01 General Market Risk

Financial markets are inherently unpredictable. The value of stocks, cryptocurrencies, and other instruments can rise or fall rapidly due to:

• Economic data releases, central bank decisions, and macroeconomic events
• Corporate earnings, management changes, and company-specific news
• Geopolitical events, wars, sanctions, and regulatory actions
• Natural disasters, pandemics, and other force majeure events
• Market sentiment, retail flows, and institutional position changes
• Flash crashes, short squeezes, and other sudden market dislocations

No trading system — including TradingBot — can predict or protect against all market movements. You may lose your entire invested capital.

02 Automated Trading Risks

Automated trading introduces risks that do not exist in manual trading:

• Unmonitored Execution: The bot may execute trades while you are asleep, unavailable, or unaware. Positions can accumulate significant losses before you notice.
• Runaway Trading: Software bugs, misconfigured strategies, or unexpected market conditions can cause the bot to open excessive positions.
• Stop-Loss Failures: Stop-loss orders are not guaranteed to execute at the specified price, especially during fast markets, gaps, or low liquidity conditions.
• Connectivity Failures: Internet outages, server downtime, or API disruptions can prevent orders from being placed, modified, or cancelled.
• Latency: Delays between signal generation and order execution can result in significantly different fill prices than expected.
• Overfitting: Strategies that perform well in backtesting may fail in live markets due to overfitting to historical data.

You must monitor your bot and brokerage account regularly. You are responsible for disabling the bot and closing positions manually if you believe the system is behaving unexpectedly.

03 AI and Algorithmic Decision Risk

TradingBot uses artificial intelligence (including large language models) to interpret market signals and generate trade decisions. You explicitly acknowledge the following risks:

• AI Hallucinations: AI models can produce confident but incorrect outputs. A trade decision generated by AI may be based on misinterpretation of data.
• Model Limitations: The AI model has no genuine understanding of markets; it pattern-matches based on training data that may not reflect current or future market dynamics.
• Prompt Sensitivity: Small changes in input data can produce substantially different AI outputs, leading to inconsistent trade behavior.
• No Guarantee of Logic: AI decisions are not always explainable or logically sound. The system may trade in ways you do not expect or understand.
• Training Data Cutoff: The underlying AI model has a knowledge cutoff date and cannot incorporate the most recent market events, regulations, or macroeconomic conditions.

04 Cryptocurrency Specific Risks

Cryptocurrency trading carries additional and heightened risks:

• Extreme Volatility: Crypto assets can lose 50-90%+ of their value in days or hours
• 24/7 Markets: Crypto markets never close, meaning your bot can be exposed around the clock including nights, weekends, and holidays
• Exchange Risk: Crypto exchanges have failed, been hacked, frozen withdrawals, and gone bankrupt. Funds on an exchange are not FDIC-insured.
• Regulatory Risk: Crypto regulations are rapidly evolving. Assets may be banned, restricted, or delisted without notice.
• Smart Contract and Protocol Risk: Underlying blockchain protocols can have bugs or be exploited.
• Lack of Recourse: Crypto transactions are generally irreversible. Errors cannot be reversed by any authority.

05 Leverage and Margin Risk

If your brokerage account uses margin or leverage, losses can exceed your initial deposit. A leveraged position can be liquidated automatically by your broker if your account falls below minimum margin requirements. TradingBot does not manage margin levels; you are solely responsible for monitoring your broker's margin requirements and maintaining adequate capital.

06 Liquidity Risk

For small-cap stocks, thinly traded pairs, or during periods of market stress, there may be insufficient market liquidity to fill orders at intended prices. This can result in: significant slippage between intended and actual fill prices, inability to close losing positions, and wider bid-ask spreads that erode returns.

07 Technology and Operational Risk

TradingBot depends on multiple layers of technology that can fail:

• Platform Downtime: Our servers may experience outages, maintenance windows, or failures. During downtime your bot will not receive or process signals.
• Broker API Failures: Alpaca, Kraken, and other brokers may experience outages or change their APIs, causing order failures.
• Software Bugs: Despite testing, the Platform may contain bugs that cause missed orders, duplicate orders, incorrect position sizing, or other unintended behavior.
• Third-Party AI Outages: If the AI provider (Anthropic) experiences an outage, AI-powered trade decisions may fail or be delayed.
• Data Feed Errors: Market data used to evaluate signals may be delayed, incorrect, or unavailable.
• Your Infrastructure: Your own internet connection, firewall, or webhook source (e.g., TradingView) may also introduce failures.

We do not guarantee any uptime level. The Platform is provided "as is" without warranties of availability.

08 Regulatory and Legal Risk

Regulations governing automated trading, algorithmic trading, and cryptocurrency vary by country and are evolving rapidly. Automated trading may be restricted or prohibited in certain jurisdictions. You are solely responsible for ensuring your use of TradingBot complies with all applicable laws and regulations in your jurisdiction, including tax reporting obligations on trading profits.

09 Past Performance Disclaimer

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

Any performance statistics, backtested results, win rates, or example returns shown on the Platform are for informational purposes only. They do not constitute a promise, projection, or guarantee of future performance. Backtested results are hypothetical — they were not achieved in live trading and do not account for the impact of slippage, commissions, taxes, liquidity constraints, or the psychological effects of real money at risk.

Live trading results shown in the Platform represent historical performance of other users or simulation environments and carry no implication that you will achieve similar results.

10 Not Investment Advice — Regulatory Status

TradingBot is a software automation tool. It is NOT:

• A registered investment adviser under the Investment Advisers Act of 1940
• A registered broker-dealer under the Securities Exchange Act of 1934
• A registered commodity trading advisor (CTA) with the CFTC or NFA
• A member of FINRA or SIPC
• A fiduciary of any kind

Nothing provided by TradingBot — including trade signals, AI-generated decisions, strategy suggestions, performance analytics, or any other output — constitutes investment advice, a recommendation to buy or sell any security or other financial instrument, or solicitation of any investment transaction.

You should consult a licensed financial advisor, tax professional, and legal counsel before engaging in any trading activity.

11 Your Responsibilities

By using TradingBot you accept sole responsibility for:

• All trading decisions, whether made manually or through the automated bot
• Monitoring your account and bot activity regularly
• Setting appropriate position sizes, risk limits, and capital allocation
• Understanding how your configured strategy works before enabling live trading
• Maintaining sufficient capital in your brokerage account
• Complying with all applicable laws, tax obligations, and broker requirements
• Disabling the bot and manually closing positions if you believe the system is malfunctioning
• All financial losses incurred through the Platform, regardless of cause

12 Acknowledgment