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Disclosures & Risk Information

This information is an integral part of the Client Advisory Agreement. Please review it carefully.

Digital Assets Disclosure

WARNING: HIGHLY SPECULATIVE INVESTMENT

INVESTMENTS IN DIGITAL ASSETS ARE HIGHLY SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POTENTIAL FOR TOTAL LOSS OF YOUR INVESTMENT. These assets are suitable only for sophisticated investors with a high-risk tolerance.

Inherent Risks of Digital Assets

Client understands and accepts the following risks, which are not exhaustive:

Extreme Volatility and Market Risk

The value of digital assets can fluctuate dramatically and unpredictably.

Cybersecurity & Private Key Risk

Digital assets are targets for cybercriminals. Loss, theft, or compromise of your private keys will result in permanent and irreversible loss of your assets.

Regulatory Uncertainty

The regulatory framework for digital assets is evolving and subject to change, which could materially affect the value, liquidity, and legality of certain assets.

Smart Contract and Protocol Risk

DeFi protocols involve complex smart contracts subject to flaws, bugs, or exploits that could result in total loss of deposited funds.

Third-Party Platform Risk

Third-party platforms carry risks of insolvency, hacking, and operational failure.

Irreversibility of Transactions

Blockchain transactions are immutable and cannot be reversed once confirmed.

Client Responsibilities and Representations

Client represents and agrees that:

  • Security Responsibility: You are exclusively responsible for securing all private keys, hardware wallets, seed phrases, and passwords.
  • Due Diligence: You will perform your own research on any digital asset or protocol in addition to any analysis provided.
  • Risk Tolerance: You affirm that you are financially prepared to accept these risks, including loss of your entire principal.
  • Tax and Legal Compliance: You are solely responsible for understanding and complying with all applicable tax and legal requirements.

Options and Futures Trading Disclosure

WARNING

TRADING IN DERIVATIVES PRODUCTS IS HIGHLY SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. IT IS SUITABLE ONLY FOR FINANCIALLY SOPHISTICATED CLIENTS WHO HAVE A HIGH RISK TOLERANCE AND ARE PREPARED TO SUSTAIN SUBSTANTIAL LOSSES, POTENTIALLY EXCEEDING THEIR ENTIRE INVESTMENT. YOU MAY LOSE MORE THAN YOU INVEST.

Summary of Key Risks

Leverage Risk

Derivatives are leveraged instruments. Small adverse movements in the underlying asset can result in substantial, magnified losses.

Total Loss of Premium

When purchasing an option, your maximum loss is typically the premium paid. However, you can lose this entire amount if the option expires worthless.

Unlimited Loss Potential

Certain strategies, such as uncovered call options or short futures positions, expose you to theoretically unlimited losses.

Time Decay

Options lose time value as expiration approaches, potentially to zero, even if the underlying asset's price remains unchanged.

Margin Risk

Futures contracts require margin. Adverse market movements may trigger margin calls requiring immediate additional funds.

Crypto Derivatives Risk

Cryptocurrency derivatives carry amplified risks due to less regulated, highly volatile underlying markets.

Official Disclosures: Clients are encouraged to read the official "Characteristics and Risks of Standardized Options" disclosure document from the Options Clearing Corporation, available at theocc.com

AI Technology Disclosure

Use of Artificial Intelligence Tools

Protocol Wealth may utilize artificial intelligence (AI) and machine learning tools to assist in research, data analysis, portfolio monitoring, and content generation. All AI-assisted outputs are subject to human review and oversight by our investment professionals.

Human Oversight and Fiduciary Duty

While we leverage AI technology to enhance efficiency and analysis capabilities, all investment decisions and recommendations remain subject to human judgment and our fiduciary duty to act in your best interest. AI tools supplement, but do not replace, professional human expertise.

AI Tool Limitations

Data Quality: AI models are dependent on the quality, accuracy, and completeness of input data, which may contain errors or biases.

Historical Limitations: AI models trained on historical data may not predict future outcomes, especially during unprecedented market conditions.

No Guarantee: Use of AI tools does not guarantee investment performance or outcomes. All investments carry risk.

Data Privacy and Security

When AI tools process client data, we implement appropriate safeguards to protect confidentiality and security. We do not share personally identifiable client information with third-party AI providers without appropriate data protection agreements. See our Privacy Policy for more details.

Cybersecurity Disclosure

Information Security Program

Protocol Wealth maintains comprehensive cybersecurity policies and procedures designed to protect client information and assets. Our program includes:

Multi-factor authentication requirements for all account access

Encrypted data transmission and storage using industry-standard protocols

Regular security audits and penetration testing

Employee training on cybersecurity best practices and social engineering threats

Incident response procedures and breach notification protocols

Client Responsibilities

Clients play a critical role in maintaining security. We strongly recommend:

Using strong, unique passwords and enabling multi-factor authentication

Being vigilant against phishing attempts and social engineering

Securing devices used to access account information

Reporting suspicious communications immediately to security@protocolwealthllc.com

Breach Notification

In accordance with Regulation S-P, we will notify affected clients as soon as practicable, but no later than 30 days following discovery of a breach involving unauthorized access to customer information.

No Guarantee Against Cyber Threats

Despite our comprehensive security measures, no system is completely immune to cyber threats. Clients acknowledge that cyber attacks and data breaches pose inherent risks in today's digital environment.

Social Media & Online Communications Disclaimer

General Disclaimer

Information shared on social media platforms (LinkedIn, X/Twitter, etc.), blogs, podcasts, or other online channels by Protocol Wealth or its representatives is for informational and educational purposes only. It does not constitute personalized investment advice or a recommendation to buy or sell any security.

Not Investment Advice

Social media posts, articles, and online content are general in nature and should not be relied upon as the sole basis for investment decisions. Before making any investment, consider your individual circumstances, risk tolerance, and consult with a qualified financial advisor.

Third-Party Content

We may share or link to third-party content for convenience or reference. We do not endorse, verify, or guarantee the accuracy of such content. Third-party opinions do not necessarily reflect those of Protocol Wealth.

Forward-Looking Statements

Any forward-looking statements or market predictions are based on current expectations and assumptions and are subject to change. Actual results may differ materially.

Confidential Communications

Do not send confidential, account-specific information via social media or public online channels. For secure communications, please use our official contact form or email compliance@protocolwealthllc.com

Testimonials and Reviews

Client testimonials or reviews, where permitted, represent individual experiences and may not be representative of all client experiences. Past performance does not guarantee future results.