Risk Disclosure

01Business Operations Risk

A ScaleLogix-built AI services business is an operating company. Operating companies face risks that purely financial assets do not, including:

• Loss of invested capital. You may lose some or all of the capital you deploy toward the build fee, payroll, tooling, and working capital. There is no guaranteed return of principal.
• Client churn. Customers can cancel, downgrade, or refuse to renew. Concentration in a small number of accounts amplifies this risk.
• Talent risk. Key staff may underperform, resign, or need to be replaced. Hiring well in your local or remote market is not guaranteed.
• Operational mistakes. Delivery errors, missed SLAs, billing issues, or compliance gaps can damage revenue and reputation.

02AI / Technology Market Risk

The AI services market is rapidly evolving. Conditions present today may not hold in 12 or 24 months. Specific risks include:

• Model and vendor risk. The business depends on third-party AI providers (e.g., model APIs, infrastructure vendors). Pricing changes, deprecations, or outages by these vendors can materially affect margins or service availability.
• Competitive compression. Margins in any AI service can compress quickly as competitors and incumbents enter the same niche.
• Regulatory shifts. Laws around AI services, data handling, and AI-generated work product are being written in real time and may impose new costs or restrict offerings.
• Demand shifts. Buyer appetite for AI services can change based on macro conditions, enterprise budgets, or shifts in public perception of AI.

03No Income or Return Guarantee

ScaleLogix does not guarantee any specific revenue, profit, or return on capital. This is not a mere formality. It is a critical truth of all operating businesses.

• Any revenue or profit figures discussed in marketing, in the webinar, on calls, or in case studies are illustrative and drawn from prior operators
• Results vary widely by vertical, market, owner involvement, and external conditions
• Prior-operator results should not be interpreted as a prediction of your results
• Some prior buyers have underperformed expectations or have not generated meaningful profit at all

04Not Investment, Tax, or Legal Advice

ScaleLogix does not provide investment advice, financial advice, tax advice, or legal advice. The webinar is for educational purposes only. The business we build is an operating company, not a security, and your purchase is for build services, not for an investment contract managed by ScaleLogix. You should consult qualified financial, tax, and legal professionals before deploying capital, signing agreements, or making any decisions about your portfolio allocation.

05Ownership Structure

ScaleLogix structures each build so that the resulting LLC and its assets are owned by the client. This structure does not eliminate risk:

• As 100% owner, you bear 100% of the operating risk of the business, including losses, liabilities, and obligations
• You are responsible for funding payroll, vendor costs, taxes, and any other obligations after handover
• You are responsible for compliance with applicable laws in any jurisdiction the business operates in

06Suitability

Owning a ScaleLogix-built AI business is not suitable for every buyer. You should only deploy capital you can afford to lose entirely. Consider whether this is appropriate given your:

• Overall financial situation and liquidity
• Risk tolerance and time horizon
• Experience owning, operating, or overseeing operating businesses
• Willingness to engage with the business at a strategic owner level over multiple years

07Regulatory Notice

ScaleLogix is a services company that builds and staffs AI services businesses on behalf of clients. ScaleLogix is not a registered investment advisor, broker-dealer, franchisor, securities issuer, or other regulated financial entity. The arrangement is a services contract, not a securities offering, franchise grant, or managed-investment relationship.

08Acknowledgment

By engaging ScaleLogix, you acknowledge that you have read, understood, and accept all risks described in this disclosure. You agree that ScaleLogix is not liable for business losses or for outcomes of the operating company built on your behalf.

09Questions

If you have questions about these risks or need clarification, contact us at:
support@getscalelogixai.com