Disclosures & Risk Information

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

Regulatory Status & Fiduciary Duty

SEC-Registered Investment Adviser

Protocol Wealth, LLC ("Protocol Wealth") is an Investment Adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Our registration information can be verified through the SEC's Investment Adviser Public Disclosure (IAPD) website at adviserinfo.sec.gov.

Fiduciary Standard of Care

As a registered investment adviser, we operate under a fiduciary standard of care. This is a legal obligation to act in the client's best interest at all times, providing full and fair disclosure of all material facts and any potential conflicts of interest.

What this means for you: We are legally required to put your interests ahead of our own. We must provide advice that is in your best interest, disclose all material facts, and avoid or disclose any conflicts of interest.

Form ADV Disclosure

Our Form ADV Part 2A (the "Brochure") contains important information about our services, fees, investment strategies, and potential conflicts of interest. Clients and prospective clients are encouraged to review these documents, which are available upon request or at adviserinfo.sec.gov.

Scope of Advisory Services

Nature of Services

The services outlined in client agreements and proposals are advisory and strategic in nature. Protocol Wealth provides high-level coordination for treasury management, Investment Policy Statement (IPS) development, and custody architecture. While we provide strategic recommendations for liquidity and digital asset management, certain services require specialized expertise outside our scope.

Services Not Provided

Protocol Wealth does not provide:

  • Legal Advice: We do not provide legal counsel or opinions on legal matters.
  • Tax Advice: We do not prepare tax returns or provide specific tax planning advice.
  • Accounting Services: We do not provide bookkeeping, auditing, or accounting services.

Clients should consult with their respective legal, tax, and accounting professionals before implementing specific structures or agreements. We can coordinate with your professional advisors to ensure alignment of strategies.

Risk Disclosure

IMPORTANT

Investing in securities and digital assets involves a high degree of risk, including the potential loss of principal. Past performance is no guarantee of future results. Digital assets, in particular, are subject to significant volatility and regulatory uncertainty.

General Investment Risks

Market Risk: The value of your investments may decrease due to market conditions, economic factors, or changes in investor sentiment.

Liquidity Risk: Some investments may be difficult to sell quickly without accepting a lower price than expected.

Concentration Risk: Portfolios concentrated in specific sectors, asset classes, or securities may experience greater volatility.

Interest Rate Risk: Changes in interest rates may affect the value of fixed-income investments.

Inflation Risk: The purchasing power of your investments may decline over time due to inflation.

No Guarantee of Results

There can be no assurance that any investment strategy will achieve its objectives or that clients will not suffer losses. Investment performance may vary substantially over time. Past performance of any investment is not indicative of future results.

Conflicts of Interest

Commitment to Transparency

Any specific compensation arrangements—including retainer fees, AUM-based fees, or potential equity/token allocations—will be explicitly documented in a formal Investment Advisory Agreement. Protocol Wealth discloses all such arrangements in accordance with SEC requirements to ensure transparency and alignment with client objectives.

Potential Conflicts

Fee-Based Compensation: Our fees may create an incentive to recommend investment strategies that result in higher fees. We mitigate this by clearly disclosing all fee structures and maintaining our fiduciary duty.

Broker-Dealer Affiliation: Certain personnel are affiliated with a broker-dealer but are not yet fully registered as representatives pending completion of required examinations. Upon completion, they may receive transaction-based compensation. See our Broker-Dealer Affiliation disclosure below.

Third-Party Solicitors: We compensate third parties for client referrals. This does not increase your costs, but creates an incentive for solicitors to refer you to us.

Personal Trading: Our personnel may invest in the same securities recommended to clients. We maintain a Code of Ethics that addresses personal trading and requires disclosure of personal securities transactions.

How We Manage Conflicts

We have implemented policies and procedures designed to identify, disclose, and mitigate conflicts of interest. Our Code of Ethics, available upon request, addresses potential conflicts and sets standards of conduct for all supervised persons. Full details of potential conflicts are disclosed in our Form ADV Part 2A.

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 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 info@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 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.

SSL/TLS Security

All Protocol Wealth web properties maintain strong encryption standards:

TLS 1.2/1.3 encryption on all connections

HTTP Strict Transport Security (HSTS) enforced

Forward Secrecy enabled to protect past communications

Regular security assessments via Qualys SSL Labs

Current Security Grades (Qualys SSL Labs)

protocolwealthllc.comA+
onchainstatement.comA+
pwdashboard.comA
nexusmcp.siteA

Security configurations are managed through our infrastructure providers (Vercel, Render, Cloudflare) with automated certificate renewal.

Digital Assets Disclosure

Important Considerations

Digital assets are not suitable for everyone. Before recommending any alternative investments, we take time to understand your personal or company's financial situation, investment objectives, risk tolerance, and time horizon. Protocol Wealth does not maintain custody of client assets.

Inherent Risks of Digital Assets

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

Volatility and Market Risk

The value of digital assets can fluctuate significantly 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 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

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 info@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.

Custody Disclosure

Client assets are held at qualified custodians—including Charles Schwab, Altruist, Interactive Brokers, and qualified digital asset custodians (Anchorage Digital Bank, BitGo Trust Company, Fordefi)—or in MPC wallets with client-controlled disaster recovery keys. Protocol Wealth does not maintain custody of client assets.

Broker-Dealer Affiliation

Jason Leupold (Chief Investment Officer) and Nicholas Rygiel (Managing Partner) are affiliated with Silicon Valley Highpoint Capital, LLC, a FINRA member broker-dealer (CRD #317576), but are not yet fully registered as representatives pending completion of required examinations. Upon completion of registration, they may receive transaction-based compensation for securities sales conducted through Silicon Valley Highpoint Capital, which creates an incentive to recommend products that generate commissions.

You are not required to purchase any products through this broker-dealer.

For more information, visit FINRA BrokerCheck at brokercheck.finra.org.

Proxy Voting Policy

Protocol Wealth does not vote proxies on behalf of clients. Clients retain full authority to vote proxies for securities held in their accounts.

Business Continuity

Protocol Wealth maintains business continuity procedures with team members located across multiple U.S. geographic regions. We utilize cloud-based systems and redundant infrastructure to ensure uninterrupted client service in the event of a localized disruption.