Risk Disclosure

Effective date: 2 September 2026

Digital assets and digital asset services involve substantial risk. Prices can be highly volatile, markets can become illiquid, technology can fail, and you may lose some or all of the value you commit. This Risk Disclosure is intended to help you understand material risks associated with using GroveX. It is not exhaustive, and risks that are not described here may arise.

This disclosure should be read together with the GroveX Terms of Service, Privacy Policy, AML / CTF Policy, product-specific terms, fee schedules, trading rules and any notices presented when you use a particular service. If a product-specific disclosure contains more specific risk information, that more specific disclosure applies to that product.

1. No Investment, Legal or Tax Advice

GroveX provides access to digital asset services and information. Unless expressly stated otherwise in a separate written agreement, GroveX does not provide personal investment, legal, tax, accounting or financial advice. Information displayed on the platform, including prices, charts, market data, research, announcements, educational material and asset information, is general information only and should not be treated as a recommendation, endorsement, guarantee or representation that any digital asset, strategy or service is suitable for you.

You are responsible for assessing your objectives, financial circumstances, knowledge, experience and risk tolerance and, where appropriate, obtaining independent professional advice before trading or using a service.

2. Risk of Loss

You should only use funds or digital assets that you can afford to lose. Digital assets may lose value rapidly, permanently or completely. There is no assurance that a market will recover, that an asset will retain any particular value, or that you will be able to exit a position at the time or price you expect.

Except where expressly stated for a particular product and required under applicable law, digital assets are not the same as deposits with a bank and may not benefit from deposit insurance, investor compensation or equivalent protection schemes.

3. Price Volatility and Market Risk

Digital asset prices can change significantly within seconds. Volatility may result from market sentiment, macroeconomic events, token supply changes, protocol events, regulatory developments, security incidents, exchange activity, concentrated ownership, social-media activity, issuer announcements or events that are difficult or impossible to predict.

• Past performance is not a reliable indicator of future performance.
• Displayed prices may differ across trading venues and liquidity sources.
• A quoted or last-traded price does not guarantee that your order can execute at that price.
• Sharp price movements may occur outside normal business hours and without advance notice.

4. Liquidity, Spread and Slippage Risk

Some markets may have limited buyers, sellers or market depth. Liquidity can disappear quickly, particularly during periods of stress, around listings or delistings, or for newer and lower-volume assets. A wide bid-ask spread or shallow order book can materially increase execution costs.

Market orders may execute across multiple price levels and may experience substantial slippage. Large orders may move the market. Limit orders reduce price uncertainty but may be partially filled or may never execute. Stop, trigger or conditional functionality, where available, does not guarantee execution at the trigger price.

5. Order Execution and Market Structure Risk

Orders are subject to the applicable market rules, available liquidity, system performance, order priority, price increments, quantity limits, risk controls and other platform conditions. An order submitted by you may be rejected, remain open, execute partially, execute in multiple transactions or be cancelled in accordance with applicable platform rules.

Market data may be delayed, unavailable, incomplete or affected by third-party data sources. You should verify critical information before acting on it and should not rely on a single displayed price or data point.

6. Custody and Safeguarding Risk

Holding digital assets through a trading platform involves custody and operational risks that differ from holding assets in a self-custody wallet. Risks can include cyberattack, unauthorised access, loss of credentials, operational error, wallet failure, network incompatibility, legal process, insolvency-related uncertainty, service-provider failure and delays in deposits or withdrawals.

The legal treatment of digital assets, custody arrangements and customer claims may differ between jurisdictions and may change over time. Recovery of assets following an operational failure, cyber incident, insolvency or third-party failure may be delayed, reduced or unavailable.

7. Deposits, Withdrawals and Irreversible Transfers

Blockchain transfers are generally irreversible. Sending an asset to the wrong address, using an unsupported network, omitting a required memo or tag, sending an unsupported token, or otherwise providing incorrect transfer information can result in permanent loss.

• Always confirm the asset, network, address and any required memo or tag before transferring.
• Deposit and withdrawal availability may be suspended for maintenance, security, compliance or network reasons.
• Blockchain confirmation times and network fees are outside GroveX's direct control.
• A displayed deposit address may be network-specific and should not be assumed to support other networks.

8. Blockchain and Network Risk

Digital assets depend on blockchain networks and other distributed systems that GroveX may not own or control. Networks can experience congestion, validator or miner disruption, software defects, consensus failures, reorganisations, attacks, governance disputes, protocol upgrades or changes to transaction fees and confirmation requirements.

A network may become unavailable or unsafe, or GroveX may determine that deposits, withdrawals or trading need to be paused while a network event is assessed. Network status shown by explorers or third parties may also be incomplete or delayed.

9. Forks, Airdrops and Protocol Changes

A blockchain may fork, migrate, upgrade or change its rules. These events can create competing assets or affect balances, transaction validity, token functionality and market value. GroveX is not required to support every fork, migration, airdrop, staking reward or other distribution unless support is expressly announced.

Technical and operational requirements may make it impractical or unsafe to support a network event immediately or at all.

10. Token, Issuer and Project Risk

Digital assets may depend on an issuer, foundation, development team, protocol, treasury, governance body or other third party. Information provided by a project may be inaccurate, incomplete, misleading or outdated. Projects may fail, be abandoned, change token economics, suffer governance disputes or security incidents, or become subject to legal or regulatory action.

Listing an asset on GroveX is not an endorsement of the asset, its issuer, its technology, its legal status or its investment merits.

11. Smart Contract and DeFi Risk

Smart contracts can contain coding errors, economic design flaws or vulnerabilities. They may be exploited or behave in ways that were not anticipated by users or developers. External protocols may be subject to oracle failures, governance attacks, bridge failures, liquidity crises, admin-key compromise or other technical risks.

Where a GroveX service interacts with an external protocol, the availability or performance of that service may depend on systems that GroveX does not control.

12. Stablecoin and Peg Risk

Assets designed to track a reference value, including stablecoins, can lose their peg. Their value may depend on reserve assets, redemption mechanisms, issuers, banks, custodians, market makers, smart contracts or other arrangements. A disruption affecting any of these may cause a stablecoin to trade materially above or below its intended reference value or lose value completely.

13. Cybersecurity, Fraud and Account Risk

Digital asset users are frequent targets of phishing, social engineering, malware, SIM swapping, credential theft, fake websites, fraudulent support contacts and other attacks. Security controls reduce risk but cannot eliminate it.

• Use a unique password and enable available multi-factor authentication.
• Protect access to your email, mobile device, authenticator and recovery information.
• Verify the GroveX domain and communications before entering credentials or approving transactions.
• Never disclose passwords, one-time codes, private keys or recovery phrases to another person.
• Review devices, sessions, API permissions and withdrawal settings regularly.

You may bear losses resulting from compromised devices or credentials where the compromise is outside GroveX's control, subject to applicable law and the Terms of Service.

14. Technology, Connectivity and Service Availability Risk

Internet services, APIs, matching systems, wallets, databases, cloud infrastructure, telecommunications, third-party software and blockchain nodes can fail or become unavailable. Maintenance, cyber incidents, extraordinary market activity or technical faults can delay or prevent access to accounts, order submission, order cancellation, price updates, deposits or withdrawals.

You should not assume continuous or error-free availability and should consider the effect that an outage or connectivity failure could have on open orders or positions.

15. Third-Party and Counterparty Risk

GroveX may rely on third parties for services such as blockchain infrastructure, identity verification, custody technology, liquidity, market data, communications, cloud infrastructure or other operational functions. A failure, breach, insolvency, service interruption or legal restriction affecting a third party may affect GroveX services even where GroveX is not at fault.

16. Regulatory, Legal and Tax Risk

Laws and regulatory expectations for digital assets are evolving and differ across jurisdictions. A change in law, regulation, regulatory interpretation, licensing requirements, sanctions or enforcement activity may affect whether a service or asset can be offered, traded, transferred or held.

Services may be restricted, modified or unavailable depending on your location, status or applicable legal requirements. Tax treatment also varies. You are responsible for understanding and complying with laws and tax obligations that apply to you.

17. Derivatives, Margin and Leverage Risk

Where futures, perpetuals, margin or other leveraged products are made available to you, leverage can magnify both gains and losses. A relatively small market movement can cause substantial losses, trigger margin requirements or result in automatic liquidation under the relevant product rules.

In volatile or illiquid markets, liquidation can occur rapidly and execution may be materially different from the price visible immediately before liquidation. Leveraged products may not be appropriate for users who do not understand margin, funding, liquidation and market mechanics.

18. Earn, Staking and Yield Product Risk

Where earning, staking, fixed-term, flexible or other yield-bearing products are available, returns may be variable and are not risk-free. Risks may include lock-up periods, redemption delays, protocol failure, validator or slashing risk, counterparty risk, smart-contract risk, changes in reward rates and loss in the market value of the underlying asset.

An advertised annualised rate or historical reward rate is not a guarantee of future return.

19. Listing, Suspension and Delisting Risk

GroveX may review the continued support of assets and markets. A market or asset may be suspended, restricted or delisted in accordance with applicable rules and operational requirements. Delisting can reduce liquidity and may require users to trade or withdraw within specified timeframes.

20. Market Abuse, Manipulation and Scam Risk

Digital asset markets can be affected by manipulation, wash trading, spoofing, pump-and-dump activity, insider dealing, coordinated social-media activity, false information, impersonation and fraud. GroveX may maintain monitoring and controls, but no system can identify or prevent every form of abusive or fraudulent activity.

21. Geographic and Product Availability

The availability of an asset, market or service does not mean it is lawful or appropriate for every user in every location. Product eligibility can depend on residence, nationality, verification status, account type, regulatory restrictions and other factors. You must not attempt to circumvent geographic or product restrictions.

22. Your Responsibility

Before using GroveX, you should understand the product you are using, the asset and network involved, the applicable fees, liquidity, order type, custody model and potential loss. You are responsible for monitoring your account, open orders, positions and communications and for maintaining appropriate account security.

By using digital asset services, you acknowledge that losses can occur for reasons within or outside the control of GroveX. Nothing in this Risk Disclosure excludes any right or protection that cannot lawfully be excluded.

23. Updates to this Disclosure

GroveX may update this Risk Disclosure as products, technology, market conditions or applicable requirements change. The effective date shown above identifies the version currently published on this page.