Risks
Risk Factors
Participation in or interaction with the Agent Arc platform, the PSYOPS token, or any related technology involves significant risks. Users and token holders should review and understand the following before using the platform or acquiring tokens. Nothing in this document constitutes a representation or warranty of outcome or value. Users should seek independent legal, financial, and technical advice prior to participation.
1. Market and Trading Risk
Digital asset trading is highly volatile and speculative. Market conditions can change rapidly, resulting in significant losses. Users should assume that they may lose all funds committed to trading through the Agent Arc platform or any connected exchange account. No assurance is given that any strategy, model, or algorithm will be profitable or perform as expected.
2. Leverage and Liquidation Risk
The Agent Arc app currently enables the use of leverage set by default at approximately 1.5×. Although this level cannot presently be adjusted by users, future versions may allow modification of leverage parameters. Leverage amplifies both gains and losses. Even small adverse price movements may trigger partial or full liquidation of a user’s position. Losses can exceed the amount of margin or capital allocated to a position. Agent Arc does not provide margin financing or liquidation protection and has no control over how exchanges execute margin calls or liquidations.
3. Model and Algorithmic Risk
The app uses AI-driven models and algorithmic logic for signal generation and order execution. These models rely on historical data, assumptions, and parameters that may not remain valid in future markets. Changes in market behavior, data quality issues, or programming errors may produce unexpected results. Backtested or simulated performance results are hypothetical and not indicative of future performance.
4. Non-Custodial and Execution Risk
The app operates on a non-custodial basis. Users connect their own exchange accounts (e.g., Binance) via API keys and authorize the execution of trades. Agent Arc does not hold or control user funds and cannot guarantee successful or timely order execution. API outages, rate limits, exchange downtime, or connection failures could result in missed, delayed, or duplicated trades. Users remain solely responsible for monitoring positions and managing their own risk.
5. Smart Contract and Protocol Risk
Components of the Agent Arc ecosystem, including token-related features, staking, or reward mechanisms, may rely on smart contracts deployed on public blockchains. Smart contracts are subject to potential vulnerabilities, coding errors, or exploits that could result in the loss or theft of tokens or other assets. Even after third-party audits, no guarantee can be given that smart contracts are error-free or immune to attacks. Losses arising from on-chain vulnerabilities, gas fee spikes, or network congestion are outside the control of Agent Arc.
6. User Configuration and Operational Error
As the Agent Arc platform is non-custodial, users are responsible for correctly configuring their API keys, trading settings, and account security. Improper setup, incorrect parameters, or unauthorized key sharing may result in unintended trades, exposure to losses, or compromised accounts. Agent Arc cannot reverse or compensate for transactions initiated through misconfiguration, user error, or compromised access credentials.
7. Token and Ecosystem Risk
The PSYOPS token (and any related tokens) may have limited or no liquidity. Token prices can fluctuate significantly, and there is no guarantee of liquidity, stability, or ongoing value. Holding or using tokens does not confer ownership, voting rights, or profit participation unless expressly provided in formal documentation. Regulatory or technical changes may affect token utility, distribution, or classification.
8. Regulatory and Legal Risk
Regulation of digital assets, automated trading, and AI systems continues to evolve. Changes in laws, policies, or regulatory interpretations may affect the operation, availability, or legality of the platform or tokens. The company may need to alter or discontinue certain services to maintain compliance. Users are responsible for ensuring compliance with their local laws and restrictions.
9. Technology and Cybersecurity Risk
The platform, APIs, and connected infrastructure may experience cybersecurity incidents, technical malfunctions, or data breaches. Despite robust security measures, unauthorized access or attacks may result in asset loss or operational disruption. Users should maintain appropriate personal security measures, including secure API storage, device hygiene, and two-factor authentication.
10. Reliance on Third-Party Infrastructure
Agent Arc relies on third-party exchanges, blockchain networks, and data providers. Service interruptions, rate limits, or operational failures in these external systems may impact performance or availability. Agent Arc cannot control or guarantee the reliability of third-party infrastructure.
11. Development and Operational Risk
The platform and ecosystem remain under development. Planned features may be delayed, modified, or discontinued. Operational, funding, or technical challenges could affect the delivery or maintenance of services.
12. Forward-Looking Information Risk
Certain statements in this litepaper may include forward-looking information based on current assumptions. Such statements are inherently uncertain and may differ materially from actual outcomes. No assurance is made that forecasts or projections will be achieved.
13. No Guarantee of Profit or Return
Neither Alphabloc Labs Ltd nor its affiliates guarantees any income, profit, or return from using the platform or holding tokens. Users should engage only if they can afford to lose the entire amount committed.
14. Tax and Accounting Risk
Digital asset taxation varies across jurisdictions and may change. Users are solely responsible for understanding and fulfilling their tax obligations, including any reporting or withholding requirements. Agent Arc does not provide tax advice.
15. Limitation of Liability
To the fullest extent permitted by law, Alphabloc Labs Ltd, its directors, officers, and affiliates disclaim any liability for direct, indirect, incidental, consequential, or special losses arising from participation in or reliance on the platform, tokens, or this document.
16. Acknowledgment of Risk
By accessing or using the Agent Arc platform or related materials, users acknowledge that they understand and accept the above risks and assume full responsibility for their decisions.
17. Governing Law
This Risk Factors section and all related disclaimers shall be governed by and construed in accordance with the laws of the British Virgin Islands.
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