Risk Disclosures

1. Prediction Market Risk

By entering into Event Contracts, you risk losing up to the entire amount of Bitcoin committed.

The Prediction Market allows you to take a position on whether an event will or will not occur (an "Event Contract"). This is inherently speculative and should be considered high risk. Event Contracts settle at either 0 or 100 satoshis. If your prediction is wrong, the Cost you committed is retained and you have no right or claim to its return.

Once an Event Contract has closed, there are no refunds and transactions are final and irreversible. While the Event Contract is open, Glimpse will buy it back at the then current price, which may still mean a partial or significant loss. The outcome and payout of each Event Contract are governed by the Market Rules for that market, including the reference asset, resolution criteria, reference data source and resolution time. Outcomes determined under those rules are final and binding.

Glimpse uses a liquidity-sensitive logarithmic market scoring rule automated market maker (the "LS-LMSR AMM") that is vertically integrated into the Prediction Market. Prices are determined algorithmically rather than by external markets, so large trades can cause significant price impact, or slippage, especially when liquidity is low. These prices represent internal market probabilities and not real-world odds. Extreme market movements or imbalanced positions can lead to wide spreads or price distortions, increasing the risk of adverse execution.

A quote is valid for thirty seconds and an Order is rejected if the execution price exceeds your maximum slippage tolerance. Once executed, an Order cannot be cancelled or modified. The value of Bitcoin itself fluctuates significantly and unpredictably. There is no assurance that markets will resolve as expected or that you will realise any anticipated return.

2. Counterparty Risk

When you enter into an Event Contract, you are not trading against another individual user or discretionary market participant. All trades are executed against Glimpse's own LS-LMSR AMM.

Glimpse funds and operates the LS-LMSR AMM and records all positions and settlements on its internal ledger. The pricing logic and settlement process therefore run 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 and not from external markets; and
• slippage and price impact are inherent to the design and depend on trade size and the liquidity parameter.

3. Custody and Asset Segregation Risk

Glimpse holds your Bitcoin in a Custodial Wallet and holds the Cost of each open Event Contract in the Escrow Account. You do not hold the private keys. Customer assets are held in segregated accounts, separate from our own funds, and are reconciled daily. However:

• there remains a risk of key compromise, cyberattack, service provider failure or wallet failure;
• client assets are not insured unless expressly stated, and there is no guarantee fund or compensation scheme;
• blockchain delays or fork events may disrupt asset retrieval or settlement, and a withdrawal may be delayed where private keys must be retrieved from offline storage; and
• Bitcoin transfers are irreversible once confirmed, and a transfer to an incorrect address or invoice, or of an unsupported asset or on an unsupported network, may be permanently lost.

4. Technology and Cybersecurity Risk

Glimpse relies on complex IT systems and third-party infrastructure, including wallet, custody and reference data providers. Risks include, but are not limited to:

• Data Integrity Risk. The internal ledger is under the control of Glimpse. A rogue employee or compromised system could alter settlement records. There is no cryptographic immutability of the kind provided by on-chain settlement.
• Cybersecurity Threats. You face risks from hacking, phishing and social engineering attacks targeting your Account credentials, the internal ledger or the platform interfaces. Funds lost through such an attack may be unrecoverable.
• Account Security. You are solely responsible for securing your Account credentials and authentication factors. Glimpse will never request your password or two-factor authentication codes.
• Network Reliability. The Bitcoin and Lightning networks may experience congestion, downtime or forks, which can delay transactions or cause unexpected outcomes.
• Front-End Risks. Bugs or exploits in the platform interface could lead to incorrect transaction data or misrepresentation of market conditions.

5. Reconciliation and Operational Risk

The LS-LMSR 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; and
• mismatches between external service providers and internal trade logs.

Settlement and resolution also depend on third-party reference data. Where such data fails or is unavailable, we may suspend, extend or void a market, apply a fallback procedure, or return committed funds in accordance with the Market Rules. An internal ledger error may be corrected by adjustment where feasible, but confirmed transactions cannot be reversed.

6. Platform and Access Risk

Client access to the Prediction Market may be affected by:

• internet outages, API failure or denial-of-service attacks;
• scheduled or emergency maintenance windows;
• restriction, suspension or termination of your Account under the Terms of Service;
• modification, suspension or discontinuation of the Services or of any market; and
• changes in law or regulation, which may restrict access in certain jurisdictions or affect the availability, legality or functionality of the Services.

Clients accessing the platform from outside the Republic of Panama 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 suspension or termination of your Account. During any period of unavailability you may be unable to open, close or sell a position, including at a time when the price is moving against you.

7. No Investment Advice

Glimpse does not provide investment, tax, legal or financial advice. All trading, custody and funding decisions are made by you, at your own risk, based on your own assessment and your own advisers. The risks described in these disclosures are not exhaustive.

8. 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 fulfil platform obligations. We accept no liability for losses resulting from such events.

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.