Riskdisclosure.

1. // 01

   You can lose all of your money

   Trading cryptocurrency perpetual futures with leverage carries SUBSTANTIAL RISK OF LOSS, including the loss of your entire deposit. KiheiRoad does not eliminate this risk. Risk caps and circuit breakers help bound the downside but cannot eliminate it. Do not trade with funds you cannot afford to lose entirely.

2. // 02

   Perpetual futures are different from buying coins

   Perpetual futures are derivative contracts that track the price of an underlying cryptocurrency but you do not own the underlying coin. You enter a contract that gains or loses value based on price movement. Unlike traditional futures, perpetuals have no expiration date — you can hold a position indefinitely, paying or receiving a funding rate at regular intervals.

3. // 03

   Leverage amplifies losses

   Leverage multiplies your exposure. With 5x leverage, a 1% adverse price move results in a 5% loss of your margin. With 10x leverage, that same 1% move costs you 10%. Used aggressively, leverage can wipe out your entire margin on a small market move. KiheiRoad allows leverage up to platform-wide caps; users define their own personal limit within those caps.

4. // 04

   Liquidation risk

   If the market moves against your position past your liquidation price, the exchange will automatically close your position to prevent further losses. The liquidation typically results in you losing your entire margin for that position. Liquidations can occur faster than you can react, especially during volatile market conditions. Liquidation prices change in real time as the market moves.

5. // 05

   Funding rate risk

   Perpetual futures use a funding rate mechanism to keep contract prices aligned with the underlying spot price. Funding payments occur every 8 hours: if you hold a long position when funding is positive, you pay shorts; if funding is negative, you receive payment. Holding a position through unfavorable funding can erode profits or amplify losses significantly over time, especially in trending markets.

6. // 06

   Venue risk — Hyperliquid

   All trade execution occurs on Hyperliquid, a decentralized perpetual futures exchange. KiheiRoad does not operate Hyperliquid and has no control over its uptime, performance, or smart contracts. Risks include but are not limited to: protocol downtime preventing position management, smart contract bugs or exploits, oracle failures producing incorrect prices triggering wrongful liquidations, validator misbehavior, governance changes affecting fees or features, and the possibility of Hyperliquid ceasing operations entirely.

7. // 07

   Custody risk — Turnkey

   Your custodial wallet is provisioned and managed by Turnkey, an independent third-party MPC infrastructure provider. While Turnkey's threshold cryptography means your private key is never reconstructed in one location, risks include: Turnkey service downtime preventing trade execution, security incidents at Turnkey compromising signing operations, Turnkey ceasing operations or modifying terms, and the possibility that Turnkey could be compelled by legal process to take action affecting your wallet.

8. // 08

   AI and algorithmic risks

   AI-generated signal narration is produced by large language models (currently Anthropic's Claude). These models can produce inaccurate, misleading, or hallucinated content. Narration is meant to describe what a trader did, not predict outcomes. Algorithmic execution in Auto mode is deterministic but can be affected by latency, race conditions, or edge cases not anticipated during development. We continuously improve the system but cannot guarantee freedom from defects.

9. // 09

   Trader risk — verified does not mean infallible

   Listed traders are verified for onchain track record at the time of listing, but past performance does not guarantee future results. Traders can have catastrophic losing streaks, change strategy without notice, become emotionally compromised, or behave dishonestly. KiheiRoad reviews ongoing trader conduct and may delist for serious violations, but cannot prevent a trader from making bad trades. The decision to follow any specific trader is yours and yours alone.

10. // 10

    Copy-trading specific risks

    When you follow a trader in Approval or Auto mode, the platform attempts to mirror their trades on your wallet, sized to your caps. Risks specific to copy-trading include: (a) execution latency causing you to enter at a worse price than the trader; (b) insufficient liquidity preventing your sized trade from filling; (c) the trader closing their position before your trade fills; (d) the trader's risk management not matching yours; (e) correlated losses across multiple followed traders during market events.

11. // 11

    Risk caps protect, but do not eliminate, downside

    Risk caps you define (max position size, max leverage, max daily realized loss, allowed assets) constrain what trades will fire on your wallet. The daily-loss circuit breaker halts new autonomous trades when triggered. These mechanisms protect against runaway scenarios but cannot prevent normal trading losses within your defined boundaries. You can still lose your entire deposit through a series of trades that individually stay within your caps.

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    Regulatory risk

    Cryptocurrency derivatives are subject to varying and evolving regulation worldwide. New laws, regulatory enforcement actions, or jurisdictional changes could affect your ability to use the Service, the value of your positions, or the availability of specific traders, assets, or features. KiheiRoad operates outside of certain restricted jurisdictions including the United States; we may add or remove jurisdictions based on regulatory developments without prior notice.

13. // 13

    Tax risk

    Trading cryptocurrency perpetual futures has tax consequences in most jurisdictions. KiheiRoad does not provide tax advice and does not generate tax forms. You are solely responsible for determining your tax obligations and reporting accurately. We can provide your trade history in machine-readable format upon request to assist your tax preparation. Consult a qualified tax professional in your jurisdiction.

14. // 14

    Market risk and volatility

    Cryptocurrency markets are highly volatile. Prices can move 10–50% or more in a single day. Markets trade 24/7/365 with no circuit breakers like traditional exchanges have. Liquidity can disappear during volatile events, causing slippage and wide bid-ask spreads. Black swan events — market crashes, exchange failures, major hacks, regulatory crackdowns — happen periodically and have historically caused total losses for many participants.

15. // 15

    Operational and technical risks

    The Service depends on internet infrastructure, third-party APIs, blockchain networks, and software systems that may experience downtime, latency, bugs, or attack. Risks include: signal delivery delays during high-traffic periods; trade execution failures during exchange downtime; data loss from infrastructure incidents (mitigated by backups but not eliminated); user-side issues such as device loss, email account compromise, or wallet-recovery failures. We invest in resilience but cannot guarantee continuous availability.

16. // 16

    Required acknowledgments

    By using KiheiRoad — and especially by enabling Approval or Auto mode — you acknowledge that you have read, understood, and accepted all of the risks described in this document. You confirm that (a) you understand cryptocurrency perpetual futures and the risks of leverage; (b) you can afford to lose 100% of any funds you deposit; (c) you accept that the platform, traders, AI, and execution venue can all fail or behave unexpectedly; (d) you are solely responsible for your trading decisions and outcomes; (e) you are not relying on KiheiRoad, any trader, or any AI narration as investment advice.

// version 1.0 · pending final legal review prior to public launch