Risk Disclosure

Options involve risks that differ from owning the underlying security directly.

An option can lose value rapidly and may expire worthless.

Factors affecting option prices include:

• movement in the underlying security;
• implied volatility;
• time remaining until expiration;
• interest rates;
• dividends;
• market liquidity;
• bid/ask spreads; and
• changes in market expectations.

Options are affected by time decay, which can reduce the value of an option even when the underlying security does not move materially.

Options may also involve:

• leverage;
• rapid changes in value;
• exercise risk;
• assignment risk;
• expiration risk;
• liquidity risk;
• spread risk;
• volatility risk;
• settlement risk; and
• execution risk.

Depending on the strategy, short or written option positions may create obligations and losses that exceed the premium initially received.

Multi-leg option strategies can behave differently from individual option contracts and may become difficult to adjust or close during volatile or illiquid markets.

Before trading options, you should understand the characteristics and risks of the particular option strategy being used and review any options disclosures provided by your brokerage or applicable market authorities.

Where applicable, U.S. listed-options investors should also review the current Characteristics and Risks of Standardized Options disclosure published by the Options Clearing Corporation.

QVL’s proprietary volatility-intelligence engine powers multiple market-specific QVL models and related analytical tools.

QVL Models may generate:

• market signals;
• model positions;
• suggested transactions;
• allocations;
• trade rationales;
• option selections;
• portfolio information;
• model commentary; and
• other quantitative or analytical output.

Models are based on assumptions, rules, market information, mathematical processes, and other inputs.

A model can perform differently than expected.

Market relationships observed historically may change or stop working.

A signal can become less attractive or unfavorable after it is generated because market conditions can change before a user reviews or acts on it.

Signals may also be affected by:

• delayed data;
• incorrect data;
• missing information;
• changes in volatility;
• sudden price movements;
• market gaps;
• liquidity changes;
• unusual market conditions;
• technical issues; or
• other factors.

A QVL signal does not guarantee that the associated transaction will be profitable.

A model may also remain inactive, hold cash, reduce activity, or generate fewer signals during certain market environments.

Performance displayed for a QVL model does not mean an individual customer will obtain identical performance.

Your actual results may differ materially because of factors including:

• account size;
• available capital;
• allocation percentage;
• position sizing;
• selected model configuration;
• brokerage account restrictions;
• options approval level;
• timing of your approval;
• timing of order submission;
• market movements;
• contract availability;
• strike availability;
• bid/ask spreads;
• liquidity;
• slippage;
• commissions;
• brokerage fees;
• taxes;
• rejected orders;
• partial fills;
• cancelled orders;
• exercise or assignment;
• positions entered outside QVL; and
• decisions you make independently of QVL.

A QVL model represents the operation of the applicable model and is not a representation of your personal brokerage account.

You should not assume that you will be able to enter or exit a transaction at the same price, time, or terms reflected in QVL model performance.

Past performance is not a guarantee of future results.

A model, security, portfolio, or strategy that performed favorably in the past may perform differently or experience substantial losses in the future.

Changes in:

• market structure;
• volatility;
• liquidity;
• investor behavior;
• transaction costs;
• economic conditions;
• regulation;
• technology; or
• other market conditions

may materially affect future performance.

No historical return, performance statistic, chart, model result, or other historical information provided by QVL should be understood as a prediction or promise of future results.

QVL may allow users to create paper portfolios or execute simulated transactions.

Paper trading does not involve real money.

A paper trade does not result in an actual brokerage transaction.

Paper portfolios are designed for simulation, education, testing, and evaluation.

Simulated results may differ materially from live trading because paper trading may not fully reflect:

• actual market liquidity;
• real bid/ask spreads;
• order-book conditions;
• order priority;
• market impact;
• slippage;
• rejected orders;
• partial fills;
• brokerage commissions;
• regulatory fees;
• taxes;
• account restrictions;
• exercise or assignment;
• emotional or behavioral effects of trading real money; or
• other real-world conditions.

A simulated fill does not mean that the same transaction could have been executed at that price or size in a real brokerage account.

Successful paper-trading results do not indicate that similar results will be achieved in live trading.

QVL may provide strategy-development and backtesting functionality.

Backtests use historical information and assumptions to estimate how a strategy might have behaved during a historical period.

Backtested results are hypothetical unless expressly identified as an actual historical trading record.

Backtests do not represent actual trading merely because historical market information was used.

Results can be materially affected by assumptions involving:

• starting capital;
• historical price data;
• options data;
• contract selection;
• strike selection;
• expiration selection;
• trade timing;
• pricing methodology;
• bid/ask spreads;
• commissions;
• transaction costs;
• slippage;
• liquidity;
• dividends;
• corporate actions;
• taxes;
• market impact;
• position sizing;
• volatility;
• rebalancing;
• execution assumptions; and
• data quality.

Backtests may also be affected by:

• hindsight;
• parameter selection;
• optimization;
• survivorship bias;
• data availability;
• overfitting; and
• assumptions that could not have been known in advance.

A strategy that performs favorably in a backtest may perform poorly in actual markets.

No backtest can predict future performance.

QVL may support live brokerage connectivity for eligible users, accounts, brokerages, jurisdictions, and products.

Connecting a brokerage account does not mean that every QVL signal is automatically executed.

A:

• QVL signal;
• modeled trade;
• model recommendation;
• QVL Copilot response;
• alert;
• portfolio calculation; or
• background process

does not by itself authorize a live brokerage order.

For supported live trading, QVL prepares or stages the proposed order.

The user must provide the applicable explicit approval or confirmation before the live order is submitted to the broker.

You are responsible for reviewing the displayed order before approving it.

This may include reviewing:

• security or option contract;
• buy or sell direction;
• account;
• quantity;
• order type;
• displayed pricing information; and
• other relevant order details.

After submission, the brokerage and applicable market determine whether and how an order is executed.

QVL cannot guarantee that an order will:

• be accepted;
• be submitted without delay;
• execute immediately;
• execute completely;
• execute at the displayed price;
• execute at the expected price;
• avoid slippage;
• remain cancellable; or
• execute at all.

Orders may be:

• rejected;
• delayed;
• partially filled;
• cancelled;
• expired;
• filled at a different price; or
• otherwise affected by broker and market conditions.

QVL may connect to brokerage or investment accounts through third-party providers including Plaid and SnapTrade.

Third-party connections can experience:

• outages;
• delayed synchronization;
• authentication failures;
• incomplete data;
• stale information;
• brokerage maintenance;
• API interruptions; or
• other technical problems.

QVL does not control your brokerage’s:

• account rules;
• trading permissions;
• margin requirements;
• options permissions;
• security restrictions;
• risk controls;
• fee schedules;
• execution practices;
• order-routing practices;
• account freezes;
• maintenance windows; or
• service availability.

Your Broker Is the Source of Truth

Your brokerage or financial institution remains the authoritative source for your actual:

• securities;
• positions;
• balances;
• cash;
• buying power;
• open orders;
• submitted orders;
• fills;
• transaction history; and
• account activity.

QVL information can temporarily differ from your brokerage because of synchronization timing, provider delays, outside transactions, stale information, or other technical conditions.

If QVL and your brokerage display conflicting information about your actual brokerage account, you should rely on your brokerage’s records.

Connecting an account to QVL does not give QVL custody of your assets or general authority to withdraw money from your brokerage account.

QVL uses internal systems and third-party sources to support market information, models, analytics, research, portfolio tools, and other Services.

Information may include:

• market prices;
• historical prices;
• options information;
• fundamentals;
• economic information;
• corporate information;
• news;
• research; and
• other financial-market data.

Information can be:

• delayed;
• incomplete;
• unavailable;
• inaccurate;
• stale;
• corrected after publication; or
• inconsistent between providers.

A market price displayed by QVL is not a guarantee that a transaction can be executed at that price.

The Services also depend on technology and infrastructure, including:

• Internet connectivity;
• cloud services;
• databases;
• brokerage APIs;
• market-data providers;
• communication systems;
• authentication services; and
• other external technology.

Technical failures, outages, maintenance, cybersecurity events, provider failures, or other disruptions may delay or prevent access to information or functionality.

QVL Copilot is an AI-assisted feature.

AI-generated information can be:

• incomplete;
• inaccurate;
• outdated;
• misleading;
• inconsistent; or
• incorrect.

QVL Copilot may use market information, QVL information, research, backtesting information, paper-portfolio information, and, where authorized, selected live-portfolio information.

Users should independently review important financial information before relying on an AI-generated response.

Copilot should not be treated as infallible.

A Copilot response does not independently authorize:

• a live brokerage trade;
• a transfer of funds or assets;
• a brokerage connection;
• an authentication change;
• a subscription transaction; or
• another sensitive account action.

Live-order submission remains subject to the applicable QVL confirmation and authorization process.

QVL may provide:

• position-sizing calculations;
• allocation calculations;
• portfolio exposure;
• performance analytics;
• risk measurements;
• concentration information;
• buying-power information;
• portfolio comparisons; and
• other analytical outputs.

These calculations depend on available information and assumptions.

They can be affected by:

• stale brokerage information;
• market movements;
• data errors;
• missing positions;
• transactions conducted outside QVL;
• exchange-rate changes;
• market-data timing; and
• differences between calculated and actual execution prices.

A suggested or calculated position size is not a guarantee that the position will be appropriate for your financial circumstances or risk tolerance.

A risk metric does not mean that all relevant risks have been identified or measured.

Financial exposure can change rapidly after a calculation is produced.

Market liquidity can change quickly.

A security or option that is normally liquid may become difficult or expensive to trade.

During volatile markets:

• bid/ask spreads may widen;
• prices may change rapidly;
• quotes may become stale;
• orders may be rejected;
• trading may be halted;
• option premiums may change dramatically;
• implied volatility may increase or decrease sharply; and
• expected relationships between securities and options may break down.

Market gaps can cause prices to move materially between trading sessions or between the time a signal is generated and the time an order is submitted.

Corporate actions, earnings announcements, economic releases, regulatory announcements, geopolitical events, or unexpected market events may materially affect positions.

Risk can increase significantly near option expiration.

You are responsible for deciding whether and how to use QVL information and functionality.

Before submitting a live transaction, you are responsible for reviewing the transaction and deciding whether you want the order submitted to your brokerage account.

You should consider your own:

• financial circumstances;
• investment objectives;
• trading experience;
• liquidity needs;
• ability to withstand loss; and
• tolerance for risk.

QVL does not guarantee that a model, signal, strategy, portfolio allocation, position size, backtest, Copilot response, or other analytical output is appropriate for every user.

You should consult appropriately qualified independent financial, legal, tax, or accounting professionals where appropriate.

By acknowledging this Risk Disclosure, you confirm that:

• you have read and understood this Risk Disclosure;
• you understand that trading involves substantial risk of loss;
• you understand the additional risks associated with options;
• you understand that QVL Models and signals do not guarantee profits;
• you understand that model performance may differ from your personal results;
• you understand that paper trading and backtests are hypothetical;
• you understand that market and third-party data can be delayed or incorrect;
• you understand that QVL Copilot may produce incorrect information;
• you understand that a live trade requires the applicable explicit user approval before submission;
• you understand that your broker remains the authoritative source for your actual brokerage account; and
• you accept responsibility for your decisions to approve or decline live transactions.

Questions regarding this Risk Disclosure may be directed to:

QVL Models, Inc.
375 University Avenue, Unit 101, Suite 1111
Toronto, Ontario M5G 2J5
Canada
Legal: legal@qvlmodels.com
Privacy: privacy@qvlmodels.com