Rudolphinic™ Investment Risk Disclosure

Applicable Version: 2026.08.19 Date Enacted: August 19, 2026 Effective Date: August 19, 2026

Article 1 (Purpose and Scope)

This “Rudolphinic™ Investment Risk Disclosure” (hereinafter, this “Disclosure”) is intended to inform Members of the principal risks and limitations that they should understand when using the Rudolphinic™ Software as a Service (SaaS) and related services (collectively, the “Service”) provided by Hanco Lab (hereinafter, the “Company”) to conduct historical performance analysis of strategies, backtesting, parameter exploration and optimization, statistical analysis, or comparison of results.
The terms “Member,” “Strategy,” “Deliverables,” “RCC,” and other terms used in this Disclosure shall have the meanings set forth in the “Rudolphinic™ Terms of Service” (hereinafter, the “Terms of Service”).
This Disclosure is an informational document concerning investment risks. Contractual rights and obligations between the Company and Members, as well as matters concerning refunds, damages, and limitations of liability, shall be governed by the Terms of Service and applicable laws and regulations.

Article 2 (Nature of the Service and Non-Provision of Investment Advice)

The Service is software and a cloud-computing service that enables Members to view, for research and statistical-analysis purposes, the outputs of calculations based on historical market data using the Strategies and conditions directly entered by the Members.
In connection with the Service, the Company does not provide financial services pursuant to registration as an investment advisory business or discretionary investment management business under Korea’s Financial Investment Services and Capital Markets Act. The Company is not an investment adviser, discretionary investment manager, securities company, exchange, broker, or virtual-asset business operator, and the Service does not accept, transmit, or execute orders; custody or manage customer assets; or provide investment judgments or advice to individual users. Members independently determine and execute their Strategies, symbols, analysis periods, initial capital, fees, margin, parameter ranges, filters, scoring criteria, and candidate-selection criteria. In this process, the Company does not select, designate, approve, or recommend to users any particular security, financial product, Strategy, parameter, trading time, or position.
Deliverables are technical and statistical results automatically generated according to the inputs selected by Members and available historical data. The figures, tables, graphs, indicators, lists, presets, filters, scoring criteria and algorithms, robustness, sensitivity, plateau, and boundary analyses, and parameter-selection features contained in Deliverables are analysis features that mechanically apply criteria set by Members or general calculation rules; they do not advise on, consult on, or solicit any particular investment activity, nor do they constitute a judgment that any particular calculation result is suitable for a user. No feature of the Service individually considers a Member’s financial circumstances, investment objectives, investment experience, or risk preference, nor does it reach an individualized conclusion that a particular financial product, Strategy, or parameter is suitable for that Member.
The Service may include historical performance analysis, parameter exploration, statistical analysis and comparison of results, robustness, sensitivity, and boundary analyses, and stress tests of cost assumptions. These features are intended to assist with calculations and research based on conditions entered by Members and do not, under any circumstances, constitute a prediction or guarantee of future performance.
Any artificial-intelligence (LLM) or template-based “automated explanation feature” provided by the Company within the Service is an auxiliary feature that converts into sentences the names of Deliverable items, figures, general methods of interpretation, statistical meanings, and prescribed formats. It does not advise on, consult on, or solicit any particular investment activity, nor does it constitute a forecast of future prices or returns or a recommendation of a particular financial product or parameter. Users must not interpret automated explanations as personalized investment advisory services, investment advice, or forecasts of future performance, and must independently review the underlying Deliverables and relevant risks before making actual investment or trading decisions. Automated explanations may also contain errors, omissions, or inaccurate generalizations; users must give priority to the underlying figures and graphs and to their own verification.
Members shall use the results of the Service solely as reference material, and they bear sole responsibility for all investment and trading decisions and their consequences. Where necessary, users shall seek separate advice from financial professionals duly qualified or registered under applicable laws and regulations, as well as from tax and legal professionals as needed.

Article 3 (Limitations of Historical Performance and Backtest Results)

Deliverables such as backtests, parameter exploration and optimization, and resulting performance metrics, graphs, rankings, and candidate lists are hypothetical and simulated results based on historical data and calculation assumptions selected by Members; they are not trading records or results from an actual account.
Historical performance, high returns, low drawdowns, high scores, or particular analytical results do not guarantee future profits, avoidance of losses, preservation of principal, or the feasibility of actual execution.
Backtests and generated Deliverables may be distorted or overstated relative to reality where a Strategy written or uploaded by a Member contains look-ahead bias or repainting elements, or depending on missing data, outliers, or subsequent corrections by data providers; survivorship bias; and the methods used to adjust data for stock splits, dividends, expirations, and similar events.
In actual markets, actual operating performance may differ materially due to various factors, including changes in market conditions, increased volatility, insufficient liquidity, bid-ask spreads, gaps, market impact, partial fills, unfilled orders, order rejections, delays in order transmission or execution, execution slippage, fees, taxes, funding fees, errors by brokers, securities companies, or exchanges, exchange-rate fluctuations, delistings, trading restrictions, and regulatory changes.
In actual investment or trading, Members may lose all or part of their principal. Where leverage, credit, derivatives, margin, or similar structures apply, losses may exceed the principal invested.

Article 4 (Inherent Risks of Parameter Exploration and Optimization)

As a greater number of parameter combinations or Strategy variations are repeatedly explored through Grid Search or similar methods, the statistical probability of discovering results that happen to fit noise in market data or a particular historical sample well may rise sharply. This includes the inherent risks of the multiple testing problem, data snooping, selection bias, over-optimization, and overfitting.
Robustness, Sensitivity, Plateau, boundary analysis, scoring, filters, and candidate comparisons provided by the Service are only auxiliary indicators that apply criteria configured by Members or general calculation rules. They are not tools that completely eliminate overfitting or mathematically prove the future performance of a Strategy or particular parameter set. The fact that such indicators appear high or stable alone does not guarantee the future performance, out-of-sample performance, or suitability for actual operation of any particular Strategy or parameter set.
Members must not assume that results that performed well under a particular period, symbol, time frame, or cost assumption will be reproduced in another period, market regime, instrument, or actual live-trading environment.
Members must not rely solely on rankings, candidate lists, or composite scores shown in Deliverables. They shall independently verify the logical integrity of Strategy code, inputs, representativeness of samples and number of trades, data range, trading-cost assumptions, maximum-drawdown (MDD) periods, and reproducibility of results, and conduct sufficient testing.

Article 5 (Limitations of Data, Models, and the Technical Environment)

Market data used in the Service may contain omissions, delays, corrections, time-zone differences, differences in notation, changes in corporate actions or product specifications, or changes in third-party data providers. Even where the Company standardizes or cleans the data, the completeness, accuracy, timeliness, or fitness for a particular purpose of the data is not guaranteed.
Backtests based on candle or OHLCV data may not fully reproduce tick-level order-book conditions, actual order-of-execution sequence, market impact, partial fills, exchange- or broker-specific order-processing methods, or all intra-bar price movements.
Service results may differ from other platforms, exchanges, brokers, or actual trading records due to the implementation of Strategy code; differences in the type, format, scope, or version of Strategy code; differences in the scope or version supported by the system; calculation models; assumptions regarding fees, slippage, margin, or funding fees; or input errors by Members.
The Service is software that may experience errors, bugs, delays, interruptions, or unexpected technical limitations. Before making actual investments or trades, Members shall review the underlying Deliverables and input conditions and, where necessary, conduct separate verification.
Artificial-intelligence (LLM) or template-based automated explanations within the Service are auxiliary features that convert figures in Deliverables and their general statistical meanings into sentences. Given the nature of artificial intelligence, they may contain hallucinations, errors, omissions, or inaccurate generalizations. Members must not use such explanations as a basis for investment decisions and shall give priority to the underlying figures and graphs and to their own independent review.

Article 6 (Members’ Independent Judgment and Matters to Confirm)

Members shall use the Service and Deliverables solely as reference material for research and analysis and shall independently determine whether to make actual investments or trades and, if so, the subject, amount, timing, and method thereof.
Members shall confirm whether the Strategy code, parameters, cost assumptions, analysis period, symbols, and data conditions are appropriate for their analytical purposes, and understand that results showing no trades or losses may also be normal analytical results.
Where necessary, Members shall seek separate advice from financial, tax, and legal professionals duly qualified or registered under applicable laws and regulations.
This Disclosure does not enumerate all investment or trading risks. Members shall separately review the terms and conditions applicable to products relevant to their investments or trades, the terms of use of exchanges and brokers, applicable laws and regulations, and other risk disclosures.

If you have any questions regarding this Investment Risk Disclosure, please contact the customer support center below.

Contact: Customer Support (contact@hancolab.com)