Risk and Legal Disclosures

Digital assets and leveraged onchain products can fail quickly and permanently. These disclosures summarize material risks but cannot identify every possible risk.

LEV7 is operated by L7F LLC, a Wyoming limited liability company (the “Operator”), at 75 E 3rd St, Ste 7, Sheridan, WY 82801.

Risk disclosure. Version 2026-08-30-v3. Effective August 30, 2026.

1. Know what the current Interface actually does

The Interface's buy flow requests a route from Relay for a supported origin asset and sends transaction instructions to your wallet. If completed, the route delivers USDG to Robinhood Chain and buys LEV7 through the LEV7 order router from the canonical burn pool, delivering LEV7 to your address. Every purchase from that pool pays a 3% fee in USDG: three percent of the LEV7 bought is burned from the pool, and the USDG fee goes to the treasury, which deposits it into the LEV7 Community Vault. The fee is charged by the pool's hook contract on every buy, whether or not you use the Interface, and is not refundable. Tokens bought through the pool are marked verified; tokens acquired any other way are not verified until a separate 3% validation fee is paid, and selling revokes verification. Only verified tokens earn ALLO points.

The indicative quote is created before execution and may use a placeholder quote address. The executable route is requested later for your wallet and can differ. The Interface does not currently show an expiry, canonical route hash, guaranteed minimum output, or the full fresh fee comparison before releasing every wallet prompt. Treat the wallet request as controlling and reject any unexplained difference.

The Interface does not sell shares of the LEV7 Community Vault, whose share token trades under the ticker ALLO. There is no purchase, subscription, deposit, or presale route for them, and the vault's deposit path is restricted to allowlisted controllers. Shares reach community members only by keeper-operated airdrop against a published points calculation. An airdrop is not a purchase, is not promised, and may be delayed, reduced, skipped, or discontinued.

Governance, validation, fee-distribution, compounding, and withdrawal screens display live onchain and indexed data, but a figure shown on a screen is not itself an entitlement. Points, multipliers, projected airdrops, vote weights, and performance-bonus estimates are computed offchain, can be recomputed or corrected before publication, and become a claim only when the corresponding onchain distribution is executed. Indexers can lag or fail; the chain is controlling.

LEV7 is a fixed-supply ERC-20 governance token deployed on Robinhood Chain. The deployed token, hooked pool, order router, vault, staking, and distribution contract addresses are published in the repository's Robinhood deployment configuration; verify any address against it before signing. Holding verified LEV7 earns a daily distribution of $ALLO, and staking LEV7 gives voting power over the Community Vault's weekly strategy across the MAG7 reference stocks and its cash position. The LEV7 token itself carries no index, oracle, leverage, rebalancing, redemption, liquidation, or economic linkage to the seven referenced companies. That exposure exists only inside the Community Vault's perpetuals account on Lighter, is reached only by holding $ALLO, and is subject to Sections 3, 4, and 5. Daily distributions, weekly measurement, and performance bonuses depend on keeper-operated jobs and offchain computation and can be delayed, reduced, skipped, or discontinued.

2. Self-custody and irreversible transactions

You are responsible for using an authorized wallet and understanding its custody and approval model. We do not receive or store private keys or recovery phrases. We cannot stop or reverse a transaction, recover assets sent to an incompatible token, address, or network, revoke an approval, restore access, or resolve a wallet provider's failure. A person who satisfies your wallet's signing or recovery policy may be able to control its assets.

• Verify the exact lev7.finance domain, chain, token and spender address, recipient, amount, calldata, gas, and approval scope.
• A route may require an approval and then a separate swap or bridge transaction. Never assume there will be only one prompt.
• Disconnecting a wallet does not cancel pending transactions or revoke approvals already recorded onchain.
• LEV7 support will never ask for a recovery phrase, private key, or a transfer to “verify” or “rescue” a wallet.

3. Market, leverage, and liquidation risk

Digital-asset prices can move sharply, trade continuously, gap, become illiquid, or fall to zero. Leverage magnifies small market movements and can cause rapid liquidation or total loss. Depending on the instrument and market, losses can exceed posted collateral. Funding, borrowing costs, rebalancing, volatility drag, path dependency, fees, and liquidation mechanics can make a leveraged position perform very differently from a simple multiple of an underlying asset or index.

Market data may be delayed, incomplete, erroneous, manipulated, or unavailable. Quotes, USD values, funding rates, “rewards,” yields, weights, and historical or simulated figures are estimates, not guaranteed values or returns. Past performance does not predict future results. There is no promise of liquidity, redemption, price support, market making, profit, or capital preservation.

4. Index, reference-asset, and trademark risk

A token or position referencing AAPL, MSFT, NVDA, AMZN, META, GOOGL, or TSLA is not necessarily equity in those companies. Unless final product documents expressly and lawfully provide otherwise, it gives no shareholder voting, dividend, inspection, redemption, ownership, or insolvency rights in a referenced issuer. A reference price can diverge from a share price because of market hours, oracle methodology, corporate actions, fees, leverage, funding, liquidity, regulation, and tracking error.

Company, protocol, and product names and marks belong to their owners. References to Robinhood, Lighter, Uniswap, Relay, public companies, or other projects do not by themselves establish sponsorship, endorsement, affiliation, or approval.

5. Smart-contract and administrator risk

Smart contracts may contain design errors, coding bugs, malicious logic, economic vulnerabilities, unsafe dependencies, incorrect assumptions, or undiscovered exploits. An audit reduces neither all risk nor the need to review code. Contracts may be immutable or impossible to repair after deployment; upgradeable or administered contracts introduce different risks.

LEV7 repository contracts include privileged owner, keeper, signer, guardian, pauser, deposit allowlist, strategy-selection, fee-recipient, burn-budget, and distribution controls. One contract mints a fixed supply to its deployment recipient, and other operations depend on selected keepers, signers, and routers. Privileged keys may be lost, compromised, used incorrectly, or exercised contrary to your expectations. A vault deposit controller requires an allowlist, and distributions depend on an owner or keeper supplying a batch.

The token supply is seeded into a Uniswap v4 liquidity position with no withdraw function, and unsold supply in that position can be burned permissionlessly within a daily budget funded by trading and validation fees. A guardian can permanently disqualify part of that position from burning behind a 24-hour timelock, and a pauser can halt burning. A statement that liquidity or principal is “locked,” or that supply is being burned, does not eliminate fee, code, pool, market, or key-management risk, does not create a price floor, and does not give you a redemption right.

Those economic interests and privileged powers can conflict with user interests.

6. Swap, approval, solver, and bridge risk

• Quote risk: rates, fee estimates, output, and ETA can change before or during execution.
• Approval risk: a malicious or unlimited approval can allow later asset transfers by the spender.
• Slippage and price impact: execution may produce less value than expected, especially in volatile or illiquid markets.
• Solver and relayer risk: a solver may fail, delay, censor, misroute, become insolvent, or deliver less than indicated.
• Bridge risk: bridge contracts, validators, multisigs, liquidity, message passing, and destination settlement can fail or be exploited.
• MEV risk: public transaction ordering can expose a swap to front-running, back-running, sandwiching, or other extractive strategies.
• Partial or delayed delivery: a route can remain pending beyond estimates or result in output below a preliminary quote after fees and changing conditions. The Interface should not label delivery complete below the executable route's expected output and should show the amount actually observed, but you must verify receipt independently.

7. Blockchain and infrastructure risk

Blockchains and layer-2 systems depend on validators, sequencers, bridges, nodes, governance, and software. They can experience congestion, high fees, reorgs, forks, censorship, downtime, chain-id confusion, delayed withdrawals, consensus failures, or abandonment. “Finality” varies by network and may be probabilistic. RPC, API, DNS, CDN, hosting, oracle, indexer, explorer, wallet, browser, and front-end outages or compromises may produce incorrect information or block access while contracts and markets continue operating.

8. Token, stablecoin, and liquidity risk

A token may be counterfeit, incompatible, non-transferable, fee-on-transfer, rebasing, paused, frozen, blacklisted, upgraded, or subject to issuer redemption or allowlist conditions. Wrapped assets depend on custody, contracts, and redemption mechanisms. Stablecoins can lose their peg, become illiquid, be frozen, or fail. WETH is not cash and has smart-contract and network risk. A pool can be concentrated, manipulated, drained, or unavailable; displayed liquidity may disappear before execution.

9. Cybersecurity, scams, and data risk

Phishing, fake domains, counterfeit tokens, malicious browser extensions, clipboard replacement, social engineering, compromised dependencies, DNS attacks, wallet-drainer signatures, and support impersonation are common. Public addresses and holdings can be analyzed and linked to identity. Onchain records are permanent and can expose financial activity. Protect operational security and use a dedicated wallet appropriate to the risk.

The Operator will never ask for a private key or recovery phrase. Do not send private keys, recovery phrases, passwords, or any other wallet credential to any address or to any person. If anyone asks for one while claiming to represent LEV7, assume it is a scam.

10. Third-party and counterparty risk

Wallets, Relay, solvers, bridges, RPCs, Lighter, Robinhood Chain, Uniswap, Blockscout, token issuers, oracle providers, liquidity providers, and other services are independent. They can change terms, block users, impose fees, malfunction, be hacked, become insolvent, or cease operating. LEV7 does not control their code, keys, business decisions, or privacy practices. Their integration or appearance does not guarantee their safety, legality, solvency, or performance.

11. Legal, regulatory, sanctions, and tax risk

The legal treatment of digital assets, leveraged products, tokenized references, derivatives, routing services, fee distributions, governance rights, and interfaces is unsettled and can change rapidly. An asset, activity, or participant may be subject to securities, commodities, derivatives, money-transmission, digital-asset licensing, consumer, financial-promotion, market-abuse, AML, sanctions, tax, or other laws. Regulators may restrict access, require registration, rescission, reporting, licensing, blocking, or other action. A self-custody label or disclaimer does not determine legal status.

You are responsible for the laws and taxes that apply to you. A representation in a clickwrap does not replace geolocation, wallet screening, licensing, or a risk-based compliance program.

12. No advice, fiduciary duty, or insurance

LEV7 content, data, allocations, routes, and estimates are not individualized advice, an offer, a recommendation, or a promise of suitability. The Interface does not monitor your portfolio, risk tolerance, legal status, or tax position. No fiduciary relationship arises merely from use. Digital assets and protocol positions are not bank deposits and are not insured by FDIC, SIPC, or any equivalent government or private protection unless a specific provider expressly proves otherwise in its own binding documents.

13. Your responsibility

Use only assets you can afford to lose completely. Independently investigate the contracts, administrator powers, token addresses, networks, route providers, fees, approvals, tax consequences, and legal restrictions. Test with a small amount. Maintain secure backups, verify every wallet prompt, monitor transactions independently, and revoke permissions you no longer need. If you do not understand a transaction or risk, do not sign.

14. Policies and version

Review the binding Terms of Use and the Privacy Notice. These Risk Disclosures are version 2026-08-30-v3. Material updates require renewed acceptance before gated use.