Risk Disclosure

Last Updated: April 24, 2026

PLEASE READ THIS RISK DISCLOSURE CAREFULLY BEFORE SUBSCRIBING TO THE SERVICE.

General Investment Risk

Trading and investing in securities, options, futures, and other financial instruments involves substantial risk of loss. You may lose some or all of your invested capital.Only invest funds you can afford to lose entirely without affecting your financial security or lifestyle.

Options Trading Risk

Options trading is particularly risky and is not suitable for all investors. You should be aware that:

• Options can expire worthless. If an option expires out of the money, you lose 100% of the premium paid.
• Options are leveraged instruments that can result in losses exceeding your initial investment in certain strategies.
• The time decay (theta) of options erodes value daily, particularly as expiration approaches.
• Options pricing is complex and affected by multiple factors including volatility, time, and underlying price movement.

0DTE (Zero Days to Expiration) Trading Risk

0DTE options trading carries extreme risk. If you trade 0DTE options, you acknowledge that:

• Rapid, total loss is common. 0DTE options can lose 100% of their value in minutes or hours.
• Price movements against your position can result in immediate and complete loss of premium.
• Volatility during the trading day can cause wild price swings in either direction.
• Liquidity may be limited, resulting in wide bid-ask spreads and difficulty exiting positions.
• Slippage can significantly impact entry and exit prices, especially during volatile market conditions.
• Timing is critical and even small delays can result in substantially different outcomes.

Leverage and Margin Risk

Trading on margin or using leveraged instruments amplifies both potential gains and potential losses. You should be aware that:

• You could lose more than your initial deposit when trading on margin.
• Margin calls may force liquidation of your positions at unfavorable prices without prior notice.
• Leveraged positions magnify the impact of adverse market movements.
• Your broker may change margin requirements at any time, potentially requiring additional deposits or forced liquidation.
• Interest charges on margin borrowing reduce overall returns and apply regardless of trading outcomes.

Analyst Trade Ideas Risk

The Service may include trade observations shared by human analysts. Analyst trade ideas represent the analyst's own personal trading activity shared for educational transparency. They are NOT instructions, directives, or recommendations for you to execute any trade. By using analyst content, you acknowledge that:

• Analyst opinions may be wrong. There is no guarantee of accuracy or profitability.
• Analysts are expressing their own personal opinions, not providing personalized advice.
• Analysts are not licensed investment advisors or fiduciaries.
• Analysts may have positions in securities they discuss, creating potential conflicts of interest.
• Analyst track records and past performance do not guarantee future results.
• Different analysts may have conflicting opinions on the same trade.
• Analysts may use pseudonyms (e.g., "007") and are educational personas only.
• You should never rely solely on analyst opinions for trading decisions.

No Personalized Advice

The Service provides general educational content and market commentary only. Melon Trading Group LLC is NOT a registered investment adviser, broker-dealer, or financial institution. We do not provide:

• Personalized investment advice tailored to your financial situation
• Suitability analysis for any trade or investment
• Monitoring of your individual positions or portfolio
• Any duty to update, correct, or follow up on signals provided
• Recommendations based on your personal risk tolerance, investment objectives, or financial circumstances
• Trade execution instructions or timing directives

You are solely responsible for evaluating the suitability of any trade for your personal situation. You should consult a licensed financial advisor before making any investment decisions.

Market Risk

Financial markets are inherently unpredictable. You should be aware that:

• Markets can move against your position suddenly and without warning.
• Economic events, news, and unexpected developments can cause rapid price changes.
• Market conditions can change, making previously successful strategies unprofitable.
• Liquidity conditions vary and may affect your ability to enter or exit positions.
• Circuit breakers, trading halts, and other market mechanisms may prevent trades.

Volatility Risk

Volatility significantly impacts options trading. You should understand that:

• Implied volatility changes can cause options prices to move independent of the underlying asset.
• Volatility crush after events (earnings, FOMC, etc.) can rapidly reduce option values.
• High volatility environments increase both potential gains and potential losses.

Execution and Broker Risk

Trade execution involves risks including:

• Slippage between quoted prices and execution prices
• Delays in order execution due to system or broker issues
• Platform outages or technical failures at critical moments
• Differences between paper trading results and live trading results
• Your broker may reject orders, change margin requirements, or enforce restrictions at any time
• Pattern Day Trader (PDT) rules may restrict your trading activity
• Options approval levels vary by broker and may limit which strategies you can execute
• We have no control over or responsibility for your broker's actions, limitations, or platform availability

Tax Risk

You are solely responsible for all tax obligations arising from your trading activity. You should be aware that:

• Short-term capital gains may be taxed at ordinary income rates
• Wash sale rules may affect your ability to claim certain losses
• Options trading creates complex tax reporting requirements
• We do not provide tax advice, tax reporting, or tax documentation
• You should consult a qualified tax professional regarding the tax implications of your trading

Hypothetical Performance Disclaimer

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

Your Responsibility

All trading decisions are your sole responsibility. You should:

• Conduct your own research and due diligence before any trade
• Consult with a qualified, licensed financial advisor if you need personalized advice
• Only trade with capital you can afford to lose completely
• Understand the products you are trading before risking capital
• Have a trading plan and risk management strategy
• Never trade based solely on any signal or observation from the Service
• Understand and comply with Pattern Day Trader rules if applicable
• Consult a qualified tax professional regarding tax implications

No Guarantees

Melon Trading Group LLC makes no representations or guarantees regarding:

• The accuracy, completeness, or timeliness of any information provided
• The profitability or success of any trading strategy or signal
• Future market conditions or price movements
• The performance of any trade idea or signal

Acknowledgment

By subscribing to the Service, you acknowledge that you have read, understood, and agree to this Risk Disclosure. You acknowledge that trading involves substantial risk and that you may lose some or all of your invested capital. You confirm that you are at least 18 years of age and understand the risks described herein.

Contact

For questions about this Risk Disclosure, contact:
Melon Trading Group LLC
Email: MelonTradingGroupLLC@gmail.com