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ABOUT: Flipster-Ignight USDT Prime: Key Risks and How They’re Actively Managed

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TL;DR

Ignight USDT Prime is a DeFi-based vault product that generates USDT yield through on-chain strategies. While investment outcomes depend on market conditions, performance is shaped by how risks are identified, monitored, and managed over time. This article outlines the key risks relevant to Ignight USDT Prime and explains the frameworks used to manage them, so users can better understand how capital is deployed across different environments.

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Introduction

In DeFi, headline yields often draw attention first. Over time, however, outcomes tend to reflect how risk is managed just as much as where yield is sourced.

Ignight USDT Prime is a DeFi‑based vault designed to generate yield through a diversified set of on‑chain strategies. Like all DeFi products, it operates within markets that can be volatile and complex. The goal of this framework is to manage risk deliberately so capital can remain productive across changing conditions.

Key Risks at a Glance

Ignight USDT Prime is primarily exposed to four categories of risk:

• Smart Contract Risk

• Operational Risk

• Market Risk

• Liquidity Risk

These risks fall into two broad groups.

Infrastructure and execution risks, such as Smart Contract Risk and Operational Risk, relate to the systems and environments in which strategies are executed.

Investment strategy risks, such as Market Risk and Liquidity Risk, arise from how capital is allocated across DeFi strategies and how those exposures evolve over time. These risks account for most performance variation.

Other DeFi‑related risks exist, but this article focuses on those most likely to influence portfolio performance in a material way.

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How Key Risks Arise and Are Managed

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1) Smart Contract Risk: Protocol Code and Design Risks

Risk

Ignight USDT Prime relies on smart contracts deployed on public blockchains. Vulnerabilities in code, protocol design, or oracle mechanisms may result in unintended outcomes, including potential loss of funds.

How It's Managed

Strategy deployment is limited to protocols with established usage history and market adoption. Smart contracts are evaluated based on independent third-party audits, with preference given to protocols that have operated on mainnet over extended periods and undergone multiple audit reviews. This approach reduces exposure to untested or experimental code paths.

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2) Operational Risk: Custody and Execution Risks

Risk

On-chain asset management requires secure custody and disciplined execution. Failures in authorization, security breaches or operational errors may disrupt fund operations or result in asset loss.

How It's Managed

Ignight USDT Prime uses Fireblocks’ MPC-based custody infrastructure, with multi-party approvals required for asset movements. All strategies operate under a 100% on-chain mandate, allowing users to independently verify how assets are deployed and managed at any time.

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3) Market Risk: Exposure to Price and Rate Movements

Risk

Crypto markets can experience rapid price and rate changes. These movements may affect collateral values, borrowing costs, and strategy performance, particularly during periods of market stress.

How It's Managed

Capital is diversified across assets and strategies to reduce concentration risk. Where leverage is used, it is applied conservatively. Collateral selection prioritizes assets with deep liquidity and established market credibility, supporting more resilient performance during volatile conditions.

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4) Liquidity Risk: Ability to Exit and Meet Withdrawals

Risk

Liquidity conditions in DeFi markets may tighten during stress events. Large or simultaneous withdrawals can require positions to be unwound under less favorable conditions.

How It's Managed

The portfolio is structured to maintain liquidity across multiple strategies, with a portion of capital allocated to positions that support timely exits. Liquidity conditions are monitored continuously. A standard redemption window of up to 48 hours is applied to allow assets to be unwound in an orderly manner, reducing the likelihood of forced liquidations or value leakage.

During periods of elevated withdrawal demand, temporary extensions may be used to protect portfolio integrity and minimize slippage for all users.

Managing Risk at the Portfolio Level

While infrastructure risks are addressed through protocol selection and operational controls, Market Risk and Liquidity Risk are primarily managed through portfolio construction and allocation discipline.

Ignight USDT Prime is designed to balance yield generation with the practical realities of liquidity, scalability, and capital preservation.

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Managing Risk Across Strategy Types

Market risk differ by strategy. Ignight USDT Prime manages this through diversification, sizing, and explicit limits across the following categories:

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1) Lending Strategies

Lending strategies generate yield by depositing stable assets into on-chain money markets, where other users deposit collateral to borrow those assets and pay interest.

Lending strategies are exposed primarily to interest rate volatility and bad debt risk, particularly during periods of market stress. Sharp declines in collateral values or sudden shifts in capital flows can lead to rapid changes in borrowing rates, liquidation activity, or protocol health.

Risk is managed through diversification across protocols and chains, predominatly unlevered positions, and active allocation adjustments when market conditions or protocol risk indicators change beyond predefined thresholds.

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2) Pendle PT Fixed-Rate Strategies

Pendle PT strategies generate yield by purchasing Principal Tokens (PTs), which represent the right to receive a fixed amount of an underlying yield-bearing asset at maturity. Yield is realized by acquiring PTs at a discount and holding them to maturity, with the difference between purchase price and redemption value representing the fixed return.

While PTs provide fixed-rate exposure when held to maturity, their market prices fluctuate based on implied rates, time to maturity, and secondary market liquidity. As a result, PT risk characteristics can vary by underlying asset, maturity, and market depth.

Market risk is managed through diversification across maturities and chains, explicit position size limits per PT market, and predefined exit or de-risking actions when implied rates move sharply or market depth deteriorates.

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3) Delta-Neutral Basis Strategies

Delta-neutral basis strategies aim to generate yield by capturing spreads between funding rates, incentives, or yield components while minimizing direct exposure to asset price direction. These strategies rely on hedging mechanisms to offset market beta and focus on relative value rather than directional returns.

Delta neutral strategies are exposed to funding rate changes, execution risk, and extreme market dislocations.

Market risk is managed through conservative sizing, diversification across venues where applicable, and active monitoring of funding dynamics and hedge effectiveness during periods of stress.

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4) Looping Strategies

Looping strategies generate yield by recursively borrowing against collateral to increase exposure to a yield-bearing position. Returns are amplified through leverage, but so are sensitivities to changes in borrowing costs, collateral values, and liquidity conditions.

Because leverage magnifies both gains and losses, looping strategies introduce higher market risk than unlevered positions.

Market risk is managed by maintaining conservative loan-to-value targets, enforcing explicit leverage caps, and applying predefined deleveraging or unwind rules when borrowing costs rise, collateral values decline, or liquidity conditions weaken.

Liquidity Management Through Strategy Tiering

To support predictable withdrawals and portfolio flexibility, strategies are organized into tiers with different liquidity characteristics.

• Large pools

  • Large, highly liquid strategies form the portfolio’s core liquidity layer, prioritizing depth, scalability, and predictable exits. Examples include large overcollaterallized lending pools and Pendle PT pools with deep secondary liquidity.

• Mid-sized pools

  • Mid-sized strategies are used selectively to enhance yield within clearly defined capacity and liquidity limits. These strategies typically include mid-sized fixed-rate Pendle PT pools and structured products with defined caps and moderate liquidity depth.

• Smaller pools

  • Smaller or incentive-driven opportunities are accessed opportunistically with strict sizing constraints.

Across all tiers, allocation decisions prioritize the ability to rebalance and meet withdrawals under stressed conditions.

Portfolio Controls and Ongoing Monitoring

Risk controls are applied continuously to ensure alignment with portfolio objectives:

• Allocation ranges and exposure limits are defined in advance

• Rebalancing responds to changes in yields, incentives, and risk signals

• Governance updates, risk disclosures, and security events are continuously monitored across protocols

These controls are intended to preserve flexibility and prevent unintended risk accumulation over time.

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What This Means for Users

Ignight USDT Prime is built for users who want on-chain yield exposure with a structured approach to risk. While no DeFi product can remove risk entirely, this framework is designed to keep risk observable, managed, and proportionate as market conditions evolve.

As with any DeFi allocation, users should consider their own risk tolerance. Ignight USDT Prime aims to provide a clear, disciplined foundation for deploying USDT in on-chain markets, with risk management treated as an ongoing process rather than a static checklist.

 

Disclaimer: Ignight USDT Prime is not a Flipster product. Flipster’s role is that of a technical intermediary to enable users to access Ignight USDT Prime which is being offered by an independent third party provider. Flipster does not provide any investment, financial, legal or other advice in relation to Ignight USDT Prime.

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TERMS AND CONDITIONS

Last Updated; 22th Dec 2025

These Terms of Service (the “Agreement”) set forth the terms and conditions by which user (“User”, “you”) you may access and use the Ignight Vault (as defined herein) and related products and services, and product documentation (collectively, the “Products”) provided by Iglux Tampesta Technologies, Inc. (referred to herein as “Ignight”, “us”, or “we”). BY ACCESSING OR USING ANY OF THE PRODUCTS, YOU INDICATE THAT YOU HAVE READ, UNDERSTAND, AND AGREE TO BE BOUND BY THIS AGREEMENT IN ITS ENTIRETY, WHICH MAY BE MODIFIED FROM TIME TO TIME IN OUR SOLE AND ABSOLUTE DISCRETION IN ACCORDANCE WITH SECTION 2 BELOW. IF YOU DO NOT AGREE, THEN YOU ARE NOT AUTHORIZED TO ACCESS OR USE ANY OF OUR PRODUCTS.

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To access or use any of our Products, you must be able to form a legally enforceable agreement with us. Accordingly, you represent and warrant to us that: (i) you have full right, power, and authority to enter into and comply with the terms of this Agreement on behalf of yourself and/or any other entity on whose behalf you may access or use the Products; (ii) you or the entity on whose behalf that you access the Products will be effectively bound by this Agreement, and such Agreement will be enforceable against you or such entity in accordance with its terms; (iii) your entering into and performing this Agreement will not conflict with or contravene any legally enforceable instrument by which you are, or any other entity on whose behalf you may access or use the Products is, bound; (iv) you are not (a) the subject of economic or trade sanctions administered or enforced by any governmental authority or otherwise designated on any list of prohibited or restricted parties (including the SDN List maintained by the Office of Foreign Assets Control of the United States Department of the Treasury), or (b) a citizen, resident, or entity organized in a jurisdiction or territory that is the subject of comprehensive sanctions by the United States of America, the United Kingdom, or the European Union; (v) your access and use of any of our Products will not violate or contravene any applicable laws or regulations, and that you will not access or use any of our Products to conduct, promote, or otherwise facilitate any activity that is prohibited by any law, rule, or regulation applicable to us or to you.

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Our Products.

1. The Ignight Vault.

   1. General. The “Ignight Vault” is a curated vault through which you can deposit supported digital assets which are deployed to on-chain markets.

   2. Vault Token. The Ignight token is a digital token issued to users who deposit assets into the Ignight Vault. The token represents the user’s proportion of the Ignight Vault tokens are non-transferable and are exclusively redeemed through Flipster. the Ignight Vault Tokens do not confer voting, governance, or ownership rights in Ignight or any of the assets in the Ignight Vault.

   3. Access. Eligible Users access the Ignight Vault exclusively through the Flipster platform (“Flipster”). Flipster is not the operator or curator of the Ignight Vault. Your use of Flipster is subject to Flipster’s Terms of Use, available here: https://flipster.io/vi/policies/terms.

   4. Deposits. Deposits into the Ignight Vault will be accepted exclusively through Flipster. Any deposits or other transfers of assets into the Ignight Vault (e.g. directly from a blockchain wallet) will NOT be identified as belonging to the sender, and may be irrevocably lost. 

2. Suspension of Deposits. Deposits into the Ignight Vault are subject to Ignight’s acceptance at its sole discretion. Ignight may suspend, reject or delay deposits at any time and for any reason, including but not limited to: market disruptions, liquidity shortages, smart contract issues, security concerns, operational failures, or Force Majeure events. If your attempted deposit is rejected, the supported assets will remain in or be returned to your wallet / account.

3. Redemptions. Users may request redemption of Ignight Vault tokens exclusively through Flipster. We may set minimums, limits, and timing restrictions on redemptions. Upon redemption, you will receive, into your Flipster account supported digital assets equal to the value of your position at the time Ignight processes the redemption. When the Ignight Vault has sufficient immediately-available liquidity to process all then-pending withdrawal requests, your withdrawal request shall be executed timely, and subject to network congestion or other technical limitations within forty-eight (48) hours. When the Ignight Vault has insufficient immediately-available liquidity to process all then-pending withdrawal requests, all such requests shall enter a redemption queue and be executed as soon as practical upon release of sufficient liquidity.

4. Fees. Ignight may charge management, performance, redemption, or other fees. Applicable fees will be disclosed via Flipster or official Ignight communications. Ignight may modify fee structures by updating them via Flipster or official Ignight communications.

5. Eligibility. the Ignight Vault is not available to: (i) residents or citizens of the Republic of Panama; (ii) residents or citizens of any jurisdiction where participation would be unlawful; (iii) persons or entities on governmental sanctions lists or restricted-party lists; or (iv) users who are not approved users of Flipster, including ones whose account with Flipster has been suspended or terminated.

6. Other Products. We may from time to time offer additional products, and such additional products shall be considered a Product as used herein if referencing these Terms of Service, regardless of whether such product is specifically described in this Agreement.

7. Restrictions on Use of Our Products. Except as expressly permitted by this Agreement, you shall not, directly or indirectly: (a) use any of our Confidential Information (as defined herein) to create any service, software, documentation, or data that is similar to, or competes with, any aspect of the Products; (b) disassemble, decompile, reverse-engineer, or use any other means to attempt to discover any source code of the Products, or the underlying ideas, algorithms, or trade secrets therein; (c) use any routines, tools, processes, protocols, technologies, and all other tangible or intangible materials (including hardware, software, documentation, and data) provided or used by or on behalf of Ignight in providing the Products; including all improvements, updates, and derivatives thereof (collectively, the “Ignight Materials”) for any reason other than as contemplated and permitted by this Agreement; (d) encumber, sublicense, transfer, rent, lease, time-share, or use the Products in any service bureau arrangement or otherwise for the benefit of any third party; (e) copy, distribute, adapt, create derivative works of, translate, localize, or otherwise modify any aspects of the Products; (f) use or allow the transmission, transfer, export, re-export, or other transfer of any product, technology, or information that it obtains or learns pursuant to this Agreement (or any direct product thereof) in violation of any export control or other laws and regulations of the United States or any other pertinent jurisdiction; or (g) permit any third party to engage in any of the following on your behalf.

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Modifications of this Agreement or Our Products.

1. Modifications of this Agreement. We reserve the right, in our sole and absolute discretion, to modify or amend this Agreement from time to time. All modifications will be effective when they are posted, and your continued accessing or use of any of the Products shall indicate your acceptance of such modifications. If you do not wish to be bound by any such modifications, then you must stop accessing and using all of our Products.

2. Modifications of Products. We reserve the right, with or without notice to you, to: (a) modify, substitute, eliminate, or enhance any Product; and (b) review, modify, filter, disable, delete, or remove any and all content and information from any Product. However, we have no obligation to update any Product.

3. Intellectual Property Rights. We own all intellectual property and other rights in each of our Products and their respective contents, to the extent not otherwise designated by such Product or Product component. Subject to the terms and conditions of this Agreement, we grant to you a limited, revocable, non-exclusive, non-sublicensable, non-transferable license to access and use our Products solely in a manner contemplated by this Agreement. You have no other rights in any of our Products except those expressly granted to you by this Agreement. Notwithstanding any other provision contained herein; you acknowledge and agree that we may (a) use and disclose aggregate and/or anonymized measures pertaining to the Products and all usage and performance measures thereof; (b) reuse all generalized knowledge, experience, know-how, works, and technologies (including ideas, concepts, processes, and techniques) related to or acquired during provision of the Products; and (c) use, store, copy, create derivatives of, or archive data provided by you or on your behalf, including any aggregate data derived from your use of our Products, to create anonymized compilations, reports, and analyses of any data that you submit to us; and also to create, develop, and enhance algorithms, machine learning inputs, and any other pertinent applications in connection with our provision of our Products. All such described uses and derivatives as set forth above will be deemed as Confidential Information of Ignight.

4. Your Responsibilities and Acknowledgements: Prohibited Activity. You agree not to engage in, or attempt to engage in, any of the following categories of prohibited activity in relation to your access and use of the Products:

• Intellectual Property Infringement. Activity that infringes upon or violates any copyright, trademark, service mark, patent, right of publicity, right of privacy, or other proprietary or intellectual property rights under any applicable law.

• Cyberattack. Activity that seeks to interfere with, circumvent or compromise the integrity, security, or proper functioning of any computer, server, network, personal device, blockchain, wallet, exchange, smart contract, custodian, protocol, or other information technology system, including activities such as the deployment of viruses, exploitations of any source code, protocol, or smart contract (including operations that may be technically possible but may nevertheless be a violation of this Agreement and the law), or denial of service attacks.

• Fraud and Misrepresentation. Activity that seeks to defraud us or any other person or entity, including the provision of any false, inaccurate, or misleading information in order to unlawfully obtain property or consent from another.

• Market Manipulation. Activity that violates any applicable law, regulation, market rule or self-regulation, pertaining to the integrity of trading markets.

• Securities and Derivatives Violations. Activity that violates any applicable law, rule, or regulation concerning the issuance or trading of securities or derivatives, including the unregistered offering of securities and the unauthorized offering or trading of leveraged or margined commodity-, equity-, or index-based derivatives to any person.

• Unlawful Conversion of Property. Buying, selling, or transferring stolen, fraudulently obtained, or otherwise unlawfully obtained property.

• Data Mining or Scraping. Activity that involves data mining, scraping, or similar data extraction methods used for gathering and extracting information from any of our Products.

  1. Compliance and Tax Obligations. One or more of our Products may be unavailable or inappropriate for use in your jurisdiction. By accessing or using any of our Products, you acknowledge and agree that you are solely and entirely responsible for complying with all laws and regulations that may apply to you. Your use of our Products may result in various tax consequences pertaining to your income, capital gains, value-added, sales, or purchases of goods and services. It is solely your responsibility to determine the applicability of any taxes to your access and use of the Products. You alone will be responsible for appropriately reporting and paying any applicable tax obligations.

  2. Fees are Non-Refundable. Any fees collected by the Ignight Vault cannot be reclaimed or refunded after deducted; Several providers, including Ignight as the Curator of the Ignight Vault, may be entitled to payment of fees or other payments from the Ignight Vault, the Ignight Vault and they will have no contractual obligation to you, any vault user, or any other third-party arising from providing vault services or such fees.

  3. Conflicts of Interest. You acknowledge and agree that our interests as an independent entity may at times conflict with our interests as a vault service provider. In such cases, we will not be required to give priority to anyone else’s best interests. Your only rights and remedies as a vault user will be those included herein and in Flipster’s Terms of Use.

  4. Eligibility. By engaging with the Ignight Vault, you represent and warrant that you satisfy the eligibility requirements.

  5. Confidential Information. Each of Us and You agree to maintain the confidentiality of all non-public information exchanged between us in connection with the Products and/or any other products and/or services contemplated herein (“Confidential Information”), including but not limited to business operations, trade secrets, financial information, transaction details, and any other information identified as confidential or reasonably understood to be confidential given its nature and context. The receiving party agrees to use Confidential Information solely for fulfilling obligations under these Terms, not to disclose it to third parties without the disclosing party’s prior written consent except as required by law or regulation, or to professional advisors or agents bound by confidentiality obligations no less stringent than those set forth herein. Confidentiality obligations do not apply to information that is or becomes publicly available through no breach of these Terms, was already lawfully in the receiving party’s possession without confidentiality obligations, is disclosed by a third party with lawful authority and no restriction, or is independently developed without use of the Confidential Information. Upon termination of these Terms or upon request, the receiving party must return or destroy all Confidential Information, except as required by law or retained in automated backup systems. These confidentiality obligations survive termination of these Terms for a period of two years or as required by applicable law.

 

Disclaimer and Release.

1. RISK FACTORS. YOU EXPRESSLY ACKNOWLEDGE AND AGREE THAT YOUR USE OF THE PRODUCTS CARRIES SUBSTANTIAL RISKS OF LOSS AND YOU USE THE PRODUCTS AT YOUR SOLE RISK. A NON-EXHAUSTIVE LIST OF THESE RISKS IS SET FORTH IN EXHIBIT A “RISK FACTORS”. BY ACCESSING AND USING ANY OF OUR PRODUCTS, YOU REPRESENT AND WARRANT THAT YOU ARE OF LEGAL AGE AND CAPACITY, ARE SUFFICIENTLY FINANCIALLY AND TECHNOLOGICALLY SOPHISTICATED TO UNDERSTAND AND COMPETENTLY ASSUME THE INHERENT RISKS ASSOCIATED WITH USING CRYPTOGRAPHIC AND BLOCKCHAIN-BASED SYSTEMS, AND THAT YOU HAVE A FUNCTIONAL KNOWLEDGE OF THE USAGE AND INTRICACIES ASSOCIATED WITH DIGITAL ASSETS, DIGITAL ASSET PLATFORMS, AND DIGITAL ASSET MARKETS. WE DO NOT OWN OR CONTROL ANY OF THE UNDERLYING SOFTWARE OR HARDWARE THROUGH WHICH BLOCKCHAIN NETWORKS ARE FORMED AND OPERATED. YOU ACKNOWLEDGE AND UNDERSTAND THAT DIGITAL ASSET MARKETS ARE NASCENT AND HIGHLY VOLATILE DUE TO CERTAIN FACTORS INCLUDING BREADTH OF ADOPTION, SPECULATION BY PARTICIPANTS, TECHNOLOGICAL PROGRESS AND LIMITATIONS, CYBERSECURITY, AND LAWS AND REGULATIONS.

2. NO WARRANTIES. EACH OF OUR PRODUCTS ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS.TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, WE FULLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND PERTAINING TO OUR PRODUCTS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR PURPOSE. YOU ACKNOWLEDGE AND AGREE THAT YOU USE EACH OF OUR PRODUCTS AT YOUR OWN RISK. WE NEITHER REPRESENT NOR WARRANT THAT ACCESS TO EACH OF THE PRODUCTS WILL BE CONTINUOUS, UNINTERRUPTED, TIMELY, OR SECURE; OR THAT ANY OF OUR PRODUCTS WILL BE FREE FROM ERRORS, DEFECTS, VIRUSES, OR OTHER HARMFUL ELEMENTS. NO ADVICE, INFORMATION, OR STATEMENT THAT WE MAKE SHOULD BE TREATED AS CREATING ANY WARRANTY CONCERNING ANY PRODUCT. WE DO NOT ENDORSE, GUARANTEE, OR ASSUME RESPONSIBILITY FOR ANY ADVERTISEMENTS, OFFERS, OR STATEMENTS MADE BY ANY THIRD-PARTY CONCERNING OUR PRODUCTS.

3. RELEASE OF CLAIMS. BY USING THE PRODUCTS, INCLUDING THE IGNIGHT VAULT; YOU AGREE TO RELEASE IGNIGHT, ITS OFFICERS, DIRECTORS, EMPLOYEES, AND AFFILIATES (“IGNIGHT PARTIES”) FROM ANY AND ALL LIABILITY, CLAIMS, CAUSES OF ACTION, LOSSES, OR DAMAGES (“LOSSES”) ARISING FROM OR IN ANY WAY RELATING TO YOUR USE OF ANY OF OUR PRODUCTS; INCLUDING, BUT NOT LIMITED TO, ANY FINANCIAL LOSSES, DATA BREACHES, OR INACCURACIES IN INFORMATION OR REPORTING USED BY THE IGNIGHT VAULT. IF YOU USE THE PRODUCTS AND/OR ANY OTHER PRODUCTS AND/OR SERVICES CONTEMPLATED HEREUNDER VAULT SERVICE, YOUR LEGAL RECOURSE IS VERY LIMITED, AND YOU GIVE UP ANY CLAIMS THAT YOU MAY HAVE AGAINST ANY IGNIGHT PARTIES, TO THE FULLEST EXTENT POSSIBLE UNDER APPLICABLE LAW.

4. Indemnification. YOU AGREE TO HOLD HARMLESS, RELEASE, DEFEND, AND INDEMNIFY US AND OUR DIRECTORS, MANAGERS, EMPLOYEES, CONTRACTORS, AGENTS, AFFILIATES, AND SUBSIDIARIES FROM AND AGAINST ALL LOSSES ARISING FROM: (A) YOUR ACCESS AND USE OF ANY OF OUR PRODUCTS; (B) YOUR VIOLATION OF ANY TERM OR CONDITION OF THIS AGREEMENT, THE RIGHT OF ANY THIRD-PARTY, OR ANY APPLICABLE LAW, RULE,OR REGULATION; (C) ANY OTHER PARTY’S ACCESS AND USE OF ANY OF OUR PRODUCTS WITH YOUR ASSISTANCE USING ANY DEVICE OR ACCOUNT THAT YOU OWN OR CONTROL; AND (D) ANY DISPUTE BETWEEN YOU AND (I) ANY OTHER USER OF THE PRODUCTS, OR (II) ANY OF YOUR OWN CUSTOMERS OR USERS.

5. Limitation of Liability. YOU ACKNOWLEDGE AND AGREE THAT UNDER NO CIRCUMSTANCES SHALL WE OR ANY OF OUR DIRECTORS, MANAGERS, EMPLOYEES, CONTRACTORS, AGENTS, AFFILIATES, OR SUBSIDIARIES BE LIABLE TO YOU FOR ANY INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA, OR OTHER INTANGIBLE PROPERTY, WHICH MAY ARISE OUT OF OR RELATE TO YOUR ACCESS, USE, OR INABILITY TO ACCESS OR USE ANY OF THE PRODUCTS, NOR WILL WE BE RESPONSIBLE FOR ANY LOSSES RESULTING FROM UNAUTHORIZED ACCESS OR MODIFICATION, CYBERATTACK, OR MALICIOUS CODE EXPLOIT INVOLVING ANY OF THE PRODUCTS OR THE INFORMATION CONTAINED THEREIN, REGARDLESS OF WHETHER BASED IN CONTRACT, TORT, OR STATUTE; AND REGARDLESS OF WHETHER ANY AUTHORIZED REPRESENTATIVE OF IGNIGHT HAS BEEN ADVISED OF OR HAD KNOWLEDGE OF THE POSSIBILITY OF SUCH RESPONSIBILITY OR POTENTIAL DAMAGE, LOSS, OR INJURY. OUR TOTAL LIABILITY TO YOU FOR ANY DIRECT DAMAGES PERTAINING TO THIS AGREEMENT SHALL NOT EXCEED TEN US DOLLARS ($10). WE ASSUME NO LIABILITY NOR RESPONSIBILITY FOR ANY UNAUTHORIZED ACCESS OR MISUSE OF ANY SERVER OR DATABASE UNDER OUR CONTROL, INCLUDING ANY SUCH UNAUTHORIZED ACCESS OR MISUSE OF THE DATA CONTAINED THEREIN. WE ASSUME NO LIABILITY TO YOU OR ANY OTHER PARTY FOR ANY LOSSES THAT MAY ARISE AS A RESULT OF ANY TRANSACTIONS THAT YOU ENGAGE IN BY MEANS OF ANY OF OUR PRODUCTS.

6. Miscellaneous.

   1. Governing Law. These Terms are governed by the laws of the Republic of Panama, excluding rules as to choice and conflicts of law and the courts in Panama City, Panama will have exclusive jurisdiction; however, Ignight or its Affiliate may bring suit for payment in the country where y and/or your entity is located.

   2. Entire Agreement. These terms and conditions constitute the entire agreement between you and us with respect to the subject matter addressed herein. With the exception of any addenda or Proposals expressly identified as such and entered into contemporaneously with this Agreement, this Agreement supersedes any and all prior and contemporaneous agreements, communications, and undertakings pertaining to the subject matter addressed herein.

   3. Force Majeure. In the event that either party is prevented from performing, or is unable to perform, any of its obligations under this Agreement (except payment obligations) due to any cause beyond its reasonable control including without limitation, fire, explosion, earthquake, storm, flood, labor strike, war, insurrection, riot, act of God or a public enemy, telecommunications failures, cyberattacks, or governmental action; then such affected party’s performance of this Agreement shall be extended by the period of time for which the affected party was unable to perform its obligations, or excused in their entirety if such performance cannot be performed in a commercially reasonable fashion thereafter.

7. Assignment. You may not assign or transfer this Agreement, by operation of law or otherwise, without our prior written consent. Any attempt by you to assign or transfer this Agreement without our prior written consent shall be null and void ab initio. We may freely assign or transfer this Agreement. Subject to the foregoing, this Agreement will bind and inure to the benefit of the parties, their successors, and permitted assigns.

8. Independent Contractors. The parties shall be independent contractors under this Agreement, and nothing herein will constitute either party as the employer, employee, agent, or representative of the other party, or both parties as joint venturers or partners for any purpose.

9. Notice. We may provide any notice to you under this Agreement using any means, including by public communication channels and posting on our website or on Flipster. Any such notices that we dispatch to you shall become effective upon posting or dispatch.

10. Termination. We may terminate or suspend all or any part of the Products immediately, without prior notice or liability, when we deem it appropriate in our sole discretion. We may limit the availability of the Products to any person, geographic area, or jurisdiction in our sole and absolute discretion and may terminate any user’s access to the Products at any time and in our sole and absolute discretion. We may suspend or disable your access to the Products if we consider it commercially reasonable to do so, including if you breach any of the terms or conditions of this Agreement. Upon such termination of your access, your right to use the Products will immediately cease.

11. Severability. If any provision of this Agreement shall be determined to be invalid, illegal, or unenforceable by any competent governmental authority, then such provision shall be severed from this Agreement and replaced with a mutually agreeable provision which, being valid, legal, and enforceable, most closely approximates the original economic effect and intent of the parties in entering into the prior provision to the fullest extent permitted by applicable law and the validity or enforceability of any other provision of this Agreement shall not be affected.

12. Media Usage. No media releases, public announcements, or public disclosures pertaining to this Agreement, its subject matter, the Products and/or any of the services contemplated hereunder (including in promotional or marketing materials) shall be made by you without the prior written consent of Ignight.

 

Exhibit A

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Risk Factors

DEPLOYING FUNDS TO THE IGNIGHT VAULT CARRIES SIGNIFICANT RISKS THAT YOU SHOULD BE AWARE OF, INCLUDING, WITHOUT LIMITATION: No fiduciary or advisory relationship. Our provision of the Products is not investment, tax, legal, or technological advice. None of Ignight's vaults are depository or custodial products, and none of your digital assets are guaranteed by Ignight or any other person. We are not a fiduciary for any vault user, nor will we act as a broker, custodian, investment adviser, or asset manager through our provision of the Ignight Vault.

Digital Asset Risks. You deploy your assets to the Ignight Vault at your own risk, with full understanding that (i) your digital assets may lose some or all of their market value; (ii) your digital asset positions may be liquidated partially or entirely as a result of parameters that you cannot control or change; (iii) your digital assets may be compromised or stolen by malicious software attacks; (iv) your only recourse to prevent such risks after deploying to the Ignight Vault is to fully withdraw from the Ignight Vault, which may be subject to a withdrawal lock period and fees; and that (v) past performance does not guarantee future results.

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Leverage and Hedging. You understand and acknowledge that some vault strategies may involve the use of leverage, which amplifies both gains and losses. The leveraged nature of such strategies can produce substantial volatility and even significant losses if market prices move in an unfavorable direction. leverage involves risks of management errors, hedging delays due to limited liquidity, fluctuating borrowing costs, and liquidation during extreme market conditions are key concerns. If hedging is used, the hedged vault may also face data or execution errors, inadequate liquidity on Flipster for full delta hedging, and liquidation risk on hedge positions during periods of high volatility. You participate in such strategies at your own risk, and neither Ignight nor Flipster can offer any guarantees against risk of loss. Only highly sophisticated and risk-tolerant vault users should participate in such strategies.

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Strategy Risk. While we exert efforts to select strategies and markets that we think will optimize vault performance; we do not guarantee the accuracy or reliability of our modeling and analysis, and in no event does our modeling and analysis reliably predict or guarantee expected performance or yield. It further does not provide assurance against risk of loss. Make your own risk-reward decisions based on your own sophisticated market perspectives. You bear full responsibility for lawful possession, custody, and security of your digital assets when you transact with Flipster vaults.

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Market Risks. Price volatility in underlying assets and fluctuations in funding rates can significantly affect returns. Liquidity may dry up during high-volatility periods, and correlations between assets can break under stress. These factors require careful position sizing and robust risk management.

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Operational Execution. Execution slippage, especially in less liquid markets or during volatility spikes, can erode profits. Transaction timing is often critical, and even rare system downtime must be considered. Integrating multiple protocols demands thorough testing and meticulous attention to detail.

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Blockchains, Smart Contract, Wallet, Exchange, Custodian, and Protocol Security Risks. Blockchains, smart contracts, wallets, exchanges, custodians, and onchain protocols that Ignight uses to operate the Ignight Vault, are susceptible to vulnerabilities and exploits. Upgrades and parameter changes can introduce new security vulnerabilities. Users may be exposed to blockchain, smart contract, wallet, exchange, custodian, and protocol failures and exploits, leading to potential losses. Network congestion or failure may impair transaction processing. Delays may affect the value or timing of redemption.

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Flipster Risk. The Products are available through Flipster, and depend on Flipster’s availability, security and proper function. You acknowledge that we do not have control over Flipster and are not responsible for failures or issues caused by Flipster.

Cybersecurity Risks. Malicious attacks or unauthorized access may impact the systems used by Ignight, Flipster, or your interfaces that you use to interact with the Ignight Vault. Security breaches can result in asset loss.

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Suspension Risk. Ignight may suspend deposits or redemptions. During suspension, you may be unable to access deposited assets.