, not a recommendation, endorsement, or solicitation to attempt, purchase, or fund any prop-firm challenge.

6. NO PERSONALIZED ADVICE

EX7 provides the Service to the general public on an impersonal, non-personalized basis. EX7 does not:

• Issue trading recommendations to any specific user;
• Operate signal rooms, copy-trading services, or one-on-one coaching;
• Manage any user's account;
• Receive performance-based compensation linked to any user's profit or loss.

The publisher's exclusion under §202(a)(11)(D) of the U.S. Investment Advisers Act of 1940, the impersonal-advice exemption under CFTC Regulation 4.14(a)(9), the "advising generally" exemption under Canadian National Instrument 31-103 §8.25, and analogous provincial commodity-and-derivatives regimes are the legal bases under which EX7 operates without registration as a commodity trading advisor or investment adviser. EX7 has been designed to remain within these exemptions and reserves the right to refuse or modify any feature that would jeopardize them.

If equity, equity-index ETF, or cryptocurrency data is displayed in the Service, the same impersonal-advice principles apply. Display of such data is not a recommendation to buy, sell, or hold any specific security or token.

Strategy templates and presets, where offered, are labeled "illustrative — not a recommendation." A preset is a worked example, not advice tailored to your account, your risk tolerance, or any specific market condition.

7. NO ORDER ROUTING; YOUR BROKER IS A THIRD PARTY

EX7 does not execute orders, custody funds, or route, copy, or mirror orders to any exchange, clearing house, or broker. You connect to your own broker (for example, Rithmic, Interactive Brokers, AMP Futures, or otherwise) at your own risk. EX7 is not responsible for execution quality, fills, slippage, partial fills, rejected orders, broker downtime, margin calls, or any other broker-side event.

8. MARKET-DATA LICENSE AND DISCLAIMER

The Service is powered by market data that EX7 licenses from third-party data providers and the originating exchanges and processes on its own infrastructure under its own license. You receive only the results the Service computes, not the underlying data itself. The underlying data is licensed, not sold, and remains private to EX7; you may not extract, redistribute, resell, scrape, bulk-export, rehost, or otherwise make it available to any third party. EX7's data providers and the originating exchanges are intended third-party beneficiaries of this restriction. EX7 may suspend or restrict market-data-dependent features to comply with its data-provider and exchange obligations. Market data and derived results may be delayed, inaccurate, or incomplete, and EX7 disclaims liability for any losses arising from reliance on them to the maximum extent permitted by law.

9. NO REPRESENTATIONS REGARDING USER PROFITS

EX7 makes no representation that any user has earned, will earn, or is likely to earn any specific profit using the Service. Any aggregate user metrics that may be presented in marketing or in-product copy (for example, "X% of users complete the prop firm challenge") are descriptive, not predictive, and are not a forecast of your results.

10. LIMITATION OF LIABILITY

To the maximum extent permitted by applicable law, EX7 Capital Corp., its officers, directors, employees, and contractors shall not be liable for any trading losses, lost profits, or indirect, incidental, consequential, special, exemplary, or punitive damages arising out of or relating to your use of the Service. Where liability cannot be excluded, EX7's aggregate liability is limited as set out in, and subject to, Section 14 (Limitation of Liability) of the Terms of Service — namely, the greater of (a) the fees you paid to EX7 in the twelve (12) months preceding the event giving rise to the claim, or (b) one hundred U.S. dollars (USD $100). [counsel to confirm: final confirmation of the liability-cap figure and any consumer-law carve-outs by jurisdiction.] This limitation does not affect any rights you may have under the consumer-protection laws of your jurisdiction that cannot be waived by agreement.

11. ACKNOWLEDGMENT

By clicking "I agree", checking the relevant acknowledgment box, or otherwise indicating acceptance, you acknowledge and represent that you:

• Have read and understood this Risk Disclosure Statement;
• Have read and understood the Terms of Service and the Privacy Policy;
• Have the legal capacity and resources to absorb the risks of trading futures, including the possibility of total loss;
• Are at least 18 years of age and located in a jurisdiction in which the Service is offered;
• Acknowledge that EX7 is not your broker, your investment adviser, your commodity trading advisor, your commodity pool operator, or your custodian, and that EX7 does not guarantee any outcome.

Your acceptance is logged with a timestamp, IP address, and a version hash of this document. EX7 retains an immutable copy of the exact document version corresponding to the logged hash, so that the precise text you accepted can be reproduced; the logged record (timestamp, IP address, and version hash) is retained as evidence of your acceptance. Material changes will require re-acceptance.

12. CONTACT

For questions about this Risk Disclosure Statement, please contact:

EX7 Capital Corp. (operating as "ex7capital") General and legal inquiries: legal@ex7capital.com Privacy Officer: privacy@ex7capital.com Website: ex7capital.com

[counsel to confirm: registered postal address of the company's registered office in the Province of Ontario, Canada.]

Last updated: June 15, 2026