Risk Disclosures

Read carefully before using Perpify.

1. High Risk of Loss

Trading perpetual futures and other leveraged financial instruments involves substantial risk. Cryptocurrency, equity, index, commodity, and foreign exchange markets can experience rapid and unpredictable price movements.

Leverage can magnify the effect of even a small price movement. In a live leveraged trading environment, losses can consume collateral quickly and may result in forced position closure or liquidation.

Perpify accounts use simulated trading. The account balances and trading results displayed within Perpify are simulated and are not the same as funds held in a live brokerage or exchange account.

However, simulated trading performance may determine whether you qualify for real performance-based payouts under the applicable Perpify program rules. Account fees are real payments, and payout eligibility is not guaranteed.

Only purchase an account if you understand the program rules, the possibility of losing access to the account, and the possibility of receiving no payout.

2. Leverage and Exposure

Leverage allows a trader to control a larger simulated position relative to the margin allocated to that position.

Higher leverage can increase exposure relative to available margin, making account equity more sensitive to adverse price movements.

For example, a leveraged position may experience a substantial percentage loss relative to its allocated margin following a relatively small movement in the underlying market price.

The effect depends on position size, entry price, direction, contract specifications, fees, funding adjustments, and the platform's risk calculations.

Perpify applies market-specific leverage limits. The maximum available leverage may differ between cryptocurrencies, indices, equities, commodities, and foreign exchange instruments. The maximum displayed for one market must not be assumed to apply to another.

Leverage does not make a trade more likely to succeed. It increases exposure and can cause account limits to be reached more quickly.

3. Liquidation and Account Breach

3.1 Simulated account limits

Perpify applies account-specific risk rules that may require positions to be closed and trading access to be disabled when a defined threshold is reached.

For Instant Accounts, the static maximum drawdown is 4% of the original account balance. The threshold does not trail upward as the account generates profits.

For Evaluation Accounts, the applicable evaluation rules include a 6% static maximum drawdown and a 3% daily loss limit. Accounts that graduate from the Evaluation Program remain subject to the applicable funded-account drawdown and daily loss rules.

The exact rules for each account type are described in the relevant account agreement and program documentation.

3.2 Equity and unrealized losses

Account risk may be measured using equity, which includes the account balance and open profit or loss.

An account may therefore breach a risk limit because of unrealized losses, even if the affected positions have not yet been closed.

Commissions, funding adjustments, and other applicable charges may also affect account equity and risk calculations.

3.3 Simulated closure versus live liquidation

Perpify uses a simulated execution engine. A simulated position closure or account breach is not a liquidation executed by Hyperliquid or another exchange on your behalf.

The platform may close simulated positions and disable an account in accordance with its rules. Reference prices, execution assumptions, and technical conditions can affect the recorded outcome.

A breach may permanently end your ability to trade that account. A later market movement does not automatically restore a breached account.

4. Funding Payments and Trading Costs

Perpetual contracts may use funding payments to help align contract prices with the relevant underlying market.

Depending on the instrument and the applicable funding mechanism, funding may represent a cost or a credit for a position. Funding rates can change, and repeated funding adjustments can materially affect trading results over time.

Perpify uses simulated trading and published execution rules. Any funding amounts shown or applied to a Perpify account are simulated account adjustments and should not be interpreted as proof that a real funding payment was made to or received from an exchange.

4.1 Commission-free trading and hourly funding

New simulated fills have no entry, exit, maker/taker or trading-profit commission. Historical commission records are retained and are not refunded or rewritten by this prospective change.

Funding uses genuine preceding-hour oracle and impact-depth premium observations at UTC hourly boundaries. Matched opposing exposure within the same product group can transfer simulated funding; unmatched exposure is not debited or credited. Missing coverage remains pending, never fabricated or replaced with a current rate for earlier hours. Crypto parameters are 10.95% annual interest and 24-hour normalization; other reference classifications remain disabled until verified. The annual-interest parameter is not a promised return or fixed account-balance fee.

Genuine spread, slippage, posted funding and historical charges can affect performance, drawdown and payout eligibility. Payment-provider, conversion, network and withdrawal costs remain separate.

Hourly funding is active on verified crypto markets. Other markets remain unfunded until their reference classifications are confirmed.

4.2 Other adjustments

Additional disclosed adjustments may affect simulated account results. Traders should review the Fees page and applicable account rules before trading.

A positive gross trading result does not necessarily represent eligible net profit.

5. Market and Liquidity Risk

Financial markets can be volatile, particularly during major economic announcements, earnings releases, unexpected news, geopolitical developments, and periods of reduced liquidity.

Cryptocurrency markets may trade continuously, including weekends and holidays. Other instruments may follow different trading hours, trading sessions, and holiday schedules.

Potential market risks include:

• Rapid and unpredictable price movements.
• Gaps between observed prices.
• Reduced liquidity and wider spreads.
• Slippage between expected and recorded execution prices.
• Sudden changes in volatility.
• Market interruptions or unavailable reference prices.
• Differences between an instrument's reference price and prices on other venues.

Perpify uses Hyperliquid market data as a reference for its simulated trading environment. Reference prices may differ from prices available on other platforms, and data delays or interruptions may affect simulated execution.

Market data from one venue does not guarantee that the same price, liquidity, or execution would be available elsewhere.

6. Simulated Trading Risks

Perpify accounts are simulated trading accounts. Orders submitted through Perpify are processed by its simulated execution engine and are not sent to Hyperliquid or another exchange for execution.

Simulated trading has limitations that may differ from live trading, including differences in order execution, liquidity, slippage, fills, market impact, funding calculations, and trading conditions.

A simulated trading result does not establish that the same result could be achieved in a live account.

6.1 Simulated balances

The account size shown on the platform represents simulated buying power. It is not cash deposited into a brokerage account or money held in custody for the trader.

Simulated profits are not automatically withdrawable funds. Any performance-based payout is subject to the applicable eligibility requirements, account rules, and payout review.

6.2 Performance limitations

Past simulated performance does not guarantee future performance. A profitable simulated trading history does not establish that a trader will continue to be profitable or qualify for future payouts.

Traders should not make financial commitments based on an assumption that a particular trading result or payout will occur.

7. Technology and Third-Party Risks

Perpify depends on software, hosting infrastructure, market-data services, payment providers, and other third-party systems.

These services may experience outages, delays, errors, maintenance periods, or interruptions beyond Perpify's direct control.

Potential risks include:

• Trading terminal or account-dashboard outages.
• Delayed, stale, or unavailable market data.
• Failed or delayed simulated order processing.
• Incorrect or delayed display of account metrics.
• Payment confirmation or account-provisioning delays.
• Delayed payout processing.
• Security incidents or unauthorized access.
• Network connectivity or browser-related problems.

Perpify may suspend trading, reject orders, investigate discrepancies, or correct verified platform errors in accordance with its published rules.

Traders should not assume that an order has been accepted, a trade has closed, or a payout has been completed solely because of a displayed message or an action initiated in the interface. Where possible, verify the resulting status in the account records.

8. Cryptocurrency and Blockchain Risks

Where Perpify supports cryptocurrency payments or payouts, transactions may involve blockchain networks and external payment providers.

Cryptocurrency transactions carry risks that may include:

• Sending funds to an incorrect wallet address.
• Selecting an unsupported blockchain network.
• Network congestion and confirmation delays.
• Transaction fees that vary with network conditions.
• Transfers that cannot be reversed after confirmation.
• Payment-provider interruptions or restrictions.
• Changes in the value of cryptocurrency before conversion or settlement.

A transaction sent through the wrong network or to an incompatible address may be delayed or permanently unrecoverable.

You are responsible for checking the supported asset, destination address, and network before confirming a transaction.

Blockchain confirmation and wallet-crediting times are not necessarily controlled by Perpify.

9. Payout and Counterparty Risk

Perpify payouts are conditional on eligible net profit and compliance with the applicable program rules.

A positive simulated balance does not guarantee a payout. Requests may require account verification and review of trading records, fees, account status, and prohibited-conduct rules.

Payout timing may be affected by review requirements, payment-provider availability, blockchain conditions, or other operational issues.

A trader should not assume that a requested payout has been approved or paid until the applicable status is confirmed.

Purchasing an Instant Account or Evaluation Account does not create a personal brokerage account or confer ownership of the simulated account balance.

10. Regulatory and Jurisdictional Risk

Laws and regulatory requirements concerning leveraged products, cryptocurrency derivatives, simulated trading programs, and performance-based compensation vary by jurisdiction and may change.

Some services may be unavailable or restricted in certain locations. Perpify may limit access where required by applicable law or its eligibility policies.

You are responsible for determining whether you are legally permitted to access and use the services in your jurisdiction. Perpify's availability through a website does not mean every product is legally available to every person.

Nothing in this disclosure represents a legal determination that Perpify's services are suitable or permitted in every jurisdiction.

11. No Financial Advice or Guaranteed Results

Perpify's platform, market data, charts, account metrics, educational material, and other information are provided for informational or service-related purposes.

They do not constitute personalized investment, financial, legal, tax, or trading advice.

Perpify does not guarantee that you will make a profit, pass an evaluation, maintain an account, or receive a payout.

You are responsible for your trading decisions and should seek independent professional advice where appropriate.

12. Risk Management and Trader Responsibility

Before using Perpify, you should:

• Understand the applicable account rules and drawdown thresholds.
• Review market-specific leverage limits and trading costs.
• Consider how adverse price movements may affect account equity.
• Avoid relying on unrealized profits to satisfy payout requirements.
• Review the Payout Policy before purchasing an account.
• Understand that simulated results may differ from live-market results.
• Use only funds you can afford to spend on the purchase fee.
• Stop trading if you do not understand the risks or the platform's rules.

Trading leveraged instruments can be complex and may not be suitable for everyone.

Acknowledgment

By accessing Perpify, you acknowledge that you have had the opportunity to review these risk disclosures and understand that the platform provides simulated trading services rather than live exchange execution.

These disclosures are not exhaustive. They should be read together with the Perpify Terms of Service, Funded Trader Agreement, applicable Evaluation Program rules, Fees schedule, Refund Policy, and Payout Policy.

This document is a draft and should be reviewed by qualified legal counsel before publication in each applicable jurisdiction.