Risk disclosure

1. Purpose of this disclosure

This disclosure outlines material risks associated with using Capital Asverix to view analysis, configure monitoring, and interact with financial-market services. It is not exhaustive and does not replace the agreements or disclosures of the provider executing or holding an investment.

Your circumstances, knowledge, time horizon, liquidity needs, and capacity for loss determine whether an activity may be appropriate. Consider independent financial, legal, and tax advice where needed.

2. Market and price risk

Prices can rise or fall because of economic data, company events, interest rates, policy decisions, market sentiment, geopolitical developments, or unexpected news. A position can lose value quickly, and a prior pattern may not repeat.

Digital asset markets can trade around the clock and move sharply when Canadian users are asleep. Stock markets can gap between sessions, making an exit occur at a materially different price from the last displayed quote.

3. Volatility and gap risk

Volatility describes the size and speed of price movement. High volatility can create larger opportunities and larger losses, while low volatility can change abruptly. A protective threshold may activate after the market has already moved beyond the intended level.

During gaps, a requested price may not be available. An order may execute at the next available price, which can increase loss. No interface control can guarantee execution at a chosen figure.

4. Liquidity and execution risk

Liquidity is the availability of willing buyers and sellers. Thin markets may have wider spreads, fewer executable prices, and greater impact from a single order. Displayed prices do not necessarily mean the full requested amount can be completed there.

Execution also depends on the provider, venue, network, order type, and market conditions. Delays, rejection, partial execution, or price slippage can occur even when the analytical interface is operating normally.

5. Model and automation risk

Analytical models use available inputs and assumptions to identify relationships or microtrends. Data can be incomplete, delayed, incorrectly mapped, or unrepresentative of a new event. A model may overfit historical behaviour and perform poorly when market structure changes.

Automation can repeat an error faster than a person would. Review settings, permissions, and outputs regularly. A volatility pause is a defensive mechanism, not a guarantee that losses will be avoided or capital preserved.

6. Technology and availability risk

Internet disruption, provider downtime, software defects, device failure, maintenance, or a third-party outage can delay data, alerts, instructions, or access. A status shown on screen may be stale during an interruption.

Keep independent records of important transactions and know the provider's alternative support route. Do not rely on one alert channel as the only way to monitor a material position.

7. Cybersecurity and fraud risk

Phishing, credential theft, malicious software, number takeover, fake support agents, and impersonation websites can lead to unauthorised access or transfer. Multi-factor authentication and encryption reduce certain risks but cannot prevent every form of social engineering.

Never share a password or one-time code. Verify payment instructions independently, restrict connection permissions, and report suspicious activity promptly. Completed transfers may be difficult or impossible to recover.

8. Counterparty, custody, and provider risk

A broker, payment provider, custodian, bank, exchange, or other service party can fail, suspend activity, restrict withdrawals, or become insolvent. Assets may be held under arrangements with different legal protections and recovery processes.

Cash deposits with a member institution may be eligible for CDIC coverage, subject to its rules. Eligible securities held by a member investment dealer may be covered by CIPF, subject to its limits. Crypto and other digital assets are generally not covered by CDIC or CIPF. Confirm who holds each asset and which terms apply before depositing.

9. Currency, tax, and legal risk

An investment priced outside Canadian dollars exposes you to exchange-rate movement. A gain in the asset's currency may be reduced or reversed after conversion to CAD. Conversion spreads and banking charges can also affect the result.

Laws, tax treatment, reporting duties, and product availability can change. Canadian tax consequences depend on facts such as frequency, intention, and account structure. Keep records and seek qualified advice.

10. Leverage and concentration risk

Borrowing or leverage magnifies both gains and losses and may lead to rapid liquidation or an obligation beyond the initial margin, depending on the product. Do not use leverage without understanding its triggers, costs, and worst-case exposure.

Concentrating capital in one asset, sector, strategy, or provider increases dependence on a single outcome. Diversification can reduce some concentration risk but cannot prevent loss across a broadly falling market.

Before you start

• Read the provider agreement, fee schedule, withdrawal policy, and product disclosure.
• Verify the legal entity and applicable Canadian registration.
• Use only money you can afford to lose without affecting essential expenses.
• Begin with settings and amounts you can monitor and understand.
• Review permissions, security controls, and exit arrangements.
• Do not act on guaranteed-return claims or pressure to deposit immediately.

By using the platform, you acknowledge that analytical outputs are informational tools, not personalised investment advice or a guarantee of performance.

Risk example: several factors at once

Risks rarely occur in isolation. A sudden announcement can increase volatility, reduce liquidity, widen spreads, overload a provider, and produce delayed data at the same time. A model trained on ordinary conditions may then generate less reliable output precisely when a user most wants certainty.

Assume that protective instructions can execute later and at a worse price than expected. Size exposure so that a combined failure does not threaten essential expenses or create a need to borrow more money.

Behavioural risk

People tend to give more weight to recent results, seek information that confirms an existing view, and avoid accepting a loss. These biases can lead to increasing exposure after a gain, holding a losing position without a reason, or overriding risk settings during stress.

A written plan, cooling-off period, and decision journal can reduce impulsive changes. Automation does not remove emotion because the user still chooses parameters and decides when to intervene.

Understanding illustrations and reviews

Calculator outputs are mathematical scenarios built from selected inputs. They do not include every fee, tax, execution difference, market interruption, or negative outcome. A projected result can therefore be materially different from an actual result.

Reviews describe individual reported experiences and may reflect different periods, strategies, deposits, and market conditions. They are not representative guarantees and should never determine how much you invest.