Risk Disclosure

This Risk Disclosure is provided by Smart Trader Funds (hereinafter "the Provider", "we", "us") to inform prospective and existing customers (the "Client") of the risks associated with using the trading simulation services and Challenges available through the website smartraderfunds.com.

This document forms an integral part of the agreement between you and Smart Trader Funds and should be read together with our Terms & Conditions. By accessing our services, you confirm that you have read, understood and accepted the risks set out below.

Risk disclosures cannot, by their nature, exhaust every potential risk involved in trading-related activities. You should consider the risks below as a minimum and remain aware that other risks may exist.

Smart Trader Funds is a proprietary trading firm offering evaluation programs designed to identify and develop skilled traders. Participants engage in intensive challenge phases on simulated trading platforms loaded with virtual capital.

The information provided on the Website is for analysis purposes only and should not be construed as financial, investment, tax, or other advice. Nothing on the Website or within our services constitutes a solicitation, recommendation, endorsement, or offer to buy or sell shares or other financial instruments by Smart Trader Funds, its agents, employees, contractors, or any affiliated entity.

Purchases of evaluation challenges should not be considered as deposits. All program fees are used for operational expenses, including but not limited to staff costs, innovation, and other business-related expenses.

Trading financial markets — even in a simulated environment that mirrors real conditions — exposes participants to several categories of risk. The Client acknowledges and accepts that:

• Trading is a complex activity requiring substantial knowledge, experience, discipline and risk management.
• The simulated trading environment replicates the volatility, slippage and unpredictability of real markets. Significant losses on the simulated account can occur quickly.
• Strategies that performed well in past simulations or backtests may produce different results under live or future conditions.
• No trading methodology can guarantee profits or eliminate losses.
• Trading should only be undertaken by individuals who can afford to commit time, focus and emotional resilience to the activity.

Smart Trader Funds simulated accounts may use leverage of up to 1:30 for 1 Phase accounts and 1:50 for Regular and PRO accounts. Leverage acts as a multiplier on both gains and losses.

• A small adverse move in the underlying market can cause a disproportionately large loss on the simulated account.
• Highly leveraged positions can breach daily loss limits or maximum drawdown thresholds within minutes.
• Exposure to overnight or weekend gaps may amplify losses beyond initial expectations.
• Misuse of leverage is one of the leading causes of evaluation failure.

You are solely responsible for sizing your positions in accordance with prudent risk management practices.

Financial markets are subject to numerous external factors that can cause sudden and unpredictable price movements:

• Volatility: Rapid price changes during major economic releases, geopolitical events, or central bank decisions can trigger immediate stop-outs.
• Liquidity: Reduced liquidity (e.g., during off-hours, illiquid pairs, or news periods) can cause widened spreads, slippage, and execution delays.
• News & Events: 3-star high-impact news events are restricted under Smart Trader Funds rules. Trading near such events without authorization can result in account termination.
• Gaps: Markets may open at significantly different prices from the previous close, especially after weekends or holidays.
• Counterparty & Provider Failures: Liquidity providers, exchanges, or technical infrastructure may experience disruptions affecting price feeds and order execution.

Smart Trader Funds operates on third-party trading platforms (e.g., MetaTrader 5, TradeLocker). The Client acknowledges that:

• Platforms may suffer outages, latency, slippage, disconnection, or data feed errors.
• Internet connectivity issues on the Client's side can prevent trade execution or modification.
• Software updates or bug-fixes may temporarily disrupt service.
• Use of expert advisors (EAs), bots, or automated strategies adds operational risks (logic errors, server load, broken connections).

Participating in a Smart Trader Funds Challenge involves specific evaluation-related risks:

• Fee non-refundable: Once you place your first trade, the registration fee is fully non-refundable, regardless of evaluation outcome.
• Daily Loss Limits: Reaching the daily loss percentage (4%–5% depending on account type) results in immediate disqualification.
• Maximum Loss Limits: Falling below the maximum drawdown (6%–10% depending on account type) results in immediate disqualification.
• Consistency Rule: A 45% overall performance consistency requirement applies. Concentrated single-day or single-trade gains may disqualify you even if profit targets are met.
• Minimum Trading Days: Failure to meet the minimum 5-day trading requirement (with at least 0.5% trade per day) results in failure.
• Inactivity: Accounts inactive for 20 consecutive calendar days may be suspended.
• Profit retention: Profits generated during evaluation phases are simulated. Only funded accounts qualify for real payouts subject to the profit-split agreement.

The Client should consider the following before purchasing any Smart Trader Funds Challenge:

• The challenge fee is a sunk cost. You should never pay a fee using funds you cannot afford to lose.
• Past success in other prop firm evaluations or personal trading does not guarantee success in a Smart Trader Funds Challenge.
• Trading is a discretionary activity influenced by emotional and cognitive biases. You should only participate if you are mentally and financially prepared.
• Smart Trader Funds does not extend credit, loans, or financial support to clients under any circumstances.
• Profit payouts to funded traders are bi-weekly and subject to compliance with all rules and KYC verification.

Smart Trader Funds operates as a proprietary trading firm and is not regulated as a broker, investment advisor, or financial intermediary. The Client acknowledges that:

• Services are not available in jurisdictions subject to economic and financial sanctions, including but not limited to: Iran, Sudan, Syria, North Korea, Cuba, Belarus, Venezuela, Yemen, Libya, Zimbabwe and others.
• Smart Trader Funds does not provide services to clients based in the United States, including American citizens and residents.
• The Client is solely responsible for ensuring that participation in the Challenge is legal in their country of residence.
• Tax obligations on any payouts received are solely the Client's responsibility.
• Changes in local or international regulations may affect the availability or terms of services without prior notice.

No information made available by Smart Trader Funds — including educational content, blog articles, dashboards, leaderboards, support communications or marketing material — should be interpreted as guidance, instructions, or encouragement to conduct any specific transaction.

Employees, representatives, and partners of Smart Trader Funds are not authorized to provide investment recommendations. If any statement made by an employee or representative is perceived as investment advice, Smart Trader Funds expressly disclaims any liability in this regard. You should consult a qualified, licensed financial advisor before making any trading or investment decision.

All information on the website is provided "as is," without any warranty of completeness, accuracy, timeliness, or results obtained from the use of this information, and without any kind of express or implied warranty.

Smart Trader Funds, or its partners, employees, or agents, shall in no event be liable to you or any other person for any decision made or action taken based on the information provided on the website, or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

All investments carry substantial risk, and investment decisions are the sole responsibility of the individual.

By purchasing a Smart Trader Funds Challenge or otherwise using our services, you confirm that:

• You have read, understood, and accept this Risk Disclosure in full.
• You are participating at your own risk and discretion.
• You are of legal age in your jurisdiction and not subject to any sanctions or restrictions preventing you from accessing our services.
• You are committing only funds you can afford to lose as a non-refundable evaluation fee.
• You will not hold Smart Trader Funds or any affiliated entity liable for losses arising from your participation.
• You understand that no profit, payout, or funded account is guaranteed by simply enrolling in or paying for a Challenge.

If any provision of this Risk Disclosure is unclear, or if you have any doubt about your ability to bear the risks set out above, you should refrain from purchasing a Challenge and contact our support team for clarification.