Risk Disclosure

This disclosure describes material risks of Hecto Predictions, participant-backed market formations, vault interfaces, Canton wallets, CC, HECTO and other digital-asset features. It is not exhaustive. Risks can arise together, develop quickly and produce a total loss.

Use only funds and assets you can afford to lose completely. Read the Terms, Privacy Policy, formation rules, transaction confirmations and any definitive product documents before acting.

Features identified as mock, demo, preview, simulated, test or coming soon are design and integration previews. In the current local default runtime, data is deterministic and may reset; deposits, withdrawals, swaps, locks, funding, issuances and settlements do not sign Canton transactions or move value.

Preview calculations, balances, fills, prices and states may not match a future live product. Do not send assets to an address, approve a transaction or make a financial decision because a preview interface appears to show a completed action.

Unless definitive product documents expressly provide otherwise, a proposal, formation, token, position or vault does not represent shares or direct ownership in a referenced private company and does not provide voting, dividend, information, redemption or governance rights in that company. Hecto may have no relationship with a referenced company. Trademarks and reference information identify the subject only.

A proposal may not be reviewed, approved, funded or launched. A formation may fail to reach its target, attract insufficient support, lack an available venue or counterparty, change before launch, remain pending, expire or be cancelled. Participation may be capped, reduced, delayed or rejected.

Funds or assets may be unavailable while support is active. Release, refund, allocation and settlement can be delayed by operational review, network finality, data disputes, legal restrictions, smart-contract behavior or provider failure. A displayed status or target is not a guarantee.

Private-company information is limited and reference valuations can be infrequent, negotiated, estimated, stale or incomparable. A reference value may not reflect an executable price, liquidation value or future financing. News, dilution, capital structure, issuer performance and market conditions can change value abruptly.

There may be no active market, exit, redemption or buyer. Spreads, slippage and fees may be substantial. A secondary venue may never launch or may suspend trading. You may be unable to sell, transfer or recover value when desired or at any price.

Digital assets can be highly volatile, illiquid, manipulated, technically impaired, restricted or worthless. CC, HECTO, stablecoins and other assets may lose some or all value. Historical prices, market metrics and participant interest do not predict future value.

A stablecoin may lose its peg, reserves may be insufficient or inaccessible, and an issuer may freeze, redeem, migrate or discontinue it. HECTO utility, supply, venue support and regulatory treatment may change. Holding a digital asset may not be protected by deposit insurance, investor-compensation schemes or traditional chargeback rights.

Lost credentials, compromised devices, phishing, malware, social engineering, address substitution, signing the wrong message, provider defects or sending to an incompatible address can cause irreversible loss. Anyone with a private key or valid session may control the associated assets.

Self-custody means you bear responsibility for keys and recovery. Hecto cannot recover a seed phrase or reverse a third-party wallet transaction. If a prompt requests a seed phrase, private key or unexpected token approval, reject it. Verify the domain, asset, amount, network, recipient and permissions independently before signing.

Software, smart contracts, APIs, cryptography, wallet SDKs, bridges, nodes and Canton infrastructure may contain vulnerabilities, design flaws or configuration errors. Congestion, maintenance, consensus failure, validator or participant outage, forks, changes to finality, cyberattack or force majeure may delay or invalidate expected activity.

Audits and testing reduce but do not eliminate risk. An upgrade or dependency change may create incompatibility. Network records may be permanent, and a technically valid transaction may still have an unintended economic or legal result.

The Service depends on wallets, Canton participants, validators, venues, custodians, issuers, market makers, data providers, hosting, email and other third parties. They may be unavailable, hacked, insolvent, unlicensed, negligent or subject to conflicting rules. Assets held or routed by a third party may be frozen, commingled, lost or inaccessible. Hecto does not guarantee a third party’s performance or compensate its failure unless definitive documents expressly say otherwise.

Reference prices, company information, balances, probabilities, formation progress and settlement inputs may be inaccurate, manipulated, delayed, incomplete or unavailable. Human error, conflicting sources, an incorrect wallet link, a calculation defect or a provider outage can produce an incorrect display or action. Review timestamps and confirmations and do not rely on a result that appears inconsistent.

Laws governing prediction products, derivatives, securities, commodities, gambling, digital assets, payments, money transmission, privacy, sanctions and distributed ledgers vary and can change without notice. An asset or activity may be reclassified, restricted or prohibited. Hecto may need to suspend, modify, report, block or terminate access.

Your account status does not establish that an activity is lawful, suitable or available where you are located. Tax treatment is uncertain and may involve reporting, withholding, income, gains or losses. Obtain advice from qualified advisers in every relevant jurisdiction.

Attackers may imitate Hecto, a formation, a wallet or a support agent; compromise email or devices; create false reference data; or manipulate participants. Account controls cannot prevent every unauthorized action. Hecto does not request a private key or seed phrase. Use trusted bookmarks, independent verification, strong unique credentials and available device protections, and report suspected compromise promptly.

Hecto, affiliates, employees, service providers, market makers, formation proposers or other participants may hold HECTO or other relevant assets, receive fees, support formations, provide liquidity, possess different information or have interests that conflict with yours. Disclosures and controls cannot eliminate every conflict. Evaluate incentives and do not assume any participant is acting for your benefit.

Depending on the feature and jurisdiction, traditional banking, brokerage, consumer-credit, deposit-insurance, investor-compensation, cancellation, chargeback or ombudsman protections may not apply. Distributed-ledger activity may be irreversible and anonymous or foreign counterparties may be difficult to identify or pursue. Legal remedies can be uncertain, expensive and slow.

The Service, formation data, probabilities, reference values, labels and communications are not investment, financial, legal, tax, accounting, cybersecurity or other professional advice and are not a promise of profit. Hecto does not determine that an activity is appropriate for you.

Before participating, assess your experience, objectives, financial resources, time horizon, jurisdiction, custody arrangements and ability to sustain a complete loss. Obtain independent advice where appropriate. Do not borrow, use emergency funds or rely on a formation for essential expenses.

By continuing after reviewing this disclosure, you acknowledge that you understand the Service may involve speculative, illiquid, technically complex and legally uncertain activities; that outcomes, access, liquidity and recovery are not guaranteed; that third-party and network failures may be outside Hecto’s control; and that you are responsible for your independent decision. Questions may be sent to legal@hecto.inc.