Terms of Service

Effective Date: October 8, 2026

Last Updated: October 8, 2026

Welcome to LunarShadow AI ("we," "our," "us"), a brand of Elder Holdings LLC, a Minnesota limited liability company. LunarShadow AI provides hosted, automated trading bots for the Kalshi and Polymarket prediction markets. These Terms and Conditions ("Terms") govern your access to and use of the LunarShadow AI trading platform, software, API, and related services (collectively, the "Platform"). By accessing or using the Platform, you agree to these Terms.

If you do not agree, you must immediately stop using the Platform.

1. Eligibility

• You must be at least 18 years old or the legal age of majority in your jurisdiction.
• You are solely responsible for ensuring that your use of the Platform complies with all applicable laws and regulations.
• Use of the Platform is not permitted where prohibited by law.

2. No Financial or Investment Advice

• LunarShadow AI provides automated trading tools. You decide whether to enable a bot and choose its settings; once enabled, the bot places trades automatically within those settings.
• We do not provide financial, investment, legal, or tax advice.
• The decision to enable, configure, and keep running a bot is yours alone. Consult a qualified financial advisor before making investment decisions.

3. Risk Disclosure

• Trading prediction-market contracts involves significant risk. A contract can settle at zero, and you can lose the full amount you paid for it.
• Outcomes and settlement are decided by each venue under its own rules, not by us.
• Markets can be thin or move quickly, so orders may fill at worse prices than expected, or not at all.
• The digital assets used on the Platform (such as USDC, SOL, POL and $LS) can change in value, and blockchain networks, bridges and smart contracts can fail.
• Position sizing and loss settings limit new trading; they do not guarantee a maximum loss.
• Past performance does not guarantee future results.
• You may lose some or all of the funds you trade with.
• You are fully responsible for your trading activity.

4. Use of the Platform

You agree to:

• Use the Platform only for lawful purposes.
• Not reverse-engineer, resell, or exploit any portion of the Platform.
• Provide accurate and truthful information when creating or maintaining your account.
• Acknowledge that bots and automation features are provided "AS IS" with no guarantee of profitability, uptime, or performance.

We may suspend or terminate accounts violating these Terms.

5. Automated Trading Disclaimer

• The bots use automated, algorithmic strategies to choose and place trades according to your settings.
• Strategies can be wrong, and bots may place trades during volatile or unusual market conditions.
• You assume all responsibility for enabling, configuring, and monitoring automated trading features.

5a. Trade Execution

• Kalshi: the bot places and cancels orders on your own Kalshi account using the API key you provide. Your trading funds stay in your Kalshi account, and Kalshi executes and settles every trade.
• Polymarket: the bot places orders from a Polymarket wallet that the Platform creates for you on the Polygon network. You fund it with USDC on Polygon, or by sending SOL that the Platform bridges to USDC; it also needs a small amount of POL for network fees. Polymarket executes and resolves every trade.
• You assume all risks including slippage, failed or delayed orders, venue outages, blockchain congestion, bridge failures, and smart contract risks.
• Blockchain transactions are irreversible once confirmed.
• We are not responsible for failed transactions, network delays, or blockchain-related issues.

5b. Wallets and Keys

• Sign-in wallet: the Solana wallet you sign in with remains yours. We never ask for its private key or seed phrase; we only read its public address and its balances, such as SOL and $LS.
• Bot wallet: the Platform creates a Solana wallet for your account. You fund it with SOL; platform fees are paid from it, and you may withdraw from it.
• Polymarket wallet: the Platform creates it for you, as described in Section 5a.
• We generate and hold the private keys of the bot wallet and the Polymarket wallet, encrypted, and use them only to sign transactions for your account: orders, fees, bridging, network fees, and withdrawals you request. You authorize us to sign those transactions on your behalf.
• Because we hold those keys, funds in these wallets depend on the security and availability of the Platform. Keep in them only what you intend to trade.

6. Account Security

• You are responsible for safeguarding your sign-in wallet and your Kalshi account and API keys.
• LunarShadow AI will never request the seed phrase or private key of your sign-in wallet.
• Unauthorized activity on your account remains your responsibility.
• You must immediately notify us of any unauthorized access or security breach.

7. Fees and Payments

Platform fee:

• A percentage of the volume your bot buys, currently 1.0%.
• Holding $LS in your sign-in wallet lowers that rate (see Section 7a).
• Platform fees are charged in SOL from your bot wallet.

Third-party fees (paid separately by you): exchange, settlement, bridge and blockchain network fees charged by the venues and networks the Platform uses.

Payment terms:

• By using the Platform, you agree to the pricing and billing terms.
• All payments are non-refundable, except where required by law.
• We reserve the right to modify fees with 30 days' notice.

7a. $LS Token — Fee Discounts

Holding $LS in the wallet you sign in with lowers your platform fee. We only read that wallet's balance: your tokens never move, and there is no staking or lockup.

• Bronze Tier (1,000,000 $LS): 5% discount
• Silver Tier (3,000,000 $LS): 10% discount
• Gold Tier (5,000,000 $LS): 15% discount
• Platinum Tier (10,000,000 $LS): 20% discount

Important Disclaimers:

• The only function of $LS on the Platform is a fee discount. It is not offered as an investment.
• Holding $LS earns no income, yield, points or share of anything.
• $LS does not represent equity, ownership, revenue-sharing or profit-sharing rights in LunarShadow AI.
• We make no promise to buy, burn, or support the price of $LS, and make no guarantees, representations, or warranties regarding its price or value.
• Token value may fluctuate based on market conditions.

7b. Season Rewards

Season rewards are a loyalty program for people who use the Platform.

• Points are earned only from platform fees you actually pay: 1 point for every $1 of fees, valued in USD when the fee is charged. Unpaid fees earn nothing until paid. Holding $LS earns no points.
• When a season ends and its points have been audited, that season's $LS rewards are sent to participating sign-in wallets in proportion to their points.
• We decide the size and funding of each season's rewards, which may include a portion of platform fees. Rewards are not guaranteed and are not a return on any purchase or investment.
• We may change, suspend or end the program, adjust or void points earned through abuse, self-dealing or error, and exclude users or jurisdictions where the program is not permitted.

8. Intellectual Property

• All content, algorithms, software, branding, and design elements of the Platform are protected by intellectual property laws.
• You may not copy, modify, distribute, or create derivative works without prior written consent.
• All trademarks, service marks, and trade names are proprietary to LunarShadow AI.

9. Limitation of Liability

To the fullest extent permitted by law:

• LunarShadow AI is not liable for any direct, indirect, incidental, consequential, or special damages arising from your use or inability to use the Platform.
• This includes but is not limited to: trading losses, lost profits, lost data, failed transactions, blockchain errors, exchange downtime, or market volatility.
• We make no warranties regarding accuracy, reliability, or uninterrupted operation.
• You use the Platform at your own risk.
• Our total liability shall not exceed the fees you paid to us in the 12 months preceding any claim.

10. Indemnification

You agree to indemnify, defend, and hold harmless LunarShadow AI, its owners, affiliates, members, managers, employees, and contractors from any claims, liabilities, damages, losses, and expenses (including reasonable legal fees) arising from:

• Trading losses or investment decisions
• Violations of these Terms
• Breaches of applicable laws or regulations
• Your negligence or willful misconduct
• Third-party claims related to your use of the Platform

11. Regulatory Disclaimer

• LunarShadow AI is not a registered broker-dealer, investment advisor, financial institution, or money transmitter.
• Kalshi holds the funds in your Kalshi account. The Platform holds the keys of the bot wallet and Polymarket wallet it creates for you, as described in Section 5b.
• Trades are executed by Kalshi and Polymarket under their own rules and eligibility requirements, including Kalshi's account requirements and Polymarket's geographic restrictions. We do not remove those restrictions.
• You are responsible for compliance with local regulatory requirements, including KYC/AML obligations if applicable in your jurisdiction.

12. Third-Party Services

The Platform integrates with third-party services including:

• Kalshi - prediction-market exchange for Kalshi trades
• Polymarket - prediction-market exchange for Polymarket trades
• Polygon and Solana networks and their RPC providers - balances, transaction broadcasting and confirmations
• Jupiter - token swaps used when bridging between SOL and USDC
• Circle's Cross-Chain Transfer Protocol (CCTP) - moving USDC between Solana and Polygon
• Market and price data providers (such as CoinGecko and GeckoTerminal) - SOL and $LS prices
• Cloudflare - website delivery, security and backup storage

We are not responsible for:

• The security, availability, accuracy, or performance of third-party services
• Losses due to third-party service failures, hacks, or downtime
• Third-party terms of service or privacy policies

13. User Representations and Warranties

You represent and warrant that:

• You are legally permitted to trade prediction-market contracts and hold digital assets in your jurisdiction, and you meet the eligibility requirements of each venue you use.
• You understand the risks associated with prediction markets, digital assets and blockchain technology.
• You understand that blockchain transactions are irreversible.
• You will use the Platform in compliance with all applicable laws.
• You are not located in a jurisdiction where your use of the Platform or of a venue is prohibited.
• You have the financial capacity to bear the risks of the trading you enable.

14. Taxes

You are solely responsible for:

• Determining any tax liability related to your trading activity and to any Season rewards or other tokens you receive from the Platform. Rewards may be treated as taxable income at their fair market value when received.
• Reporting and paying any applicable taxes to the appropriate tax authorities.
• Maintaining accurate records of your trades and rewards for tax purposes.

LunarShadow AI does not provide tax advice or tax reporting services.

15. Termination of Service

We may, at our sole discretion, suspend, restrict, or terminate your access to the Platform at any time for:

• Violations of these Terms
• Legal or regulatory requirements
• Security or operational concerns
• Fraudulent or suspicious activity

Upon termination:

• You will no longer have access to the Platform
• Open trading positions will not be automatically closed; they settle under each venue's rules, and you remain responsible for managing your positions
• You may request withdrawal of funds remaining in the bot wallet and Polymarket wallet, subject to applicable law and any unpaid platform fees
• Platform fees already charged are non-refundable unless required by law
• We reserve the right to retain data as required by law or these Terms

16. Force Majeure

We are not liable for failure or delay in performance due to events beyond our reasonable control, including but not limited to:

• Internet outages, exchange downtime, blockchain network failures
• Hacks, cyberattacks, or data breaches affecting third parties
• Regulatory actions, government orders, or legal proceedings
• Wars, natural disasters, pandemics, or other force majeure events
• Solana or Polygon network congestion, failures, or attacks
• Outages, rule changes, or market suspensions at Kalshi or Polymarket

17. Arbitration and Dispute Resolution

• Any dispute arising under these Terms shall be resolved through binding arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules.
• Arbitration shall take place in Minnesota, or remotely at the arbitrator's discretion.
• You waive your right to participate in class actions or jury trials.
• Each party shall bear its own legal costs unless the arbitrator orders otherwise.
• This arbitration agreement survives termination of these Terms.

Exceptions:

• Either party may seek injunctive relief in court for intellectual property disputes or breaches of confidentiality.
• Small claims court jurisdiction is preserved for claims within jurisdictional limits.

18. Severability

If any provision of these Terms is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect, and the invalid provision shall be modified to the minimum extent necessary to make it enforceable.

19. Entire Agreement

These Terms constitute the entire agreement between you and LunarShadow AI and supersede any prior agreements, communications, or understandings, whether written or oral.

20. Governing Law

These Terms are governed by the laws of the State of Minnesota, United States, without regard to conflict of law principles. Exclusive venue for any court proceedings shall be the state or federal courts located in Minnesota.

21. Changes to Terms

We reserve the right to modify these Terms at any time. We will notify users of material changes in the Platform and ask you to accept the updated Terms before you turn a bot on.

22. Contact

For legal inquiries:

[email protected]

For general support:

[email protected]

Website:

www.lunarshadow.ai

Company Information:

Elder Holdings LLC A Minnesota Limited Liability Company 19883 Erin Ave, Prior Lake, MN 55372, USA

By using the Platform, you acknowledge that you have read, understood, and agree to be bound by these Terms and Conditions.