Terms of Service
Autonomous Infrastructure Inc.
Effective Date: July 2026
These Terms of Service (the "Terms") govern your access to and use of the Pear Protocol (the "Protocol"), including all associated smart contracts, vaults, interfaces, and documentation, made available by Autonomous Infrastructure Inc., a corporation organized under the laws of the Republic of Panama (the "Company"). By accessing or using the Protocol, you acknowledge that you have read, understood, and agree to be bound by these Terms in their entirety. If you do not agree to these Terms, you must immediately cease all access to and use of the Protocol.
1. Definitions
For the purposes of these Terms of Service, the following capitalized terms shall have the meanings ascribed to them below:
"Protocol" means the Pear Protocol, a suite of autonomous, non-custodial smart contracts deployed on HyperEVM and executing via Hyperliquid L1, together with all associated on-chain logic, parameters, and configurations, which facilitate automated digital asset trading strategies without human intermediation.
"Vault" means an ERC-4626 compliant, audited smart contract structure deployed on HyperEVM that holds User deposits of Digital Assets and facilitates automated trading strategies through the Protocol, including without limitation Vanilla Vaults and Structured Product Vaults.
"Smart Contract" means self-executing code deployed on a blockchain that automatically enforces the terms encoded therein upon the occurrence of specified conditions, without the need for human intermediation.
"User" means any natural person or legal entity that accesses, interacts with, or uses the Protocol, the Interface, or any Vault, whether directly or through third-party integrations.
"Digital Assets" means any blockchain-based digital token, cryptocurrency, stablecoin (including without limitation USDC), or other cryptographic asset capable of being transferred, stored, or traded via blockchain infrastructure.
"Interface" means the web-based front-end application provided by Autonomous Infrastructure Inc. that facilitates User interaction with the Protocol and Vaults, but which is neither necessary for nor constitutive of Protocol access.
"Permissionless Access" means the characteristic of the Protocol whereby any User with a compatible blockchain wallet may interact with the Protocol’s Smart Contracts without requiring approval, registration, or authorization from Autonomous Infrastructure Inc. or any third party.
"Non-Custodial Nature" means that Autonomous Infrastructure Inc. does not at any time hold, control, custody, or have the ability to unilaterally access or transfer User funds deposited in or interacting with the Protocol.
"Agent Wallet" means a Privy-signed wallet restricted exclusively to trade-only permissions on Hyperliquid, which is programmatically controlled and unable to withdraw, transfer, or move funds or collateral to any external address.
"Vanilla Vault" means a Vault type in which 100% of deposited capital is utilized as trading collateral for the Signal Engine’s statistical arbitrage strategies.
"Structured Product Vault" means a Vault type in which 100% of deposited USDC is lent on approved lending protocols (including e.g. Felix and Morpho) to generate yield, with only the generated yield being deployed as trading collateral, thereby preserving principal protection.
"High-Water Mark" means the highest net asset value previously achieved by a Vault, which must be exceeded before any Performance Fee is assessed on subsequent gains.
"Z-Score" means a statistical measure indicating the number of standard deviations by which the price relationship between a pair of correlated assets has deviated from its historical mean.
"Statistical Arbitrage" means a quantitative trading strategy that exploits temporary pricing inefficiencies between correlated asset pairs by simultaneously taking long and short positions with the expectation that prices will revert to their historical mean.
"Signal Engine" means the proprietary AI-driven quantitative system that monitors asset pairs, detects Z-Score deviations, scores trade signals, and programmatically executes mean-reversion pair trades through the Agent Wallet.
"HyperEVM" means the EVM-compatible execution environment within the Hyperliquid ecosystem on which the Vault Contracts are deployed.
"HyperCore" means the core trading layer of the Hyperliquid L1 blockchain on which perpetual futures and spot trading execution occurs.
"TVL" means Total Value Locked, representing the aggregate value of Digital Assets deposited in and held by a Vault or the Protocol at any given time.
2. Nature of the Protocol
2.1 No Intermediary or Custodian
Autonomous Infrastructure Inc. is a Panama corporation that has contributed to the development of the Protocol. Autonomous Infrastructure Inc. does NOT operate as, nor shall it be construed as, an intermediary, custodian, broker, dealer, exchange, investment advisor, fund manager, financial institution, or any similar regulated entity. The Protocol operates exclusively through autonomous Smart Contracts that execute on a permissionless blockchain without human intermediation.
2.2 Non-Custodial Architecture
Autonomous Infrastructure Inc. does not at any time hold, control, custody, or have the ability to unilaterally access or transfer User funds. All Digital Assets deposited by Users are held solely within audited ERC-4626 Smart Contracts and Vault-HLCore Wallets. Neither Autonomous Infrastructure Inc. nor any of its officers, directors, employees, agents, or affiliates possesses the private keys necessary to unilaterally move User funds.
2.3 Trade-Only Agent Wallet
The Agent Wallet is restricted exclusively to trade-only permissions on Hyperliquid. It is programmatically controlled via Privy custody and is NOT human-controlled. The Agent Wallet cannot withdraw funds, transfer collateral to external addresses, or execute any transaction other than the placement and management of trades on the Hyperliquid perpetual futures market. The Agent Wallet’s operational constraints are enforced at the infrastructure level.
2.4 Autonomous and Permissionless
The Protocol is fully autonomous and permissionless. Any User with a compatible blockchain wallet may interact with the Protocol’s Smart Contracts without requiring approval, registration, or authorization from Autonomous Infrastructure Inc.. Autonomous Infrastructure Inc.’s role is limited to maintaining the Interface, publishing documentation, and providing informational resources. The Protocol will continue to operate independently of Autonomous Infrastructure Inc.’s ongoing involvement.
2.5 No Fiduciary Relationship
Nothing in these Terms creates, or shall be construed to create, any fiduciary relationship, joint venture, partnership, employment relationship, agency relationship, or relationship of trust between Autonomous Infrastructure Inc. and any User. Users interact with the Protocol on an arm's length basis and at their sole discretion and risk.
3. Vault Creation Mechanism
3.1 Deposit Process
Users deposit USDC into the applicable Vault Contract (an ERC-4626 compliant Smart Contract deployed on HyperEVM). Upon deposit, Users receive vault shares representing their pro-rata interest in the Vault’s net asset value. The Vault Contract automatically bridges deposited USDC from HyperEVM to HyperCore for trade execution purposes.
3.2 Vanilla Vault
In the Vanilla Vault, 100% of deposited capital is deployed as trading collateral. The Signal Engine continuously monitors an in-house library of correlated asset pairs, tracking price relationships via Z-Score deviation. When a pair diverges by more than two standard deviations (σ > 2), the Signal Engine triggers a mean-reversion pair trade—simultaneously entering a long position on the undervalued asset and a short position on the overvalued asset on Hyperliquid perpetual futures markets. Positions are closed when assets revert to their historical mean (Z ≈ 0). This process operates autonomously 24/7, capturing micro-inefficiencies in the Hyperliquid perps market.
3.3 Structured Product Vault
In the Structured Product Vault, 100% of deposited USDC is lent on approved lending protocols (e.g. Felix/Morpho) to earn yield. Only the generated yield - not the principal - is utilized as trading collateral for the Signal Engine’s statistical arbitrage strategies. This structure is intended to provide principal protection while enabling exposure to the Protocol’s trading alpha.
3.4 Agent Wallet and Privy Custody
The Agent Wallet is controlled exclusively via Privy custody infrastructure. It signs trade requests programmatically and cannot move funds outside the designated trading venue. The Agent Wallet is not human-controlled—it operates via the Pear Engine backend service. Each Vault has a dedicated Vault-HLCore Wallet on HyperCore, created at deployment and funded by the Vault Contract, which holds the bulk of working capital during active trading.
3.5 Signal Scoring and Risk Parameters
Each trade signal generated by the Signal Engine is scored on a scale of 1 to 10 based on Z-Score magnitude, market liquidity, open interest, pair-wise volatility, and proprietary measures. Each trade carries a stop loss. The Protocol is designed such that maximum TVL loss on any given signal does not exceed 1%. A minimum 20% cash buffer is maintained at all times to ensure withdrawal liquidity.
3.6 Withdrawals
Users may request withdrawal of their pro-rata share of Vault assets at any time. Withdrawals are processed instantly if the Vault holds sufficient excess stablecoins. If active trades must be closed to fulfill a withdrawal request, the withdrawal may be queued until such positions are unwound. In emergency situations (including but not limited to Smart Contract exploits, extreme market volatility, or protocol security incidents), Vault administrators may temporarily pause withdrawals to protect the integrity of remaining depositors’ funds.
4. Eligibility & Prohibited Persons
4.1 Age and Capacity
Users must be of legal age in their jurisdiction of residence and possess the legal capacity to enter into binding agreements. By accessing the Protocol, Users represent and warrant that they satisfy these requirements.
4.2 Prohibited Jurisidictions
The Protocol is not available to, and shall not be accessed or used by, any person or entity located in, resident of, organized under the laws of, or otherwise subject to the jurisdiction of any Prohibited Jurisdiction. "Prohibited Jurisdictions" include, without limitation:
(a) The United States of America, including all territories, possessions, commonwealths, and military installations thereof;
(b) The Democratic People’s Republic of Korea (North Korea);
(c) The Islamic Republic of Iran;
(d) The Syrian Arab Republic;
(e) The Republic of Cuba;
(f) The Crimea region of Ukraine, the Donetsk People’s Republic, and the Luhansk People’s Republic; and
(g) Any other jurisdiction subject to comprehensive sanctions imposed by the United Nations Security Council, the European Union, the United Kingdom (OFSI), or the United States (OFAC).
4.3 Exclusion of US Persons
US Persons, as defined under Regulation S of the United States Securities Act of 1933, as amended, are expressly and unequivocally excluded from accessing, using, or interacting with the Protocol. This exclusion applies regardless of the User’s physical location at the time of access.
4.4 User Self-Certification
By accessing or interacting with the Protocol, each User represents, warrants, and covenants on a continuing basis that such User:
(a) Is not a US Person as defined under Regulation S of the US Securities Act of 1933;
(b) Is not located in, resident of, or organized under the laws of any Prohibited Jurisdiction;
(c) Is not named on any sanctions list maintained by the United Nations, European Union, United Kingdom (OFSI), or United States (OFAC/SDN);
(d) Is not acting on behalf of, or for the benefit of, any person or entity described in clauses (a) through (c) above; and
(e) Will immediately cease all interaction with the Protocol if any of the foregoing representations becomes untrue.
4.5 KYC/AML
Users are solely and exclusively responsible for ensuring their own compliance with all applicable laws, regulations, and sanctions requirements in their respective jurisdictions.
5. User Responsibilities & Assumption of Risk
5.1 Sole Responsibility
Users are solely and exclusively responsible for:
(a) The security and management of their private keys, seed phrases, and wallet credentials;
(b) All interactions with Smart Contracts initiated from their wallet address;
(c) Verifying the correctness of all transaction parameters prior to confirmation;
(d) Understanding the technical and financial risks associated with decentralized protocols, digital asset trading, and blockchain technology; and
(e) Compliance with all applicable laws, regulations, and tax obligations in their jurisdiction.
5.2 Assumption of Risk
BY ACCESSING OR USING THE PROTOCOL, USERS EXPRESSLY ACKNOWLEDGE, ACCEPT, AND ASSUME ALL RISKS ASSOCIATED WITH THE PROTOCOL, INCLUDING WITHOUT LIMITATION:
(a) Smart Contract Risk: Smart Contracts may contain bugs, vulnerabilities, or exploits that may result in the partial or total loss of deposited Digital Assets. On-chain transactions are immutable and irreversible once confirmed on the blockchain.
(b) Market Risk: Digital asset prices are highly volatile. Statistical arbitrage strategies, while designed to be market-neutral, carry inherent risks and may result in significant or total loss of capital.
(c) Regulatory Risk: The regulatory landscape for digital assets is evolving, uncertain, and varies by jurisdiction. Changes in law or regulation may adversely affect the Protocol, its operation, or the value of Digital Assets.
(d) Technology Risk: Blockchain infrastructure, including validators, consensus mechanisms, bridges, and network connectivity, may experience failures, congestion, attacks, or disruptions beyond the control of any party.
(e) Counterparty Risk: Third-party dependencies, including Hyperliquid, Felix, Morpho, Privy, and Fireblocks, may experience failures, exploits, insolvency, or cessation of operations.
(f) Liquidity Risk: Withdrawal requests may be delayed or queued if the Vault holds insufficient liquid assets or if active positions must be unwound.
(g) Total Loss: Users expressly acknowledge the possibility of total and irreversible loss of all deposited Digital Assets.
5.3 No Reliance
Users shall not rely on any information provided by Autonomous Infrastructure Inc., the Interface, or any associated documentation as financial, investment, legal, or tax advice. All decisions to interact with the Protocol are made by the User independently and at the User’s sole discretion and risk.
6. Fees
6.1 Fee Schedule
The following fees apply to the Protocol:
(a) Performance Fee: 20% of net new profits, subject to a High-Water Mark mechanism (i.e., no Performance Fee is charged until the Vault’s net asset value exceeds its previous all-time high);
(b) Management Fee: 0% (none);
(c) Withdrawal Fee: 0.5% of the withdrawn amount;
(d) Entry Fee: 0% (none).
6.2 Fee Allocation
Fees collected by the Protocol are allocated as follows: 50% to the Protocol treasury and 50% to the Leader (vault strategy operator). This allocation is enforced programmatically by the Smart Contracts.
6.3 Use of Protocol Fees
Autonomous Infrastructure Inc. reserves the right to collect protocol fees and may use such fees to compensate contractors (whether a UK-affiliated entity or individual contractors) for services rendered in connection with the Protocol, without this creating any agency, employment, fiduciary, joint venture, or partnership relationship between any such contractor and Autonomous Infrastructure Inc. or any User. The engagement of any contractor does not impose upon Autonomous Infrastructure Inc. any obligations beyond those expressly stated in these Terms.
6.4 Fee Modifications
Autonomous Infrastructure Inc. reserves the right to modify the fee schedule upon not less than fourteen (14) days’ prior notice posted on the Interface. Continued use of the Protocol following the effective date of any fee modification constitutes acceptance of the modified fees.
7. Intellectual Property
7.1 Proprietary Rights
Autonomous Infrastructure Inc. retains all right, title, and interest in and to the Interface, all associated documentation, trademarks, trade names, logos, trade dress, proprietary algorithms, the Signal Engine, and all other intellectual property rights associated therewith (collectively, “Proprietary Materials”). No license, right, or interest in any Proprietary Materials is granted to Users except the limited, revocable, non-exclusive, non-transferable right to access the Interface for the purpose of interacting with the Protocol in accordance with these Terms.
7.2 Open-Source Code
To the extent that any Smart Contract code deployed on-chain has been released under an open-source license, such code is subject solely to the terms of that license. The availability of on-chain code under an open-source license does not grant any rights to the Interface, off-chain components, Proprietary Materials, trademarks, or any other intellectual property of Autonomous Infrastructure Inc..
7.3 Restrictions
Users shall not, without the prior written consent of Autonomous Infrastructure Inc.:
(a) Copy, modify, adapt, translate, or create derivative works of the Interface or any Proprietary Materials;
(b) Reverse engineer, decompile, or disassemble any off-chain components of the Protocol;
(c) Use any Autonomous Infrastructure Inc. trademarks, trade names, or logos in any manner that suggests endorsement, affiliation, or sponsorship; or
(d) Frame, mirror, or otherwise incorporate the Interface into any other website or application.
8. Disclaimers of Warranties
THE PROTOCOL, THE INTERFACE, THE VAULTS, THE SIGNAL ENGINE, AND ALL ASSOCIATED SMART CONTRACTS, SOFTWARE, AND SERVICES ARE PROVIDED ON A STRICTLY “AS-IS” AND “AS-AVAILABLE” BASIS, WITHOUT WARRANTIES OR REPRESENTATIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE.
Autonomous Infrastructure Inc. EXPRESSLY DISCLAIMS, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL WARRANTIES, INCLUDING WITHOUT LIMITATION:
(a) Any implied warranty of merchantability, fitness for a particular purpose, title, or non-infringement;
(b) Any warranty that the Protocol, Interface, or Vaults will be secure, uninterrupted, timely, error-free, or free of viruses, bugs, or other harmful components;
(c) Any warranty that the Signal Engine or AI Agent will generate profits, avoid losses, or perform in accordance with historical or projected metrics;
(d) Any warranty regarding the accuracy, completeness, reliability, or timeliness of any information provided through the Interface or documentation; and
(e) Any warranty that the Protocol will be compatible with any particular hardware, software, or blockchain infrastructure, or that third-party dependencies will remain operational.
NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY Autonomous Infrastructure Inc., ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR AFFILIATES SHALL CREATE ANY WARRANTY NOT EXPRESSLY STATED IN THESE TERMS.
9. Limitation of Liability
9.1 Aggregate Cap
TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, THE AGGREGATE LIABILITY OF Autonomous Infrastructure Inc., ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AFFILIATES, SUCCESSORS, AND ASSIGNS, ARISING OUT OF OR IN CONNECTION WITH THESE TERMS, THE PROTOCOL, THE INTERFACE, OR ANY VAULT, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE, SHALL NOT EXCEED THE LESSER OF:
(a) The total fees actually paid by the User to the Protocol during the twelve (12) months immediately preceding the event giving rise to the claim; or
(b) One thousand Singapore Dollars (SGD 1000).
9.2 Exclusion of Damages
IN NO EVENT SHALL Autonomous Infrastructure Inc., ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AFFILIATES, SUCCESSORS, OR ASSIGNS BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, LOSS OF DATA, LOSS OF DIGITAL ASSETS, LOSS OF GOODWILL, BUSINESS INTERRUPTION, OR ANY OTHER INTANGIBLE LOSSES, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT Autonomous Infrastructure Inc. WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
9.3 Application
The limitations and exclusions set forth in this Section 9 shall apply to the fullest extent permitted under the laws of the Republic of Singapore, regardless of the legal theory upon which any claim is based, and shall survive the termination or expiration of these Terms.
9.4 Mandatory Law Carve-Out
Nothing in these Terms shall exclude or limit liability to the extent that such exclusion or limitation is prohibited by mandatory provisions of applicable law that cannot be waived, modified, or excluded by agreement of the parties.
10. Regulatory Disclaimer
10.1 No Fiat Currency Conversion
The Protocol does not involve, facilitate, or enable the conversion of Digital Assets to or from fiat currency. No fiat on-ramp or off-ramp services are provided by Autonomous Infrastructure Inc. or through the Protocol.
10.2 No Regulatory Representation
Autonomous Infrastructure Inc. makes no representation or warranty that the Protocol is subject to, or compliant with, any regulatory regime for digital assets, securities, derivatives, commodities, banking, payments, or financial services in any jurisdiction. No regulatory approval, license, registration, or authorization has been sought or obtained in connection with the Protocol.
10.3 AML/KYC
Users bear sole and exclusive responsibility for their own compliance obligations under all applicable laws and regulations.
10.4 Jurisdictional Uncertainty
Autonomous Infrastructure Inc. makes no representation that the Protocol, the Vaults, or any aspect of the services described herein is lawful, permitted, or authorized in any particular jurisdiction. Users must independently assess the legality of their interaction with the Protocol under all applicable laws of their home jurisdiction and any other jurisdiction to which they may be subject.
11. Amendments
11.1 Right to Amend
Autonomous Infrastructure Inc. reserves the sole and absolute right to amend, modify, supplement, or replace these Terms at any time and for any reason, in its sole discretion.
11.2 Notice
Notice of any material amendment shall be provided by posting the revised Terms on the Interface or Protocol website. The effective date of any amendment shall be no less than fourteen (14) calendar days following the date of posting (the “Notice Period”), unless a shorter period is required by law or necessitated by emergency circumstances.
11.3 Acceptance by Continued Use
Continued access to or use of the Protocol following the expiration of the Notice Period constitutes the User’s irrevocable acceptance of the amended Terms. Users who do not agree to any amendment must immediately cease all interaction with the Protocol and withdraw their Digital Assets prior to the expiration of the Notice Period.
12. Governing Law & Dispute Resolution
12.1 Governing Law
These Terms, and any dispute, claim, or controversy arising out of or in connection with these Terms or their subject matter (including non-contractual disputes), shall be governed by and construed in accordance with the laws of the Republic of Singapore, without regard to its conflict-of-laws principles.
12.2 Arbitration
Any dispute, controversy, or claim arising out of or in connection with these Terms, including any question regarding the existence, validity, or termination thereof, shall be referred to and finally resolved by arbitration administered by the Singapore International Arbitration Centre (“SIAC”) in accordance with the SIAC Arbitration Rules for the time being in force, which rules are deemed to be incorporated by reference into this clause.
12.3 Arbitration Particulars
(a) Seat of Arbitration: Singapore.
(b) Language: English.
(c) Tribunal: The tribunal shall consist of a sole arbitrator, unless the parties agree otherwise in writing.
(d) The arbitral award shall be final and binding on all parties. Judgment upon the award rendered may be entered in any court having jurisdiction thereof.
12.4 Emergency Arbitrator
The parties agree that the SIAC Rules on Emergency Arbitrator Provisions shall apply. Either party may apply to the SIAC for the appointment of an Emergency Arbitrator prior to the constitution of the tribunal for urgent interim or conservatory relief.
12.5 Waiver of Class Actions
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, USERS IRREVOCABLY WAIVE ANY RIGHT TO PARTICIPATE IN ANY CLASS ACTION, COLLECTIVE ACTION, REPRESENTATIVE ACTION, OR CLASS-WIDE ARBITRATION AGAINST Autonomous Infrastructure Inc.. ALL DISPUTES SHALL BE RESOLVED ON AN INDIVIDUAL BASIS ONLY.
12.6 Injunctive Relief
Notwithstanding the foregoing, Autonomous Infrastructure Inc. shall be entitled to seek injunctive or other equitable relief in any court of competent jurisdiction to prevent the actual or threatened infringement, misappropriation, or violation of its intellectual property rights or confidential information.
13. Severability, Waiver & Entire Agreement
13.1 Severability
If any provision of these Terms is held by a court or arbitral tribunal of competent jurisdiction to be invalid, illegal, or unenforceable, such provision shall be modified to the minimum extent necessary to make it valid, legal, and enforceable, or if modification is not possible, shall be severed from these Terms. The invalidity, illegality, or unenforceability of any provision shall not affect the validity, legality, or enforceability of the remaining provisions, which shall continue in full force and effect.
13.2 Waiver
The failure of Autonomous Infrastructure Inc. to exercise or enforce any right or provision of these Terms shall not constitute a waiver of such right or provision. Any waiver of any provision of these Terms shall be effective only if made in writing and signed by an authorized representative of Autonomous Infrastructure Inc..
13.3 Entire Agreement
These Terms, together with the Risk Disclosure and any other documents expressly incorporated by reference herein, constitute the entire agreement between the User and Autonomous Infrastructure Inc. with respect to the subject matter hereof and supersede all prior and contemporaneous understandings, agreements, representations, and warranties, whether written or oral, with respect to such subject matter.
13.4 Assignment
Autonomous Infrastructure Inc. may assign or transfer these Terms, or any rights or obligations hereunder, in whole or in part, without the User’s prior consent. Users may not assign or transfer these Terms, or any rights or obligations hereunder, without the prior written consent of Autonomous Infrastructure Inc..
13.5 No Third-Party Beneficiaries
These Terms do not confer any rights or benefits on any third party (other than the officers, directors, employees, agents, and affiliates of Autonomous Infrastructure Inc. to the extent expressly stated herein).
[ END OF TERMS OF SERVICE ]
Risk Disclosure
Autonomous Infrastructure Inc.
Effective Date: July 2026
This Risk Disclosure (the "Disclosure") is provided by Autonomous Infrastructure Inc., a corporation organized under the laws of the Republic of Panama, in connection with the Pear Protocol. This Disclosure should be read in conjunction with the Terms of Service. By accessing or using the Protocol, you acknowledge that you have read and understood the risks described herein and voluntarily assume all such risks.
1. Introduction & Purpose
This Risk Disclosure (the “Disclosure”) is provided by Autonomous Infrastructure Inc., a corporation organized under the laws of the Republic of Panama, for informational purposes only. This Disclosure does not constitute, and shall not be construed as, financial, legal, investment, tax, or any other form of professional advice.
Users should consult independent, qualified professional advisors (including legal counsel, financial advisors, and tax professionals) before accessing, interacting with, or depositing Digital Assets into the Pear Protocol or any Vault associated therewith.
This Disclosure supplements, and should be read in conjunction with, the Terms of Service governing the Protocol. Capitalized terms not defined herein shall have the meanings ascribed to them in the Terms of Service.
THE RISKS DESCRIBED HEREIN ARE NOT EXHAUSTIVE. ADDITIONAL RISKS NOT CURRENTLY KNOWN OR NOT CURRENTLY CONSIDERED MATERIAL MAY ALSO ADVERSELY AFFECT THE PROTOCOL, THE VAULTS, OR THE VALUE OF DIGITAL ASSETS DEPOSITED THEREIN.
2. Smart Contract Risk
2.1 Code Vulnerabilities
Smart Contracts are experimental technology. Despite best efforts in design, development, testing, and auditing, Smart Contracts may contain bugs, errors, vulnerabilities, or design flaws that could be exploited by malicious actors or triggered inadvertently, potentially resulting in the partial or total loss of all Digital Assets held therein.
2.2 Immutability
Transactions executed on the blockchain are immutable and irreversible once confirmed. Neither Autonomous Infrastructure Inc. nor any other party can reverse, cancel, or modify a confirmed on-chain transaction. Errors in transaction parameters (including incorrect addresses, amounts, or contract interactions) cannot be corrected after confirmation.
2.3 Audit Limitations
The Protocol's Vault Contracts have been audited. However, a security audit reduces but does not eliminate the risk of Smart Contract failure. Audits are point-in-time assessments and do not guarantee the absence of vulnerabilities, particularly with respect to: novel attack vectors discovered after the audit date; interactions with third-party contracts not within audit scope; economic exploits or flash loan attacks; or changes in blockchain infrastructure or execution environment behavior.
2.4 Composability Risk
The Protocol interacts with multiple external Smart Contracts and protocols (including e.g. Hyperliquid, Felix, Morpho, and Privy). Bugs, exploits, or failures in any of these external dependencies may cascade into the Protocol's Smart Contracts, resulting in loss of funds, regardless of the security of the Protocol's own code.
3. Non-Custodial Risk
3.1 Private Key Responsibility
Users bear full and exclusive responsibility for the management, security, and backup of their private keys, seed phrases, and wallet credentials. Autonomous Infrastructure Inc. does not have access to, custody of, or the ability to recover any User's private keys or wallet credentials.
3.2 Permanent Loss
Loss, theft, compromise, or destruction of private keys results in the permanent, irrecoverable loss of all Digital Assets associated with the corresponding wallet address. There is no mechanism by which Autonomous Infrastructure Inc. or any third party can recover lost private keys or restore access to wallet-controlled funds.
3.3 Unauthorized Access
Autonomous Infrastructure Inc. cannot reverse, cancel, or remediate unauthorized transactions arising from the compromise of a User's private keys or wallet security. Users are solely responsible for implementing appropriate security measures, including hardware wallets, multi-factor authentication, and secure key storage practices.
4. Digital Asset Volatility
4.1 Price Volatility
Digital asset prices are subject to extreme volatility. Prices may fluctuate significantly within very short timeframes due to market conditions, liquidity changes, regulatory developments, technological events, macroeconomic factors, and speculative activity. Users may experience significant or total loss of the value of their deposited Digital Assets.
4.2 Strategy Risk
The Protocol employs statistical arbitrage strategies that, while designed to be market-neutral, carry inherent risks. These include but are not limited to: correlation breakdown between paired assets; regime changes in market microstructure; liquidity withdrawal during periods of stress; extreme deviation beyond historical parameters; and execution risk during volatile conditions.
4.3 Past Performance
ANY PERFORMANCE METRICS CITED IN CONNECTION WITH THE PROTOCOL (INCLUDING, WITHOUT LIMITATION, STATED APR OF 45%, WIN RATE OF 67%, OR MAXIMUM DRAWDOWN OF 18%) REFLECT HISTORICAL RESULTS ONLY AND ARE NOT INDICATIVE, REPRESENTATIVE, OR PREDICTIVE OF FUTURE RESULTS. PAST PERFORMANCE IS NOT A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM HISTORICAL METRICS.
4.4 Liquidity Risk
Market liquidity may deteriorate rapidly, particularly during periods of stress. The Protocol may be unable to close positions at desired prices, resulting in losses exceeding designed parameters. Slippage, market impact, and reduced order book depth may adversely affect trade execution.
5. Regulatory & Legal Risk
5.1 Evolving Landscape
The regulatory framework for digital assets, decentralized finance protocols, and automated trading systems is nascent, rapidly evolving, and varies significantly across jurisdictions. There is no assurance that the Protocol, Vaults, or associated activities will not become subject to regulation, prohibition, or restriction in any jurisdiction.
5.2 Adverse Regulatory Action
Regulatory authorities in any jurisdiction may, without prior notice: classify Digital Assets as securities, commodities, or regulated financial instruments; impose licensing, registration, or compliance requirements on protocol participants; require cessation of operations; freeze or seize Digital Assets; or impose penalties. Any such action could materially and adversely affect the Protocol's operation, accessibility, or the value of Digital Assets.
5.3 User Compliance
Users are solely and exclusively responsible for compliance with all applicable laws, regulations, sanctions requirements, and regulatory obligations in their jurisdiction. Autonomous Infrastructure Inc. makes no representation regarding the legality of the Protocol in any jurisdiction and provides no legal, compliance, or regulatory advice.
6. Protocol & Interface Risk
6.1 Interface Vulnerabilities
The Interface (web-based front-end) is a convenience layer and may experience downtime, outages, front-end attacks, DNS hijacking, phishing, man-in-the-middle attacks, or other security incidents. The Interface is not the Protocol — the Protocol exists independently on the blockchain. However, Interface unavailability may impair Users' practical ability to interact with the Protocol.
6.2 Third-Party Dependencies
The Protocol depends on third-party infrastructure and services, including without limitation: Hyperliquid (execution venue and blockchain infrastructure); Felix and Morpho (lending protocols); Privy (Agent Wallet custody); and Fireblocks (admin key management). Failure, compromise, insolvency, or discontinuation of any such service may materially impair the Protocol's operation and may result in loss of funds.
6.3 Blockchain Infrastructure
The Protocol operates on blockchain infrastructure (HyperEVM/HyperCore) that is outside Autonomous Infrastructure Inc.'s control. Network congestion, validator failures, consensus issues, hard forks, chain reorganizations, bridge failures, or other infrastructure events may disrupt the Protocol's operation, delay transactions, or result in loss of funds.
6.4 Emergency Pause
The Protocol includes administrative functionality to pause withdrawals and certain operations in emergency situations. While designed to protect depositor funds during security incidents, the exercise of emergency pause functionality temporarily restricts Users' ability to withdraw their Digital Assets. The duration of any emergency pause is at the discretion of the vault administrators and is not subject to a predefined maximum timeframe.
7. No Insurance
Digital Assets deposited in or interacting with the Protocol are NOT covered by:
(a) Any government deposit insurance or protection scheme (including without limitation the FDIC, FSCS, DGS, or any equivalent);
(b) Any investor compensation fund;
(c) Any private insurance policy maintained by Autonomous Infrastructure Inc.; or
(d) Any other guarantee, backstop, or loss-protection mechanism.
There is no government, institutional, or private guarantee of the safety, value, or recoverability of Digital Assets deposited in the Protocol. Users may lose the entirety of their deposited Digital Assets without any recourse to insurance or compensation.
8. Tax Risk
8.1 Tax Obligations
Users are solely and exclusively responsible for determining and fulfilling all tax obligations arising from or in connection with their use of the Protocol, including without limitation obligations relating to income tax, capital gains tax, value-added tax, withholding tax, or any other tax imposed by any governmental authority.
8.2 No Tax Advice or Reporting
Autonomous Infrastructure Inc. does not provide tax advice, tax reporting, tax withholding services, or any tax-related documentation. Autonomous Infrastructure Inc. does not issue Forms 1099, W-8, or any equivalent tax reporting documents. Users should consult qualified tax professionals regarding their individual tax obligations.
8.3 Uncertain Tax Treatment
The tax treatment of digital asset transactions, DeFi protocol interactions, and automated trading strategies may be uncertain, unresolved, or subject to change in many jurisdictions. Users bear the risk that tax authorities may adopt interpretations or positions adverse to the User.
9. Counterparty & Systemic Risk
9.1 Infrastructure Dependencies
The Protocol's operation depends on the continued, correct functioning of blockchain infrastructure including validators, consensus mechanisms, cross-layer bridges (HyperEVM to HyperCore), sequencers, and network connectivity. Failure in any layer of this infrastructure stack may result in transaction failures, delayed execution, or loss of funds.
9.2 Oracle and Data Risks
The Signal Engine relies on market data and price feeds to calculate Z-Scores and generate trade signals. Oracle failures, data manipulation, stale prices, or inaccurate market information may cause the Signal Engine to execute trades based on incorrect data, resulting in losses.
9.3 Validator and Consensus Risks
Validator collusion, censorship, MEV (Maximal Extractable Value) extraction, network congestion, or consensus failures may affect trade execution, transaction ordering, or the finality of on-chain state. These risks are inherent to blockchain infrastructure and outside the control of any single party.
9.4 Systemic DeFi Risk
The decentralized finance ecosystem is interconnected. Systemic failures, cascading liquidations, de-pegging events (including USDC de-pegging), or contagion from failures in other DeFi protocols may adversely affect the Protocol, its third-party dependencies, or the value of Digital Assets, even absent any failure in the Protocol's own Smart Contracts.
10. No Recourse
10.1 No Guarantee of Recovery
Autonomous Infrastructure Inc. provides no guarantee, assurance, or representation regarding the recovery of funds in the event of any loss, regardless of cause. Users expressly acknowledge that they may lose the entirety of their deposited Digital Assets and have no right to recover such losses from Autonomous Infrastructure Inc..
10.2 Limited Entity Role
The Protocol is autonomous and permissionless. Autonomous Infrastructure Inc.'s role is strictly limited to maintaining the Interface, publishing documentation, and providing informational resources. Autonomous Infrastructure Inc. does not operate, control, or manage the Protocol's Smart Contracts after deployment, and has no ability to unilaterally intervene in, modify, or reverse the outcome of Smart Contract execution.
10.3 Absolute Limitation
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, USERS SHALL HAVE NO RECOURSE, CLAIM, OR CAUSE OF ACTION AGAINST Autonomous Infrastructure Inc., ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AFFILIATES, SUCCESSORS, OR ASSIGNS FOR ANY LOSSES, DAMAGES, OR LIABILITIES ARISING FROM OR IN CONNECTION WITH THE USER'S USE OF OR INTERACTION WITH THE PROTOCOL, REGARDLESS OF THE LEGAL THEORY UPON WHICH SUCH CLAIM IS BASED.
10.4 Acknowledgment
BY ACCESSING OR USING THE PROTOCOL, USERS EXPRESSLY ACKNOWLEDGE THAT THEY HAVE READ, UNDERSTOOD, AND ACCEPTED ALL RISKS DESCRIBED IN THIS DISCLOSURE AND THE TERMS OF SERVICE, AND THAT THEY VOLUNTARILY ASSUME ALL SUCH RISKS.
[ END OF RISK DISCLOSURE ]