Risk Disclaimer

This Risk Disclaimer is an essential part of our Terms of Service. You must read and understand these risks before purchasing a FairFlow software license or engaging in any trading activities.

By using FairFlow's software, you acknowledge that you have read, understood, and accepted all risks described in this disclaimer.

1. Nature of Service

FairFlow provides SOFTWARE ONLY. It is critical that you understand what we are and what we are not:

What FairFlow IS:

• A software development company that licenses AI trading system software
• A provider of automated trading tools and technology
• A licensor of software for a fixed term

What FairFlow IS NOT:

• NOT a financial advisor or investment advisory service
• NOT a broker, dealer, or trading platform
• NOT a registered investment advisor with the SEC
• NOT regulated by the CFTC, NFA, or similar regulatory bodies
• NOT a provider of financial advice or recommendations

Our software is a tool. Like any tool, it can be used effectively or ineffectively. The results depend on market conditions, your risk management, and factors beyond anyone's control.

2. No Investment Advice

Nothing on our website or in our communications constitutes investment advice, financial advice, trading advice, or any other sort of advice.

• We do not recommend that you buy or sell any specific securities or instruments
• We do not provide personalized investment recommendations
• We do not analyze your financial situation or objectives
• We do not assess the suitability of trading for your circumstances
• Any content on our site is for informational purposes only

YOU are solely responsible for your own investment decisions. You should consult with qualified financial, legal, and tax professionals before making any trading decisions.

3. AI System Limitations

Artificial intelligence and machine learning systems have inherent limitations. You must understand these limitations before relying on AI-powered software.

3.1 Performance Disclaimers

• Past performance does NOT indicate future results - This cannot be emphasized enough
• No guarantee of profits - AI systems can and do lose money
• No guarantee of specific outcomes - Each trade is independent and unpredictable
• AI may make errors - Models can misinterpret data or make incorrect predictions
• AI may make unexpected decisions - Automated systems can behave in ways that surprise users

3.2 Model Limitations

Fundamental constraints of AI/ML models:

• Trained on historical data: Models learn from past patterns that may not repeat in the future
• Cannot predict black swan events: Rare, extreme events are by definition unpredictable
• Market conditions change: Markets evolve, and yesterday's patterns may not work today
• Model performance degrades: As markets adapt, model effectiveness can diminish over time
• Overfitting risk: Models may perform well in testing but poorly in live trading
• Data quality limitations: Models are only as good as the data they're trained on

3.3 Technical Risks

Software and infrastructure risks:

• Software bugs: Like all software, errors and glitches are possible
• Network issues: Internet connectivity problems can disrupt trading
• Maintenance downtime: Scheduled and unscheduled maintenance periods occur
• Execution delays: Orders may not execute at expected prices or times
• Data feed issues: Market data can be delayed, incorrect, or unavailable
• Force majeure events: Natural disasters, cyberattacks, or other uncontrollable events (per License Agreement §17)

4. Trading Risks

Trading futures, derivatives, and leveraged instruments carries substantial risk. You must understand these risks before trading.

4.1 Substantial Risk of Loss

• Total capital loss: You can lose 100% of the money in your trading account
• Leverage amplifies losses: While leverage can magnify gains, it also magnifies losses
• Not suitable for all investors: Only risk capital you can afford to lose entirely

4.2 Market Risks

Inherent risks in financial markets:

• Volatility: Rapid, unpredictable price movements can result in significant losses
• Liquidity risk: You may not be able to exit positions when desired
• Slippage: Orders may execute at prices different from expected
• Execution risk: Orders may not be filled or may be partially filled
• Gap risk: Markets can move dramatically overnight or over weekends
• Correlation risk: Multiple positions can move against you simultaneously

4.3 Futures-Specific Risks

Additional risks when trading futures contracts:

• High leverage: Futures contracts provide inherent leverage, amplifying both gains and losses
• Margin calls: You may be required to deposit additional funds on short notice
• Forced liquidation: Positions can be closed automatically if margin requirements aren't met
• Unlimited loss potential: Short positions can theoretically have unlimited losses
• Contract expiration: Futures contracts expire and must be rolled or closed
• Rollover risk: Transitioning between contract months can result in losses

5. Funding Partner Disclaimers

FairFlow may work with or recommend third-party funding partners. Important clarifications about these relationships:

5.1 Independent Entities

• Funding partners are separate companies - They are not affiliated with or controlled by FairFlow
• Separate agreements: Funding agreements are distinct from your software license
• Different terms: Funding partners have their own terms, fees, and conditions

5.2 FairFlow Not Responsible

FairFlow is NOT responsible for:

• Actions or decisions of funding partners
• Funding partner terms, fees, or changes to their programs
• Funding partner solvency or business continuity
• Disputes between you and funding partners
• Performance of capital provided by funding partners
• Withdrawal or termination of funding

5.3 Funding Partner Risks

Specific risks related to funded trading:

• Loss of funding: Funding can be withdrawn if performance targets aren't met
• Profit sharing: You may receive only a portion of profits while bearing psychological stress of losses
• Rule violations: Violating funding partner rules can result in immediate termination
• Capital limits: Funded capital may be subject to daily loss limits and drawdown restrictions

6. Regulatory and Compliance

Trading regulations vary by jurisdiction. Compliance is YOUR responsibility, not ours.

6.1 User Responsibility

• Verify legal status: Determine whether automated trading is legal in your country
• Check licensing requirements: Some jurisdictions require licenses for trading activities
• Tax obligations: Consult with a tax advisor regarding your reporting and payment obligations
• Broker compliance: Ensure your broker permits automated trading

6.2 Regulatory Status of FairFlow

Important disclosures about our regulatory status:

• Not registered as investment advisor: FairFlow is not registered with the SEC or any state securities regulator
• Not a CFTC registrant: We are not registered with the Commodity Futures Trading Commission
• Not NFA member: We are not a member of the National Futures Association
• Software provider only: We are a technology company, not a regulated financial entity

6.3 Jurisdictional Restrictions

Geographic and legal limitations:

• Not available everywhere: Our services may not be legal or available in all jurisdictions
• Prohibited jurisdictions: Some countries prohibit or restrict automated trading
• Your responsibility to check: You must verify that using our software is legal in your location
• No liability for violations: FairFlow is not liable if you use our software in violation of local laws

7. Limitation of Liability

This section is critical. Please read it carefully.

7.1 FairFlow NOT LIABLE For:

Specifically, we are not liable for:

• Trading losses: Any loss of capital from trading activities
• Opportunity costs: Missed trading opportunities or profits
• Software issues: Damages from bugs, errors, or software malfunctions
• Downtime: Losses due to maintenance, outages, or unavailability
• Data errors: Incorrect data feeds or execution prices
• Third-party actions: Actions of funding partners, brokers, or exchanges
• Force majeure: Events beyond our reasonable control

7.2 Maximum Liability

In any event, FairFlow's total liability to you shall not exceed the amount of license fees you paid to FairFlow.

This limitation applies regardless of the legal theory on which your claim is based, including breach of contract, tort, negligence, strict liability, or any other basis.

7.3 Reference to License Agreement

This Limitation of Liability is consistent with and reinforces the provisions in our Software License Agreement (§5, §15, §21). Both documents must be read together.

8. User Acknowledgments

By purchasing a FairFlow software license and using our software, you acknowledge and agree to the following:

9. Professional Advice Recommendation

We strongly recommend that you seek professional advice before trading.

Consult Qualified Professionals:

• Financial Advisor: Discuss your investment objectives, risk tolerance, and financial situation with a qualified financial advisor
• Legal Counsel: Seek legal advice regarding regulatory compliance and contractual obligations in your jurisdiction
• Tax Professional: Consult a tax advisor to understand your tax reporting and payment obligations for trading activities
• Broker/Dealer: Work with a registered broker-dealer for trade execution and account management

Important: The cost of professional advice is insignificant compared to potential trading losses. Do not skip this step.

10. Contact for Questions

If you have questions about this Risk Disclaimer, please contact us at:

Email: hello@myfairflow.com

Note: We cannot provide investment advice, financial recommendations, or personalized trading guidance. For such advice, please consult qualified professionals as described in Section 9.

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