Risk Disclosure Statement

Last updated: 2026-07-08

This Risk Disclosure Statement describes the material risks of using Candella Copytrade and, in particular, of Mirroring another user's trades into your own brokerage account. It is provided by Lutz Consulting Group, LLC, a Nevada limited liability company doing business as Candella Labs ("Candella", "we", "us"). It supplements, and does not replace, the risk disclosures in the Candella Terms of Service at candella.dev/terms (the "Master Terms") and the Candella Copytrade Addendum at candella.dev/terms/copytrade. Capitalized terms used but not defined here have the meanings given in the Master Terms and the Addendum.

Read this document before you enable Copytrade, subscribe to a Lead Trader, or opt in to Automated Mode. If any part of it is unclear, do not proceed until you understand it.

1. What Candella Is and Is Not

Candella is a technology and execution-software platform. When you connect a brokerage account through SnapTrade, operated by Passiv Technologies Inc., the Service reads that account and submits orders you have authorized. The brokerage is the regulated entity that effects trades in your own account.

Candella is not a registered investment adviser, broker-dealer, commodity trading advisor, financial planner, or fiduciary. We exercise no investment discretion, make no recommendations, perform no suitability evaluation, and never custody your funds or have withdrawal access. Your money and securities stay in your brokerage account at all times. You are the principal. You bear all trading risk.

Candella earns flat platform and subscription fees. We never take a share of your trading profits and never charge a per-trade commission. A Lead Trader is an independent third party who may separately bill their own Followers off-platform. Candella is not a party to and is not responsible for those off-platform arrangements or for a Lead Trader's own regulatory compliance.

2. Trading Involves Substantial Risk, Including Total Loss

Automated trading and copy trading involve substantial risk. You can lose some, all, or in some cases more than the amount you commit. There is no such thing as a risk-free trade, and nothing about the Service is a guarantee, a promise of profit, or a warranty against loss. Trade only with money you can afford to lose. Trading options and other financial instruments is not appropriate for all investors.

Options and margin amplify this risk. A single options position can expire worthless. Margin can produce losses larger than the cash in your account and can trigger a margin call your brokerage resolves by liquidating positions. If your risk tolerance does not include the possibility of losing your entire principal, do not use Copytrade.

3. Past Performance and Displayed Results

Past performance is not indicative of future results. Any performance figure shown on the Service for a Lead Trader is realized, historical data drawn from broker-verified activity. It is not typical. Most users do not achieve exceptional results, and a Lead Trader who performed well over one period can lose money over the next.

When we display a Lead Trader's results, we show broker-verified data as it occurred, without selectively removing losing trades, losing days, or losing periods. A complete and honest record of the past still tells you nothing certain about the future.

4. Market, Execution, Latency, and Technology Risk

Market risk. Prices move, gap, and reverse. Volatility, illiquidity, halts, and news can move a position against you before any order can respond.

Execution and slippage risk. An order may fill at a price materially worse than expected, may fill only in part, or may not fill at all. Your brokerage may reject, modify, cancel, or delay any order for its own reasons, including buying power, options approval level, pattern day trader rules, restricted securities, and market hours.

Latency risk. Detecting a Lead Trader's trade is not instantaneous, and neither is submitting and filling the corresponding order at your brokerage. The delay between the original trade and your fill can be large enough to change the price and the outcome.

Technology and outage risk. The Service depends on your brokerage, on SnapTrade, and on our own platform and infrastructure providers. An outage, error, or rejection at any of them can prevent, delay, or distort Mirroring. During an outage you may receive a partial copy of a Lead Trader's activity, or none at all. We do not control these third parties and are not responsible for their failures.

5. Copy-Trading-Specific Risk

A Lead Trader is not your fiduciary and owes you no duty of care or loyalty. The Lead Trader may take outsized risk, may pursue strategies unsuitable for your account, may make poor decisions, may stop trading at any time, and may have advantages you lack, including capital, information, tools, tax position, or risk tolerance. Mirroring their trades does not transfer those advantages to you, and the Lead Trader is not responsible to you for your losses.

Your mirrored orders are not identical to the Lead Trader's original trades. Differences in account size, available funds, position sizing, options approval, broker behavior, and timing mean your fills, your prices, and your results will differ, sometimes materially.

6. Automated Mode Risk

Manual Approval Mode is the default, and every mirrored order waits for your review and confirmation. Automated Mode is different. When you opt in, the Service submits mirrored orders to your brokerage without per-order review, subject only to the limits and caps you configured in advance.

Automated Mode can amplify losses precisely because there is no per-trade check. A problematic order, a Lead Trader action you would not have approved, a market move, or a software error can execute before you learn of it. The pre-set caps reduce but do not eliminate this exposure. Opting in is an affirmative choice you make and can revoke at any time.

7. You Are Responsible for Your Outcomes

You are solely responsible for your trading outcomes and for setting your own risk limits, including position sizing, per-position caps, daily exposure caps, instrument exclusions, and whether to use Automated Mode at all. You are responsible for understanding your brokerage's rules and any tax consequences of trades placed through the Service.

The Service functions as described when the platform is available and your configured rules are mechanically applied, regardless of whether any given trade, day, week, or month is profitable. Applying your rules correctly is what the Service promises. A profit is not.

8. Not Investment Advice

Nothing in this Statement or on the Service is investment advice, or an offer, solicitation, or recommendation to buy, sell, or hold any security, instrument, or asset. If you need advice about whether copy trading, options, margin, or any particular Lead Trader is appropriate for you, consult a licensed investment adviser, tax professional, or other qualified professional before you act.

The Service is expected to be assigned to a successor entity, currently anticipated to be Candella Inc, upon its formation. This Statement will apply to the successor entity with the same scope. Questions may be directed to Candella at 10120 W Flamingo Rd, Ste 4-2055, Las Vegas, NV 89147-8394, or support@candella.dev.