Risk Disclosures

Prediction Market Risk

Glimpse's Prediction Market allows you to take a position on an event occurring or not occurring ("Event Contract"). This is inherently speculative and should be considered a high-risk investment.

You may lose up to the entire amount of BTC you stake in any Event Contract. Once the Event Contract has closed, there are no refunds, and transactions are final and irreversible. Whilst the contract is open, Glimpse will buy back the Event Contract at the then current price, which may still mean a partial or significant loss to you of your staked assets.

You acknowledge and understand that Event Contracts are inherently risky by their nature and if your prediction is wrong and the event does not occur, your staked assets are kept by the Company and you have no right or claim to their return.

Glimpse uses a liquidity sensitive / logarithmic market scoring rule automated market maker ("LS-LMSR AMM") that is vertically integrated into the Prediction Market. Prices are determined algorithmically rather than by external markets, this means large trades can cause significant price impact (slippage), especially when liquidity is low. Users should understand that these prices represent internal market probabilities, not necessarily real-world odds.

Because liquidity is sourced internally, extreme market movements or imbalanced positions can lead to wide spreads or price distortions, increasing the risk of adverse execution.

There is no assurance that markets will resolve as expected or that you will be able to realise any anticipated returns.

Counterparty Risk

When you enter into an Event Contract on the Prediction Market, you are not trading against another individual user or discretionary market participant. This means that you do not face and cannot identify a traditional counterparty to a trade. Unlike other prediction markets where a user may enter into positions directly against other users or liquidity providers, all Event Contract exposure is exclusive to Glimpse as the operator of the LS-LMSR AMM. Glimpse is the entity that is responsible for pricing and settlement of the Event Contracts, and all trades are executed against Glimpse's own LS-LMSR AMM. Accordingly, you should not assume that you are entering into an Event Contract against another market user. Counterparty risk and operational risk are concentrated within Glimpse which assumes the opposite position on all contracts.

Glimpse funds and operates the LS-LMSR AMM and records all positions and settlements on its internal ledger. This is because Bitcoin Script is not sufficiently complex to support a fully non-custodial LS-LMSR implementation. This means the pricing logic and settlement process run entirely off-chain under Glimpse's control, as determined by the algorithm. Because the LS-LMSR AMM is algorithmic:

• There is no negotiation or discretionary pricing
• Prices are derived from the LS-LMSR formula, not external markets
• Slippage and price impact are inherent to the LS-LMSR AMM design and depend on trade size and liquidity parameter.

Custody and Asset Segregation Risk

Glimpse will provide regulated digital asset custody during the course of platform operations. While all customer assets are held in segregated wallets and reconciled daily:

• There remains a risk of key compromise, cyberattack, or wallet failure
• Client assets are not insured unless explicitly stated
• Blockchain delays or fork events may disrupt asset retrieval or settlement

Technology and Cybersecurity Risk

Glimpse relies on complex IT systems and third-party infrastructure (including wallets, exchanges, and custodians). Risks include (but are not limited to):

• Data Integrity Risk: The internal ledger is under the control of Glimpse. A rouge employee or compromised system could alter settlement records. There is no cryptographic immutability like there is with on-chain smart contracts.
• Cybersecurity Threats: Users face risks from hacking, phishing, and social engineering attacks targeting wallets, the internal ledger or platform interfaces. The platform cannot recover lost funds due to compromised private keys.
• Network Reliability: Blockchain networks may experience congestion, downtime, or forks, which can delay transactions or cause unexpected outcomes.
• Front-End Risks: Bugs or exploits in the platform's user interface could lead to incorrect transaction data or misrepresentation of market conditions.
• Wallet Misconfiguration: Users are solely responsible for securing their wallets, private keys, and passwords. Incorrect wallet setup or loss of credentials can result in permanent loss of assets.

Reconciliation and Operational Risk

The AMM operates on our internal ledger. While internal ledgers and blockchain balances are reconciled daily, errors may occur due to:

• Blockchain congestion
• System failure or delayed data feeds
• Mismatches between external counterparties and internal trade logs

Regulatory and Jurisdictional Risk

Glimpse Ltd. is licensed by the Bermuda Monetary Authority ("BMA") via its Regulatory Sandbox under the Digital Asset Business Act 2018 (Class T). However:

• The global regulatory environment for digital assets is evolving rapidly
• Future changes in law may restrict access to products or require compliance updates
• Access to the Prediction Market may be restricted in certain jurisdictions due to local laws governing prediction markets or digital assets
• Clients accessing the platform from outside Bermuda do so at their own legal and tax risk
• Use of VPNs, proxies, or other tools to bypass geographic restrictions is strictly prohibited and may result in account suspension or termination

Platform and Access Risk

Client access to Glimpse's Prediction Market may be affected by:

• Internet outages, API failure, or denial-of-service attacks
• Scheduled or emergency maintenance windows
• Suspension or termination under Class T licence conditions
• Glimpse not graduating from its current Class T license to the next stage of the BMA's regulatory sandbox. This could result in Glimpse having to wind-up the Prediction Market

Anti-Money Laundering & Anti-Terrorism Financing Compliance Risk

Glimpse enforces strict AML/ATF policies in line with Bermuda law. You understand that:

• Your account may be frozen or transactions delayed pending investigation
• False positives in sanctions screening may interrupt activity
• You must provide timely and accurate KYC/EDD documentation upon request

No Investment Advice

Glimpse does not provide investment, tax, legal, or financial advice. All trading, custody, or funding decisions are made by you at your own risk, based on your own assessment and advisors.

Force Majeure

Events beyond Glimpse's reasonable control including natural disasters, war, cyber-war, regulatory action, or third-party service failure, may impact our ability to fulfill platform obligations. We accept no liability for losses resulting from such events.

Insurance

Glimpse maintains a prudent risk-management framework; however, it does not currently maintain separate cyber-crime or theft insurance that benefits clients. If Glimpse obtains such insurance in the future, Glimpse will disclose the insurer, scope of coverage, and beneficiaries to clients in an updated version of Glimpse's Terms of Service on Glimpse's website.

Acknowledgment

By continuing to use Glimpse's Prediction Market, you acknowledge that you have read, understood, and accept the above risks, and that you are able to bear such risks consistent with your financial objectives and legal obligations.