SOVEREIGN TRADING CAPITAL, INC.
Effective Date: May 10, 2026 Last Updated: May 10, 2026
This Customer Agreement (the "Agreement") is between Sovereign Trading Capital, Inc., a California corporation with its principal place of business at 9350 Wilshire Boulevard, Suite 203, Beverly Hills, California 90212 ("Sovereign," "we," "us," or "our") and the individual or entity who activates an account ("Customer," "you," or "your"). By activating an account and connecting a brokerage account, Customer agrees to all terms below.
Sovereign provides automated algorithmic trading services that execute options trading strategies on Customer's existing brokerage account through application programming interface ("API") authorization. Sovereign is an algorithmic trading service operator. Sovereign does not:
Customer's funds remain at Customer's selected brokerage firm. The currently supported brokerage is Tastytrade; additional brokerages may be supported in future versions of the service. Customer's brokerage account remains owned by Customer at all times. Sovereign accesses Customer's brokerage account solely through API authorization that Customer voluntarily grants and may revoke at any time.
Subject to Customer's selection of one or more "Sentinel" algorithmic trading strategies (organized into an SPX tier for accounts of $25,000 or greater and an SPY tier for accounts of $2,500 or greater), Sovereign will:
a. Use Customer-granted API authorization to read account balance and position information from Customer's brokerage account b. Place options trades on Customer's account at sizing determined by the selected Sentinel's deployment parameters. SPX tier Sentinels trade SPX 0DTE iron condors and substantially similar structured options positions on the S&P 500 Index; SPY tier Sentinels trade SPY 0DTE iron condors and substantially similar structured options positions on the SPDR S&P 500 ETF c. Manage open positions through entry, holding, and exit according to Sentinel logic d. Record all trades and balance changes in Sovereign's internal systems for billing and reporting purposes e. Provide Customer access to a customer dashboard showing real-time account state, trade history, and fee accrual
Sovereign may add, modify, or discontinue Sentinels at its discretion with reasonable notice to Customer.
By connecting a brokerage account, Customer grants Sovereign authorization to:
Sovereign is NOT authorized to:
Customer may revoke this authorization at any time by disconnecting Sovereign in the customer dashboard or by revoking API access directly through the brokerage firm. Upon revocation, Sovereign will cease placing new trades within one (1) trading day; existing open positions placed by Sovereign will be closed according to strategy exit rules.
Customer represents and warrants that:
a. Customer is at least 18 years of age b. Customer is a legal resident of a jurisdiction in which the service is offered (currently the United States) c. Customer maintains minimum capital of twenty-five thousand dollars ($25,000) in the connected brokerage account for each selected Sentinel, which is Sovereign's eligibility threshold and not a regulatory requirement, and Customer remains responsible for any margin, day-trading, or options-approval requirements imposed by Customer's own brokerage firm d. Customer has read and understood the Risk Disclosure Statement, which is incorporated by reference into this Agreement e. Customer's investment in algorithmic options trading is appropriate given Customer's overall financial situation, investment experience, risk tolerance, time horizon, and liquidity needs f. Customer is not relying on Sovereign for individualized financial advice and has consulted Customer's own financial, tax, and legal advisors as appropriate g. Customer is not subject to any regulatory restriction, court order, or regulatory inquiry that would prohibit Customer from authorizing third-party algorithmic trading on their brokerage account h. Customer's brokerage account is approved for the level of options trading required by the selected strategy
4A.1 Stage Architecture. Each Sovereign Sentinel operates within a defined lifecycle of stages: Backtested Validation, Paper Calibration, Beta Live Trading, and Production Live Trading. The current operational stage of each Sentinel is disclosed on the Sentinel's detail page and on Sovereign's Live Performance page at the time of any Customer's reservation, activation, or ongoing service.
4A.2 Customer Acknowledgment of Entry Stage. Customer acknowledges and agrees that at the time of activation, Customer will be informed of the operational stage of each Sentinel they have selected. Customer understands that:
(a) Backtested Validation stage means the Sentinel's strategy has been validated against historical market data but has not been operated in live or paper market conditions for a Sovereign customer relationship.
(b) Paper Calibration stage means the Sentinel is operating in live market conditions using simulated capital, with no real customer funds deployed. Customers cannot activate Sentinels operating in Paper Calibration stage.
(c) Beta Live Trading stage means the Sentinel is operating with real customer capital across a limited customer cohort (typically the first 5–25 customers per Sentinel). Beta Live Trading stage participants accept that the Sentinel has a shorter live trading history than Sentinels in Production Live Trading stage.
(d) Production Live Trading stage means the Sentinel is operating with real customer capital across all eligible customers. This is the long-term operational stage for any Sentinel.
4A.3 Sovereign's Authority to Transition Stages. Sovereign retains sole authority to transition any Sentinel between stages. Stage transitions require: (i) compliance officer review and sign-off, (ii) administrator step-up authentication, (iii) verification of strategy operational health, and (iv) recording in Sovereign's permanent audit log.
4A.4 Continuity of Customer Authorization Across Transitions. Customer's brokerage authorization granted under this Agreement remains valid across stage transitions. A Sentinel transitioning from Beta Live Trading to Production Live Trading does not require Customer to re-authorize. Customer may revoke authorization at any time as set forth in Section 7.
4A.5 Performance Disclosure Across Stages. Sovereign discloses performance separately for each stage on the Live Performance page. Customer acknowledges that performance results from Backtested Validation and Paper Calibration stages do not predict performance during Beta Live Trading or Production Live Trading stages. Live trading involves real market frictions including execution costs, slippage, and market impact that are not present in backtested or paper-traded scenarios.
4A.6 Notification of Stage Transitions. Sovereign will notify Customer by email at least three (3) business days before any material stage transition affecting a Sentinel to which Customer is subscribed. Material transitions include any change to the stage classification displayed on the Sentinel's detail page. Customer may pause subscription, modify selected Sentinels, or cancel subscription before or after any stage transition without penalty.
DRAFT — added 2026-05-16 per founder directive. PENDING OREN REVIEW. Not customer-facing until reviewed; the §4B mechanism described here is not yet operationally implemented and customer copy on the live site does not reference it. Strike or revise as Counsel directs.
4B.1 Rolling Seven-Day Authorization Window. Customer's authorization for Sovereign to execute trades on Customer's connected brokerage account operates as a rolling seven (7) calendar day authorization window. At any time, Customer's trading authorization extends through a defined "Authorization Expiration Date" — the date through which Sovereign is permitted to initiate new trades under this Agreement. Upon Customer's initial brokerage authorization under Section 3, the Authorization Expiration Date is set to seven (7) calendar days forward.
4B.2 Renewal Request and Escalation Cadence. Sovereign will deliver renewal requests to Customer on the following escalating schedule prior to each Authorization Expiration Date:
Each renewal request will include: (a) the current Authorization Expiration Date, (b) the proposed new Authorization Expiration Date (seven days forward), (c) a summary of the prior seven-day trading period showing aggregate P&L per active Sentinel and the count of trades executed, and (d) a one-tap or one-click renewal action. The cadence above is the maximum; Customer may opt to receive fewer reminders by adjusting notification preferences in Account Settings. Customer may not opt out of the twenty-four (24) hour notice — it is the minimum required disclosure before authorization lapse.
4B.3 Customer Action. Customer may take one of three actions in response to a renewal request:
4B.4 Auto-Renewal Opt-In. Customer may elect, in Account Settings, to enable Auto-Renewal. When Auto-Renewal is enabled, taking no action under Section 4B.3 defaults to Renew (option (i)) instead of Pause (option (iii)); Sovereign will continue to send renewal notifications under Section 4B.2 regardless of Auto-Renewal status, as transparent disclosure. Auto-Renewal may be toggled on or off by Customer at any time. Auto-Renewal is OFF by default for the first thirty (30) days following Customer's activation under Section 11.4; thereafter Customer may opt in.
4B.5 Pause Does Not Terminate. A pause under Section 4B.3 or as a result of Section 4B.4 does not constitute termination of this Agreement and does not affect Customer's brokerage authorization scope (Section 3), Customer's Sentinel selections, or Customer's account in any way other than pausing the initiation of new trades. Subscription fees continue to accrue per Section 5 during any pause, calculated on Customer's actual capital deployed (which during a full pause will trend toward zero as open positions close). Customer may terminate this Agreement under Section 10 at any time, independent of the renewal cycle.
4B.6 Inability to Deliver Renewal Request. If Sovereign cannot deliver the renewal request through both the email and in-app channels under Section 4B.2 — for example, email bounces and the Customer has not logged in for fourteen (14) days — Sovereign will additionally attempt delivery via SMS to Customer's verified mobile number on file. If no channel succeeds before the Authorization Expiration Date, trading authorization pauses by default; Customer's protection from undisclosed trading takes precedence over continuity of trading.
4B.7 Record of Authorizations. Sovereign will maintain a record of each renewal action (the Renew / Pause / No Action result, timestamp, IP address, and channel of the renewal request that elicited the response) in the audit log for the lifetime of the Customer relationship plus five (5) years thereafter. Customer may request a copy of this record at any time at no charge.
4B.8 Relationship to Other Sections. Customer's right to terminate this Agreement under Section 10 is not contingent on the renewal cycle and may be exercised at any time during or outside a renewal window. Section 4A.4 (Continuity of Customer Authorization Across Stage Transitions) continues to apply across renewal cycles. Section 11 (Trial Period and Refund Right) provisions apply to Customer's initial enrollment regardless of renewal status. In the event of any conflict between Section 4B and Section 11, Section 11 prevails for the duration of the Trial Period.
DRAFT — added 2026-05-18 per founder directive (Capacity Management + Automatic Successor Spawning). PENDING OREN REVIEW. Not customer-facing until reviewed. Strike or revise as Counsel directs.
4C.1 Validated Capacity Ceilings. Each Sentinel operates within a per-broker assets-under-management ("AUM") capacity ceiling determined by Sovereign's backtested capacity analysis. Operating a Sentinel meaningfully beyond its validated ceiling may degrade strategy performance for all Customers using that Sentinel. To preserve strategy performance and protect Customer returns, Sovereign automatically manages capacity by spawning successor versions of each Sentinel as needed and, when warranted by capacity utilization, transitioning Customer accounts to successor versions.
4C.2 Capacity-Triggered Spawning. When the aggregate per-broker AUM of an active Sentinel version reaches seventy percent (70%) of its validated capacity ceiling, Sovereign will spawn a new version of the same Sentinel (a "Successor Version"). The Successor Version uses byte-identical strategy logic, the same risk parameters, the same fee tier structure, and a fresh capacity allowance. From spawn onward, new Customer signups for that Sentinel are routed into the Successor Version; existing Customers in the predecessor version are unaffected at the spawn event itself.
4C.3 Transition Notice. When the aggregate per-broker AUM of a predecessor version reaches ninety percent (90%) of its validated capacity ceiling, Sovereign will provide affected Customers at least thirty (30) calendar days' advance notice ("Transition Notice") of an upcoming transition to the Successor Version. The Transition Notice will identify: (a) the current and Successor Version, (b) the scheduled transition date, (c) the unchanged terms of Customer's subscription (fee tier, locked rate, lock period, signup date, account history, all of which are preserved), and (d) Customer's option to cancel the subscription prior to the transition date if Customer does not wish to transition.
4C.4 Transition Execution. On or after the scheduled transition date (and not before), or if aggregate per-broker AUM reaches ninety-five percent (95%) of the predecessor version's capacity ceiling, Sovereign may transition Customer's account from the predecessor version to the Successor Version. The transition:
Sovereign Trading's database immutability constraints enforce the preservation guarantees in this Section 4C.4 at the system level: no internal process can mutate Customer's fee tier, locked rate, lock expiration, or signup date as part of a transition.
4C.5 Pre-Granted Authorization. By signing this Agreement, Customer authorizes Sovereign Trading to: (a) spawn Successor Versions of any Sentinel Customer subscribes to, (b) route Customer's account into the Successor Version on or after the transition date specified in the Transition Notice, and (c) wind down the predecessor version after Customer has been transitioned (no new signups, no new positions, existing positions close per the Sentinel's normal exit logic). Customer's authorization under this Section 4C.5 is granted at signup and continues through the duration of Customer's subscription. Customer may revoke this authorization only by cancellation of the subscription under Section 10.
4C.6 Customer Election Not to Transition. During the thirty (30) day notice period following a Transition Notice, Customer may cancel the subscription under Section 10 if Customer does not wish to transition. Cancellation during the notice period stops further fee accrual at the cancellation date and follows the standard Section 10 cancellation process. If Customer does not cancel by the transition date, transition under Section 4C.4 proceeds automatically without further Customer action. After the transition completes, Customer's right to terminate under Section 10 remains unchanged.
4C.7 No Customer-Facing Version Display. Customer-facing surfaces (the dashboard, account pages, marketing pages, and Customer-facing emails) refer to each Sentinel by its base name (for example, "Polaris," "Kairos," "Oracle V1"), not by its version identifier. Internal records, audit trails, and the Customer's transition history are version-aware and available to Customer upon request.
4C.8 Wind-Down of Predecessor Versions. After all Customers in a predecessor version have been transitioned, the predecessor version enters a "wind-down" state: no new signups, no new positions opened, and any remaining open positions close per the Sentinel's normal exit rules. After all positions close and AUM reaches zero, the predecessor version is marked archived in Sovereign's records and ceases trading. Archived versions remain in Sovereign's records for audit and regulatory purposes for the lifetime of the Customer relationship plus five (5) years thereafter.
4C.9 Audit Trail. Sovereign maintains an append-only audit log of every capacity-management event (version spawned, transition begun, customer transitioned, version wound down, version archived). This audit log is immutable at the database level — once written, no entry can be modified or deleted. Customer may request a copy of the entries pertaining to Customer's account at any time at no charge.
4C.10 Acknowledgment. Customer acknowledges and agrees that proactive capacity management is essential to preserving the strategy performance that Sovereign Trading is designed to deliver. Customer understands that without this mechanism, sustained capital inflows could degrade strategy performance for all Customers using a given Sentinel. Customer further acknowledges that the protections in Section 4C.4 (preservation of fee tier, locked rate, lock period, signup date, and history) are designed to make capacity-driven transitions commercially neutral from Customer's perspective.
Customer pays Sovereign monthly fees calculated on a continuous accrual basis. Fees are determined by:
a. The strategy or strategies selected by Customer b. Customer's actual capital deployed during each second of the billing period c. Any rate modifiers in effect (founder rate locks, promotional discounts, comps, or other adjustments)
2026-05-19 §5 rate tables are now self-generating from FEE_RATES_BY_SENTINEL (the platform's single source of truth) at render time. The tables below render the current Founders'-tier rate per Sentinel; tier transitions (Founders' → Early → Standard) cause the rate Customer signed up under to remain locked for the contractual period regardless of any later edits to the source. PENDING OREN REVIEW before customer launch — the dynamic-table approach plus the current numeric values both want Counsel's sign-off.
The current advertised monthly fee rates per Sentinel are:
SPX tier (minimum $25,000 capital per Sentinel):
| Sentinel | Founders' Monthly Rate |
|---|---|
| Oracle V1 | 0.49% |
| Genesis V2 | 0.58% |
| Polaris | 0.64% |
| Kairos | 0.65% |
| Chochma | 0.67% |
| Precision | 0.70% |
| Eli | 0.72% |
SPY tier (minimum $2,500 capital per Sentinel — each inherits its SPX parent's monthly rate per dollar of capital deployed):
| Sentinel | SPX parent | Founders' Monthly Rate |
|---|---|---|
| SPY Genesis | Genesis V2 | 0.58% |
| SPY Polaris | Polaris | 0.64% |
| SPY Kairos | Kairos | 0.65% |
| SPY Precision | Precision | 0.70% |
| SPY Eli | Eli | 0.72% |
SPY tier Sentinels are currently in Phase A Lite validation. Subscriptions open per Sentinel once validation completes.
Fees are calculated as: capital deployed × strategy fee rate × fraction of month elapsed, applied at second-level precision across the billing window. Customer's exact monthly fee will vary based on actual capital trajectory throughout the month. Fees are billed monthly in arrears via Customer's payment method on file with Stripe, Inc., Sovereign's payment processor. Customer authorizes Sovereign to charge the payment method on file for fees calculated under this Agreement.
The customer dashboard displays real-time fee accrual during each billing period for full transparency.
Sovereign may modify strategy fee rates with thirty (30) days' prior written notice, except where Customer holds an active rate modifier (such as a founder rate lock) that prevents the change from applying to Customer's account during the modifier's effective period.
5.1 Annual Prepayment Option. As an alternative to monthly billing in arrears, Customer may elect at signup or any time thereafter to prepay twelve (12) months of subscription fees upfront for one or more selected Sentinels, at a discounted rate published on the signup page (currently a ten percent (10%) discount versus the equivalent twelve months of monthly billing; standard founders cohort discount may differ as specified in the Founders Addendum). Prepayment is calculated against Customer's declared capital commitment at the time of prepayment and applied as a non-refundable credit balance against Customer's monthly accruals under this Section 5 until exhausted. Customer remains free to revoke brokerage authorization or terminate this Agreement under Section 10 at any time during the prepaid period; however, the unused prepayment credit is non-refundable except as provided in Section 10.3 (Wind-Down Obligations) where termination is initiated by Sovereign. If Customer's actual capital deployed during the prepaid period exceeds the capital commitment used to calculate the prepayment, any excess accrual above the prepaid credit is billed monthly in arrears as set forth above. Customer may elect to switch back to monthly billing for future periods upon completion of the current prepayment cycle.
5.2 Fee Tier Lock and Re-activation.
DRAFT — added 2026-05-17. PENDING OREN REVIEW.
Customer's fee tier and monthly rate are determined automatically at signup based on Sovereign's then-current public tier (which itself is determined deterministically by aggregate customer count and aggregate Assets Under Management). Once assigned, Customer's tier and rate are LOCKED for the period stated at signup: five (5) years for customers entering during the Founders' Compact tier, three (3) years for customers entering during the Early Customers tier, and no lock period for customers entering during the Standard tier.
Sovereign Trading Capital, Inc. CANNOT modify Customer's locked fee tier, lock duration, or rate during the lock period. This is enforced architecturally — the system contains no administrative function, application programming interface (API) endpoint, or user-interface tool that would allow any Sovereign employee, contractor, agent, or affiliate (or any third party including, without limitation, Anthropic and any artificial-intelligence system) to alter these values for an existing Customer. Database-level constraints (immutability triggers on the customers table) prevent modification.
If Customer cancels subscription during the lock period, Customer MAY re-activate at any time before lock expiration and resume at Customer's original tier rate. Re-activation is automatic — no administrative approval required, no application required, and no human review required. Customer may select a different Sentinel upon re-activation; Customer's locked tier rate applies to whichever Sentinel category Customer chooses (Conservative, Balanced, Accelerated, or Flagship).
Re-activation matching is performed by the email address Customer used at original signup. Signup with a different email address is treated as a new customer at the then-current public tier rate and lock period.
After Customer's lock period expires, Customer's subscription automatically rolls to the then-current public tier rate for Customer's Sentinel's category. Sovereign will provide sixty (60) days' advance written notice (by email and, where available, in-app notification) of the upcoming rate change. Customer may cancel subscription before or after the lock-expiry rollover under Section 10 without penalty.
Public tier transitions (from Founders' Compact to Early Customers, and from Early Customers to Standard) happen autonomously when EITHER the customer-count cap OR the aggregate Assets Under Management cap for a tier is reached, whichever crosses first. No human action — by Sovereign, by Customer, or by any third party — promotes a customer between tiers or delays a tier transition. The current public tier at any moment is the tier a NEW customer signing up at that moment would be assigned to.
Sovereign Trading Capital, Inc. may modify the fee rate schedule for FUTURE customers at any time by updating its published rate definitions (the "FEE_TIER_DEFINITIONS" constant in the platform's source code). Existing customers' LOCKED rates are NOT affected by such changes; Customer's rate remains the rate that was in effect for Customer's tier and Sentinel category on Customer's original signup date, for the duration of Customer's lock period.
Sovereign maintains an immutable, append-only audit log (fee_tier_audit) recording every tier assignment, re-activation, cancellation, public-tier transition, and lock-expiry rollover. Customer may request a copy of all audit entries pertaining to Customer at any time at no charge.
PAST PERFORMANCE OF ANY STRATEGY DOES NOT GUARANTEE OR PREDICT FUTURE RESULTS. SOVEREIGN MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING:
All performance figures shown on Sovereign's website or in marketing materials reflect either:
a. Paper trading (simulated) results from Sovereign's calibration period, or b. Historical backtests over specified time periods
Both types of results are subject to known limitations of paper trading and backtesting, including but not limited to: hindsight bias, the absence of real execution slippage, the absence of real liquidity constraints, and the inability to fully replicate live market conditions.
CUSTOMER ACKNOWLEDGES THAT SOVEREIGN'S STRATEGIES MAY EXPERIENCE LOSSES AT ANY TIME, INCLUDING TOTAL LOSS OF DEPLOYED CAPITAL ON A GIVEN TRADE OR SERIES OF TRADES.
Customer is responsible for:
a. Maintaining sufficient capital, margin, and trading permissions in the connected brokerage account to support the selected strategy b. Ensuring the connected brokerage account is approved for options trading at the level required by the selected strategy c. Monitoring Customer's own brokerage account independently of Sovereign's dashboard d. Promptly notifying Sovereign of any unauthorized access to Customer's account or any discrepancy between Customer's brokerage account and Sovereign's dashboard e. Updating Customer's payment method on file before expiration f. Maintaining the security of Customer's Sovereign account credentials, two-factor authentication device, and backup codes g. Complying with all applicable laws and regulations governing Customer's investment activity, including reporting capital gains and losses for tax purposes h. Promptly responding to any communication from Sovereign requiring action
Algorithmic options trading involves substantial risk of loss and is not suitable for all investors. Specific risks are detailed in Sovereign's Risk Disclosure Statement, which Customer acknowledges having read and understood before activation.
Sovereign's collection, use, and protection of Customer information is governed by Sovereign's Privacy Policy, which is incorporated by reference. Specifically:
a. Sovereign stores Customer's brokerage OAuth tokens encrypted at rest using application-layer encryption b. Sovereign reads Customer's account balance and positions solely for the purposes of executing the trading service and computing fees c. Sovereign does not sell, rent, or share Customer's financial data with third parties except as required by law or as strictly necessary to provide the service (such as processing payments through Stripe) d. Sovereign maintains audit logs of all administrative actions affecting Customer's account, retained for at least seven (7) years for compliance purposes
Customer may terminate this Agreement at any time by:
a. Pausing or canceling subscriptions in the customer dashboard b. Disconnecting the brokerage authorization c. Sending written notice to founders@sovereigntrading.ai
Upon termination:
10.1 Termination by Sovereign — Standard Notice. Sovereign may terminate this Agreement upon thirty (30) days' written notice to Customer for any reason.
10.2 Termination by Sovereign — For Cause (Immediate). Sovereign may terminate this Agreement immediately, without prior notice, for any of the following causes:
a. Customer breach. Customer's material breach of this Agreement, including non-payment of accrued fees, misuse of the service, or violation of the Sovereign Brokerage Authorization. b. Fraud or operational security threat. Suspected fraud, identity misrepresentation, attempted unauthorized access, or any action by Customer threatening the operational security of Sovereign or other customers. c. Regulatory action. Any regulatory order, enforcement action, agency request, or change in applicable law that, in Sovereign's reasonable judgment, materially restricts or prohibits continued operation of the service, in whole or in part. d. Force majeure events. Any event beyond Sovereign's reasonable control rendering continued operation commercially unreasonable or operationally infeasible, including but not limited to: acts of God; declared or undeclared war, terrorism, or civil unrest; pandemic or public health emergency; sustained failure of internet or cloud-infrastructure providers; sustained failure or withdrawal of brokerage-API access necessary to operate Sentinels; cyberattack rendering core systems unavailable; or sustained denial of access to the Trading Strategy Logic or related intellectual property. e. Material adverse business condition. Any material adverse change in Sovereign's business, financial condition, key-personnel availability, or operating environment that, in Sovereign's reasonable judgment, renders continued operation of the service commercially unreasonable. Use of this provision is at Sovereign's sole discretion subject to the Wind-Down Obligations in Section 10.3.
10.3 Wind-Down Obligations (Applies to Any Sovereign-Initiated Termination). Regardless of the basis for Sovereign-initiated termination under Section 10.1 or 10.2, Sovereign will:
10.4 No Liability for Termination Under 10.2. Customer acknowledges that termination by Sovereign under any subsection of Section 10.2, when undertaken in good faith and accompanied by the Wind-Down Obligations in Section 10.3, does not constitute a breach by Sovereign of this Agreement. Customer's sole remedy for such termination is the pro-rata fee refund described in Section 10.3. This Section 10.4 does not waive any non-waivable consumer protection right Customer may have under California law.
11.1 Seven-Day Paper Observation Period. Each new Customer is offered a seven (7) consecutive calendar day Paper Observation Period beginning at brokerage authorization (Section 3). During this period, the Customer's chosen Sentinels operate in PAPER MODE — trades are simulated against the Customer's declared account capital using real market data and the actual Sentinel logic, but NO real broker orders are placed and NO real customer capital is at risk. The Customer experiences daily projected P&L as if the Sentinel were trading the live account, without any financial exposure to the Sentinel's decisions.
11.2 Conversion to Live Trading. At the end of the Paper Observation Period:
a. If Customer takes no action, Customer is automatically converted to live trading and subscription fees begin to accrue per Section 5; b. Customer may opt out of conversion at any time during the Paper Observation Period through the customer dashboard or by sending written notice to support@sovereigntrading.ai, in which case the brokerage authorization is revoked and Customer's account remains in observation-only status (no live trading; no subscription fees accrued) until Customer elects to convert manually.
Sovereign shall provide reasonable notice to Customer via email and in-app notification during the Paper Observation Period summarizing trial activity and the upcoming conversion to live trading.
11.3 Money-Back Guarantee on First Thirty Days of Live Trading. Once Customer converts to live trading per Section 11.2, the first thirty (30) calendar days of accrued subscription fees are subject to a full money-back refund right. If Customer elects to terminate this Agreement under Section 10 at any point during this 30-day Money-Back Window, Sovereign will refund one hundred percent (100%) of subscription fees collected during the Window, less any third-party brokerage fees, execution costs, or commissions (which are charged by Customer's brokerage firm, not Sovereign, and are not refundable by Sovereign).
11.4 Conditions and Limitations.
a. The Paper Observation Period and Money-Back Window are one-time benefits available to each Customer's first activation under this Agreement. b. Customer is responsible for all third-party brokerage fees and execution costs at all times, including during the Money-Back Window — those fees are charged by Customer's brokerage firm, not Sovereign, and are outside the scope of this refund right. c. Sovereign reserves the right to deny the Paper Observation Period or revoke the Money-Back Window for Customers identified as engaged in repeat-abuse patterns, including but not limited to multiple sequential trial signups under different email addresses or identities, account creation in violation of Section 4 Eligibility, or other indicia of misuse. Such denial shall not be exercised in bad faith and is subject to the dispute-resolution process in Section 14.
Customer agrees to indemnify, defend, and hold harmless Sovereign, its officers, directors, employees, members, and agents from and against any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising from:
a. Customer's breach of this Agreement b. Customer's misuse of the service c. Customer's violation of any applicable law d. Customer's misrepresentation of Customer's financial situation, investment experience, or risk tolerance e. Any third-party claim arising from Customer's use of the service
EXCEPT FOR LIABILITY THAT CANNOT BE LIMITED UNDER APPLICABLE LAW:
ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE RESOLVED EXCLUSIVELY BY BINDING ARBITRATION ADMINISTERED BY JAMS UNDER ITS COMPREHENSIVE ARBITRATION RULES THEN IN EFFECT. ARBITRATION SHALL BE CONDUCTED IN LOS ANGELES COUNTY, CALIFORNIA. THE ARBITRATOR'S AWARD SHALL BE FINAL AND BINDING. JUDGMENT ON THE AWARD MAY BE ENTERED IN ANY COURT OF COMPETENT JURISDICTION.
CLASS ACTION WAIVER: ANY ARBITRATION SHALL BE BROUGHT IN CUSTOMER'S INDIVIDUAL CAPACITY ONLY. CUSTOMER AGREES THAT CUSTOMER WILL NOT BRING OR PARTICIPATE IN ANY CLASS, COLLECTIVE, OR REPRESENTATIVE PROCEEDING.
OPT-OUT: Customer may opt out of this arbitration provision by sending written notice to legal@sovereigntrading.ai within thirty (30) days of activating Customer's account. Such opt-out will not affect any other provision of this Agreement.
This Agreement is governed by the laws of the State of California, without regard to its conflict of laws principles, except that the Federal Arbitration Act governs the arbitration provision in Section 14.
Sovereign may modify this Agreement at any time by posting a revised version on its website and providing at least thirty (30) days' written notice to Customer. Continued use of the service after the effective date of the modified Agreement constitutes Customer's acceptance of the modified terms.
For material changes affecting fees, dispute resolution, or liability, Sovereign will provide direct email notice and require explicit re-acceptance through the customer dashboard before continuing the service.
Severability: If any provision is found unenforceable, the remainder of the Agreement remains in effect.
Entire Agreement: This Agreement, together with the Privacy Policy and Risk Disclosure Statement, constitutes the entire agreement between the parties regarding the subject matter hereof.
Assignment: Customer may not assign this Agreement without Sovereign's prior written consent. Sovereign may assign this Agreement to any successor entity in connection with a merger, sale of assets, or other corporate transaction.
No Waiver: No failure or delay by Sovereign in exercising any right shall operate as a waiver.
Notices: Notices to Sovereign must be sent to legal@sovereigntrading.ai or to Sovereign Trading Capital, Inc., 9350 Wilshire Boulevard, Suite 203, Beverly Hills, California 90212. Notices to Customer will be sent to the email address on file in Customer's account.
Force Majeure: Sovereign shall not be liable for any failure or delay in performance due to causes beyond its reasonable control, including acts of God, war, terrorism, pandemics, government actions, market closures, internet outages, or brokerage firm failures.
Survival: Sections 6, 8, 9, 12, 13, 14, 15, and this Section 17 survive termination of this Agreement.
By activating an account, Customer acknowledges having read, understood, and agreed to this Agreement.
Sovereign Trading Capital, Inc. 9350 Wilshire Boulevard, Suite 203 Beverly Hills, California 90212 +1 (424) 777-4553 founders@sovereigntrading.ai sovereigntrading.ai
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