Risk Disclosure
Understanding the Risks Associated with Trading and Investing
1. General Risk Warning
Trading in financial instruments, including but not limited to stocks, options, futures, foreign exchange (forex), and cryptocurrencies, involves substantial risk and is not suitable for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading, and only those with sufficient risk capital should consider trading.
2. Key Investment Risks
Market Risk
The value of investments can go down as well as up due to systemic and unsystematic risks. Market risk, also known as "systematic risk," cannot be eliminated through diversification. Factors such as interest rate changes, economic recessions, and political turmoil can affect the entire market.
Leverage Risk
Using leverage to trade financial instruments can magnify both gains and losses. While it allows you to control a large position with a small amount of capital, it can also lead to losses exceeding your initial deposit. You should fully understand the risks of trading on margin before you begin.
Liquidity Risk
Liquidity risk arises when an asset cannot be sold quickly enough to prevent or minimize a loss. Some financial instruments may have low liquidity, meaning there may not be a ready market of buyers, which can make it difficult to exit a position at a desirable price.
Cryptocurrency Risk
The cryptocurrency market is highly volatile and speculative. Prices are subject to extreme fluctuations and can be influenced by regulatory changes, market sentiment, and security breaches. Trading cryptocurrencies carries additional risks, including the potential for total loss of funds.
3. AI and Automated Trading Risk
Our services may involve the use of artificial intelligence, algorithms, and automated trading systems. While these tools are designed to analyze data and execute trades based on predefined strategies, they are not infallible. AI models are built on historical data and may not perform as expected in unforeseen market conditions. System errors, connectivity issues, or flaws in the algorithm could lead to unintended trades or significant losses. By using CtraderAI's AI features, you acknowledge and accept these inherent risks.
4. No Guarantee of Profit
Past performance is not an indicator of future results. There is no guarantee that any investment strategy will be profitable or that you will not experience losses. All investment decisions are your own, and you are responsible for the outcomes.
By using the CtraderAI platform, you acknowledge that you have read, understood, and agree to the terms outlined in this Risk Disclosure.