Certain algorithmic trading strategies may have limited functionality or reduced effectiveness during extended hours trading due to lower liquidity, fewer market participants, and limited venue availability. Some strategies may be unavailable or subject to additional controls.

As a result, clients may be required to trade in smaller order sizes and use a Smart Order Router (SOR) to access available liquidity. Use of algorithmic strategies or SORs during extended hours does not guarantee execution or pricing outcomes, and execution quality may be adversely affected.

Prime Number Capital LLC may modify, restrict, or disable algorithmic strategies during extended hours at its discretion.

Risk of Lower Liquidity: Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed or not executed at all.

Risk of Higher Volatility: Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed or not executed at all, and prices may move rapidly and unpredictably.

Risk of Changing Prices: The prices of securities traded in extended-hours trading may not reflect the prices either at the end of regular market hours or upon the opening of the next trading day. As a result, you may receive a price in extended hours trading that is inferior to the price you would obtain during regular market hours.

Risk of Unlinked Markets: Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive a price in one extended hours trading system inferior to the one you would obtain in another extended hours trading system.

Risk of News Announcements: Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended-hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and potentially unsustainable effect on the price of a security.

Risk of Wider Spreads: The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended-hours trading may result in wider than normal spreads for a particular security, increasing the cost of trading.

Order Type and Execution Limitations: Only certain order types (generally limit orders) may be accepted during extended hours of trading. Market orders and certain order qualifiers (such as stop, all-or-none, or fill-or-kill orders) may not be available. Orders entered during extended hours may expire at the end of the session and may not carry over into the next trading session.

Risk of System or Communications Delays: Trading during extended hours depends on electronic trading systems and third-party market venues. Delays, system outages, or failures in order routing or communications may prevent execution, delay execution, or result in order cancellation. Prime Number Capital LLC may suspend or restrict extended hours trading at any time without prior notice due to system, operational, or market conditions.

Short Sales, Locates, and Locate Expiration: Short sales executed during extended hours trading are subject to all applicable regulations, including Regulation SHO. A valid locate must exist at the time a short sale order is executed unless an exemption applies.

Locate availability may be more limited during extended hours and locates obtained during regular market hours generally do not carry over into extended hours trading sessions. Likewise, locates obtained during extended hours typically expire at the end of the trading session or trading day and do not carry forward to subsequent sessions.

If a locate expires, is withdrawn, or becomes unavailable, a short sale order may be rejected, cancelled, or prevented from execution, even if previously accepted. Clients are responsible for ensuring that a valid locate exists at the time of execution.

Buy-Ins, Settlement, and Close-Out Risk: Short sales executed during extended hours are subject to the same settlement, close-out, and buy-in requirements as trades executed during regular market hours. If securities cannot be borrowed or delivered for settlement, Prime Number Capital LLC may effect a mandatory buy-in or close-out without prior notice. Buy-ins may occur at prices materially different from the original execution price, and resulting losses are the responsibility of the client.

Margin and Risk Management Considerations: Trades executed during extended hours are subject to Prime Number Capital LLC’s margin requirements and risk controls, which may be higher or more restrictive due to increased volatility and reduced liquidity. Margin requirements and trading restrictions may be imposed or changed without prior notice.

Best Execution Considerations: While Prime Number Capital LLC maintains best execution obligations for all trades, the limited liquidity, fewer market participants, and unlinked trading venues present during extended hours may affect execution quality and price improvement opportunities.

By engaging in extended hours’ trading, you acknowledge that you have read and understand the risks described above and agree to assume full responsibility for trading decisions made during non-regular market hours.