Risk Disclosure

This Risk Disclosure (this "Disclosure") describes material risks you may bear in connection with your use of the Peach mobile application and related services (collectively, the "Services") provided by Peach Technology, Inc., a Delaware corporation ("Peach," "Company," "we," "us," or "our").

This Disclosure is incorporated into and forms part of our Terms of Service. By using the Services, you acknowledge that you have read and understood this Disclosure and accept all risks described herein. Capitalized terms used but not defined in this Disclosure have the meanings given in the Terms of Service.

Critical Warning. The use of digital assets and DeFi protocols involves substantial risk of financial loss, up to and including the total loss of any funds you commit. You should use the Services only with funds you can afford to lose entirely. You must not use the Services with funds needed for living expenses, emergency reserves, funds borrowed from others, or any funds necessary to your financial security.

The Services are non-custodial. Peach does not have access to, and cannot recover, your Private Keys, Digital Assets, or account credentials. Peach does not hold or control your assets. Peach is not a counterparty to your transactions and does not match or execute orders. Peach provides only a technical front-end interface.

The Services are not a regulated financial intermediary. Peach is not registered or licensed in any jurisdiction as a securities broker, futures commission merchant, bank, investment adviser, or virtual asset service provider (VASP). You will not receive any of the protections that apply to regulated financial services, including deposit insurance, investor protection schemes, segregation of customer assets, or regulator-provided dispute resolution.

Section 1. General Digital Asset Risks

1.1 Volatility. Digital assets are extremely volatile. Prices can fluctuate dramatically within short periods in response to market sentiment, regulatory developments, technological change, macroeconomic conditions, liquidity conditions, social media trends, and other factors. Historical performance is not indicative of future results.

1.2 Total Loss. The value of digital assets may decline to zero, and you may lose all funds you commit. Unlike traditional financial products, losses in digital assets may be permanent and irrecoverable.

1.3 Absence of Safety Nets. Digital assets are not covered by deposit insurance, investor protection funds, or any comparable safety net. No government, regulatory authority, or insurance provider will compensate you for losses.

1.4 Nascent Technology. Blockchain technology and DeFi protocols remain in early stages of development. The technology may contain undiscovered flaws, and the long-term viability of any particular blockchain, protocol, or digital asset is uncertain.

1.5 Liquidity. Digital assets you hold may be impossible to sell, or sellable only at significantly unfavorable prices, at any given time. This may result from reduced market liquidity, decreased trading volume, discontinuation of trading pairs, or depletion of liquidity pools.

Section 2. Smart Contract and Protocol Risks

2.1 Smart Contract Vulnerabilities. DeFi protocols accessible through the Services rely on smart contracts (self-executing blockchain code) that may contain code bugs or logic errors, economic design flaws (such as oracle manipulation vulnerabilities or flash loan attack vectors), security vulnerabilities, or errors introduced during upgrades. Exploitation of such flaws may result in the partial or total loss of deposited or collateralized Digital Assets, often within seconds and without warning. Even audited smart contracts are not free from vulnerabilities.

2.2 Protocol Governance. Many DeFi protocols are governed by decentralized governance mechanisms (such as DAOs and governance token voting). Governance decisions made without your consent may result in changes to protocol parameters (interest rates, collateral ratios, liquidation thresholds), changes to fee structures, discontinuation of support for particular assets, or complete shutdown of the protocol or freezing of assets.

2.3 Oracle and Price Feed Risks. Many DeFi protocols depend on external price oracles. Manipulation, failure, or inaccuracy of an oracle may cause improper liquidations, erroneous interest rate or yield calculations, or unfavorable trade execution prices.

2.4 Composability Risk. DeFi protocols are deeply interconnected. A failure or exploit in one protocol can cascade into other protocols, resulting in losses to your assets from events that appear unrelated to the affected position.

2.5 Protocol Deprecation or Shutdown. Third-Party Protocols may cease operations, become insolvent, or discontinue support for specific pools or features without prior notice. Peach has no control over the continued availability or operation of any Third-Party Protocol.

Section 3. Yield Deposit and Interest Rate Risks

3.1 Variable Rates. Interest rates displayed in the Services are variable and may change at any time based on market conditions, protocol utilization, governance decisions, and other factors. The displayed rates reflect current or recent figures and are not guaranteed or promised.

3.2 Sustainability of Yields. High yields are often temporary, unsustainable, or indicative of elevated risk. Sources of yield frequently include token incentive emissions, which can decrease sharply or end abruptly, causing yields to decline significantly.

3.3 Impermanent Loss. Yield strategies that involve liquidity provision are subject to impermanent loss — a reduction in the value of deposited assets relative to simply holding the same assets, due to relative price movement between the paired assets.

3.4 No Guarantee of Principal or Returns. Peach does not guarantee any rate of return, yield, or principal. Historical interest rates, yields, and TVL figures displayed in the Services are for informational purposes only and do not constitute a promise, projection, or guarantee of future results.

3.5 Withdrawal Restrictions. Some protocols may restrict immediate withdrawals, impose cooldown or unstaking periods, or temporarily suspend withdrawals under certain conditions. You are responsible for reviewing the withdrawal conditions of any protocol before depositing.

Section 4. Perpetual Futures Trading Risks

The Services provide an interface to perpetual futures trading through third-party platforms (such as Hyperliquid). Perpetual futures trading involves extremely high risk and is not suitable for most users.

4.1 Leverage. Perpetual futures trading uses leverage, which amplifies both potential gains and potential losses. You may lose substantially more than your initial margin, and such losses may occur rapidly and in large magnitudes.

4.2 Automatic Liquidation. If the value of your position moves against you and your margin falls below the maintenance requirement, your position will be automatically liquidated. Liquidations occur without advance notice (neither Peach nor the applicable third-party platform has any obligation to provide margin calls), may execute at unfavorable prices (particularly in volatile or illiquid market conditions, where execution prices may be materially worse than expected), and may result in the total loss of your collateral. You are responsible for continuously monitoring your positions.

4.3 Funding Rate. Perpetual futures are subject to periodic funding rate payments between long and short position holders. Funding rates fluctuate with market conditions and can become a significant cost or source of loss, particularly for positions held over extended periods.

4.4 Third-Party Platform Risk. Perpetual futures trading through the Services occurs on third-party platforms (such as Hyperliquid). Peach does not operate or control these platforms. Such platforms may experience downtime, latency, or malfunctions, smart contract bugs or exploits, parameter changes resulting from governance decisions, liquidation engine malfunctions, or temporary or permanent service discontinuation. If you are unable to manage your positions due to any of these events, you may suffer losses, and Peach bears no liability for such losses.

4.5 No Peach-Imposed Leverage Limits. Peach does not impose its own leverage limits on perpetual futures trading through the Services. The maximum leverage, margin requirements, and other trading parameters are determined solely by the applicable third-party platform.

4.6 Market Manipulation. Digital asset futures markets may be subject to market manipulation practices such as wash trading, spoofing, and pump-and-dump schemes, which can adversely affect the value and liquidity of your positions.

Section 5. Transaction Execution and Network Risks

5.1 Irreversibility. All transactions confirmed on the blockchain are final and irreversible. Transactions cannot be cancelled, modified, or refunded even if you enter an incorrect recipient address, select an incorrect amount or asset, are the victim of phishing, fraud, or hacking, or experience a display error or malfunction in the interface.

5.2 Transaction Bundling Risk. The Services may bundle multiple blockchain operations (bridging, swapping, approval, deposit, etc.) into a single transaction. If any component of a bundled transaction fails, the entire transaction may fail or produce unexpected results, including partial asset loss or unintended intermediate states (for example, a bridge completes but the final swap fails, leaving you holding an undesired token).

5.3 Slippage. The price at which you initiate a transaction may differ from the price at which the transaction is confirmed on-chain. This slippage can be significant in volatile or illiquid markets and may result in your receiving materially less of the target asset than expected.

5.4 Network Congestion and Gas Fees. Blockchain networks may experience congestion, causing transactions to be delayed, to fail, or to require higher-than-expected gas fees. Peach currently sponsors gas fees but may discontinue gas fee sponsorship at any time without prior notice, in which case you will bear gas fees directly.

5.5 Bridge Risk. Cross-chain transactions involve the use of bridges (protocols that transfer assets across blockchain networks). Bridges have been among the most frequent targets of exploits in DeFi history, and bridge usage carries the risk of total, permanent loss of the bridged assets.

5.6 Forks and Chain Reorgs. Blockchain networks may experience hard forks, soft forks, and chain reorganizations (reorgs), which can invalidate your transactions, duplicate or split your assets, or unexpectedly change the state of smart contracts.

5.7 MEV and Front-Running. Blockchain transactions may be subject to MEV (Maximum Extractable Value) extraction, front-running, and sandwich attacks, which can cause your transactions to execute at prices less favorable than expected.

Section 6. Wallet and Custody Risks

6.1 Non-Custodial Service. The Services are non-custodial, and you bear sole responsibility for your Wallet and the assets it holds. Peach cannot access your Private Keys and cannot restore lost access to your Wallet.

6.2 Device Security. Your Wallet's security depends on the security of your device. If your device is compromised, lost, or stolen, your Digital Assets may be at risk.

6.3 Key Management and Account Recovery Limitations. Your Private Keys are managed through Turnkey's infrastructure on your device. Your access to your account depends on your continued access to the email or social sign-in account (Apple, Google) used to authenticate. You may permanently lose access to your Wallet and all assets held therein if you lose access to your email or social sign-in account, are unable to recover such access through the applicable provider's recovery procedures, or experience simultaneous device loss/compromise and loss of email/social account access. Peach has no means of recovering lost access.

6.4 Phishing and Social Engineering. You may be the target of phishing and social engineering attacks that impersonate Peach or its representatives, direct you to fraudulent apps or websites, or request that you disclose your seed phrase, private key, or OTP. Peach will never, under any circumstance, ask you to provide your private key, seed phrase, or password.

Section 7. Regulatory and Legal Risks

7.1 Regulatory Uncertainty. The regulatory environment for digital assets, DeFi, and blockchain technology is rapidly evolving and varies significantly across jurisdictions. Future laws or regulations may materially affect the availability, functionality, or legality of the Services, and particular digital assets may become restricted or prohibited.

7.2 Your Compliance Responsibility. You are solely responsible for determining and complying with all laws applicable to you in your jurisdiction of residence. Peach does not determine or warrant that use of the Services is lawful in your jurisdiction.

7.3 Tax Obligations. All tax obligations (including income tax, capital gains tax, and value-added tax) arising from the purchase, sale, exchange, receipt, deposit, or yield of digital assets are solely your responsibility. Tax law is complex and varies by jurisdiction, and Peach does not undertake to provide tax reporting or filings on your behalf.

7.4 No Legal, Financial, or Tax Advice. Nothing in the Services or provided by Peach constitutes legal, financial, investment, or tax advice. Analytics, risk assessments, and yield information displayed in the Services are for informational purposes only. You should consult qualified professionals before making any material financial decision.

7.5 Absence of Regulated Protections. Because the Services are not a regulated financial service, you will not receive deposit insurance or equivalent protections, investor protection fund coverage (such as SIPC or comparable schemes), segregation of customer assets, regulatory oversight and dispute resolution, or protections under consumer financial protection laws.

Section 8. Service Provider and Operational Risks

8.1 Service Availability. The Services may be temporarily or permanently unavailable due to maintenance, technical issues, third-party service disruptions, or other causes. Peach does not guarantee uninterrupted availability of the Services.

8.2 Third-Party Dependencies. The operation of the Services depends on third-party service providers including Turnkey (wallet infrastructure), blockchain networks (transaction execution and recording), routing and analytics providers (swap paths and data), Third-Party Protocols (such as Aave, Morpho, and Hyperliquid), cloud hosting providers (service infrastructure), and authentication providers (Apple and Google). Any failure, hack, policy change, or discontinuation of any of these providers may affect your ability to use the Services.

8.3 Accuracy of Information. Peach makes commercially reasonable efforts to provide accurate protocol analytics, interest rates, TVL figures, and risk assessments, but this information is sourced from third-party data sources and on-chain data that may be inaccurate, incomplete, or delayed. You are responsible for independently verifying all information before making transaction decisions.

8.4 Early-Stage Product. The Services may be in an early stage of development and may contain bugs, errors, or incomplete features. Functionality may change at any time, and you use the Services at your own risk.

8.5 Business Risk of Peach. Peach is a commercial entity and may experience funding failures, business model changes, operational suspension, or insolvency. Due to the non-custodial nature of the Services, your access to your Wallet should remain available through Turnkey's infrastructure and your email or social sign-in account, independent of Peach. However, you should understand that business events affecting Peach may materially affect your ability to use the Services.

Section 9. Dispute Resolution and Limited Legal Recourse

9.1 Contractual Liability Limitations. Pursuant to the Terms of Service, your legal recourse against Peach is substantially limited. To the maximum extent permitted by applicable law, Peach disclaims liability except for gross negligence, willful misconduct, fraud, or intentional unlawful conduct.

9.2 Arbitration Agreement. Pursuant to the Terms of Service, most disputes between you and Peach must be resolved through arbitration rather than in court. You waive your right to participate in class actions and your right to trial by jury.

9.3 Third-Party Protocol Disputes. Disputes relating to the operation of Third-Party Protocols or services, smart contract execution, or governance decisions are outside Peach's control, and Peach has no authority or means to resolve such disputes.

9.4 Cap on Liability. Pursuant to the Terms of Service, Peach's total aggregate liability is capped at the greater of the total fees you paid to Peach in the preceding twelve (12) months or US$100.

Section 10. Technical Competency Requirements

Safe use of the Services requires meaningful technical understanding and competency, including basic principles of blockchain technology, how smart contracts work and their risks, cryptocurrency wallet security and private key management, transaction signing, gas fees, and slippage, for perpetual futures trading leverage, liquidation, and funding rates, and the ability to protect yourself from phishing and social engineering attacks. If you lack the foregoing understanding or competency, you should refrain from using the Services. Losses arising from use of the Services despite such limitations are solely your responsibility.

Section 11. Recommendations Before Using the Services

Before using the Services, you should thoroughly understand blockchain technology and smart contract risks, securely manage your cryptocurrency wallet and your email and social sign-in accounts, review the terms and risk disclosures of each Third-Party Protocol you intend to use, consult qualified professionals regarding your tax, financial, and legal obligations, use only funds you can afford to lose entirely, continuously monitor your positions and deposits, and be psychologically and financially prepared for the possibility of total loss of your capital. If you do not fully understand the risks described in this Disclosure, or if you lack the technical competency to safely use a non-custodial DeFi interface, you should not use the Services.

Section 12. Non-Exhaustive Nature of this Disclosure

This Disclosure does not describe all possible risks associated with use of the Services. Due to the rapid pace of development in digital assets, blockchain technology, and DeFi, novel risks not described in this Disclosure may continuously emerge, and the nature of existing risks may evolve. You use the Services with full acceptance of such uncertainties and undisclosed risks.

Section 13. Changes to this Disclosure

• Peach may modify this Disclosure from time to time. We will provide notice of material changes through the App, by email, or by other reasonable means.
• Your continued use of the Services after the effective date of the modified Disclosure constitutes your acceptance of the modifications.
• If you do not agree to the modified Disclosure, you must discontinue use of the Services immediately.

Section 14. Your Acknowledgement

By using the Services, you expressly acknowledge that you have read and understood this Disclosure in its entirety; you understand the risks associated with digital assets, DeFi protocols, smart contracts, perpetual futures trading, and blockchain technology; you have sufficient knowledge and experience to determine whether use of the Services is appropriate for you, or you have consulted qualified professionals; you use the Services at your own risk, and Peach shall not be liable for losses you may incur; you will use the Services only with funds you can afford to lose entirely; and information, analytics, and risk assessments provided in the Services are for informational purposes only and do not constitute financial, investment, legal, or tax advice.

Section 15. Contact

For questions regarding this Disclosure, please contact Peach Technology, Inc. at support@peach.technology.