Risk Disclosure

Last updated: March 29, 2026

1. General Investment Risks

Trading and investing in securities involves substantial risk of loss and is not suitable for all investors. The value of securities can fluctuate and you may lose some or all of your invested capital. Past performance is not indicative of future results.

2. Automated Trading Risks

SmartSwing is an automated trading system. Automated systems carry specific risks including but not limited to:

• Software bugs or errors that may result in unintended trades or missed opportunities
• Connectivity failures between SmartSwing and the brokerage that may delay or prevent trade execution
• Market conditions that change faster than the system can respond
• Model assumptions that prove incorrect in unprecedented market environments
• AI-generated analysis that contains errors or misinterpretations
• Latency in data feeds that may cause decisions based on stale information

3. AI and Algorithmic Risks

SmartSwing uses artificial intelligence models to validate trading signals and generate trade theses. These AI systems:

• May produce incorrect, incomplete, or misleading analysis
• Are trained on historical data that may not reflect future conditions
• Can experience service outages or degraded performance
• Do not guarantee the accuracy of any prediction, recommendation, or assessment

4. Risk Controls Are Not Guarantees

While SmartSwing implements multiple risk management layers (stop losses, circuit breakers, drawdown halts, cash reserves), these controls:

• May not execute at the exact intended price due to market gaps, low liquidity, or rapid price movements
• Cannot protect against all forms of loss
• May be subject to slippage, especially during volatile market conditions
• Do not eliminate the fundamental risk of investing in securities

5. Fractional Share Risks

SmartSwing trades fractional shares using market orders, as required by Alpaca for fractional trading. Market orders execute at the prevailing market price, which may differ from the last quoted price. Spread costs on fractional orders may be higher relative to the position size.

6. Market Risks

Securities markets are subject to broad economic, political, and geopolitical risks. Events such as recessions, interest rate changes, geopolitical conflicts, pandemics, regulatory changes, and market-wide liquidity crises can affect all investments regardless of individual strategy performance.

7. Concentration Risk

SmartSwing trades US equities only. This concentration in a single asset class and geographic market means the portfolio may underperform or lose value during periods when US equities decline broadly.

8. Tax Implications

Frequent trading generates short-term capital gains, which are taxed as ordinary income in the United States. Users are solely responsible for understanding and complying with all applicable tax obligations. SmartSwing does not provide tax advice. Consult a qualified tax professional.

9. No Guarantee of Returns

SmartSwing does not guarantee any level of return or profit. There is no assurance that the strategies employed will achieve their objectives or that users will not experience losses, including the total loss of their invested capital.

10. User Responsibility

By using SmartSwing, you acknowledge that you understand the risks described in this disclosure and accept full responsibility for your investment decisions. You should only invest capital that you can afford to lose.