Risk Disclosure

1 Simulated Nature of Trading

Simulated trading results have many inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading and may not reflect the impact of real market factors, including:

• Slippage, partial fills, and liquidity gaps that occur in real markets.
• Real brokerage commissions, swap rates, and financing costs.
• Psychological and emotional factors that affect live trading decisions.
• Execution speed differences between simulated and live environments.

Past simulated performance on our Platform does not guarantee, predict, or imply similar results in live trading or in future simulated evaluations.

2 Not a Financial Service or Investment

PropChallenge.Trade is not a regulated financial institution, broker, investment adviser, fund manager, or exchange. We do not:

• Provide investment advice, portfolio management, or financial recommendations.
• Hold, manage, or invest real client funds in financial markets.
• Act as a counterparty to any financial transaction on your behalf.
• Guarantee any return on participation or payout from funded accounts.

Our service is purely a performance evaluation and profit-sharing program conducted in a simulated environment. Participation does not constitute investment activity and is not subject to financial regulation in most jurisdictions.

3 No Guarantee of Profit

There is no guarantee that you will:

• Successfully pass any evaluation phase.
• Receive a Funded Account.
• Generate profits in the Funded Account.
• Receive payout distributions at any specific time or amount.

Any promotional materials, testimonials, or success stories shared by the Company or third parties represent individual results and are not typical of the average participant's outcome.

4 Evaluation Fee Risk

Evaluation fees paid to access our programs are non-refundable in the event of failure, rule breach, disqualification, or voluntary withdrawal, except as explicitly stated in our Terms and Conditions.

You should only purchase an evaluation if you can afford to lose the full fee amount. Do not fund evaluation fees with borrowed money, credit, or funds intended for essential expenses.

The evaluation fee is the sole and maximum financial risk to you as a participant. There is no additional financial exposure to real market movements as a result of your participation.

5 Market Conditions & Data Accuracy

The market data displayed on our Platform (prices, spreads, charts) is sourced from third-party data providers and may include:

• Slight delays or discrepancies compared to live market prices.
• Periodic data gaps during periods of low liquidity or technical issues.
• Differences in spreads, rollover rates, and instrument availability compared to live brokers.

The Company does not guarantee the accuracy, completeness, or timeliness of market data and shall not be liable for any losses arising from reliance on such data. Spread conditions and trading costs on our Platform may differ from real brokerage conditions.

Simulated results achieved under current market conditions may not be replicable under different market conditions, including periods of heightened volatility, low liquidity, or major economic events.

6 Technology & Platform Risk

Use of our trading Platform is subject to inherent technology risks, including:

• Connectivity Issues: Internet outages, latency, or server interruptions may affect your ability to place or manage trades during critical market moments.
• Platform Downtime: Scheduled or unscheduled maintenance may temporarily restrict access to your account.
• Software Errors: Technology systems may occasionally exhibit bugs, data errors, or pricing anomalies.
• Cybersecurity: Despite our security measures, our systems may be subject to cyber threats.

The Company shall not be liable for losses of trading opportunity, position exposure, or plan disqualification arising directly from technological failures outside of our reasonable control.

You are responsible for maintaining your own secure internet connection and protecting your account credentials.

7 Leverage & Volatility

Our simulated trading environment may allow the use of leverage, which means a small movement in price can result in a proportionally larger gain or loss relative to your account balance.

Financial markets can be highly volatile. Events such as central bank announcements, geopolitical developments, economic data releases, and other unforeseen events can cause rapid and significant price movements. Such movements may trigger stop-losses, margin calls, or rule breaches faster than you can respond.

You should thoroughly understand leverage, margin, and volatility before trading. If you are not familiar with these concepts, we strongly encourage you to seek education before participating.

8 Payout & Business Risk

Profit distributions from Funded Accounts are made at the Company's discretion pursuant to the program rules and our Terms and Conditions. The following risks exist:

• Rule Breach Prior to Payout: Any violation of trading rules discovered before or during a payout review may result in payout denial and account termination.
• Business Continuity: As with any business, PropChallenge.Trade may change its business model, suspended operations, or cease operations. In the event of business discontinuation, outstanding payout obligations may not be fulfilled.
• Payout Delays: Processing times vary by payment method and may be extended by third-party processing delays, KYC requirements, or high payout volumes.
• Currency Conversion: If payouts are made in a currency different from your local currency, exchange rate fluctuations may affect the value of your distribution.

9 Regulatory & Legal Risk

The regulatory treatment of prop firm evaluation services varies across jurisdictions and is evolving. It is possible that:

• Our services may be classified, regulated, or restricted in your country in ways that affect your participation or ability to receive payouts.
• New laws or regulations may require changes to our programs, fee structures, or profit distribution mechanisms.
• Tax treatment of payments received from participation may vary by country. You are solely responsible for your own tax obligations.

We strongly recommend consulting a qualified legal or financial professional in your jurisdiction before participating.

10 Acknowledgement

By registering for and using PropChallenge.Trade's services, you acknowledge and confirm that:

• You have read and understood this Risk Disclosure Statement in its entirety.
• You understand that all trading is simulated and does not involve real financial markets or real capital.
• You accept that evaluation fees may be lost in full if you do not meet the program requirements.
• You are aware that there is no guarantee of profit, funded account award, or payout.
• You have the knowledge and experience appropriate to participate in simulated trading evaluation programs.
• You accept all risks described in this document and our Terms and Conditions.

If you have any questions about the risks involved, please contact us at [email protected] before proceeding.