← Back to Home

Risk Disclaimer

Last Updated: January 2025

⚠️ IMPORTANT: Please read this entire Risk Disclaimer carefully before using the Service. Trading cryptocurrencies involves substantial risk of loss.

1. General Risk Warning

Trading and investing in cryptocurrencies and digital assets involves substantial risk of loss and is not suitable for all investors. The value of cryptocurrencies can fluctuate significantly, and you may lose some or all of your invested capital. You should carefully consider whether trading or investing is appropriate for you in light of your financial condition, investment objectives, level of experience, and risk tolerance.

Never trade or invest money that you cannot afford to lose entirely.

2. Cryptocurrency Market Risks

Cryptocurrency markets are subject to unique risks including but not limited to:

  • Extreme Volatility: Cryptocurrency prices can experience rapid and substantial fluctuations within very short periods, including drops of 50% or more in a single day
  • Liquidity Risk: Markets may become illiquid, making it difficult or impossible to execute trades at desired prices
  • Market Manipulation: Cryptocurrency markets may be subject to manipulation, including pump-and-dump schemes, wash trading, and spoofing
  • Flash Crashes: Sudden, dramatic price drops that can trigger liquidations and cascading losses
  • 24/7 Trading: Markets operate continuously, meaning significant price movements can occur at any time, including while you are sleeping or otherwise unavailable
  • Limited History: Cryptocurrencies have limited trading history, making long-term predictions unreliable
  • Correlation Risk: Cryptocurrencies may move together during market stress, limiting diversification benefits

3. Automated Trading Risks

Using automated trading systems, including this Service, carries additional specific risks:

  • Algorithm Limitations: Trading algorithms are based on historical data and predefined rules that may not perform well in all market conditions or unprecedented events
  • Technical Failures: System outages, bugs, network issues, or API failures may prevent trades from executing properly or at all
  • Latency Issues: Delays in data feeds or order execution may result in trades executing at different prices than expected
  • Over-Optimization: Algorithms optimized on historical data may not perform similarly in live markets (curve fitting)
  • Black Swan Events: Automated systems cannot anticipate or properly respond to unprecedented market events
  • Cascading Errors: A single error in the system may lead to multiple erroneous trades before detection
  • No Human Oversight: Automated systems may continue trading during adverse conditions when a human trader might choose to stop

4. Past Performance Disclaimer

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

Any performance data, statistics, or results displayed on this platform:

  • Represent historical performance only and do not guarantee similar future results
  • May be based on simulated or hypothetical trading that has inherent limitations
  • Do not account for all market conditions, including extreme events
  • May not reflect the impact of fees, slippage, or other costs on actual returns
  • Should not be relied upon as a promise or guarantee of future performance
  • May be presented in a way that emphasizes positive outcomes

5. Technology and Security Risks

  • Smart Contract Risk: Interactions with blockchain smart contracts carry risk of bugs, exploits, or unexpected behavior
  • Wallet Security: You are responsible for securing your wallet and private keys; loss of access means permanent loss of funds
  • Phishing and Scams: Malicious actors may attempt to steal your credentials or funds through fraudulent means
  • Network Congestion: Blockchain networks may become congested, leading to delayed or failed transactions
  • Bridge and Protocol Risk: Interacting with DeFi protocols, bridges, or other smart contracts carries risk of loss
  • Exchange Risk: Centralized exchanges used for data feeds or execution may experience outages, hacks, or insolvency
  • Oracle Risk: Price feeds and data oracles may provide inaccurate information

6. Regulatory and Legal Risks

  • Regulatory Uncertainty: Cryptocurrency regulations vary by jurisdiction and may change without notice
  • Prohibition Risk: Governments may ban or severely restrict cryptocurrency trading, potentially affecting your ability to access or liquidate holdings
  • Tax Implications: Cryptocurrency trading may have complex tax implications; consult a qualified tax professional
  • Legal Status: The legal status of cryptocurrencies and automated trading services varies by jurisdiction
  • Compliance Risk: You are responsible for ensuring your use of the Service complies with all applicable laws

7. Financial Risks

  • Total Loss: You may lose 100% of your invested capital
  • Leverage Risk: If leverage is used, losses can exceed your initial investment
  • Opportunity Cost: Funds allocated to cryptocurrency trading cannot be used for other investments or purposes
  • Inflation Risk: The purchasing power of any profits may be eroded by inflation
  • Counterparty Risk: Risk that other parties in transactions may fail to meet their obligations

8. No Financial Advice

This Service and all information provided:

  • Is for informational and educational purposes only
  • Does not constitute financial, investment, trading, tax, legal, or other professional advice
  • Should not be relied upon as a recommendation to buy, sell, or hold any cryptocurrency
  • Does not take into account your individual financial situation, objectives, or risk tolerance

You should consult with qualified professionals before making any financial decisions. We are not registered as a broker-dealer, investment advisor, or financial planner in any jurisdiction.

9. Your Responsibilities

Before using this Service, you should:

  • Thoroughly educate yourself about cryptocurrency trading and the specific risks involved
  • Only invest funds you can afford to lose entirely without affecting your lifestyle or financial security
  • Consider your investment objectives, experience level, and risk appetite
  • Seek independent financial and legal advice if needed
  • Regularly monitor your positions and account activity
  • Understand that you bear sole responsibility for your trading decisions and their outcomes
  • Keep your wallet credentials and authentication secure
  • Stay informed about market conditions and regulatory developments

10. Acknowledgment

By using this Service, you acknowledge and confirm that:

  • You have read and understood this entire Risk Disclaimer
  • You understand the risks involved in cryptocurrency trading and automated trading systems
  • You are prepared to accept the possibility of losing some or all of your invested capital
  • You are trading with funds you can afford to lose
  • You will not hold the Service operators liable for any losses incurred
  • Your use of the Service is entirely at your own risk
  • You have had the opportunity to seek independent advice
← Back to Home