Risk Disclosure

1. Nature of the underlying instruments

1.1. The signals distributed by Botely refer to crypto perpetual contracts listed on Hyperliquid (such as ETH-USD, SOL-USD, BNB-USD, BTC-USD).

1.2. By the ESMA Public Statement of 24 February 2026 (ref. ESMA35-243228190-8024), perpetual contracts offering leveraged exposure to crypto-assets are likely to fall within the definition of Contracts for Difference (CFDs) under Annex I, Section C, of Directive 2014/65/EU (MiFID II). They are derivatives, not crypto-assets within the scope of Regulation (EU) 2023/1114 (MiCA).

1.3. Perpetuals have no expiry and use a funding-rate mechanism to anchor the derivative price to the spot. Typical leverage available on the venue ranges between 10× and 100×, very high compared to the 2:1 limit set by ESMA for CFDs offered to EU retail by authorised firms.

2. Volatility risk

2.1. Crypto-asset markets are significantly more volatile than most traditional asset classes. Price movements of 10–30% within 24 hours are not exceptional, and 50%+ flash crashes have occurred.

2.2. Liquidity may evaporate at weekends, during major news events, or during cascade liquidations on the venue. Bid-ask spreads can widen sharply, and slippage on market orders may exceed any historically observed level.

3. Leverage risk

3.1. Leverage multiplies both gains and losses. A position opened with 20× leverage is liquidated by a 5% adverse move (less, after funding and fees).

3.2. Liquidation by the venue is automatic and cannot be reversed. You may lose your entire margin in the affected sub-account in a matter of seconds.

3.3. The venue may apply additional margin requirements (margin calls) at its sole discretion.

4. Signal risk

4.1. The signals are general in nature and identical across all subscribers of the same tier. They are not based on your individual financial situation, knowledge, experience, objectives or risk tolerance.

4.2. Signal generation is algorithmic and rule-based. Algorithms can — and do — produce signals that, in hindsight, prove to be wrong.

4.3. Backtest results are subject to hindsight bias, parameter-selection bias, survivorship bias and idealised execution assumptions. They cannot be relied on as a forecast.

4.4. Live results depend on the timing of your execution, the slippage you experience, the leverage you choose, the fees you pay, your tax position and other idiosyncratic factors. Your actual results may differ materially from any aggregate live track record published by Botely.

5. Delivery and technology risk

5.1. Signals are delivered through webhook, Telegram, email and in-app feed. Each channel is subject to delays, queueing and outright failures outside Botely's control.

5.2. Botely does not guarantee any service-level agreement on delivery latency. A signal generated may reach you minutes after generation; market conditions may have changed in the interim, making the entry, take-profit or stop-loss levels suggested no longer relevant.

5.3. Your own infrastructure (laptop, internet connection, exchange API key configuration) is your responsibility. A failed automation on your side will not be remedied by Botely.

6. Counterparty risk and venue risk

6.1. Hyperliquid is a perpetual exchange operated by independent parties (Hyper Foundation, the Hyperliquid validator set and related entities). Botely is not affiliated with any of them.

6.2. The venue is subject to smart-contract risk, validator-set risk, governance risk, bridge risk and chain-halt risk. In extreme cases, your positions on the venue could become inaccessible.

6.3. Hyperliquid is not authorised as a trading venue or investment firm under MiFID II by any EU competent authority.

7. Custody risk (on your side)

7.1. Botely is non-custodial. We never hold your funds, your wallet keys or your mnemonic. You self-custody on Hyperliquid.

7.2. Losing your wallet keys, your mnemonic, or your Hyperliquid account access means losing access to any funds held there. Botely cannot help recover them.

7.3. Phishing and impersonation attacks targeting crypto users are common. Botely will never ask for your private keys or mnemonic by any means.

7A. Optional Autotrade Feature — additional risks

7A.1. The Optional Autotrade Feature described in section 3.4 and 4A of the Terms of Service authorises a Botely-controlled agent wallet to place / cancel orders on the ETH-USD, SOL-USD and BNB-USD perpetual markets on your main Hyperliquid account. The Hyperliquid protocol guarantees that the agent wallet cannot withdraw funds, transfer balances or initiate any non-trading action; Botely's server-side execution code further restricts the agent to the three whitelisted markets. While these bounds are real, enabling the feature adds risks that do not apply to signals-only use.

7A.2. Software-defect risk. The Bot is a software system; a bug, regression, infrastructure failure, race condition or misconfiguration could cause it to place wrong orders, fail to place expected orders, miss take-profit / stop-loss exits, or react incorrectly to venue events. Botely operates monitoring and dead-man's-switch safeguards but does not guarantee uninterrupted, defect-free operation.

7A.3. Agent-key compromise risk. Loss or compromise of the encrypted Botely agent-wallet key would allow an attacker to place / cancel orders against your main Hyperliquid account within the Hyperliquid protocol's trading-only authority — they could not withdraw funds, transfer balances or initiate any non-trading action. They could, however, in principle place trades on markets outside the ETH/SOL/BNB whitelist (the whitelist is enforced by Botely's server code, not by Hyperliquid). In such a scenario you should immediately revoke the Botely agent wallet from your own wallet via Hyperliquid's agent-management UI.

7A.4. Server-side-scope risk. The whitelist limiting the agent's actual trading to ETH-USD, SOL-USD and BNB-USD is enforced by Botely's server-side code, not by the Hyperliquid protocol. A Provider-side software defect, malicious insider action or compromise of the Provider's infrastructure could in principle cause orders to be signed on markets outside the whitelist. The Provider mitigates this with code review, change management and audit logging, but the residual risk is non-zero and is a structural difference from the previous dYdX v4 chain-level enforcement model.

7A.5. Operator-error risk. Botely engineers operate the Bot infrastructure. Although operations follow change-management and audit controls, manual misconfiguration (e.g. incorrect sizing parameter, accidental restart, deployment regression) could affect your live positions. Use the per-strategy and master kill-switches if you observe unexpected behaviour.

7A.6. Liquidation propagation risk. Because all subscribers of the same tier with autotrade enabled receive and act on the same broadcast signals at nearly the same time, large adverse moves can produce correlated drawdowns across subscribers. The venue's order book may absorb the aggregate flow inefficiently, increasing slippage and the probability of liquidation.

7A.7. Capital-ceiling mitigation. Each paid tier caps the Bot-managed capital (e.g. $5,000 for Standard, $20,000 for Advanced, contractually negotiated for Custom). The Bot sizes entries against `min(your equity on your main Hyperliquid account, your plan's capital ceiling) × the published strategy sizing fraction`. The cap is the maximum amount the Bot can route to a single entry order — it is not a guarantee against losses, which can still reach 100% of the capital actually deployed.

7A.8. Your kill-switches. You can disable the Optional Autotrade Feature at any time through: (a) a per-strategy toggle in the dashboard (≤ 30 s); (b) a master switch in the dashboard (≤ 30 s); (c) wallet-side revocation of the Botely agent wallet via Hyperliquid's agent-management UI (effective from the moment your signed action is accepted by Hyperliquid). You can also close any open position manually from the dashboard; the Bot reconciles at the next tick.

8. Regulatory risk

8.1. The regulatory classification of crypto-perpetual contracts, of decentralised exchanges and of signal-distribution services may change. New obligations imposed by ESMA, by national competent authorities (Consob, Banca d'Italia, MFSA, CySEC, Bank of Lithuania) or by EU regulations (a future amendment to MiFID II, MiCA II) may affect the availability of the Service.

8.2. Tax treatment of crypto-derivatives trading varies across EU Member States and may change. You are responsible for your own tax filings.

9. No guarantee of return

9.1. Botely makes no guarantee of any minimum return, of any maximum drawdown, of any win rate, or of any other performance metric, whether explicit or implicit.

9.2. Any historical performance figures published on the Service (in particular on the public `/performance` and `/backtest` pages) are aggregated, anonymised and computed against a simulated starting capital. They do not reflect what any individual subscriber would obtain. Past performance is not indicative of future results.

10. Acknowledgement

10.1. By subscribing, you confirm that you have read and understood this Risk Disclosure, that you understand the leverage and volatility characteristics of crypto perpetual contracts, and that you are willing and able to bear the risk of total loss of any capital you deploy in connection with signals received from the Service.

10.2. If you are in any doubt about the suitability of trading these instruments for you, you should seek independent professional advice before subscribing. Botely is not able to provide such advice.

Contact

• Botely — Italian limited liability company to be incorporated prior to commercial launch. Until then, the service is operated in pre-launch by the founding team in their personal capacity, contactable at the addresses below.
• compliance@botely.trade
• privacy@botely.trade (privacy / GDPR)
• dpo@botely.trade (DPO)
• Address (post-incorporation): To be confirmed at incorporation.

These documents are published in English (canonical) and Italian. In case of conflict between the two versions, the English version prevails for interpretation.

Changelog

• v1.0 — 2026-05-14 — Initial publication.