You can lose some or all of your money. Only trade with money you can afford to lose. No tool, strategy, trader or educational program can guarantee profits or prevent losses.
1. Understanding the risks
Trading stocks, options, forex, crypto, or any other financial instrument involves substantial risk, including the possible loss of all invested capital. Past performance of any trader, strategy, or automation tool does not guarantee future results. Automated trading can amplify losses during volatile market conditions, technical failures, or unexpected events. Only trade with money you can afford to lose, and consider speaking with a licensed financial professional before making investment decisions.
Trade Pilot AI Inc ("TradePilot") is a software and education company. We are not a broker-dealer, investment adviser or financial institution, and we don't hold, manage or have custody of your funds.
2. Trading is not suitable for everyone
Trading involves significant risk of loss and is not suitable for every investor. Before trading, consider your financial situation, investment objectives, experience, and risk tolerance carefully. If you're unsure, get independent advice from a licensed professional. Never trade with money you need for essential expenses, such as rent, bills, debt repayments or emergency savings.
3. Instrument-specific risks
Stocks and ETFs
Share prices can fall sharply because of company news, earnings, sector trends, economic data or broader market sentiment. Individual companies can go bankrupt, and you can lose your entire investment.
Options
Options are complex and are not suitable for all investors. Options can expire worthless, so buyers can lose the full premium paid. Sellers of uncovered options can face losses that are theoretically unlimited. Before trading options, read the Options Clearing Corporation's Characteristics and Risks of Standardized Options, which your brokerage is required to provide.
Margin and leverage
Leverage magnifies both gains and losses. Trading on margin can result in losses greater than your initial deposit, and your brokerage may liquidate positions without notice if your account falls below margin requirements.
Forex
Foreign exchange trading is usually highly leveraged and can be affected by interest rates, geopolitical events and central bank action, often quickly and with little warning. Forex markets trade around the clock and can move sharply outside your normal hours.
Cryptocurrencies and digital assets
Digital assets are highly volatile and speculative, and may be lightly regulated or unregulated. They face risks including extreme price swings, low liquidity, exchange failures, hacking, loss of private keys, forks and changing regulation. Crypto holdings are generally not protected by SIPC or FDIC insurance.
Futures and other derivatives
Futures and other leveraged derivatives carry a high degree of risk. Small price movements can lead to large losses, and you may be required to deposit additional funds at short notice.
4. Automated trading risks
Automation follows rules. It doesn't use judgment, and it can't anticipate every market situation. In particular:
- automation can amplify losses during volatile markets, flash crashes, price gaps, low liquidity or trading halts;
- a strategy that worked in the past may stop working when market conditions change;
- configuration mistakes, such as incorrect position sizes, missing stop rules or wrong instruments, can lead to large, rapid losses;
- multiple automated orders can execute quickly, before you have a chance to step in;
- stop-loss and similar orders don't guarantee you'll exit at your chosen price, especially in fast or gapping markets.
You are responsible for configuring automation, setting risk limits, monitoring your account, and pausing or disconnecting automation when appropriate.
5. Technology and data risks
Software, internet connections, brokerage APIs and data feeds can fail. You may experience delays, outages, incorrect or delayed market data, software bugs, cybersecurity incidents, or failure of orders to be sent, received, executed, modified or cancelled. Any of these can cause losses or missed opportunities. TradePilot does not guarantee continuous, error-free operation of the Services.
6. Past and hypothetical performance
Past performance is not indicative of future results. Historical performance shown for any trader, strategy or automation tool reflects past conditions that may not repeat. Results can differ significantly depending on the time period, starting capital, position sizing, timing of entry and exit, fees, commissions, taxes and slippage. Your results will differ from those of any trader or strategy you review.
Where the Services show backtested, simulated or other hypothetical results, please note:
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Because the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Graphics on our website that look like charts, dashboards or strategy comparisons are illustrative only, use sample data, and don't represent the actual or hypothetical performance of any trader or strategy.
7. Community traders
Traders who share insights, strategies or track records on TradePilot are independent users. Unless we expressly say otherwise, they are not TradePilot employees and are not registered investment professionals. Their content reflects their own opinions and may be incomplete, inaccurate or biased. Some may be compensated or have conflicts of interest. We'll disclose material relationships with TradePilot. TradePilot does not endorse any trader or strategy, and relying on community content is at your own risk.
8. Third-party brokerages
All trades are executed in your own account with a third-party brokerage of your choosing. The brokerage is responsible for order execution, custody, margin and its own regulatory obligations. Execution quality, fees, available instruments, margin rules and investor protection (such as SIPC coverage, where it applies) depend on your brokerage. Review your brokerage's disclosures carefully.
9. Market conditions
Markets can be affected by economic data, interest-rate changes, political events, natural disasters, pandemics, regulatory action and other unpredictable events. In some conditions it may be difficult or impossible to exit a position, and prices may gap past your intended exit level.
10. Tax and legal considerations
Trading may have tax consequences, and frequent or automated trading can create complex tax situations. Laws about which instruments you can trade vary by jurisdiction. TradePilot doesn't provide tax or legal advice. Consult a qualified professional.
11. Your responsibility
By using TradePilot you acknowledge that you have read and understood this Risk Disclosure, that you are solely responsible for your trading decisions and results, and that TradePilot is not liable for any trading losses. This disclosure can't list every risk. If you don't understand the risks involved, you should not trade.
Questions? Contact us at support@thetradepilot.ai.