Risk Disclosure

Effective date: June 4, 2026 · Last updated: June 6, 2026 · Version 1.0

§1. Options Trading Is Speculative and High-Risk

Trading in standardized options is speculative, involves a high degree of risk, and is not suitable for every investor. Before buying or selling any option, you should read the document Characteristics and Risks of Standardized Options (sometimes called the “Options Disclosure Document” or “ODD”) published by The Options Clearing Corporation. Copies are available from your broker-dealer and at theocc.com/about/publications/character-risks.jsp. The ODD describes the characteristics of options, the underlying mechanics of options exercise and assignment, and the principal risks of options strategies. JE Horizon does not provide the ODD to you; your broker-dealer is responsible for furnishing it before approving your account for options trading.

Options trading carries risks not present in trading the underlying security, including time decay, implied-volatility crush, assignment risk, exercise risk, early-assignment risk on American-style options, pin risk near expiration, corporate-action adjustments, and liquidity risk in out-of-the-money or far-dated contracts.

§2. You May Lose Your Entire Investment — Or More

You may lose some, all, or in certain strategies more than the entire amount you invest.

• Long options (buying calls or puts) can expire worthless, resulting in the loss of one hundred percent (100%) of the premium paid.
• Short / uncovered options (selling naked calls or puts) carry the risk of loss substantially greater than the premium received and, in the case of uncovered short calls, theoretically unlimited loss.
• Multi-leg, spread, and combination strategies can result in losses that exceed the apparent maximum if one leg is closed, assigned, or exercised independently of another.
• Margin trading magnifies both gains and losses; a margin call may require you to deposit additional funds on short notice or have positions liquidated by your broker without further notice to you.

You should not trade options or other speculative instruments with funds you cannot afford to lose, with borrowed funds, or with funds you have allocated for essential purposes (e.g., housing, retirement, education, or emergency reserves).

§3. No Guaranteed Performance

Past performance is not indicative of future results. Any backtest, simulation, paper-trading record, calibration metric, benchmark comparison, accuracy figure, win-rate statistic, or historical example shown in the Service, on our website, in our documentation, in our marketing materials, or in our community channels:

• reflects a finite historical sample under specific market conditions that may not recur;
• does not represent actual trading and may not reflect the impact of material economic and market factors, including liquidity, slippage, fills, broker latency, exchange halts, and commissions;
• does not account for taxes, fees, or the cost of capital; and
• provides no assurance that any individual trade, account, or time period will be profitable.

§4. The Software Is a Tool, Not a Broker

The Service is a software publication that grades market setups and presents informational outputs (such as “BUY,” “SELL,” or “HOLD” signals with conviction scores). The Service is not a broker-dealer, alternative trading system, exchange, clearing agency, or investment adviser. JE Horizon does not hold customer funds or securities, does not have custody of any account, and does not execute trades on your behalf.

All orders are placed by you, through your own brokerage account, using your own credentials, at your sole discretion. You alone bear all execution risk, including:

• price slippage between the time a signal is generated and the time your order reaches the market;
• partial fills, missed fills, and order rejections by your broker or exchange;
• broker downtime, broker maintenance windows, throttling, or API outages;
• order-routing decisions made by your broker, including payment-for-order-flow arrangements; and
• commissions, fees, and regulatory pass-throughs charged by your broker.

§5. AI Signal Limitations

The Qovaryx artificial-intelligence cluster (the “Model”) is a statistical machine-learning system trained on historical market data. The Model produces probabilistic estimates, not deterministic predictions. You should expect, and plan for, the following limitations:

• Statistical error. Even a well-calibrated model will be wrong a meaningful fraction of the time; high-conviction signals are not certainties.
• Regime change. Markets evolve. Conditions not reflected in training data (e.g., novel monetary-policy regimes, new market microstructure, geopolitical shocks, exchange rule changes) may degrade model performance without warning.
• Data freshness. The Model’s inference latency is sub-millisecond on commodity CPUs, but the freshness, accuracy, and completeness of the underlying market data depend on the feed provided by your broker or data vendor. Stale, delayed, or erroneous data will produce stale, delayed, or erroneous signals.
• Survivorship and look-ahead bias. Despite our best efforts to mitigate these well-known machine-learning hazards, no training pipeline fully eliminates them; you should treat all historical metrics with appropriate skepticism.
• Drift. Without continued retraining, model performance may drift over time.
• Out-of-distribution inputs. Tickers, instruments, or market conditions that differ materially from the Model’s training distribution may produce low-quality outputs.

§6. Pattern Day Trader, Margin, and Tax Obligations

You are solely responsible for understanding and complying with the rules of your broker and of applicable regulators, including without limitation:

• the United States Financial Industry Regulatory Authority (“FINRA”) Pattern Day Trader (PDT) rule (FINRA Rule 4210), which generally requires margin accounts that engage in four or more day trades in a five-business-day period to maintain a minimum equity of US $25,000;
• Regulation T initial margin requirements and your broker’s house margin and concentration requirements;
• options account approval tiers and any strategy-specific restrictions imposed by your broker (e.g., approval for uncovered or spread strategies);
• short-sale rules, including SEC Regulation SHO and any locate / borrow requirements; and
• federal, state, local, and foreign tax consequences of any trade, including the wash-sale rule, § 1256 contract treatment, straddle rules, and the taxation of options exercise and assignment.

The Service does not provide tax, accounting, or legal advice. You should consult a qualified tax adviser regarding the tax treatment of trades you place.

§7. Regulatory Status

The Service is published by JE Horizon as a bona fide general-circulation software publication. JE Horizon is not registered with the United States Securities and Exchange Commission, FINRA, the Commodity Futures Trading Commission, the National Futures Association, or any state securities regulator. JE Horizon is not a member of the Securities Investor Protection Corporation (SIPC).

The Service is not a substitute for a licensed financial adviser, broker-dealer, accountant, or attorney. You should consult appropriately licensed professionals regarding your particular circumstances before acting on any information obtained from the Service. See also §6 of the Terms of Service (Not Investment Advice; Publisher Exemption), which incorporates the publisher exclusion under Section 202(a)(11)(D) of the Investment Advisers Act of 1940, as construed by Lowe v. SEC, 472 U.S. 181 (1985).

§8. Internet, Hardware, and Third-Party Technology Failure

Use of the Service depends on factors outside JE Horizon’s control, including the performance of your computer, your internet connection, your operating system, your broker’s API, third-party data feeds, exchange systems, and other infrastructure. JE Horizon disclaims liability for any loss, missed opportunity, erroneous order, delayed order, failed order, or other adverse outcome arising from:

• internet, ISP, or network outages or latency;
• operating-system crashes, application crashes, or hardware failure;
• broker, exchange, market-data, or clearinghouse downtime, halts, or technical failure;
• cyber-attacks, denial-of-service events, or unauthorized access affecting any third party in the order-routing chain; and
• any other failure of technology, telecommunications, or third-party service on which the Service or your broker relies.

§9. No Reliance; You Make the Call

You acknowledge that any decision to enter, modify, or exit a trade is yours alone, and that you have not relied on the Service’s output as personalized investment advice or as a recommendation to engage in any particular transaction. You are responsible for evaluating whether any trade is suitable for your investment objectives, financial situation, and risk tolerance, and for monitoring all open positions in your brokerage account at all times.

§10. Acknowledgment

§11. Contact

For questions about this Risk Disclosure, please contact:

JE Horizon LLC
Attn: Compliance — Qovaryx Service
Email: support@jehorizon.com
Web: https://qovaryx.jehorizon.com