Risk Disclosure Statement

1. Nature of the Investment

Lookinex operates as a managed pooled investment fund. Your capital is combined with that of other investors and actively traded in cryptocurrency spot and futures markets by our professional trading team. You are not directly trading — you are allocating capital to a managed fund strategy.

The performance of your investment is entirely dependent on the trading decisions of the fund management team and prevailing market conditions, both of which are beyond your control.

2. Cryptocurrency Market Risk

Cryptocurrency markets are among the most volatile financial markets in the world. Prices of digital assets including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), BNB, and others can rise or fall by 10%, 30%, or more within a single day. This extreme volatility means:

• The value of the fund may decrease significantly in a short period
• Past performance provides no reliable indication of future results
• Periods of sustained loss are possible and have occurred across all asset classes
• You may receive back less than you invested, including potentially losing your entire investment

3. Leverage and Futures Trading Risk

The fund may use leverage through cryptocurrency futures contracts. Leveraged trading amplifies both gains and losses. A 10% adverse move in an underlying asset can result in a loss significantly greater than 10% of the position value. The fund maintains strict internal risk controls, including maximum leverage limits and mandatory stop-losses on individual positions, but these controls do not eliminate the risk of loss.

4. Stop-Loss Risk

Lookinex provides a personal stop-loss feature on each investment. This is designed to limit your maximum loss on a given deposit. However:

• The stop-loss is triggered based on the fund's calculated drawdown applied to your investment value, not on real-time individual position prices
• In extreme market conditions (flash crashes, exchange outages, extreme illiquidity), the actual exit value may be slightly lower than the stop-loss threshold
• A stop-loss exit is not a guarantee of the exact stop-loss amount — it is a best-effort protection mechanism
• After a stop-loss exit, your remaining capital is returned to your available balance, not reinvested automatically

5. Liquidity Risk

Cryptocurrency markets can become illiquid during periods of extreme volatility, exchange outages, or regulatory events. In such conditions, the fund may be unable to exit positions at desired prices, which could result in losses greater than anticipated. Withdrawal processing may also be delayed in extraordinary circumstances, though Lookinex commits to processing all withdrawals within 48 hours under normal conditions.

6. Counterparty and Exchange Risk

The fund holds assets on and trades through third-party cryptocurrency exchanges (including Binance and Bybit). These exchanges carry their own risks:

• Exchange insolvency, hack, or regulatory shutdown could result in loss of funds held on those platforms
• Lookinex maintains only the minimum required balance on exchanges for trading operations
• The majority of fund assets are held in cold storage wallets where operationally possible

7. Regulatory Risk

Cryptocurrency regulation is evolving rapidly across all jurisdictions. Changes in law or regulation in any country could restrict or prohibit the fund's trading activities, require changes to how your funds are held or accessed, require Lookinex to cease operations in certain markets, or result in forced liquidation of positions at unfavorable prices. Lookinex monitors regulatory developments and will communicate material changes to users.

8. Technology and Cybersecurity Risk

The Lookinex platform and underlying blockchain infrastructure carry technology risks including software bugs or vulnerabilities, smart contract exploits, cyberattacks, network congestion causing delays, and errors in automated systems. Lookinex employs industry-standard security practices including multi-factor authentication, cold storage, regular security audits, and encrypted data storage. These measures reduce but do not eliminate technology risk.

9. Management and Operational Risk

Investment returns depend entirely on the skill, judgment, and decisions of the Lookinex trading team. There is no guarantee that past trading performance will continue. Risks include trading strategy underperformance, human error in trade execution, conflicts of interest, key person risk, and operational errors in profit calculation or fund administration.

10. Coin Swap Risk

Deposits made in non-USDT cryptocurrencies (TRX, ETH, BNB, BTC) are automatically converted to USDT via third-party swap services at the time of deposit. Exchange rate slippage, swap service downtime, and network fees may result in the USDT amount credited being lower than anticipated.

11. Your Personal Risk Tolerance

Before investing with Lookinex, you should honestly assess whether you can afford to lose all or part of the invested amount, whether the 4% annual management fee and 35% performance fee structure is acceptable to you, and whether the 48-hour minimum holding period and withdrawal processing time meet your needs. If you are unsure, please consult an independent financial advisor before proceeding.

12. No Guarantee of Returns

Lookinex does not guarantee, promise, or imply any specific rate of return. Any historical returns shown on the platform are for informational purposes only and are not indicative of future performance. Projections shown in the ROI calculator are simulations based on historical data and assumed rates — they are not predictions.

13. Acknowledgment

By investing with Lookinex, you confirm that you are at least 18 years of age, you are investing voluntarily with funds you can afford to lose, you have read and understood this Risk Disclosure Statement in full, and you accept all risks described herein.

For questions about this document, contact: support@lookinex.com