Risk Disclosure Statement

1. Risk of Loss in Futures Trading

TRADING IN FUTURES CONTRACTS INVOLVES A HIGH DEGREE OF RISK. THE AMOUNT OF INITIAL MARGIN IS SMALL RELATIVE TO THE VALUE OF THE FUTURES CONTRACT, MEANING THAT TRANSACTIONS ARE HEAVILY "LEVERAGED." A RELATIVELY SMALL MARKET MOVEMENT WILL HAVE A PROPORTIONATELY LARGER IMPACT ON THE FUNDS YOU HAVE DEPOSITED OR WILL HAVE TO DEPOSIT.

You may sustain a total loss of initial margin funds and any additional funds deposited with your broker to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

2. Leverage Risk

Futures contracts are traded on margin, which means you only need to deposit a fraction of the total contract value. While leverage can amplify profits, it can equally amplify losses. The following table illustrates typical margin requirements and leverage ratios:

Margin requirements are subject to change and may be higher during periods of increased volatility.

3. Market Risk

Futures markets can be extremely volatile. Prices can move rapidly in either direction due to:

• Economic data releases: Employment reports, GDP, inflation data, and other economic indicators
• Federal Reserve actions: Interest rate decisions, quantitative easing/tightening, and forward guidance
• Geopolitical events: Wars, elections, trade disputes, and sanctions
• Market structure events: Flash crashes, circuit breakers, and liquidity gaps
• Unexpected events: Natural disasters, pandemics, and other "black swan" events

4. Liquidity Risk

Under certain market conditions, it may be difficult or impossible to liquidate a position. This can occur when there is insufficient trading activity in the market, during limit moves, or during periods of extreme volatility. Stop-loss orders may not be executed at the intended price, and slippage can result in significantly larger losses than anticipated.

5. System and Technology Risk

Electronic trading systems, including the STS Futures platform, are subject to technology risks including:

• Hardware, software, or internet connection failures
• Data feed delays or interruptions
• Signal delivery latency
• Exchange system outages
• Cybersecurity threats

These risks may prevent you from entering or exiting positions at desired prices, potentially resulting in losses.

6. Past Performance Disclaimer

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

All performance data presented on the STS Futures platform, including backtested results, historical trade records, and strategy metrics, should not be interpreted as a guarantee or prediction of future performance. Market conditions change over time, and strategies that have been profitable in the past may incur losses in the future.

7. Risk Capital

You should only use risk capital when trading futures — money that you can afford to lose without affecting your financial security or lifestyle. Do not trade with:

• Money needed for living expenses
• Retirement savings
• Borrowed funds or credit
• Emergency funds
• Money allocated for education or other essential needs

8. Independent Decision Making

STS Futures provides trading signals and analytical tools for informational purposes only. You are solely responsible for:

• Evaluating whether futures trading is appropriate for you
• Making your own trading decisions
• Managing your own risk exposure
• Determining appropriate position sizes
• Setting and maintaining stop-loss levels

We strongly recommend consulting with a qualified financial advisor before engaging in futures trading.

9. Acknowledgment of Risk

By using STS Futures, you acknowledge that:

• You have read and understood this Risk Disclosure Statement
• You understand that futures trading involves substantial risk of loss
• You are willing to accept these risks in order to trade futures
• You will not hold STS Futures liable for any trading losses
• You have the financial resources and risk tolerance to engage in futures trading

10. Contact Information

If you have any questions about this Risk Disclosure Statement, please contact us at:

STS Futures
Email: [email protected]