Risk Disclosure & Investment Disclaimer

This Risk Disclosure describes important limitations on the information and tools provided by AlphaSmith, Inc. [TBD: counsel input]. It is incorporated into our Terms of Service. Please read it carefully before relying on any analytics, forecasts, or signals. Effective date: April 17, 2026.

Our regulatory posture

AlphaSmith publishes analytical tools and general market commentary. We rely on the publisher’s exclusion from the definition of “investment adviser” under section 202(a)(11)(D) of the Investment Advisers Act of 1940, 15 U.S.C. § 80b-2(a)(11)(D), as interpreted by the Supreme Court in Lowe v. SEC, 472 U.S. 181 (1985). Specifically:

• (i) AlphaSmith’s publications are impersonal and are not directed to any specific person or investment objective;
• (ii) the same content is disseminated to all subscribers within a subscription tier on the same basis;
• (iii) we do not take into account any individual user’s financial situation, holdings, risk tolerance, tax position, or goals when producing or displaying content; and
• (iv) publications are issued on a regular and general- circulation basis, not on the basis of any particular market event or at the request of any individual subscriber.

AlphaSmith is not registered as an investment adviser under the Investment Advisers Act of 1940 and does not hold itself out as providing personalized investment advice. We are not a broker- dealer, a commodity trading advisor, a commodity pool operator, a futures commission merchant, a transfer agent, or a fiduciary.

We do not maintain state-level investment-adviser registrations. To the extent any state regulator would deem our activity to require state-level registration, we respectfully assert reliance on the federal publisher’s exemption and on the state’s applicable analogue to section 202(a)(11)(D).

Not investment advice

AlphaSmith is not a registered investment adviser, broker-dealer, commodity-trading advisor, or financial planner in any jurisdiction. Nothing on the Services is a solicitation, recommendation, or offer to buy or sell any security, option, future, cryptocurrency, or other financial instrument. All information is provided for educational and informational purposes only.

You make your own decisions

You are solely responsible for your investment and trading decisions. You should evaluate your own financial situation, investment objectives, experience, and risk tolerance. Consult a licensed professional advisor before acting on any information from the Services.

Market and instrument risk

Trading and investing involve substantial risk of loss, including the loss of your entire investment. Equity prices can be volatile. Options and other derivatives can result in rapid and unlimited losses. Leveraged, margin, and short positions amplify risk. Cryptocurrencies are especially volatile and may trade 24/7 on unregulated venues. Fixed-income instruments bear interest-rate, credit, and liquidity risk. Currency and international investments add exchange-rate and political risk.

Past performance is not indicative

Past performance, including performance shown in backtests, walk-forward analyses, and historical model-accuracy dashboards, is not a guarantee of future results. Hypothetical or simulated performance has inherent limitations, including the benefit of hindsight, the assumption of sufficient liquidity, and the absence of trading costs that real traders face.

Model and AI uncertainty

Our analytics (including Signal Zones, risk-based trailing stops, composite ratings, cycle analyses, GEX levels, and options screens) and our AI predictions (including the XGBoost, LSTM, and Temporal Fusion Transformer ensemble) are statistical estimates produced by algorithms. They can be, and sometimes will be, wrong. Confidence scores do not eliminate uncertainty; they describe model agreement under historical distributions, which may not match future regimes. We publish rolling accuracy metrics to inform your own evaluation.

AI-generated content and AI limitations

AI-generated forecasts, ratings, and briefings on the Services are informational outputs of statistical and machine-learning models. They are not investment advice, fiduciary output, or guarantees of future performance. In particular, our AI:

• does not observe or adapt in real time to any individual user’s holdings, transactions, or account state;
• is not a fiduciary with respect to any user, account, or transaction, and does not owe any duty of loyalty or care to any user;
• does not assume responsibility, and AlphaSmith does not accept liability, for any trading, investment, or financial decision taken by a user in reliance on its output;
• does not make any claim of predictive accuracy beyond the statistical performance metrics we publish at /ai/performance, which are historical and may not be reproduced in future market regimes; and
• is not trained on material non-public information and does not access customer brokerage accounts for training or inference.

In March 2024 the U.S. Securities and Exchange Commission settled charges against two investment advisers — SEC v. Delphia (USA) Inc. and SEC v. Global Predictions Inc. — for making false and misleading statements about their use of artificial intelligence (often called “AI washing”). Consistent with the lessons of those actions, AlphaSmith publishes model accuracy metrics, describes the specific model families used (XGBoost, LSTM, Temporal Fusion Transformer), and does not represent capabilities that we cannot substantiate with those metrics.

13F / “Smart Money” holdings data

Any institutional-holdings, “billionaire tracker,” or “smart money” feature on the Services draws from Forms 13F filed with the SEC. These filings have important limitations that affect how you should read our product:

• 13F filings are reported with a 45-day delay after each calendar quarter-end. Holdings shown may no longer reflect the filer’s current positions when you view them.
• 13F filings include long positions only in U.S.-listed equity securities and certain options. They exclude short positions, non-U.S. listings, cash, private holdings, and many derivative exposures.
• Past performance of an institutional filer is not a reliable indicator of future returns. Copying an institutional filer’s positions does not replicate that filer’s strategy, risk tolerance, or time horizon.

Data accuracy and latency

Market data on the Services may be delayed, incomplete, or subject to error from upstream vendors. Real-time streaming, where offered, is best-effort and may experience outages or latency. We make no warranty of accuracy or timeliness of any data.

Order execution is your responsibility

AlphaSmith does not execute trades on your behalf. Any buy, sell, or other order decision is yours alone and is routed through the broker or brokerage platform you independently select. Our trailing-stop calculations are analytical outputs you may consult when placing orders through your broker; they are not automatically translated into orders and do not guarantee protection against gaps, fast markets, or pre-market/post-market moves.

Options and derivatives

Options trading is not suitable for all investors. Before trading options you should read the OCC’s “Characteristics and Risks of Standardized Options” (available at your broker and on the OCC website). Our options analytics, including GEX, volatility-surface metrics, and screener-derived strategies, are tools, not recommendations. Probability-of-profit and ROI figures are estimates based on model assumptions.

Tax

AlphaSmith does not provide tax advice. You are responsible for reporting transactions and paying taxes owed. Consult a qualified tax professional.

Third-party content

The Services may include content from third parties such as news headlines, corporate filings, and analyst estimates. We do not endorse or guarantee any such third-party content.

Questions

If you have questions about this Risk Disclosure, contact legal@alphasmith.ai.