Risk Disclosure

Last updated: August 20, 2026

Trading event contracts is speculative and involves substantial risk. You can lose the entire amount committed to a position, together with applicable fees. Do not trade with money you cannot afford to lose.

1. EPICK's role

Event contracts displayed in the EPICK App are listed, traded, cleared and settled by ProphetX LLC. EPICK provides a software interface. EPICK does not operate the exchange, take the other side of a trade, hold customer funds, or execute, modify, cancel or settle orders.

EPICK is not registered with the CFTC or NFA and is not a broker, futures commission merchant, introducing broker or commodity trading advisor.

2. No advice

Market data, educational content, filters, sorting, search, trending indicators and general commentary are informational and user-directed. They are not investment, legal or tax advice, and they are not a recommendation to enter a transaction.

3. Important risks

  • A position may settle at zero, resulting in loss of the full amount committed.
  • Market prices can move quickly and unexpectedly.
  • Liquidity is not guaranteed, and you may be unable to enter or exit at a desired price or quantity.
  • Settlement follows ProphetX rules and designated sources and may differ from your expectation.
  • Contracts may be suspended, adjusted, liquidated or voided under applicable rules.
  • Device, network, EPICK, ProphetX or third-party system failures may delay or prevent instructions or display incorrect or delayed information.
  • Fees reduce returns. ProphetX charges 2% of net gains per market on straight trades, while parlay taker fees follow ProphetX's current probability-based schedule.
  • Regulatory or judicial developments may change contract availability, trading access or treatment of open positions.

Past performance does not indicate future results. Research and skill do not eliminate risk.

4. Funds

ProphetX states that participant funds are held in segregated accounts and not commingled with operating capital. Segregation is not a representation by EPICK that funds are insured by the FDIC or protected by SIPC.

5. ProphetX required risk disclosure

The following risk disclosure is provided by ProphetX LLC (Risk Disclosure Statement v1.0, June 10, 2026):

Important – Read Carefully

The risk of loss in trading derivative instruments through ProphetX LLC (“ProphetX”) can be significant. Before engaging in such trading, you should carefully evaluate whether participation is suitable for you, considering your experience, objectives, financial condition, and other relevant factors. You are responsible for reviewing and understanding all information presented in this risk disclosure statement.

This statement does not—and cannot—cover every risk or consideration relevant to trading through ProphetX. You are strongly encouraged to ensure that you fully understand all applicable risks and to seek independent financial, legal, or tax advice if you have any doubts before engaging in derivatives trading.

ProphetX has prepared this statement in straightforward language to help you recognize the potential risks involved in using ProphetX’s electronic direct-access trading system and in trading the derivative instruments offered. Nevertheless, no disclosure document—this one included—can outline every possible risk or scenario you may face.

You should not participate in trading through ProphetX unless you fully understand the nature of the transactions, the mechanics of the instruments, and the scope of potential exposure.

Trading in derivatives is not appropriate for many members of the public. You must make an independent determination of whether such activity is right for you in light of your particular circumstances.

There are risks not only in the structure of the instruments themselves but also in the trading system and environment in which they are transacted. Because ProphetX provides direct trading access, you must take the time to carefully review this Risk Disclosure Statement, the descriptions of the instruments offered (including their terms, conditions, payout criteria, and expiration features), and all other governing ProphetX agreements and rules.

Inherent risks of trading derivative instruments on ProphetX

The instruments available through ProphetX involve a high degree of risk and may not be suitable for all participants. Depending on the structure of a given instrument, payouts may be fixed, variable within a specified range, or contingent upon certain criteria being met.

If settlement conditions are not satisfied for your position at expiration, the instrument may expire without value, causing you to lose your entire investment.

Remember: You may sustain a total loss of the funds you commit to a position

Other notable risks include, but are not limited to:

  • Liquidity risk – Instruments may not always have sufficient market depth. You may be unable to open, adjust, or close positions at desired prices or in desired quantities.
  • Underlying market disruptions – If the reference asset, index, or other benchmark is altered, discontinued, or subject to unexpected events, ProphetX may adjust or terminate the instrument, potentially resulting in outcomes that differ from your expectations.
  • Settlement risk – The mechanics of settlement may be delayed, altered, or unclear, which could lead to losses or disputes.
  • Market event risk – Volatile or unforeseen moves in the underlying market can significantly impact valuation and payouts. ProphetX may or may not intervene by halting trading.
  • Funding and margin risk – Margin calls or increased requirements may obligate you to provide additional funds on short notice. Failure to meet these obligations may lead to the liquidation of positions and further liability.

Certain derivatives transactions that reference an occurrence, extent of an occurrence, contingency or condition not tied to a physical or financial commodity may be affected by evolving federal or state regulatory actions, pending or potential litigation, or enforcement proceedings that could alter, restrict, or terminate the availability, listing, or clearing of such contracts.

ProphetX monitors these developments and maintains contingency planning, risk management policies, and disclosure procedures consistent with applicable Commodity Futures Trading Commission (“CFTC”) regulations and staff guidance.

Such actions may occur without prior notice and could result in the suspension or forced liquidation of open positions or changes in settlement or payout processes. In such circumstances, the disposition of market participant funds and property may be impacted, and losses may occur.

ProphetX will provide accurate and complete information concerning these risks and will update disclosures as necessary to remain current and not misleading. Market participants should understand that regulatory or judicial developments may require ProphetX or its service providers to modify business operations, rules, or systems in ways that affect trading access or open positions.

You are encouraged to review all updates, remain informed of material legal and regulatory changes, and consider these potential impacts when evaluating your participation in derivatives transactions through ProphetX.

Risks of electronic trading

Electronic markets rely on technology, including hardware, software, connectivity, and external power systems. Any of these components can fail or malfunction. In the event of system outages, you may be unable to place, modify, or cancel orders. While ProphetX maintains safeguards, severe disruptions may result in lost data, delayed processing, or order execution errors. ProphetX assumes no responsibility for losses or damages resulting from such events.

Third-party information

ProphetX may provide or display data from independent third-party providers, such as price quotes, indices, or market commentary. ProphetX does not endorse, warrant, or guarantee the accuracy, timeliness, or completeness of any third-party information. Reliance on such information is at your own risk.

6. Help and questions

If trading is affecting your finances, relationships, work or wellbeing, see the Responsible Trading Policy. Questions about your account, funds, executions or settlement belong to the ProphetX Help Center.