Risk Disclosure

1. Why you’re reading this

This document explains the main risks of trading and of using Atheneo. It is part of our Terms of Service.

It can’t list every risk. Read your broker’s disclosures too. If something isn’t clear, don’t trade until it is, and consider talking to a licensed professional.

2. Atheneo is not your adviser or your broker

Atheneo AI, Inc. is not a broker-dealer or a registered investment adviser, and it never holds your money or securities.

No one at Atheneo, and nothing in Atheneo, including Henry, checks whether a trade fits your finances, your goals, or how much risk you can take. That judgment is yours.

3. Trading risk

• You can lose some or all of the money you invest. Stock prices can fall sharply and fast, sometimes with no warning and no news.
• The past doesn’t predict the future. That applies to any stock, any strategy, and Henry.
• Spreading money across positions reduces some risk. It doesn’t prevent losses.
• Costs add up. Fees, taxes, and the gap between buying and selling prices (the spread) all reduce returns, and they grow when you trade often.

4. Day trading

Buying and selling within the same day is especially risky, and studies have found that most day traders lose money. Prices move quickly, small mistakes add up, and frequent trading raises costs.

Your broker may restrict day trading under its own rules and industry rules. Don’t day trade with money you need for living expenses, retirement, or paying debts.

5. Short selling

When you sell short, you make money only if the price falls. There’s no limit to how high a price can rise, so the possible loss on a short has no ceiling.

Your broker can make you close a short at a bad time, charge you to borrow the shares, or require you to add money. Short squeezes can drive prices up violently.

If you short, keep the stop, and keep the size small.

6. Margin and leverage

If your brokerage account uses margin, you are borrowing money from your broker. Leverage makes gains and losses bigger, and you can lose more than you deposited.

If your account value falls, your broker can sell your positions without asking you first. Your broker also chooses which positions to sell, and can raise its margin requirements at any time without notice.

7. Extended-hours and overnight trading

Trading before or after the regular session, or overnight, carries extra risk:

• fewer buyers and sellers;
• wider spreads and bigger price swings;
• prices that don’t match the regular session; and
• news that moves prices before you can react.

Some order types aren’t available outside regular hours, and orders may not fill.

8. Orders and execution

• Market orders fill at the next available price. In a fast market, that price can be very different from the last price you saw. This is called slippage.
• Limit orders protect your price, but they may fill only partly or not at all.
• Stop orders aren’t guaranteed. When a stop triggers, it usually becomes a market order, and in a gap or a fast drop it can fill far beyond your stop price.
• Prices can jump (“gap”) overnight or on news, past any stop or limit.
• Trading can be halted in a single stock or across the whole market. While it’s halted, you may not be able to get out.
• Your broker controls execution. It decides how and where your orders are filled, not Atheneo.

9. Low-priced, thinly traded, and fast-moving stocks

Low-priced and thinly traded stocks can swing wildly. They often have wide spreads, can be hard to sell when you want to, and can be targets for manipulation.

Newly public companies, and stocks reacting to earnings or news, can move far and very fast.

10. Henry and automated tools

Henry and Atheneo’s other tools are built from software, rules, and AI. They can fail in ways that cost money.

• Errors. AI can misread data, misunderstand context, or state something false with confidence.
• Bad or late data. Henry works from the data he receives. If the data is late or wrong, so is Henry.
• Rules that stop working. Rules built on past markets may not work in future markets. Markets change.
• Changes. We update Henry’s rules and models regularly, so his behavior can change without notice.
• Blind spots. AI reflects the data it was built on, and it can miss things a person would catch.
• Speed. Auto mode is coming soon. In Auto, Henry will act without asking you each time, so a problem could repeat before anyone notices.
• Not tailored to you. Henry may mention your watchlist, positions, or plan. That doesn’t mean he has judged what is right for you.
• Safety limits can fail. Daily limits, pausing, and order caps reduce risk, but a bug or an outage can stop them from working.

Check what Henry tells you against your own judgment and your broker’s data before you act.

11. Connected accounts and technology

• Atheneo connects to many brokerages and platforms. Some connections are direct, and others pass through third-party connection services. Every platform, every connection service, and Atheneo itself is a place where a connection can fail.
• Connections can drop at any time, for any reason. Causes include outages, maintenance, or changes at your broker, platform, or a connection service; access being limited or ended; keys or access tokens that expire or are revoked; rate limits; internet problems; or an outage at Atheneo.
• When a connection is down, Atheneo can’t see or manage that account. Orders already sent stay at your broker or platform and may still fill.
• Atheneo can lag behind your broker. Your broker’s or platform’s records are the official record.
• Alerts can be late. Our dropped-connection alerts may arrive late or not at all.
• Your own equipment can fail. Your device, browser, or internet connection can fail at the worst moment.

What to do: keep each broker’s or platform’s app ready, know how to close positions there, and consider placing protective orders directly with your broker.

12. Market data

Quotes, charts, news, and other data come from third parties. Data can be delayed, incomplete, or wrong, and the price you see may not be the price you get. Don’t rely only on Atheneo’s data when you decide to trade.

13. Paper trading and simulated results

Paper trading uses pretend money and simulated fills. It leaves out real-world factors like slippage, partial fills, how easily shares can be bought and sold, and the pressure of real money. Doing well on paper doesn’t mean you will do well with real money.

14. Hypothetical and backtested performance

Backtests, scorecards, leaderboards, and Henry’s track record may come from simulated or hypothetical trading. Hypothetical results have built-in limits:

• they are often prepared with the benefit of hindsight;
• they don’t reflect real trading or the effects of real financial risk; and
• they can be tuned to look good on past data.

No account is likely to achieve the same results just because they appear in Atheneo. Other users’ results aren’t typical, and they aren’t a prediction of yours.

15. Taxes

Short-term trading creates gains taxed as ordinary income, and rules such as the wash-sale rule can change how losses count. Atheneo doesn’t give tax advice. Talk to a tax professional.

16. Products Atheneo doesn’t support

Atheneo is built for U.S.-listed stocks and ETFs. It doesn’t support options, futures, or crypto trading. If you trade those through your broker, read your broker’s disclosures. They carry their own risks, which are often larger.

17. Security

Anyone who gets into your Atheneo account, the email or Google account you sign in with, or your brokerage keys or access could see your information or place trades. To protect yourself:

• use strong, unique passwords and two-step verification;
• set a trading password;
• never share your keys or sign-in details; and
• revoke Atheneo’s access at your broker or platform if you think your keys or account have been exposed.

18. Updates to this Risk Disclosure

We will update this Risk Disclosure as Atheneo, the markets, and the law change. The date at the top shows when it last changed.

Checking for updates is your responsibility. If a change is significant, we will also tell you by email or in the app before it takes effect, and we may ask you to accept the new version before you can keep using Atheneo. If you keep using Atheneo after an update takes effect, you accept the updated Risk Disclosure.

19. Your acknowledgment

You must accept this Risk Disclosure, along with our Terms of Service, to use Atheneo. By using Atheneo, you confirm that:

• you have read this Risk Disclosure;
• you understand that trading involves risk of loss;
• you make your own decisions;
• you are responsible for every order you place and for monitoring your brokerage accounts; and
• you will check this Risk Disclosure for updates, and you accept each updated version by continuing to use Atheneo.

Questions? Email support@atheneo.ai.