Risk Disclosure

Read this Risk Disclosure carefully before relying on any data, signal, screener output, AI commentary, or backtest on the Tradeiz Platform to inform a trading decision. Cryptocurrency trading involves significant risk and is not suitable for every investor. You may lose all or substantially all of your capital.

1. General Market Risk

The prices of cryptocurrencies are highly volatile and can move sharply within seconds in response to news, on-chain events, exchange announcements, regulatory developments, macroeconomic data, or coordinated trading activity. Past price action is not a reliable indicator of future price action. Patterns, trends, sentiment scores, and momentum signals can fail without warning.

2. Leverage and Liquidation Risk (Perpetual Futures)

Perpetual futures contracts and other leveraged derivatives allow you to control a position larger than your posted margin. Leverage magnifies both gains and losses:

• A small adverse price movement can result in the liquidation of your position and total loss of your initial margin.
• In fast-moving markets, your position may be liquidated at a price worse than the maintenance-margin level (slippage during liquidation), resulting in losses greater than your initial margin and, on some venues, a debt owed to the exchange.
• Funding rates on perpetual futures fluctuate continuously and can compound carrying costs significantly over time.
• Auto-deleveraging, socialised loss, insurance-fund depletion, and other venue-specific risk mechanisms may transfer losses to profitable positions during extreme market events.

3. Liquidity and Execution Risk

• Cryptocurrency markets can experience sudden withdrawals of liquidity, especially for low-cap tokens, during off-peak hours, or during stress events.
• Order-book depth shown by the Platform reflects historical or snapshot data and may not match the depth available at the moment of execution on the underlying venue.
• Slippage can be substantial, particularly for large orders, market orders during volatile periods, or trading on venues with thin order books.
• Exchanges may halt trading, freeze withdrawals, or experience downtime, leaving you unable to manage open positions.

4. Counterparty and Custody Risk

• When you deposit funds with a centralised exchange, you become an unsecured creditor of that exchange. If the exchange becomes insolvent or is hacked, your funds may not be recoverable.
• Decentralised protocols carry smart-contract risk: bugs, exploits, oracle failures, and governance attacks have repeatedly resulted in catastrophic loss of user funds.
• Bridges between blockchains are a frequent target of exploits and have lost billions of dollars to attacks.
• Stablecoins are not all created equal; some may de-peg from their stated value due to reserve issues, redemption pressure, or regulatory action.

5. Regulatory and Legal Risk

• The regulatory landscape for cryptocurrencies and crypto-derivatives is evolving rapidly and varies by jurisdiction. New laws, regulations, or enforcement actions may restrict, ban, or fundamentally alter your ability to access certain assets, exchanges, or services.
• Certain assets or services may be unavailable to residents of specific jurisdictions (including the United States, the United Kingdom, the European Union, China, Singapore, Hong Kong, and others) for legal or sanctions-related reasons.
• Tax treatment of cryptocurrency transactions varies by jurisdiction and is often complex. You are solely responsible for understanding and complying with your tax obligations.

6. Operational and Technical Risk

• The Platform aggregates data from third-party APIs that may experience latency, gaps, throttling, or upstream errors. Real-time prices, funding rates, liquidations, and on-chain indicators may not exactly match the underlying venue at any given moment.
• Network connectivity issues on your side (including but not limited to ISP outages, Wi-Fi interruptions, and browser tab background-throttling) can delay alerts or data updates.
• The Platform itself may experience downtime, degraded performance, or feature regressions. We monitor and respond, but no SaaS product is 100% available.

7. Risks Specific to AI-Assisted Analytics

The Tradeiz AI assistant uses a large language model and a suite of tools to interpret your chart, query data, write YeScript, and produce analysis. Specific risks of relying on AI Output include:

• Hallucination. Large language models can produce confident-sounding statements that are factually incorrect, including incorrect prices, dates, exchange behaviours, formula derivations, or YeScript syntax.
• Stale knowledge. The model's underlying training data has a cut-off date. The Tradeiz AI mitigates this by querying live data via tool calls, but conclusions drawn without a tool call may reflect outdated context.
• Pattern-matching, not causality. AI is generally good at spotting patterns and bad at distinguishing correlation from causation. A pattern the AI identifies may not survive out-of-sample testing.
• Backtest illusion. Backtests run by the Tradeiz AI on chart data omit slippage, exchange fees, funding costs, partial fills, market impact, and other live frictions unless explicitly modelled. Real performance is virtually always worse than the in-sample backtest.
• Look-ahead bias. Even when the YeScript engine takes care to avoid common look-ahead patterns, a strategy authored carelessly can use information that would not have been available at the bar in question. Always inspect the AI's YeScript before relying on it.
• Overfitting. A strategy tuned on a specific window of historical data may perform very well in that window and very poorly in any other window. The AI cannot reliably distinguish a robust edge from a curve-fit anomaly.
• Prompt-injection / adversarial inputs. Public community strategies or external content rendered into the chat may contain text designed to manipulate the AI's behaviour. Treat AI Output from such contexts with extra scrutiny.

8. Strategy and Backtest Risk

• Backtests are simulations on historical data and do not represent actual trades. Differences between simulated and live performance are normal and often large.
• Strategies copied from the community library are user-contributed and have not been validated by Tradeiz. They may contain bugs, look-ahead bias, hard-coded values that don't generalise, or assumptions specific to a particular market regime.
• Even a "good" strategy can experience extended drawdowns. You must size positions and manage risk so that a worst-case drawdown is survivable for your portfolio.
• Live execution of a strategy requires order-routing infrastructure that the Platform does NOT provide. If you choose to wire an external order-execution layer, all execution risk is yours.

9. Risk-Management Recommendations

Without limiting the foregoing, before trading you should:

• Determine, with the help of a licensed financial adviser, whether cryptocurrency trading is suitable for you in light of your financial situation, investment objectives, level of experience, and risk tolerance.
• Read all materials, agreements, and disclosures provided by the exchanges and protocols you use.
• Use only capital you can afford to lose entirely.
• Apply position sizing, stop-loss discipline, leverage limits, and portfolio diversification.
• Independently verify any number, signal, strategy, or AI Output before sizing a position.
• Maintain records of your trades and tax events; do not assume the Platform retains these forever.

10. Acknowledgement

By using the Platform, you acknowledge that you have read, understood, and accepted this Risk Disclosure, and that you accept full responsibility for all consequences of your trading activity. If you do not understand any aspect of these risks, do not trade until you do.

11. Contact

Questions about this Risk Disclosure: [email protected]

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