CLIFF Risk Disclaimer & System Acknowledgments

Last updated: May 2026

1. System Overview

CLIFF is a personal automated trading system operated by Sellout Labs. It executes a deterministic, rules-based strategy on Hyperliquid perpetual futures via API wallet.

The trading strategy is fully algorithmic. Signal detection, position sizing, entry, exit, and risk management are governed by fixed parameters.

2. Execution

The system executes trades on:

• Hyperliquid — gasless execution, Hyperliquid oracle pricing, ~2bps fees

Markets: ETH, BTC, SOL, DOGE, NEAR, OP perpetual futures.

Execution costs: Hyperliquid trading fees (~2bps) and slippage are incurred during normal trading operations. Hyperliquid is gasless — there are no gas costs.

3. Risk Acknowledgment

The following risks are acknowledged:

• Market risk: Crypto perpetual futures are highly volatile. Leveraged trading amplifies both gains and losses. Total loss of funds is possible.
• Platform risk: Hyperliquid may experience bugs, exploits, or platform failures that could result in loss of funds.
• Oracle risk: Hyperliquid uses its own oracle for pricing. Oracle manipulation or failure could cause unexpected liquidations or mispricing.
• Liquidation risk: Leveraged positions may be liquidated by Hyperliquid, resulting in total loss of the position value.
• Protocol risk: Hyperliquid or related infrastructure may experience downtime, exploits, governance changes, or liquidity crises.
• Software risk: The trading engine is automated software that may contain bugs, experience connectivity failures, or behave unexpectedly in market conditions not represented in historical data.
• Infrastructure risk: Downtime, bugs, or key compromise could result in missed trades, stuck positions, or suboptimal execution.
• Regulatory risk: The regulatory status of DeFi protocols, crypto derivatives, and automated trading systems may change.

4. No Guarantees

Past backtest results, walk-forward validation metrics, and historical performance data describe the system's behavior on historical data. They are not promises, projections, or guarantees of future performance. The strategy may underperform, lose money, or fail entirely in live market conditions.

5. Software Disclaimer

THE SOFTWARE IS PROVIDED "AS-IS" WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

The CLIFF trading engine is proprietary software. No representation is made that it is free of bugs, vulnerabilities, or errors.

6. Operator Responsibilities

• The operator is solely responsible for determining the legality of running this system in their jurisdiction.
• The operator is solely responsible for any tax obligations arising from trading activity.
• The operator is responsible for securing wallet private keys and infrastructure.
• Only capital that can be afforded to lose entirely should be deployed.

7. Governing Law

This disclaimer shall be governed by and construed in accordance with the laws of the State of Delaware, United States.