Risk Disclaimer

Introduction

TradeLocus AI, LLC (“TradeLocus AI,” “the Service,” “Platform”) provides software tools for strategy creation, backtesting, validation, monitoring, paper trading, and, if and when enabled, live trading connectivity through SnapTrade or another disclosed intermediary. TradeLocus AI does not directly hold brokerage accounts, custody customer assets, or connect directly to brokerage login credentials.

This disclaimer outlines the risks associated with using the Service and clarifies what the Service does and does not provide. See our Terms of Service and Privacy Policy for additional terms.

By using the Service, you acknowledge that you have read, understood, and agree to this disclaimer. When you first enable live trading, you will be required to expressly acknowledge this Disclaimer through a separate confirmation step.

1. Not Financial Advice

The Service is general-purpose software and educational/informational content only. It does not constitute:

• Investment advice or recommendations
• Financial, legal, or tax advice
• An offer or solicitation to buy or sell securities
• Personalized financial planning or consulting
• A recommendation of suitability for any strategy, security, or account

We are not registered as an investment advisor, broker-dealer, or financial planner. We do not evaluate suitability, best execution, tax consequences, or whether any strategy is appropriate for your objectives, risk tolerance, or financial circumstances, and we are not acting as your fiduciary. You should consult with qualified professionals (financial advisor, accountant, attorney) before making investment decisions.

Publisher's Exclusion: The Service provides general, impersonal information, software tools, and educational content of the type available to the public at large. It is not tailored to your individual financial situation and does not account for your specific investment objectives, risk tolerance, or financial circumstances. We rely on the publisher's exclusion from the definition of “investment adviser” recognized in Lowe v. SEC, 472 U.S. 181 (1985). Nothing on the Service should be construed as personalized investment advice, a recommendation to buy or sell any security, or an endorsement of any trading strategy for any particular person.

All trading decisions are made solely at your own discretion and risk.

3. Hypothetical Performance Disclosure

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. BECAUSE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY UNDERSTATE OR OVERSTATE THE IMPACT OF CERTAIN MARKET FACTORS, INCLUDING LIQUIDITY, SLIPPAGE, LATENCY, REJECTIONS, PARTIAL FILLS, MARKET IMPACT, AND OPERATIONAL CONSTRAINTS. SIMULATED RESULTS ARE ALSO PREPARED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

Additional limitations include:

• No Financial Risk: Backtests do not involve real money or emotional pressure
• Perfect Hindsight: Strategies may be overfit to historical data
• Execution Assumptions: Backtests assume perfect execution at expected prices
• Cost Underestimation: Slippage, commissions, and fees may be higher in reality
• Market Changes: Future market conditions may differ significantly from the past
• Survivorship Bias: Historical data may exclude delisted or bankrupt companies

Past performance is not indicative of future results. No guarantee of profitability is made or implied.

4. AI and Automation Limitations

The Service uses third-party artificial-intelligence models, including Anthropic's Claude and OpenAI's GPT (“AI Models”), to interpret natural-language strategy descriptions, suggest parameters, and provide support responses. You acknowledge and agree that:

• Hallucinations and errors: AI Models can produce inaccurate, incomplete, biased, or fabricated outputs (“hallucinations”), including for factual market questions and code generation.
• Misinterpretation: AI interpretations of your strategy may not match your intent. You must carefully review every AI-generated strategy, rule, or parameter before paper-trading or live-trading it.
• Not advice: AI outputs do not constitute investment advice or recommendations.
• Historical training: AI Models are trained on historical data and cannot anticipate novel market regimes, regulatory changes, or “black swan” events.
• Automated execution: Automated strategies, once enabled, execute orders without further human review; a strategy error can generate large losses rapidly.
• Third-party dependency: TradeLocus AI is not responsible for the internal workings, accuracy, or availability of third-party AI Models and may substitute providers at any time.

You are solely responsible for verifying, testing in paper-trading mode, and approving every strategy and setting before deploying with real money.

5. Regulatory Status and Jurisdiction

TradeLocus AI is a software provider only. Unless we expressly state otherwise in writing, we are not acting as your broker-dealer, investment adviser, commodity trading advisor, introducing broker, futures commission merchant, or fiduciary. We do not provide personalized investment advice, hold customer funds or securities, execute trades, act as a counterparty, or solicit securities transactions. Accordingly, we do not believe we are required to register with:

• The U.S. Securities and Exchange Commission (SEC)
• The Commodity Futures Trading Commission (CFTC)
• The Financial Industry Regulatory Authority (FINRA)
• Any state securities regulator or foreign financial authority

However, our position is not binding on the SEC, CFTC, FINRA, NFA, state regulators, or any court. If a regulator determines that registration is required, we will comply with applicable requirements or modify the Service accordingly.

You are responsible for ensuring compliance with all applicable laws and regulations in your jurisdiction, including:

• Securities laws and regulations
• Tax reporting and withholding requirements
• Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules (enforced by your broker and regulated intermediaries)
• Pattern Day Trader Rules (FINRA Rule 4210): If you make four or more day trades in a five-business-day period in a margin account, FINRA rules may classify you as a Pattern Day Trader and require you to maintain at least $25,000 in equity. Automated strategies can quickly exceed the day-trade threshold. You are responsible for monitoring your PDT status and margin equity; your broker, not TradeLocus AI, enforces these rules.

Certain U.S. states and foreign jurisdictions impose licensing, registration, disclosure, or outright-prohibition requirements on algorithmic-trading tools or tools that facilitate trading in particular asset classes. You are solely responsible for confirming that your use of the Service is lawful in your jurisdiction. TradeLocus AI may restrict access in jurisdictions where we determine the Service cannot be offered lawfully.

If trading is restricted or prohibited in your jurisdiction, you may not use the Service.

6. Third-Party Intermediaries, Brokers, and Data Providers

The Service transmits orders to your brokerage via SnapTrade, Inc., a third-party connectivity provider that integrates with multiple U.S. and international brokerages (including Alpaca, Interactive Brokers, and others). The Service also uses third-party market data providers. You acknowledge that:

• Third-Party Terms Apply: You must comply with the terms of service, privacy policies, and risk disclosures of both SnapTrade and your underlying broker.
• No Control Over Execution: We are not responsible for SnapTrade routing delays, broker outages, data delays, execution issues, or policy changes.
• API Limitations: Third-party APIs may have rate limits, downtime, or restrictions that prevent trades from executing.
• Account Issues: Your broker or SnapTrade may freeze accounts, reject orders, or close positions without notice.
• Data Accuracy: Market data may be delayed, inaccurate, or incomplete.
• SnapTrade Intermediary Risk: SnapTrade is an independent third party. We do not control SnapTrade's availability, security practices, or policies. SnapTrade outages or changes may prevent order transmission, even if the Service and your broker are both operational. Your relationship with SnapTrade is governed by SnapTrade's own terms.

You are solely responsible for managing your SnapTrade connections and broker accounts.

7. No Guarantees or Warranties

We make no guarantees regarding:

• Profitability or positive returns
• Accuracy of backtests, forecasts, or AI suggestions
• Uninterrupted or error-free operation
• Prevention of losses or protection of capital
• Suitability for any particular purpose

The Service is provided “as is” without warranties of any kind. See our Terms of Service for full warranty disclaimers.

9. Forward-Looking Statements

Any projections, forecasts, or estimates provided by the Service or our marketing materials are forward-looking statements subject to significant uncertainty. Actual results may differ materially. Do not rely solely on forward-looking statements when making investment decisions.

10. Tax Implications

Trading may have significant tax consequences, including:

• Capital gains and losses (short-term vs long-term)
• Wash sale rules
• Mark-to-market accounting (for qualified traders)
• State and local taxes

We do not provide tax advice. Consult with a qualified tax professional.

11. Conflicts of Interest

We may have commercial relationships with third-party service providers, including referral, affiliate, technology, or revenue-sharing arrangements, which may create incentives that differ from your interests. Specific disclosures:

• We do not currently trade securities for our own account using strategies published on the Platform and do not receive kickbacks from your broker based on your trading volume. If this changes, we will disclose the practice, implement information barriers, and update this Disclaimer.
• We may receive referral fees, revenue sharing, or other compensation from SnapTrade or from broker partners based on user sign-ups, account funding, or trading activity. Such compensation may create an incentive for us to recommend certain brokers over others.
• Our business interests may not always align with yours.

We will disclose material compensation arrangements where required by law. Except as expressly disclosed by us in writing, you should not assume that any provider referenced in the Service is selected solely on the basis of price or performance.

12. System Availability and Maintenance

The Service may experience downtime due to maintenance, upgrades, or technical issues. We will make reasonable efforts to provide advance notice of scheduled maintenance, but unplanned outages may occur.

We are not liable for losses resulting from service interruptions. You should have contingency plans (e.g., manual broker access) in case of outages.

13. Options, Futures, and Leveraged Products

Trading options, futures, forex, and other leveraged products involves heightened risk and is not suitable for all investors. Before trading options, review the OCC booklet “Characteristics and Risks of Standardized Options” available at theocc.com. Before trading futures, review the CFTC Risk Disclosure Statement provided by your broker. Leveraged products can result in losses exceeding your initial deposit, and your broker may liquidate positions without notice to meet margin requirements.

14. Changes to the Service

We reserve the right to modify, suspend, or discontinue any feature of the Service at any time, with or without notice. This may affect existing strategies or data access.

15. Questions or Concerns

If you have questions about this disclaimer or the risks of using the Service, contact us at: