Required Agreement for Investment Security Risk, Derivative Execution & Software Usage

CRITICAL CAPITAL LOSS WARNING: Trading stocks, broad-based index options, and derivative contracts involves substantial risk of loss and is not suitable for every investor. In naked short options positions and zero-days-to-expiration ("0DTE") credit spreads, losses can substantially exceed your entire cash investment and brokerage account equity in a matter of minutes.

You acknowledge and agree that this combined Risk Disclosure Statement & Short Options / 0DTE Multi-Broker Addendum is an express condition precedent to using Trade Automation Toolbox ("TAT") and is formally incorporated by reference into the Terms of Use.

Part I: Short Options & Same-Day Expiration (0DTE) Covenants & Disclaimers

To enable trading short options, spreads, and automated order execution features within Trade Automation Toolbox, you affirmatively represent, warrant, covenant, and agree to the following eight (8) mandatory derivative risk covenants:

1. Extensive Practical Experience & Sophistication: I represent and warrant that I have extensive practical experience trading multi-leg options strategies, understanding Greeks (particularly Delta and Gamma acceleration), and managing complex derivative margin requirements. I understand that short options are volatile instruments that require sophisticated technical competence.

2. Risk of Unlimited / Catastrophic Loss: I acknowledge and understand that short option positions are subject to extreme tail risk, overnight gap risk, and intraday liquidity evaporation, and that losses can exceed my deposited capital, resulting in immediate margin deficit liabilities and forced broker liquidations.

3. 0DTE Extreme Volatility & Gamma Risk: I acknowledge that same-day expiring options (0DTE) exhibit extreme price sensitivity. Market movements during economic data releases (e.g., CPI, PPI, Jobs Reports), Federal Reserve announcements, or sudden market dislocations can cause option values to move against my position faster than stop orders can be routed or filled.

4. Continuous Active Monitoring Duty: I covenant that I will personally, actively, and continuously monitor all positions, orders, and stop-loss mechanisms opened or managed via TAT throughout the entire trading day. I understand that TAT is a local execution tool and is not an autonomous investment manager. I agree that relying on "hands-off autopilot" trading is strictly contrary to TAT’s terms and design.

5. No Buying Power or Margin Monitoring by TAT: I acknowledge that TAT does not calculate, monitor, or verify available margin or buying power in my brokerage account. TAT strictly routes the parameters and position sizes that I configure or trigger. I am solely responsible for ensuring my account maintains sufficient margin.

6. Comprehensive Multi-Broker Exculpation, Liability Harmonization & Savings Clause: Without limiting Section 25 (Limitations of Liability) or Section 26 (Indemnification) of the Terms of Use, and to the maximum extent permitted by applicable law, Trade Automation Toolbox, LLC, its officers, members, employees, and software developers shall not be held liable under any legal theory for any trading losses, missed profits, or consequential damages resulting from short options positions, derivative executions, or automated order placements, regardless of the cause, including, but not limited to:

• Failure, delay, or rejection of any order, limit price, stop order, or StopMarket order;
• Market liquidity gaps causing executions at prices materially inferior to the stop trigger price ("slippage");
• Broker API disconnections, rate limits, or margin rejections;
• Hardware, local operating system, power, or internet connectivity failures; or
• Unexpected behavior, system downtime, maintenance, or API breaking changes by TAT or any executing broker or platform, including Interactive Brokers LLC (Trader Workstation / Client Portal API), Tradier Brokerage, Inc., TradeStation Securities, Inc., Charles Schwab & Co., Inc., Tastytrade, Inc. (formerly tastyworks), and their respective affiliates, successors, and clearing firms, or any other connected brokerage or API endpoint.

Mandatory Savings Carve-Out: Nothing in this Section or Addendum limits or excludes liability that cannot be excluded or limited under applicable law, including liability resulting from gross negligence, willful misconduct, or intentional fraud, nor does it waive, limit, or affect any non-waivable statutory rights or remedies available to you under applicable federal or state securities or commodities laws, including Section 29(a) of the Securities Exchange Act of 1934 (15 U.S.C. § 78cc(a)) and analogous provisions of the Commodity Exchange Act.

7. Assumption of Risk for External Signals & Webhooks: If I configure TAT to accept external signals or webhooks from any third party (including commercial signal vendors, trading chatrooms, algorithms, or newsletters), I assume 100% of the risk associated with such signals. I acknowledge that TAT does not review, verify, validate, or endorse third-party signals, and I agree to indemnify and hold harmless Trade Automation Toolbox, LLC from any losses or claims arising from third-party webhook instructions or imported configuration templates.
This covenant supplements, and does not limit, Section 23 (including Sections 23.4 and 23.5) of the Terms of Use.

8. Broker Margin Account Relationship: I expressly acknowledge and agree that Trade Automation Toolbox, LLC is not a broker-dealer, bank, credit provider, or fiduciary. TAT does not open, approve, underwrite, guarantee, monitor, calculate, verify, or have any involvement whatsoever in my brokerage margin account, margin requirements, buying power, credit eligibility, intraday margin deficits, or any similar account restrictions or obligations. All margin requirements, intraday margin calculations, credit freezes, account restrictions, margin calls, liquidations, and related obligations are governed exclusively by my broker's account agreement and applicable regulations. I understand that my broker alone is responsible for monitoring my margin compliance and taking any necessary corrective action. TAT disclaims all liability arising from any broker margin call, account restriction, liquidation, freeze, or any other action taken by my broker in connection with my margin account or credit facilities.

Part II: General Risk Disclosures & Technical Disclaimers

1. Options Trading & OCC Characteristics Document

Options trading generally is not appropriate for someone of limited resources and/or limited investment or trading experience. A complete discussion of the characteristics and risks of exchange-traded options is available in the Options Clearing Corporation’s ("OCC") disclosure document entitled Characteristics and Risks of Standardized Options, available at: https://www.theocc.com/about/publications/character-risks.jsp.

2. Multi-Broker API & Execution Gateway Risk

Trade Automation Toolbox connects to third-party broker-dealers via proprietary and public Application Programming Interfaces (APIs), including Interactive Brokers LLC (Trader Workstation and Client Portal API), Tradier Brokerage, Inc., TradeStation Securities, Inc., Charles Schwab & Co., Inc., and Tastytrade, Inc., and their respective affiliates, successors, and clearing firms. You acknowledge and agree that:

• The Company does not operate, control, or guarantee the availability, uptime, execution quality, or performance of any broker API;
• Executing brokers may impose rate limits, disconnect active sessions, reject orders, change margin requirements without notice, or experience platform outages during high market volatility; and
• The Company disclaims all liability for any losses, failed orders, or missed executions caused by broker API failures, latency, maintenance windows, or broker account restrictions.

3. Third-Party Signals, External Webhooks & Imported Configuration Templates

Trade Automation Toolbox is purely a neutral technical execution tool for self-directed traders. The Company does not author, review, verify, backtest, or endorse any third-party trading signals, commercial newsletters, trading chatrooms, or algorithms. The Company has no commercial partnership, affiliation, or co-marketing relationship with any third-party signal provider unless expressly published on our official website. If you choose to import third-party configuration files (such as .tat template files) or connect external webhook triggers to your software instance, you do so entirely at your own risk. Third-party templates may contain programming errors, unintended position sizing, or flawed risk parameters that can cause immediate, catastrophic losses. See also Section 23 of the Terms of Use.

4. Hypothetical, Backtested, and Simulated Performance Disclaimers (BYOB & Strategy Modeling)

The Software includes historical modeling, simulation, and backtesting features, including the "Build Your Own Backtest" ("BYOB") engine. Trade Automation Toolbox is a commercial desktop software utility primarily serving self-directed retail equity and broad-based index options traders. Trade Automation Toolbox, LLC is not a registered Commodity Trading Advisor ("CTA"), Commodity Pool Operator ("CPO"), investment adviser, or broker-dealer under the Commodity Exchange Act or federal or state securities laws, does not manage customer funds or pooled investment accounts, and does not provide personalized trading advice.

Trade Automation Toolbox, LLC provides the following regulatory disclosure—which represents the exact verbatim text prescribed by the Commodity Futures Trading Commission ("CFTC") under 17 C.F.R. § 4.41(b)(1)(i) and satisfies registered futures association standards under National Futures Association ("NFA") Compliance Rule 2-29. Inclusion of this disclosure does not concede CTA or CPO status or CFTC jurisdiction over the Company; it applies directly only to the extent you use the Software with futures, options on futures, retail forex, or other commodity interests, and is otherwise provided as an industry-standard benchmark of care. The disclosure reads:

THESE RESULTS ARE BASED ON SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS THAT HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THESE BEING SHOWN.

Simulated backtests generated by BYOB are mathematical approximations based on historical data snapshots. They do NOT reflect actual live trading execution conditions, including real-world bid-ask spread widening, order routing queues, API latency, queue priority, partial fills, slippage between trigger price and fill price, broker risk management actions, account restrictions, execution throttles, or forced liquidations. Exporting or generating a .tat configuration file from BYOB does not constitute an endorsement, recommendation, or optimization by the Company. Mandatory Immediate Proximity & Export Artifact Stamping: Consistent with the standards of 17 C.F.R. § 4.41(b)(2), all backtesting reports, charts, and exported .tat files automatically incorporate this mandatory disclaimer. You are strictly prohibited from publishing, sharing, or distributing backtest performance results or charts to third parties or online communities without displaying the full disclaimer in immediate proximity.

5. SEC Regulation Best Interest (Reg BI) & Impersonal Software Status

Trade Automation Toolbox is strictly an impersonal, mathematical, and technical software platform. The Company, its software, and its support team:

• Are not registered as broker-dealers, investment advisers, or municipal advisors with the SEC, FINRA, or any state securities regulator, and are not registered as a CTA or CPO with the CFTC or NFA;
• Do not make recommendations to purchase, sell, or hold any security, option contract, futures contract, or derivative product within the meaning of SEC Regulation Best Interest (17 C.F.R. § 240.15l-1), FINRA Rule 2111 (Suitability), or the Commodity Exchange Act;
• Do not conduct suitability assessments, evaluate your personal financial profile, assess investment goals, or analyze risk tolerance; and
• Do not owe you any fiduciary duty, duty of best execution, or investment management standard of care under the Investment Advisers Act of 1940 or the Commodity Exchange Act. Every trade executed via the Software is self-directed and initiated solely at your independent instruction.

6. Tax Ramifications & Reporting Risks (IRS Section 1256 Contracts vs. Section 1091 Wash Sales)

Automated trading—particularly multi-leg options, intraday spreads, and high-volume day trading—generates complex federal and state tax consequences. You expressly acknowledge and agree that:

• Certain broad-based index options and qualifying derivative contracts may be eligible for 60/40 capital gains tax treatment under Internal Revenue Code ("IRC") Section 1256, whereas other options contracts are taxed under ordinary short-term capital gains rules. Broker tax treatment and year-end Form 1099-B reporting can diverge materially between brokerages;
• Automated rules that repeatedly trigger round-trip trades in the same or "substantially identical" underlying securities across consecutive days or months can trigger wash sale disallowances under IRC § 1091, deferring capital loss deductions and creating unexpected phantom tax liabilities; and
• TAT does not provide tax accounting, calculate wash sale deferrals, or prepare tax documentation. The foregoing discussion constitutes general educational information only and does not constitute tax, accounting, financial, or legal advice. You should consult your own independent Certified Public Accountant (CPA) or licensed tax professional regarding your specific tax situation.

7. Technical & Operational Risks

• System and Connectivity Failures: Software operations depend on local computing hardware, operating systems, electrical power, and internet service providers. Outages, hardware freezes, or internet latency spikes can prevent orders from reaching your broker.
• Local Endpoint Security: Because TAT operates locally on your machine, you bear sole responsibility for safeguarding your computer against malware, keyloggers, and unauthorized access.
• Slippage & Liquidity Gaps: Stop orders become market orders once triggered. In fast-moving markets or liquidity voids, the execution price received from your broker may be substantially worse than the stop trigger price.

8. Contact Information

For questions regarding this Risk Disclosure Statement, please contact:

Trade Automation Toolbox, LLC

14671 Knob Hill Dr

Heyworth, IL 61745

United States

Email: support@tradeautomationtoolbox.com

Phone: (872) 222-7499