Risk Disclosure

This Risk Disclosure is provided by Karen Technologies LLC, doing business as KarenOptions. It applies to your use of KarenOptions evaluation accounts, funded accounts, educational materials, dashboards, and related Services made available through karenoptions.com.

By using the Services, you acknowledge that you have read and understood this Risk Disclosure together with the Terms of Service and Trader Program Agreement.

1. Options Trading Is High Risk

Options trading is highly speculative and involves substantial risk of loss. Prices can move rapidly, spreads can widen, liquidity can disappear, and positions can lose value quickly. Even defined-risk strategies can experience rapid losses, assignment risk, exercise risk, and material slippage.

Not every trader is suited for options trading. You should not participate unless you understand the products you are trading, the risks of leverage and position sizing, and the possibility of losing trading capacity or payout eligibility through rule breaches or poor performance.

2. Simulated Evaluations Are Not Live Trading

KarenOptions evaluations are simulated. Simulated performance can differ materially from live or actual trading because of data differences, order handling assumptions, latency, slippage, partial fills, liquidity limitations, routing differences, and market conditions that may not be fully reflected in a paper environment.

Simulated results do not guarantee or predict future performance. A trader who performs well in an evaluation may perform differently in a funded or live environment, and vice versa.

3. Published Rules Create Trading Risk

The KarenOptions program uses rule-based risk controls, including trailing drawdown, winning-day standards, consistency requirements, buffer thresholds, and payout review. These controls can cause an evaluation or funded account to fail or lose payout eligibility even when a strategy appears profitable overall.

In particular, the trailing drawdown follows the highest equity reached by the account, including unrealized gains, during trading hours. That means an open position that temporarily increases equity can raise the drawdown floor before the trade is closed. If equity later falls below that new floor, the account may be breached even if the trader expected the position to recover.

4. Funded Accounts, Live Accounts, and Payouts Are Not Guaranteed

Passing an evaluation does not guarantee that KarenOptions will activate a funded account. Funding decisions may be affected by compliance, fraud-prevention, operational, and risk-management considerations.

KarenOptions reserves the right to transition any eligible trader to a live trading account with their payout balance instead of processing a cash payout. Live accounts trade real capital with an 80/20 profit split and carry additional risk, including the possibility of losing live capital. The decision to push a trader live is made at KarenOptions' sole discretion.

Meeting a payout threshold does not guarantee payout approval. Payout requests are reviewed for compliance with all applicable rules and may be delayed, reduced, denied, or voided if an account is in breach, under review, or otherwise inconsistent with program standards. Pending payouts are forfeited if the account is in breach at the time of review.

5. Platform and Technology Risk

KarenOptions relies on third-party technologies, market data, hosting, payment, and other service providers. Outages, delays, quote inaccuracies, connectivity problems, session interruptions, browser issues, and vendor failures can affect account activity, metrics, and user experience.

We do not guarantee uninterrupted service, flawless market data, or perfect platform performance. Trading decisions made during volatile or impaired conditions may produce unexpected outcomes.

6. No Investment, Legal, or Tax Advice

KarenOptions does not provide investment advice, financial planning, legal advice, tax advice, or recommendations about specific securities, strategies, or account sizing. Any educational or marketing content is general information only and may not be suitable for your circumstances.

You are solely responsible for evaluating whether participation in the Services is appropriate for you and for consulting your own professional advisers where needed.

7. You Are Responsible for Your Decisions

You are responsible for understanding the Program Rules before you trade, for managing risk, for monitoring open positions and drawdown, for complying with expiration cutoffs, and for deciding whether to buy, hold, close, or avoid any position.

If you do not understand how options, spreads, exercise and assignment, leverage, drawdown, or payout standards work, you should not participate until you do.

8. Contact

Questions regarding this Risk Disclosure may be sent to:

Karen Technologies LLC d/b/a KarenOptions
30 N Gould St Ste R
Sheridan, WY 82801
[email protected]

Past performance, hypothetical results, and simulated evaluations are not guarantees of future outcomes. KarenOptions is operated by Karen Technologies LLC.