Risk Disclosure

1. No Guarantee of Returns

Past performance is not indicative of future results. You may lose part or all of your assets.

2. Smart Contract Risk

Smart contracts may contain bugs, vulnerabilities, logic errors, or governance risks that can cause partial or total loss of funds.

3. Market and Liquidity Risk

Digital-asset markets can be highly volatile. Slippage, low liquidity, and rapid price moves may materially affect execution and outcomes. A maximum slippage applies to every swap, and you can set it for each account in Accounts.

If a normal withdrawal fails, for example because a swap cannot be executed, each account offers an emergency withdrawal in Accounts. It retrieves any assets supplied for yield and sends every token in the account to your wallet without swapping: you receive the tokens themselves, not their value in ETH, and their prices keep moving.

4. Protocol and Counterparty Risk

The app can interact with external protocols (for example DEXs and lending protocols). Failures, pauses, insolvency events, governance actions, or upgrades in these protocols may impact your assets.

The app currently relies on these independent services, which Wedefin Labs GmbH does not control: Uniswap v2 and v3, SushiSwap v2 and v3, Camelot v2 and v3, and Aerodrome for token swaps; Aave v3 for lending and yield; CoinGecko and GeckoTerminal for token data and prices; and Dynamic for logging in, email-based wallets, and buying crypto with fiat currency. Prices shown in the app come from these data providers and may be delayed or inaccurate.

5. Open Index and Builder Rankings

The Open Index is composed on-chain from the allocations of top-ranked builders, who are other users of the app. Its composition changes whenever the index is updated, which anyone can trigger. Rankings reflect past on-chain performance and do not predict future results.

Your index account follows the Open Index only when you rebalance it (for example with "Match index"). Each rebalance is an on-chain transaction that incurs network fees, protocol fees and swap costs, and its execution can be affected by slippage.

6. Tokenized Stocks and Other Tokenized Assets

Some assets available in the app are tokens issued by third parties that aim to track the price of a listed share or another asset (shown as "Tokenized stock"). Depending on the issuer, such tokens may not give you ownership of the underlying share, voting rights or dividends, and their value depends on the issuer, its custodians and its redemption arrangements.

Their price can deviate from the underlying asset, liquidity can be limited (for example outside stock-market hours), and the issuer may pause, restrict or redeem them. Their availability and legal treatment vary by jurisdiction, and they may not be available to residents of certain countries.

7. Yield and Lending

When you choose to earn yield, eligible assets are supplied to third-party lending protocols (currently Aave v3) and temporarily leave your account. Rates vary and can fall to zero, and a lending protocol may be unable to return assets immediately, for example when its available liquidity is fully borrowed.

Assets supplied for yield must be withdrawn from the lending protocol before you withdraw from your account or rebalance it.

8. Wedefin Vaults

Wedefin Vaults at vaults.wedefin.com gives access to vaults curated by Wedefin Labs GmbH. Each carries the general risks in this document and, in particular, the risks below.

Gotthard RWA USDC (Morpho Vault V2 on Base)

• Lending and collateral: your USDC is lent to borrowers in the Morpho markets the curator approved, against collateral such as tokenized stocks and funds, cbBTC and WETH (see also section 6). If collateral loses value faster than borrowers are liquidated, or a liquidation fails, the vault can take a loss that reduces the value of every depositor's shares.
• Liquidity: withdrawals depend on the liquidity available in those markets. When borrowers use most of it, you may have to wait until loans are repaid or liquidated.
• Oracles and smart contracts: the vault, the Morpho markets and their price oracles are smart contracts that can fail or be exploited. You could lose some or all of your deposit.
• Curator decisions: the curator chooses the markets and their caps, and these choices can turn out wrong. The vault's roles can change its settings within the limits and timelocks set on-chain.
• USDC: USDC is issued by a third party and can lose its peg to the US dollar or be frozen by its issuer.
• Returns and fees: the APY is variable and can fall to zero. Past and maximum rates shown on the vault page are not a forecast, and the vault's fees reduce what you earn.

Eiger ZCHF Leveraged (Ethereum)

• Leverage: your deposit is converted to ZCHF and invested with leverage: ZCHF savings back a crvUSD loan on Curve, and USDT loans on Morpho build a larger Sky savings (sUSDS) position. Leverage magnifies losses.
• Liquidations and stablecoins: the loans can be liquidated, including through Curve's gradual soft liquidation, and any of the stablecoins involved (ZCHF, crvUSD, USDT, USDS) can lose its peg. If borrowing costs exceed what the savings pay, your position loses value.
• Currency: your position is counted in Swiss francs (ZCHF). If you deposit or withdraw USDC, its dollar value moves with the franc.
• Costs and withdrawals: every deposit and withdrawal swaps through Uniswap, Curve and the Sky PSM, and you pay those costs. Price checks, thin liquidity or a loan in soft liquidation can block a withdrawal for a while.
• Governance and review: the curator can change the strategy's risk limits at once, without a timelock, and can limit new deposits to whitelisted addresses. Fee changes and replacements of the strategy's integrations wait for a two-day timelock. At launch, the vault's roles are held by a single wallet; moving them to multi-signature wallets is planned. The contracts have had internal security reviews but no independent audit yet.
• Smart contracts and returns: the contracts and their price oracles can fail or be exploited, and you could lose some or all of your deposit. The APY is an estimate, not a promise.

9. Delegation

If you authorize another wallet as a delegate, that wallet can trigger rebalancing of your index account on your behalf. Only authorize wallets you trust, and revoke the authorization in Accounts when it is no longer needed.

10. Network and Infrastructure Risk

Blockchain congestion, chain reorganizations, bridge failures, oracle failures, RPC outages, and wallet/provider issues can delay or prevent transactions.

11. Security and Operational Risk

Phishing, malware, key compromise, signing mistakes, browser/device compromise, and social engineering may result in irreversible asset loss.

12. Regulatory and Tax Risk

Legal and tax treatment of digital assets varies by jurisdiction and may change quickly. You are responsible for your own legal, compliance, and tax obligations.

13. AI and Informational Outputs

Any in-app assistant output is informational only and may be incomplete, delayed, or incorrect. It is not investment advice.