Hanco Lab Investment Risk Disclosure

Article 1 (Purpose and Scope)

1. This Hanco Lab Investment Risk Disclosure (the “Disclosure”) is intended to inform Customers of the principal investment, trading, and technical risks and limitations that they should understand in connection with the development and provision of automated trading programs, data and statistical analysis programs, stock screeners, signal generators, Pine Script indicator and strategy code, MQL4 and MQL5 code, and other financial-market-related software through the custom software development and implementation services provided by Hanco Lab (the “Company”).

2. “Customer,” “Services,” “Individual Agreement,” “Project Specifications,” “Deliverables,” “Customer-Provided Materials,” and “External Services,” as used in this Disclosure, have the meanings given in the Hanco Lab Custom Software Development and Implementation Service Terms of Use (the “Terms”).

3. This Disclosure is an informational document that explains principal risks associated with investment and trading. The specific development scope, acceptance and delivery, Maintenance, contract termination, refunds, damages, and limitations of liability between the Company and the Customer are governed by the Terms, the applicable Individual Agreement, and applicable laws and regulations.

4. Before applying Deliverables to live trading or any environment involving actual funds, the Customer shall carefully review this Disclosure, the Terms, the applicable Individual Agreement, the Project Specifications, and any separate instructions on use or operation provided by the Company.

Article 2 (Nature of the Services and No Investment Advice)

1. The Services are custom software development and implementation services that technically design and implement requirements determined by the Customer. Programs, executable files, source code, execution results, documents, or technical support provided by the Company are technical implementations of functions and conditions requested by the Customer or agreed upon by the parties.

2. The Company is not an investment adviser, discretionary investment manager, securities company, exchange, broker, or virtual asset service provider and does not provide financial services subject to registration as an investment advisory or discretionary investment management business under the Financial Investment Services and Capital Markets Act of the Republic of Korea. The Company does not accept, transmit, or execute orders on behalf of a Customer or in its own discretion, hold or manage Customer assets, or provide investment judgments or advice to an individual Customer. Implementing order or trading logic determined by the Customer in a Deliverable, or conducting a technical test approved by the Customer under paragraph 6, does not constitute any of the foregoing. The Customer shall directly determine and request the functions, inputs and outputs, trading and calculation logic, entry, exit, stop-loss and take-profit conditions, data and integration targets, user flows, performance conditions, test scenarios, and other requirements to be implemented. In doing so, the Company does not select, designate, approve, or recommend to the Customer any particular security, financial product, strategy, parameter, trading time, or position.

3. Code, numerical values, formulas, tables, graphs, logic, and algorithms included in Deliverables are technical applications of criteria determined by the Customer, conditions agreed by the parties, or generally accepted calculation rules. They do not constitute a judgment, solicitation, or individualized recommendation that any financial product, strategy, parameter, investment, or transaction is suitable or profitable for the Customer.

4. Fees for the Services are consideration for development, implementation, Maintenance, and other services required to technically implement the Customer’s requirements. They are not compensation for investment advice, discretionary investment management, brokerage, agency, solicitation, or investment judgment concerning the value of securities or financial products or whether, in what quantity, at what price or time, or by what method to buy, sell, or hold them for an individual Customer.

5. The Company’s review of Project Specifications, organization of requirements, review of technical feasibility, provision of technical review comments or alternatives, and testing or acceptance of Deliverables do not verify or guarantee the profitability, suitability, or future performance of the Customer’s trading ideas, strategies, or investment judgments. Technical comments provided by the Company do not constitute legal, tax, or financial advice or the Company’s approval or guarantee of the Customer’s investment strategy.

6. The Company may use a Customer’s demo account, actual account, or API access rights to verify and accept the technical operation of Deliverables only with the Customer’s express consent. The Company shall use such access only for testing, debugging, and quality assurance within the purpose and scope approved by the Customer and shall not make investment judgments for the Customer or independently determine or change any instrument, quantity, price, timing, or order condition. Any test that may result in an actual transaction shall be conducted solely to technically verify the logic, settings, and test scenarios confirmed by the Customer. The Company shall not record authentication information in source code, repositories, or ordinary logs and shall cease using the access rights and securely delete authentication information in its possession upon the earliest of completion of testing, achievement of the purpose, or the Customer’s revocation of access.

7. The Customer shall independently make all investment, trading, and business decisions and bears responsibility for such decisions and their results. Where necessary, the Customer shall separately seek advice from appropriately qualified or registered financial professionals and tax or legal professionals. This paragraph does not exclude liability arising from the Company’s intent or negligence or breach of the Terms or an Individual Agreement.

8. Customer support channels operated or provided by the Company offer guidance on technical use, installation, operation, and error handling. They do not provide advice concerning individualized investment judgments, whether to trade, selection of instruments, strategies, or parameters, or the timing of investments or trades.

Article 3 (Limitations of Customer Design Elements and Software Implementation)

1. Deliverables are implemented based on trading and calculation logic, order and signal rules, entry, exit, stop-loss and take-profit conditions, formulas, parameters, priorities, exception handling, input and output conditions, data, and test scenarios provided, entered, confirmed, or approved by the Customer (collectively, “Customer Design Elements”). The Company shall not arbitrarily change Customer Design Elements to implement a different strategy or judgment without the Customer’s express request or agreement.

2. If Customer Design Elements contain errors, omissions, ambiguity, inconsistencies, unhandled exceptions, a lack of profitability, or assumptions unsuitable for live markets, the Deliverables may produce unintended orders, signals, calculations, or losses. Where two or more reasonable interpretations are possible for particular wording, examples, or test criteria approved by the Customer, the Customer’s intended meaning may differ from the meaning technically implemented. The Customer shall therefore personally review the meaning and expected operation of the Customer Design Elements before finalizing and approving the Project Specifications.

3. If the Customer provides requirements, strategies, formulas, or code created, organized, summarized, or translated using generative AI, code-generation tools, or other automated tools, such materials may contain hallucinations, errors, omissions, distortions, ambiguity, inconsistencies, descriptions of nonexistent functions or data, or content that differs from the Customer’s actual intent. The Customer shall personally conduct a final review and verification before providing such materials to the Company or approving their inclusion in the Project Specifications.

4. The fact that the Company has accurately implemented Customer Design Elements in accordance with the Project Specifications does not mean that those elements are profitable, suitable for investment, complete, safe, or effective under all market conditions. An unexpected trading outcome or loss alone does not establish that the implementation differs from the Customer Design Elements or that a software error exists.

5. Complex modern software may contain bugs, boundary conditions, concurrency or sequencing issues, numerical precision differences, exceptional circumstances, or errors that occur only in particular environments and are not discovered through ordinary testing. Passing certain tests or having operated normally in the past does not guarantee that Deliverables will continue to operate without error across all data, devices, accounts, market conditions, or future external environments.

6. If, after delivery, the Customer, the Customer’s personnel, a third party, or a generative AI or code-generation tool modifies, deletes, replaces, or adds to the code, executable files, settings, databases, libraries, file structure, or execution environment of Deliverables, compatibility with existing operation may be impaired and new errors, security vulnerabilities, or order-related risks may arise. Before applying modified Deliverables to live trading again, the entire affected scope must be separately reviewed and revalidated.

Article 4 (Limitations of Backtesting and Statistical Analysis Results)

1. Backtesting, simulations, simulated trading, statistical analysis, parameter search and optimization using Grid Search or similar methods, Monte Carlo Permutation Tests (MCPT), Walk-Forward Analysis (WFA), and other analysis results that may be included in Deliverables are hypothetical, technical, or statistical results or research reference materials based on historical data, conditions and assumptions determined by the Customer, and the implemented calculation methodology. They are not actual account trading records or actual results of future markets.

2. Historical returns, low drawdowns, high win rates or scores, apparently stable distributions, or strong results for a particular parameter combination do not guarantee future profits, preservation of principal, avoidance of losses, actual executability, or reproduction of the same performance.

3. The more repeatedly numerous strategy variations, instruments, periods, or parameter combinations are explored, the greater the possibility that a result fitting random noise in the historical sample will be selected. Backtesting and optimization results may involve risks including over-optimization or overfitting, the multiple testing problem, data snooping, selection bias, survivorship bias, look-ahead bias, and repainting.

4. MCPT, WFA, out-of-sample validation, robustness, sensitivity, plateau and boundary analysis, stress testing, and other validation procedures are supplementary methods for further examining the characteristics of a strategy and its parameters. Favorable results from these procedures do not completely eliminate overfitting or model risk or establish future profitability, stability, or suitability for live trading.

5. Analysis results may differ materially depending on the source, scope, time zone, interval, precision, and adjustment method of the data used; missing values, outliers, or subsequent corrections; the treatment of corporate actions, expirations, or instrument substitutions; assumptions concerning commissions, taxes, spreads, slippage, funding fees, exchange rates, or margin; and the order-execution model.

6. Analysis based on candle or OHLCV data may not fully reproduce actual order-book prices and depth, intrabar price paths, order sequencing, market impact, partial fills, or the order-processing methods of particular exchanges, securities companies, or brokers. Even the same strategy may produce different results depending on the data provider, platform, exchange, broker, software version, or calculation method.

7. Performance observed during a particular period, for a particular instrument or timeframe, or under a particular market regime may not persist during other periods, for other instruments, under other market regimes, or in live trading environments. The Customer shall not decide whether to make an actual investment based solely on rankings, composite scores, or a single performance metric, and shall independently review the strategy logic, representativeness of the sample, number of trades, cost assumptions, maximum drawdown periods, result distribution, and reproducibility.

Article 5 (Live Trading and Market Risks)

1. Backtesting, simulations, and simulated trading are fundamentally different from live trading. Actual orders and trading results may differ materially from the results of analysis, simulations, and simulated trading depending on market conditions, order books, transaction costs, networks, External Services, and the Customer’s operating conditions.

2. Live markets may experience extreme volatility, price gaps, insufficient liquidity, widening bid-ask spreads, slippage, market impact, partial fills or non-fills, failure of limit orders to execute, market orders executed at unexpected prices, rejected, duplicated, omitted, or delayed orders, trading suspensions, delistings, market closures, changes in trading hours, circuit breakers, and regulatory or policy changes.

3. All investments and trading involve risk of loss. Depending on the financial product, strategy, and market conditions, the Customer may lose some or all of the principal, and the use of leverage, credit, margin, derivatives, or similar structures may result in losses exceeding the principal or obligations to provide additional margin.

4. Automated trading programs may repeat or scale orders without human intervention or within a short period. Incorrect logic, parameters, accounts, instruments, quantities, prices, order directions, repetition conditions, or exception handling may therefore rapidly lead to substantial losses. Trading signals generated by signal generators or strategy code may also be delayed, omitted, duplicated, or different from conditions under which actual execution is possible.

5. Stop-loss orders, maximum-position limits, daily-loss limits, limits on order counts, emergency-stop functions, and other risk-management functions are only means of reducing the possibility of loss. If price gaps, insufficient liquidity, communication failures, order rejections or delays, or External Service failures occur, these functions may not operate at the intended price or time and may not prevent all losses.

6. If the Customer’s actual account or an API with live order authority is used for technical testing of Deliverables, actual orders and fills, fees, taxes, and profits or losses may arise during testing. Before testing, the Customer shall confirm the target account, instruments, order types, quantity or amount, time, permissions, and stopping conditions and shall minimize order permissions and the amount of funds involved to the extent possible.

7. Even if Deliverables operate normally, the Customer’s investment strategy itself may generate losses or an existing statistical edge may disappear as market conditions change. The fact that profits occurred during a certain period or that the Company completed technical testing and acceptance does not guarantee the profitability or safety of subsequent trading.

Article 6 (Risks of External Services, Data, and Operating Environments)

1. Deliverables may depend on or integrate with securities companies, exchanges, brokers, virtual asset service providers, data providers, TradingView, MetaTrader, websites, cloud providers, operating systems, libraries, APIs, and other External Services not directly operated by the Company.

2. External Services may experience server maintenance, failures, downtime, communication delays or outages, API rate limits, data errors, omissions, corrections, delays, or interruptions, rejected, omitted, or delayed orders, account restrictions or suspensions, regional blocking, or termination of service. Such events may restrict or interrupt data reception, signal generation, order processing, synchronization, or normal operation of Deliverables.

3. The URL, HTML or DOM structure, screen layout, login, authentication or access method, API specifications, parameters or data structure, security measures, terms of use, policies, fees, functions, supported regions, or permission for automation or scraping of an External Service may change without prior notice. Such changes may cause existing Deliverables to cease functioning or require modification, redesign, retesting, or redeployment.

4. Market data may contain missing values, outliers, delays, duplicates, time-zone differences, instrument-code changes, differences in the treatment of corporate actions, expirations, or rollovers, or subsequent corrections. Even when data is received normally, its completeness, accuracy, timeliness, or correspondence with all actual exchange conditions is not always guaranteed.

5. Differences in the Customer’s devices, servers, operating systems, browsers, runtimes, libraries, drivers, security software, cloud environments, networks, time settings, account permissions, or API settings may affect the operation, performance, calculations, or order timing of Deliverables. The same compatibility as before may not be maintained following updates to software, External Services, or execution environments.

6. Leakage, theft, or misuse of API keys, accounts, passwords, authentication methods, or server access rights may result in unauthorized orders, disclosure of personal or trading information, account restrictions, or loss of assets. The Customer shall apply available security measures, including least-privilege settings, disabling withdrawal permissions, IP access restrictions, secure storage of secrets, periodic key rotation, and monitoring for anomalous access.

7. Natural disasters, fire, power failures, communication-network or cloud failures, war, terrorism, national emergencies, infectious diseases, cyberattacks, enactment or amendment of laws and regulations, or measures taken by courts, administrative authorities, or regulators may delay, restrict, or interrupt the development or operation of Deliverables or trading.

Article 7 (Customer’s Independent Judgment and Risk Management)

1. The Customer shall use Deliverables and their execution or analysis results as technical tools or reference materials and shall independently determine whether to invest or trade, the relevant financial products or instruments, amount of funds, positions, prices, timing, order methods, and risk-management standards.

2. Before committing actual funds, the Customer shall confirm that the Project Specifications, Customer Design Elements, code or settings, input data, account, instrument, order direction and quantity, cost assumptions, and exception handling are consistent with the Customer’s intent. Testing and acceptance by the Company are procedures for confirming technical operation in accordance with the Project Specifications and do not replace the Customer’s investment strategy or operational judgment.

3. Where possible, the Customer shall adequately validate Deliverables using a demo account, simulated trading, testnet, sandbox, limited simulated operation based on real-time data, or another environment that does not involve actual funds. Thereafter, the Customer shall conduct phased testing with limited funds, permissions, instruments, and order quantities, personally confirm normal operation and the possibility of loss, and only then determine the scope of live operation.

4. While operating Deliverables, the Customer shall personally monitor the account, orders, fills, positions, balances, and system status at reasonable intervals and, where necessary, establish order, position, and daily-loss limits, alerts, logs, backups, emergency-stop functions, and means of manual intervention. Operating an automated trading or signal system unattended for an extended period may delay detection of failures or erroneous orders and increase resulting losses.

5. If Deliverables, Customer Design Elements, parameters, data, External Services, operating systems, or execution environments change, the Customer shall retest the affected scope. The Customer shall not assume that operation will remain the same after a change merely because an earlier version operated normally.

6. If the Customer becomes aware of an error, abnormal order or signal, failure of an External Service, leakage of authentication information, or the possibility of loss, the Customer shall immediately stop using the Deliverables and automated ordering and take reasonable measures to prevent or mitigate loss. Such measures may include reviewing and canceling open orders, reviewing positions, revoking API access, invalidating and reissuing authentication credentials, reducing the amount of funds involved, preserving logs and order or fill records, and notifying the Company.

7. The Customer shall separately verify the legality of any investment, trading, signal-provision, asset-management, or business activities to be conducted using Deliverables, any required licenses, permits, registrations, or filings, tax and accounting treatment, compliance with the terms of External Services and product-specific terms, and any disclosure or notification obligations owed to third parties.

8. Where necessary, the Customer shall seek separate advice from financial professionals appropriately qualified or registered under applicable laws and from appropriate legal, tax, accounting, or security professionals.

9. This Disclosure does not exhaustively list every risk that may arise in connection with custom software or financial markets. The Customer shall also review the terms, explanatory materials, risk disclosures, and applicable laws and regulations provided for the products and markets to be traded and by the relevant securities companies, exchanges, brokers, and External Services.

If you have any questions regarding this Investment Risk Disclosure, please contact the Customer Support Center below.

• Contact: Customer Support Center (contact@hancolab.com)