Perpetual Contract Agreement

1Welcome and Acceptance

This Perpetual Contract Agreement is issued by CRYPTO FUND LLC and governs your use of any feature of New One through which you view, route, open, manage, or close a position in a perpetual futures contract. It supplements the User Agreement; where the two address the same subject, this document controls with respect to perpetual trading only.

By enabling, accessing, or using any perpetual trading feature of New One, you confirm that you have read this Agreement, that you understand it, and that you accept it in full. If you do not accept it, do not use those features.

We may amend this Agreement. Where an amendment materially reduces your rights or increases your obligations, we will give notice through the App, the Site, or another reasonable means before it takes effect. Continued use after the effective date constitutes acceptance. Because New One is non-custodial, declining an amendment never puts your assets out of reach: your recovery phrase continues to control them regardless of whether you use our software.

2Who May Use These Features

Perpetual trading features are available only to persons who meet all of the following conditions, each of which you represent to be true every time you use them:

• You are at least 18 years old, or older where the law of your jurisdiction sets a higher age for entering into derivatives transactions, and you have full legal capacity to be bound by this Agreement.
• You are not located in, ordinarily resident in, a citizen of, or organized under the laws of any jurisdiction subject to comprehensive sanctions administered by the U.S. government, and you are not listed on, or owned or controlled by a person listed on, any sanctions list administered by the U.S. Department of the Treasury's Office of Foreign Assets Control.
• Your use of leveraged derivatives is lawful where you are. Many jurisdictions restrict or prohibit retail access to perpetual futures; determining your own position is your responsibility, not ours.
• You have sufficient knowledge and experience to evaluate leveraged products, and the financial capacity to bear a total loss of every dollar you commit.

You are solely responsible for the security of your wallet, your device, and your recovery phrase. Anyone who obtains your recovery phrase can open, close, and liquidate positions in your name, withdraw your collateral, and grant approvals on your behalf. We cannot detect, prevent, or reverse this.

Interacting with a third-party perpetuals protocol generally requires you to submit one or more on-chain transactions — for example, to grant a token approval, to deposit collateral, or to deploy or register an account contract. Each such transaction consumes gas paid to the network, is initiated only by your signature, and is not reversible by us.

3What We Provide — and What We Do Not

New One is a non-custodial, multi-chain self-custody wallet supporting Bitcoin, Ethereum, Solana, Base, Polygon, Avalanche, BNB Chain, and Arbitrum. Our perpetual trading features are an interface: software that renders market data, constructs transactions, and presents them to you for signature on your own device.

Every perpetual position you open exists on a third-party protocol that you choose to connect to. That protocol — not CRYPTO FUND LLC — defines the contract specification, holds or escrows margin in its smart contracts, determines the mark price, calculates funding, and executes liquidations. Your counterparty is the protocol and its liquidity providers, never us.

We are not, and do not act as

• A broker, dealer, futures commission merchant, introducing broker, or commodity trading advisor.
• An exchange, trading facility, clearing house, or central counterparty.
• A custodian, bank, money transmitter, or trustee of your collateral.
• A market maker, principal, or counterparty to any position you open.
• An investment adviser. Nothing in the Services — including market data, funding-rate displays, leverage presets, position analytics, or educational material — is a recommendation, solicitation, or opinion that any transaction is suitable for you.

What follows from this

• We never hold your private keys, recovery phrase, collateral, or open positions. They are generated and held on your device and in on-chain contracts you control.
• We cannot open, modify, close, or liquidate a position on your behalf, and we cannot stop a protocol from liquidating one.
• We cannot reverse, cancel, freeze, or amend any transaction once it has been broadcast to a blockchain.
• We cannot recover collateral lost to a protocol failure, an exploit, a depegged stablecoin, a mispriced oracle, or your own error.
• We may add, change, or discontinue support for any protocol, chain, market, or feature at our discretion, with or without notice. Discontinuation does not affect your ability to reach that protocol directly.

4How Execution and Settlement Work

A perpetual futures contract is a leveraged derivative with no expiry date. It tracks an underlying reference price through a periodic funding payment exchanged between long and short positions rather than through physical delivery. You never own the underlying asset; you hold an on-chain exposure to its price.

When you submit an order through New One, the App constructs a transaction or protocol message and presents it to you. Nothing happens until you sign. Once signed, the instruction is transmitted to the relevant protocol or network, where it is executed according to that protocol's own logic, its own queue, and its own risk parameters.

Settlement and margin

• Collateral is deposited into and released from the protocol's smart contracts. It does not pass through any account, wallet, or system operated by us.
• Profit and loss are computed by the protocol on the basis of its mark price, not on the basis of any figure displayed in the App.
• Where a protocol offers isolated margin, a liquidation is ordinarily confined to the collateral allocated to that position. Where a protocol offers cross margin, a single adverse position can consume the entire collateral balance of the account, including collateral supporting unrelated positions.
• Some protocols guarantee that account equity cannot fall below zero and absorb any liquidation shortfall through an insurance fund or backstop pool. Others do not, and may pursue negative balances, socialize losses across profitable traders, or auto-deleverage them. We do not verify, endorse, or underwrite any such guarantee, and no representation about a protocol's backstop is made by us.

Displayed information

Prices, funding rates, liquidation estimates, margin ratios, fees, and position values shown in New One are indicative. They are derived from public networks, protocol contracts, and third-party data providers; they may be stale, incomplete, or wrong; and they are furnished for convenience only, without warranty. The authoritative record of your position is the on-chain state of the protocol you are trading on. Where the two differ, the on-chain state governs.

5Trading Mechanics and Parameters

The parameters governing your position are set by the protocol you connect to and may change at any time without notice to you. They typically include, and are not limited to:

Leverage

The multiple applied to your collateral to determine notional position size. Protocols commonly permit a wide range, and higher leverage narrows the price move required to liquidate you in direct proportion.

Initial margin

The collateral required to open a position of a given notional size. Minimum order sizes and minimum collateral thresholds are also common.

Maintenance margin

The minimum equity a position must retain. Falling below it triggers liquidation. Many protocols scale this requirement upward as position size grows.

Mark price

The reference price used for unrealized profit and loss, margin calculations, and liquidation. It is derived from an oracle or index and can and does diverge from the last traded price on any single venue.

Funding rate

A periodic payment exchanged between longs and shorts to hold the contract price near the index. It may be positive or negative, may change each interval, and accrues for as long as the position is open. Over an extended holding period it can materially exceed the trading fees you pay.

Order types

Market, limit, reduce-only, stop, and take-profit orders where a protocol supports them. Conditional orders depend on keepers, relayers, or off-chain infrastructure and may fail to trigger, trigger late, or fill at a price materially worse than requested.

Position limits

Caps on open interest per market, per account, or per side, and restrictions such as one position per market or per direction.

You are responsible for reading and understanding the specification of any market before you trade it. We do not warrant that the parameters displayed in the App match the protocol's current on-chain configuration, and a parameter change made by a protocol may take effect before it is reflected in our interface.

6Liquidation

Liquidation is the forced closure of a position by the protocol when its equity falls to or below the maintenance margin requirement. It is automatic, it is executed by protocol logic and third-party liquidators, and it requires no notice, no confirmation, and no action by you.

• Liquidation can occur within seconds. During volatile conditions the interval between a position being healthy and a position being closed may be shorter than the time required to open the App and react.
• Liquidation is triggered by the protocol's mark price, which may differ from the price you observe on any exchange or price site. A wick, a brief oracle divergence, or a stale update can liquidate a position that would appear solvent on another feed.
• Liquidation ordinarily results in the loss of all or substantially all margin allocated to the position, together with liquidation penalties or fees charged by the protocol.
• Adding margin, reducing size, or closing a position requires an on-chain transaction that must be included in a block. Network congestion, gas underpricing, a failed transaction, sequencer downtime, or a chain halt may prevent you from acting in time.
• Where a liquidation occurs at a price worse than the bankruptcy price, the shortfall is borne according to the protocol's rules — by an insurance fund, by socialized loss across profitable traders, by auto-deleveraging, or, on some protocols, by leaving a negative balance attributed to your account.

We do not operate liquidation infrastructure, do not receive liquidation proceeds, and have no ability to delay, prevent, reverse, or compensate a liquidation. Liquidation alerts, health-factor indicators, and margin warnings offered in the App are conveniences that depend on network connectivity, push-notification delivery, and third-party data. THEY MAY BE DELAYED, INACCURATE, OR ABSENT ENTIRELY, AND MUST NOT BE RELIED UPON AS A RISK CONTROL.

7Fees and Costs

Trading a perpetual contract through New One may involve any of the following costs:

• Protocol trading fees charged on opening and closing a position, typically as a percentage of notional size, and often differentiated between maker and taker orders.
• Funding payments, exchanged periodically between longs and shorts as described in Section 5. These are paid to or received from other traders, not from or to us.
• Liquidation penalties or closure fees charged by the protocol and its liquidators.
• Borrowing, price-impact, or spread costs applied by the protocol's pricing model.
• Gas fees paid to the relevant blockchain network for every transaction you sign, including transactions that revert or fail. Gas is paid to validators, is set by network conditions, is not received by us, and is never refundable.

Where we apply a fee of our own — for example an interface fee or a routing spread — it will be disclosed to you before you confirm the relevant transaction. We may introduce or adjust our fees prospectively with notice. We do not control, receive, or refund protocol fees, funding payments, or gas.

You are solely responsible for determining the tax treatment of your trading activity and for reporting and remitting any amounts due. Perpetual trading may generate taxable events on opening, closing, liquidation, and funding settlement. We do not withhold taxes and do not provide tax reporting on your behalf except where required by law.

8Risk Acknowledgement

The Risk Disclosure Statement in Part III of this Agreement forms an integral part of it. You must read it before you trade. By using any perpetual trading feature, you acknowledge that you have read it and that you accept every risk it describes.

PERPETUAL FUTURES ARE LEVERAGED PRODUCTS. YOU CAN LOSE THE ENTIRE AMOUNT OF COLLATERAL COMMITTED TO A POSITION, AND ON SOME PROTOCOLS MORE THAN THAT AMOUNT, IN A VERY SHORT PERIOD. THESE PRODUCTS ARE NOT SUITABLE FOR EVERY PERSON. COMMIT ONLY FUNDS WHOSE COMPLETE LOSS WOULD NOT MATERIALLY AFFECT YOUR CIRCUMSTANCES.

9Disclaimer of Warranties and Limitation of Liability

THE PERPETUAL TRADING FEATURES ARE PROVIDED "AS IS" AND "AS AVAILABLE," WITHOUT WARRANTY OF ANY KIND. TO THE MAXIMUM EXTENT PERMITTED BY LAW, WE DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT, AND ANY WARRANTY THAT THE SERVICES OR ANY DATA THEY DISPLAY WILL BE UNINTERRUPTED, TIMELY, SECURE, ACCURATE, COMPLETE, OR ERROR-FREE.

WE MAKE NO REPRESENTATION OR WARRANTY REGARDING ANY THIRD-PARTY PROTOCOL, SMART CONTRACT, ORACLE, RELAYER, LIQUIDITY PROVIDER, BRIDGE, STABLECOIN ISSUER, OR BLOCKCHAIN NETWORK, INCLUDING AS TO ITS SOLVENCY, SECURITY, AUDIT STATUS, CONTINUED AVAILABILITY, OR COMPLIANCE WITH ANY LAW.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, WE WILL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR FOR ANY TRADING LOSS, LIQUIDATION LOSS, LOST PROFIT, LOST OPPORTUNITY, LOSS OF DIGITAL ASSETS, LOSS OF DATA, OR LOSS OF GOODWILL, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, OUR TOTAL AGGREGATE LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PERPETUAL TRADING FEATURES WILL NOT EXCEED THE GREATER OF (A) THE TOTAL FEES YOU PAID TO US IN THE TWELVE MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM, OR (B) ONE HUNDRED U.S. DOLLARS (US$100). FOR THE AVOIDANCE OF DOUBT, PROTOCOL FEES, FUNDING PAYMENTS, AND GAS FEES ARE NOT FEES PAID TO US.

Without limiting the foregoing, we are not liable for loss arising from:

• Market movement, volatility, gaps, or illiquidity, and any liquidation resulting from them.
• The design, failure, exploit, insolvency, misconfiguration, or discontinuation of any third-party protocol or smart contract we did not author.
• Oracle latency, divergence, manipulation, or failure, and any liquidation resulting from them.
• Blockchain congestion, reorganization, fork, sequencer outage, halt, or failed transaction.
• Any order that is not filled, is filled late, is filled at an unfavorable price, or is not triggered.
• Inaccurate, stale, or unavailable data displayed in the App, and any missed, delayed, or undelivered alert.
• Any transaction you signed, including one signed in error, under time pressure, or as a result of deception.
• Your loss or disclosure of a recovery phrase, or any compromise of your device.

Nothing in this Agreement excludes or limits liability for fraud, fraudulent misrepresentation, willful misconduct, or any liability that cannot lawfully be excluded or limited. Some jurisdictions do not permit certain exclusions or limitations; in those jurisdictions the provisions above apply only to the extent permitted.

You agree to indemnify, defend, and hold harmless CRYPTO FUND LLC and its members, managers, officers, employees, contractors, and agents against any claim, demand, action, loss, liability, damage, cost, or expense (including reasonable attorneys' fees) arising out of or relating to your use of the perpetual trading features, your breach of this Agreement, your breach of any law or regulation, or any dispute between you and a third-party protocol or another trader.

10Governing Law, Arbitration, and Class-Action Waiver

PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT AND TO HAVE A JURY TRIAL.

Governing Law

This Agreement and any dispute arising out of or relating to it or the perpetual trading features are governed by the laws of the State of Delaware and, where applicable, the federal laws of the United States, without regard to conflict-of-laws principles. The United Nations Convention on Contracts for the International Sale of Goods does not apply. The Federal Arbitration Act governs the interpretation and enforcement of this Section.

Informal Resolution First

Before commencing arbitration, you agree to notify us in writing at support@newone.io, describing the dispute and the relief sought. We will attempt in good faith to resolve the matter with you for sixty (60) days from receipt. Either party may commence arbitration only after that period has elapsed.

Binding Arbitration

Any dispute not resolved informally will be settled by final and binding arbitration administered by the American Arbitration Association under its Consumer Arbitration Rules, before a single arbitrator. The seat of arbitration is Wilmington, Delaware, and the language is English. The arbitrator has exclusive authority to resolve any dispute regarding the interpretation, applicability, or enforceability of this Section. Judgment on the award may be entered in any court of competent jurisdiction.

Your Right to Opt Out

You may opt out of this arbitration agreement by sending written notice to support@newone.io within thirty (30) days of first accepting this Agreement, stating your name and your intention to opt out. Opting out affects only this arbitration provision and no other part of this Agreement, and will not be held against you in any way.

Exceptions

• Either party may bring an individual claim in small claims court if the claim qualifies and remains in that court.
• Either party may seek injunctive or other equitable relief in a court of competent jurisdiction to prevent actual or threatened infringement or misappropriation of intellectual property rights.

Class-Action Waiver

ALL CLAIMS MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, COLLECTIVE, CONSOLIDATED, OR REPRESENTATIVE PROCEEDING. THE ARBITRATOR MAY NOT CONSOLIDATE MORE THAN ONE PERSON'S CLAIMS OR PRESIDE OVER ANY FORM OF REPRESENTATIVE PROCEEDING. If this waiver is held unenforceable as to a particular claim, that claim must proceed in court and is severed from any arbitration.

Time Limit

Any claim arising out of or relating to this Agreement or the perpetual trading features must be filed within one (1) year after it arose, or it is permanently barred, except where a longer period is required by applicable law.

11General Provisions

Severability and Waiver

If any provision of this Agreement is held invalid or unenforceable, it will be modified to the minimum extent necessary to make it enforceable, and the remaining provisions will continue in full force. Our failure to enforce a provision is not a waiver of our right to enforce it later.

Assignment

You may not assign or transfer this Agreement or any right under it without our prior written consent. We may assign it to an affiliate or in connection with a merger, acquisition, reorganization, or sale of assets.

Entire Agreement and Order of Precedence

This Agreement, together with the User Agreement, constitutes the entire agreement between you and CRYPTO FUND LLC concerning perpetual trading through New One. In the event of a conflict, this Agreement controls with respect to perpetual trading, and the User Agreement controls in all other respects.

Electronic Communications and Notices

You consent to receive communications from us electronically and agree that they satisfy any legal requirement that a communication be in writing. Notices to us should be sent to support@newone.io; notices to you may be given through the App, the Site, or any contact address you have supplied.

No Third-Party Beneficiaries

Except as expressly stated, this Agreement confers no rights on any person who is not a party to it.

Survival

The provisions concerning risk acknowledgement, disclaimers, limitation of liability, indemnification, governing law, and dispute resolution survive any termination of this Agreement or discontinuation of the features it governs.

Language

This Agreement is drafted in English. If we publish a translation and an inconsistency arises, the English version prevails to the extent permitted by applicable law.

1The Short Version

This Statement covers the information handled specifically in connection with perpetual trading. Our general practices — including the categories we collect across the App, our security measures, and the rights available to you — are described in the Privacy Statement forming Part II of the User Agreement, which continues to apply here.

Two points matter most. First, we never receive your private keys, recovery phrase, wallet password, or device passcode; they are generated on your device and never transmitted to us. Second, your trading activity is recorded on public blockchains by the networks themselves. That record is permanent and visible to anyone. We did not choose this and we cannot undo it.

2What We Handle

Information you provide or generate in the App

• Wallet addresses you connect, and the chains and markets you select.
• Order parameters you enter — direction, size, leverage, limit price, and conditional order triggers — as needed to construct a transaction for your signature.
• Interface preferences such as display currency, default leverage, chart layout, and alert settings.
• Correspondence you send to support, including any information you choose to include in it.

Information collected automatically

• Device and application data: device model, operating system version, App version, language, and time zone.
• Log and diagnostic data: crash reports, error traces, latency measurements, and feature interaction events.
• Network data: IP address, from which approximate city- or country-level location may be inferred.

Information read from public sources

To display your positions, collateral, order history, and profit and loss, the App reads publicly available on-chain state and third-party market data. That information originates with blockchain networks, protocol contracts, oracles, and data providers — not with us.

What we never handle

Private keys. Recovery phrases. Wallet passwords. Device passcodes or biometric data. These are not transmitted to us under any circumstances, which is why we cannot trade on your behalf and cannot be compelled to disclose them.

3How We Use It

• To operate the interface: constructing transactions, rendering positions and order history, and computing indicative margin and liquidation figures.
• To deliver the alerts and notifications you have configured.
• To diagnose faults, measure performance, and improve the reliability and usability of the trading features.
• To detect, investigate, and prevent fraud, abuse, and security incidents.
• To respond to your support requests.
• To understand aggregate usage patterns, using aggregated or de-identified data.
• To comply with legal obligations and to establish, exercise, or defend legal claims.

We do not sell personal information, and we do not share it for cross-context behavioral advertising, as those terms are defined under California law.

4What Happens Automatically

Several processes relevant to your positions run without human involvement: funding accrual, margin-ratio recalculation, liquidation triggering, and order matching. These are mechanics of the third-party protocols you trade on, executed by smart contracts and keepers. They are not decisions we make about you, and no profiling of you is involved.

On our side, automated systems flag anomalous or potentially fraudulent activity and prioritize support requests. These support human judgment rather than replace it. Where applicable law grants you a right to obtain human review of a decision producing legal or similarly significant effects, you may exercise it at privacy@newone.xyz.

5The Blockchain Factor

Anything recorded on-chain is permanent and public. Your wallet address, collateral deposits and withdrawals, position openings and closings, liquidations, and every fee paid are written to the network by the network. Third parties routinely index this data and may associate addresses with real-world identities using techniques we neither control nor participate in.

A deletion request we honor clears our off-chain records only. It cannot and will not remove anything from a blockchain. Understand this before you transact; it cannot be undone afterward.

6How Long We Keep Things

• On-chain data: permanent, and outside our control entirely.
• Off-chain records relating to trading activity and support: retained for as long as necessary for the purposes described above, and for any longer period required to comply with a legal obligation or to defend a legal claim.
• Diagnostic, crash, and usage data: retained for a limited period measured in months rather than years.
• Support correspondence: retained for the period necessary to handle your matter and any related dispute.

When information is no longer needed, we delete it or irreversibly anonymize it.

7Who Else Is Involved

Signed transactions are broadcast to the nodes and validators of the relevant blockchain network; that is inherent to using a blockchain. Beyond this, we disclose information only:

• To service providers who process it on our behalf under contractual confidentiality and security obligations, such as hosting, analytics, crash reporting, and support vendors.
• To third-party protocols and data providers, limited to what is technically necessary for an interaction you initiate.
• To law enforcement, regulators, or other authorities where required by law or where we believe in good faith that disclosure is necessary to comply with a legal obligation or to protect rights, safety, or property.
• To a counterparty in connection with a merger, acquisition, financing, or sale of assets, subject to this Statement continuing to apply.
• To anyone else, with your consent or at your direction.

We do not supply user data to oracle providers, and we do not provide any third party with the ability to control or transact from your wallet.

8Your Rights and Choices

Under the California Consumer Privacy Act as amended by the California Privacy Rights Act, and under comparable statutes in Virginia, Colorado, Connecticut, Utah, Texas, Oregon, Montana, and other states, you may have the right to know, access, correct, delete, and obtain a portable copy of personal information we hold, to opt out of its sale, sharing, or use for targeted advertising — none of which we engage in — to limit the use of sensitive personal information, and not to be discriminated against for exercising any of these rights.

Independently of any statutory right, you may at any time review your position and order history directly on-chain, revoke token approvals you have granted to any protocol using the App's approval manager or any block explorer, and stop using the trading features without affecting your control of your assets.

To make a request, contact privacy@newone.xyz. We will verify it by reasonable means before acting, and you may use an authorized agent where the law permits. Where your state provides a right to appeal a denied request, you may appeal by replying to our response; we will inform you of the outcome and of your right to contact your state attorney general.

9Get in Touch

Privacy questions, requests, and complaints: privacy@newone.xyz. Please include "Privacy" in the subject line so your message is routed correctly. General support: support@newone.io.

We aim to acknowledge privacy requests within ten (10) business days and to respond substantively within the period required by the law applicable to you.

10Updates to This Statement

We may update this Statement to reflect changes in our practices or in the law. The effective date shown on this page always identifies the current version. Where a change is material, we will provide prominent notice through the App or the Site before it takes effect.

1Before You Start

PERPETUAL FUTURES ARE AMONG THE HIGHEST-RISK INSTRUMENTS AVAILABLE TO RETAIL PARTICIPANTS. IT IS ENTIRELY POSSIBLE — AND, FOR A LARGE PROPORTION OF PARTICIPANTS, USUAL — TO LOSE EVERY DOLLAR OF COLLATERAL COMMITTED TO A POSITION. ON SOME PROTOCOLS IT IS POSSIBLE TO LOSE MORE THAN THAT.

Only trade with money whose complete and immediate loss would not change your circumstances. Do not trade with borrowed funds, with money you need for living expenses or obligations, or with money you cannot afford to write off today.

This Statement describes the principal risks. It is not exhaustive, and no document can anticipate every way a leveraged position can fail. If you do not understand a risk described below, do not trade until you do.

2Leverage Amplifies Everything

Leverage multiplies both the gain and the loss produced by a given price move. At 10x, a 1% adverse move erases 10% of your margin; at 25x, a 4% adverse move erases all of it; at 50x, 2% does; at 100x, a move of roughly 1% is sufficient. Maintenance margin requirements and fees mean liquidation arrives before the theoretical figure, not at it.

Assets routinely move several percent within minutes. Higher leverage therefore does not merely increase your potential return — it compresses the distance between your entry and your liquidation to a band that ordinary intraday noise will cross. The cushion you are trading against is the only thing standing between your position and total loss.

If you are new to these products, use the lowest leverage available and the smallest size you can, for long enough to observe how funding, fees, and volatility behave against real capital.

3Liquidation Risk

When your position's equity falls to the maintenance margin threshold, the protocol closes it automatically. You will not be consulted, you may not be notified in time, and the closure may complete within a single block.

• Liquidations cluster. In a sharp move, many positions are liquidated at once, and the resulting forced selling or buying accelerates the move that triggered them.
• A liquidation typically costs you all margin allocated to the position, plus a liquidation penalty retained by the protocol or paid to the liquidator.
• Attempting to add margin during a fast move requires an on-chain transaction. If the network is congested, if your gas price is too low, if the sequencer is degraded, or if your transaction reverts, you will be liquidated while trying to prevent it.
• Under cross margin, a liquidation is not contained to one position. Losses draw on the whole collateral balance and can cascade through positions you believed were unrelated.

Stop-loss orders are not a defense against this. They depend on keepers and off-chain infrastructure, may not trigger, and in a gap or a thin book may fill far below the level you set.

4Mark Price, Oracles, and Price Data

Your margin and your liquidation are calculated from the protocol's mark price, which is derived from an oracle or composite index rather than from the last trade you observed. Mark price and observed price diverge regularly and, at times, materially.

• Oracle updates arrive at intervals or on deviation thresholds. Between updates, the mark price is stale, and your true risk may be worse than the App displays.
• Oracle infrastructure can fail, halt, report an erroneous value, or be manipulated. Positions have been liquidated by transient oracle spikes that reflected no genuine market move, and protocols have been drained by attackers who moved a thin reference market deliberately.
• Different protocols use different oracles and different index compositions. A position that is safe on one venue may be liquidated on another at the same moment.
• Decentralized oracle networks reduce single-point manipulation risk but do not eliminate it, and they add their own liveness and latency dependencies.

Any price, chart, or index shown in New One is indicative and may lag or differ from the value the protocol actually uses. Never size a position on the assumption that the two agree.

5Market Conditions

Digital asset markets operate continuously, including nights, weekends, and holidays, and they are not subject to the circuit breakers, position limits, or trading halts common in regulated derivatives markets. Prices can move double digits in minutes on news, liquidation cascades, or a single large order.

Liquidity is not constant. Order books thin out precisely when volatility is highest, widening spreads and increasing slippage. A position that can be closed instantly in calm conditions may be closable only at a materially worse price, or not at all, when you most need to close it. Past performance of any asset, strategy, or protocol tells you nothing about future results.

6Funding Rates

A perpetual contract has no expiry, so a funding payment is exchanged between longs and shorts — typically every one to eight hours — to keep the contract price aligned with the index. If the rate is positive, longs pay shorts; if negative, shorts pay longs.

• Funding is set by market imbalance and can change every interval. It is not predictable and is not capped in your favor.
• During periods of strong directional sentiment, funding can reach levels that annualize into triple digits. Holding the crowded side of such a market is expensive even when your directional view proves correct.
• Depending on the protocol, funding may be debited continuously from your margin — moving your liquidation price against you while you hold — or accrued and settled on close, producing a realized loss larger than the price move alone suggests.
• Funding paid or received is exchanged with other traders. It is not a fee we charge and not a fee we can waive.

Check accumulated funding regularly on any position held longer than a few hours.

7Protocol and Counterparty Risk

Once you deposit collateral into a third-party protocol, its safety depends entirely on that protocol. CRYPTO FUND LLC is not the counterparty, does not hold the collateral, and provides no backstop, insurance, or guarantee of any kind.

• A protocol may be exploited, drained, or rendered insolvent. Audits reduce this risk; they do not remove it, and many exploited protocols were audited.
• A protocol's insurance fund or backstop pool may be exhausted. Where a protocol represents that accounts cannot go negative, that representation is the protocol's, made under its own conditions, and we neither verify nor stand behind it.
• Administrative keys, upgradeable contracts, multisigs, and governance processes can change parameters, pause markets, restrict withdrawals, or alter contract logic — sometimes without notice and sometimes adversely to open positions.
• Liquidity providers may withdraw at any time. Markets may be delisted, and open positions may be force-settled at a price you did not choose.
• Positions and collateral held in a protocol are not deposits, are not client money, and carry no government insurance or investor-compensation protection of any kind.

8Auto-Deleveraging and Socialized Loss

When a liquidation cannot be executed above the bankruptcy price, a shortfall arises: the losing position owes more than its collateral covers. Every perpetuals venue must allocate that shortfall to someone. The mechanisms in common use are:

Insurance fund

A pool funded by liquidation penalties absorbs the shortfall. It works until the pool is depleted, which has happened during extreme moves on major venues.

Auto-deleveraging (ADL)

The protocol forcibly closes profitable positions on the opposite side — typically ranked by profit and leverage — to offset the deficit. A correct, profitable, fully margined position can be closed against your will, at a price you did not choose, at the worst possible moment. No action on your part prevents this.

Socialized loss

The deficit is spread across all profitable traders, or across liquidity providers in a pooled-counterparty design, by reducing their balances pro rata.

Negative balance

Some designs leave the deficit attributed to the liquidated account, so that the account owes more than it deposited.

Which of these applies to you is determined by the protocol you have chosen, and a protocol may change its mechanism. Some protocols advertise that they do not use ADL; that claim depends on the continued adequacy of their backstop and is not a guarantee. Read the protocol's own documentation before you commit collateral — we do not warrant any statement it makes.

9Technology and Smart Contract Risk

Trading here depends on a stack of components, each of which can fail: your device, our application, RPC and node providers, the blockchain network and its sequencer, bridges, oracles, keepers and relayers, and the protocol's own smart contracts.

• Smart contracts execute exactly as written, including their bugs. Deployed code frequently cannot be corrected in time.
• Networks congest, fork, reorganize, or halt. Layer-2 sequencers have gone offline for extended periods, during which positions could be neither adjusted nor closed while liquidation logic continued to operate.
• Transactions may revert, be dropped, or be delayed while still consuming gas. A failed close is not a close.
• Transactions are visible in the mempool before inclusion, exposing them to front-running, sandwiching, and other extractive ordering.
• Our own interface may be unavailable, display stale data, or contain defects. It is built for reliability, but no software is free of error, and you must be prepared to interact with a protocol directly if you cannot reach it through New One.

10Regulatory and Legal Risk

The regulation of digital assets and of on-chain derivatives is unsettled and changing rapidly in every major jurisdiction. Perpetual futures are restricted or prohibited for retail participants in a number of countries, and enforcement positions continue to develop in the United States.

A change in law, regulation, or enforcement policy may restrict or eliminate your ability to access a protocol, may cause a protocol to block addresses or geographies, may force positions to be closed, or may change the tax treatment of your activity retroactively. You are responsible for determining whether your participation is lawful where you are, and for the consequences if it is not.

11Other Things to Know

Stablecoin risk

Collateral is usually denominated in a stablecoin designed to hold a one-to-one peg with the U.S. dollar. No stablecoin is risk-free. Pegs have broken. Issuers face reserve, banking, redemption, and regulatory risk, and issuers of centralized stablecoins can freeze addresses. A depeg affects your collateral value, your margin ratio, and your liquidation price simultaneously.

Self-custody risk

You alone hold your recovery phrase. If it is lost, your collateral and positions are unreachable permanently. If it is obtained by another person, they can close your positions and take your collateral. There is no reset, no recovery, and no insurance.

Approval risk

Trading requires granting token approvals to protocol contracts. An unlimited approval to a contract that is later exploited or upgraded adversely can drain the approved balance. Review and revoke approvals you no longer need.

Operational and behavioral risk

Selecting the wrong market, direction, size, or leverage; mistaking a mark price for a last price; or trading under time pressure, fatigue, or loss-chasing pressure are ordinary causes of total loss. Leverage punishes these mistakes immediately and permanently.

No advice

Nothing in New One — no default, no preset, no chart, no metric, and no educational material — is investment advice, a recommendation, or an opinion that any transaction is suitable for you. Consider obtaining independent professional advice before you trade.

12Your Confirmation

By using any perpetual trading feature of New One, you confirm that:

• You have read and understood this Risk Disclosure Statement in full.
• You understand that perpetual futures are leveraged instruments and that you may lose all collateral committed to a position, rapidly and without warning.
• You understand that liquidation is automatic, is driven by a protocol's mark price, and cannot be prevented, delayed, or reversed by CRYPTO FUND LLC.
• You understand that CRYPTO FUND LLC provides software and an interface only; that it is never your counterparty, custodian, broker, or adviser; and that it never holds your keys, collateral, or positions.
• You understand that any protection offered by a third-party protocol — an insurance fund, a coverage check, a stated absence of auto-deleveraging — is that protocol's representation, is not verified or underwritten by us, and is not a guarantee against loss.
• You are trading only with funds whose complete loss you can bear, and you accept full responsibility for every transaction you sign.

If any of the above is not true of you, do not use these features. Questions about this Statement may be sent to support@newone.io.