Risk Policy

Version 2026-08-18-v3 · Last updated 18 August 2026

This page explains the risks in plain terms so you can decide for yourself. It is worth reading before you trade real money rather than after.

1. The risks that actually lose people money

1.1 Market risk

Crypto markets move violently, at all hours, with no circuit breakers. A position can go against you by more in an hour than a traditional market moves in a month. No strategy avoids this.

1.2 Leverage and liquidation

Leverage multiplies both directions. At 3× leverage, a 33% move against you wipes out the position. At 10×, a 10% move does it. When your margin runs out, the exchange liquidates — it closes your position at whatever price it can get, and you do not get to wait for a recovery. Liquidation usually happens at the worst moment, when the market is moving fastest and liquidity is thinnest.

1.3 Losses beyond your deposit

In fast markets, a liquidation can fill worse than the bankruptcy price. Depending on the venue and its insurance fund, you may be left with a negative balance. “I can only lose what I put in” is not guaranteed with leveraged perpetual futures.

1.4 Funding costs

Perpetual futures charge periodic funding between longs and shorts. Holding a position on the wrong side of funding bleeds money continuously, even when the price does not move against you.

1.5 Slippage, gaps, and thin books

Your stop-loss is an instruction, not a guarantee. In a gap or a thin order book, it fills at a worse price than you set — sometimes far worse. Backtests and practice bots do not model this honestly.

2. Risks specific to running a bot

2.1 It trades while you sleep

That is the point, and it is also the risk. A bot can open, add to, and close positions while you are not watching. Set your daily loss limit and leverage cap as though you will not be there — because you will not be.

2.2 Software can fail

Bugs, bad configurations, and unexpected market conditions can all produce trades you did not intend. The Platform is in beta. Assume it can be wrong.

2.3 Connectivity

If our host, your exchange's API, or the network between them fails, a bot may be unable to close a position it wanted to close. Positions do not pause because our software did.

2.4 Strategy decay

A strategy that worked in past conditions can stop working when conditions change — and it rarely announces this. Past out-of-sample performance is evidence, not a forecast.

2.5 The kill switch, and its limits

The kill switch stops all your bots immediately. Be clear about what it does: it halts the bots and flattens simulated and testnet positions. It does not automatically close your open mainnet positions. After hitting it, go to your exchange and manage any live positions yourself.

3. What “validated” means, precisely

We label strategies honestly, and we publish our failures:

Label	What it means
validated	Still profitable after costs on data it was not fitted to. A statement about the past.
paper	Runs on simulated money. No claim about profitability at all.
experimental	Under test. Expect it not to work.

Of the strategies we have tested, one — funding-rate carry — passed. A basket of 446 quantitative factors, a gold-trend model, and a machine-learning factor combination all failed on data they had not seen, and we did not ship them. We tell you this so that “validated” reads as what it is: a filter that most ideas fail, not a promise that the survivors will keep working.

4. Practice results are not real results

Practice bots use simulated money at simulated prices. They have no slippage, no partial fills, no exchange downtime, no funding surprises, and no emotional pressure. A practice bot showing a profit tells you the mechanics work. It tells you nothing about whether you will make money.

Use practice mode to learn what the controls do and how a strategy behaves — then expect real trading to be worse.

5. Custody, collateral, and smart-contract risk

5.1 Your trading capital stays yours

It never leaves your exchange account. The bot places and cancels orders; it never calls a withdrawal endpoint. Create your API keys without withdrawal permission and this is enforced by your exchange, not merely promised by us.

5.2 Collateral is a different pot

Collateral you deposit into our vault secures our fees. It does not trade and is not at market risk — but it is exposed to smart-contract risk.

The vault contract has not had an independent security audit. Contract defects can lose funds permanently, and no blockchain transaction can be reversed.

5.3 Wallet risk is yours

If you lose your wallet's private key, we cannot recover your collateral. Nobody can.

6. Fees reduce your returns

A $10 activation fee, $10 per 30 days after the first month, and 20% of profit are real costs that come out of your collateral. A strategy must clear these before you are ahead. On a small account, fixed fees are a large percentage — do the arithmetic for your own account size before you start.

7. What happens if your collateral runs short

The 10% requirement is measured against your live trading capital, so it rises if you add funds at your exchange. If you fall below it, we warn you and give you a grace period. If it is not fixed, we flatten your open positions and halt the bot — realising whatever profit or loss exists at that moment, which may not be a moment you would have chosen. Keep your collateral comfortably above the minimum so this never triggers.

8. Regulatory and tax risk

• Crypto derivatives are restricted or prohibited in some jurisdictions. You are responsible for knowing whether you may lawfully use this Platform where you live.
• Rules change, sometimes abruptly, and can affect your access to your exchange or to us.
• Trading profits are usually taxable. You are responsible for your own reporting. We do not provide tax documents or tax advice.

9. No advice, no guarantees

Nothing on this Platform is investment advice or a recommendation. We do not know your financial situation, and nothing is tailored to it. We do not guarantee or project any return. Any figure you see is either historical or simulated, and neither predicts the future. If you need advice, consult an independent licensed adviser.

10. Before you trade real money

• Run a practice bot until you understand what every control does.
• Start with an amount whose total loss would not change your life.
• Set a daily loss limit and a leverage cap you would accept while asleep.
• Know where your exchange's liquidation price is for your position.
• Know how to hit the kill switch, and remember it does not close mainnet positions for you.
• Keep the email address on your account working — that is how we warn you.