Risk Disclosure Statement

RISKS OF TRADING ON EVEDEX. PLEASE READ IT IN FULL BEFORE USING THE PLATFORM. TRADING LEVERAGED DERIVATIVES INVOLVES A HIGH RISK OF LOSS AND IS NOT SUITABLE FOR ALL USERS.

1. Purpose and Scope

This Risk Disclosure Statement ("Statement") is issued by EVEDEX ("we", "us", "our"), the operator of the EVEDEX platform accessible at exchange.evedex.com and associated mobile applications. It is provided to ensure that users understand the material risks involved in accessing and using the EVEDEX platform before engaging in any trading activity.

This Statement forms part of, and should be read together with, our General Terms of Use and Terms of Use: Interface. Capitalised terms used but not defined herein have the meanings given to them in those documents.

This Statement does not, and is not intended to, disclose all risks associated with trading perpetual futures contracts. It highlights the principal risks that we consider most material to users of EVEDEX.

2. Who May Use EVEDEX

The EVEDEX platform is intended solely for users who:

• are of legal age in their jurisdiction of residence;

• have sufficient knowledge and experience to understand the nature and risks of leveraged derivative trading;

• are capable of bearing the full financial loss of any funds deployed on the platform; and

• are not resident in, located in, incorporated in, or operating from the United States of America, the United Kingdom (except as permitted under applicable exemptions for investment professionals, high net worth entities, and sophisticated investors), or any jurisdiction subject to comprehensive economic sanctions.

3. Risks of Leveraged Perpetual Futures Trading

3.1. Leverage and Margin

Perpetual futures contracts on EVEDEX allow users to open positions significantly larger than their deposited collateral by using leverage. While leverage can amplify returns, it equally amplifies losses. For example:

• At 10x leverage, a 10% adverse price movement results in the complete loss of your initial margin.

• At 20x leverage, a 5% adverse price movement results in the complete loss of your initial margin.

• At 50x leverage, a 2% adverse price movement results in the complete loss of your initial margin.

Higher leverage substantially reduces the price distance between your entry price and your liquidation price. You should carefully consider your leverage selection before opening any position.

3.2. Liquidation Risk

If the mark price of your position reaches your liquidation price (calculated based on your selected leverage and the applicable maintenance margin ratio) the protocol will automatically close your position. Liquidation occurs without prior notice and may result in a partial or total loss of your collateral. In volatile market conditions, slippage at the time of liquidation may result in losses exceeding your deposited margin.

3.3. Auto-Deleveraging (ADL)

In circumstances where the insurance fund is insufficient to cover losses arising from a liquidated position, the platform's Auto-Deleveraging mechanism may automatically reduce the positions of profitable counterparties. Your profitable position may be closed at a price determined by the protocol without your consent. EVEDEX accepts no liability for losses arising from ADL events.

3.4. Funding Rate Risk

Perpetual futures contracts use a funding rate mechanism to maintain price convergence with the underlying spot market. Funding payments are exchanged periodically between long and short position holders. Funding rates can be materially positive or negative and may fluctuate significantly in response to market conditions. Holding a leveraged position for an extended period can result in substantial cumulative funding costs that erode the value of your position independently of price movements.

4. Market and Price Risks

4.1. Volatility

Digital asset markets, including the markets for assets traded on EVEDEX, are highly volatile. Prices can move rapidly and unpredictably in response to news, regulatory developments, macroeconomic events, and market sentiment. Past price performance is not indicative of future results.

4.2. Liquidity Risk

Liquidity in perpetual futures markets on EVEDEX may be limited, particularly for newer or less-traded pairs. Insufficient market depth may result in:

• significant slippage between your intended execution price and the actual fill price;

• inability to close a position at your target price, particularly during periods of high volatility; and

• wider bid-ask spreads increasing the effective cost of trading.

4.3. Oracle and Mark Price Risk

The mark price used to determine unrealised profit and loss, margin ratios, and liquidation triggers is derived from price oracles that aggregate data from external sources. Oracle prices may diverge from prices on specific trading venues due to latency, data feed failures, or market stress. An inaccurate or manipulated oracle price may result in incorrect liquidations or funding rate settlements. EVEDEX does not guarantee the accuracy or continuity of oracle price feeds.

4.4. Market Manipulation

Digital asset markets are susceptible to manipulation, including but not limited to wash trading, spoofing, and coordinated pump-and-dump schemes. Such activity may distort prices and trigger unintended liquidations. EVEDEX monitors for manipulative behaviour and prohibits it under our Terms of Use, but cannot guarantee the integrity of external market prices.

5. Specific Risks: XAUT/USDT Perpetual Contracts

The XAUT/USDT perpetual contract references the market price of XAUT, a digital token issued by TG Commodities Limited that is backed 1:1 by physical gold stored in third-party vaults. Users trading this contract should be aware of the following risks in addition to the general risks described above.

5.1. No Ownership of Physical Gold

Trading XAUT/USDT perpetual contracts on EVEDEX does not constitute ownership of, or any claim on, physical gold or XAUT tokens. All perpetual contracts are cash-settled in USDT. You will not receive gold, gold tokens, or any other physical commodity upon closing a position.

5.2. Third-Party Issuer Risk

XAUT tokens are issued and managed by TG Commodities Limited, a company unaffiliated with EVEDEX. EVEDEX makes no representations or warranties regarding:

• the sufficiency or existence of the physical gold reserves backing XAUT tokens;

• the financial condition or solvency of TG Commodities Limited or its custodians;

• the continued availability of XAUT tokens for trading or redemption; or

• any regulatory action taken against TG Commodities Limited or the XAUT token in any jurisdiction.

Events affecting the XAUT issuer may adversely and rapidly affect the price of XAUT and, by extension, the value of your positions.

5.3. Commodity Price Risk

Gold prices are influenced by macroeconomic factors including inflation expectations, central bank monetary policy, geopolitical developments, and currency fluctuations. These factors differ materially from the drivers of cryptocurrency price movements and may result in price behaviour that is unfamiliar to users whose experience is primarily in crypto-native assets.

5.4. Jurisdictional Restrictions

XAUT tokens are subject to regulatory restrictions in certain jurisdictions, including the United States, where XAUT is not available to U.S. persons. Trading XAUT/USDT perpetual contracts may be subject to additional legal restrictions in your jurisdiction beyond those applicable to cryptocurrency derivatives generally. It is your sole responsibility to verify that your access to and trading of this contract is lawful under all applicable laws and regulations in your jurisdiction.

6. Technology and Protocol Risks

6.1. Smart Contract Risk

The EVEDEX protocol is governed by smart contracts deployed on the Eventum blockchain. Smart contracts may contain bugs, vulnerabilities, or logic errors that could result in the loss or inaccessibility of funds. While EVEDEX takes reasonable steps to audit and test its smart contracts, no audit eliminates the possibility of undiscovered vulnerabilities. By using the platform, you accept the risk of smart contract failure.

6.2. Blockchain and Network Risk

The availability and performance of the EVEDEX platform depends on the correct functioning of the Eventum blockchain, the Arbitrum ecosystem, and the Ethereum mainnet. Network congestion, sequencer failures, validator outages, or other technical issues may delay or prevent the execution of transactions, the withdrawal of funds, or the operation of the platform. EVEDEX cannot guarantee uninterrupted access to the platform.

6.3. Bridge and Cross-Chain Risk

Depositing and withdrawing funds from EVEDEX may involve the use of cross-chain bridges. EVEDEX does not operate any bridge infrastructure and makes no representations regarding the security or reliability of third-party bridges. Bridge failures or exploits may result in the permanent loss of funds in transit.

6.4. Wallet and Key Security

Access to the EVEDEX platform requires a non-custodial wallet under your sole control. Loss of your private key or seed phrase will result in permanent and irrecoverable loss of access to your wallet and all assets held therein. EVEDEX has no ability to assist in recovering lost wallet credentials.

7. Regulatory and Legal Risks

The regulatory treatment of digital assets, derivative contracts, and decentralised trading platforms varies significantly across jurisdictions and is subject to rapid and unpredictable change. Regulatory actions may include, without limitation:

• classification of perpetual futures contracts as regulated financial instruments, requiring registration or licensing by EVEDEX or its users;

• restrictions on access to the platform from specific jurisdictions;

• requirements to collect and verify user identity information; and

• civil or criminal enforcement actions against platforms, operators, or users.

EVEDEX is not registered with any financial regulatory authority as a securities broker, commodities dealer, or derivatives exchange. We do not provide regulated financial services. It is your responsibility to determine whether your use of EVEDEX is lawful in your jurisdiction and to comply with all applicable laws, including tax reporting obligations.

8. No Investment, Financial, or Legal Advice

Nothing on the EVEDEX platform, in this Statement, or in any of our Terms constitutes investment advice, financial advice, trading advice, legal advice, or any other form of professional advice. We do not recommend or endorse any trading strategy, position size, leverage level, or specific asset. All trading decisions are made solely at your own discretion and risk.

Before trading on EVEDEX, you should consider seeking independent financial and legal advice from appropriately qualified professionals who are familiar with your personal circumstances and the laws of your jurisdiction.

9. Acknowledgement

By accessing or using the EVEDEX platform, you confirm that:

• you have read and understood this Risk Disclosure Statement in full;

• you understand and accept the risks described herein;

• you are financially and technically sophisticated enough to evaluate those risks independently;

• you are capable of bearing the full financial loss of any funds you deploy on the platform; and

• your use of the platform complies with all applicable laws and regulations in your jurisdiction.

For questions regarding this Statement, please contact us at: [email protected]