Risk Disclosure

Last Updated: 1/3/2026

CRITICAL RISK WARNING

FUTURES TRADING INVOLVES SUBSTANTIAL RISK OF LOSS. YOU CAN LOSE SOME OR ALL OF YOUR INVESTED CAPITAL. AUTOMATED TRADING SYSTEMS AMPLIFY BOTH POTENTIAL GAINS AND LOSSES.

1. Nature of Futures Trading Risks

High Leverage Risk

Futures contracts involve leverage, meaning you can control large positions with relatively small amounts of capital. While this can amplify profits, it also dramatically increases potential losses. You may lose more than your initial investment.

Market Volatility

Futures markets can experience extreme volatility, especially during economic events, news releases, or market disruptions. Price gaps and rapid movements can result in substantial losses that exceed stop-loss orders.

Margin Calls

When losses exceed available margin, you may face margin calls requiring immediate additional funding. Failure to meet margin requirements can result in forced liquidation of positions at unfavorable prices.

2. Automated Trading Risks

System Failures

Automated trading systems can fail due to internet connectivity issues, software bugs, hardware malfunctions, or external service outages. During system failures, you may be unable to modify or close positions, potentially resulting in significant losses.

Strategy Performance

Past performance of trading strategies does not guarantee future results. Market conditions change, and strategies that were profitable in the past may become unprofitable or generate substantial losses.

Execution Risk

Automated systems may execute trades differently than intended due to market conditions, latency, or technical issues. Orders may be filled at prices significantly different from expected levels.

3. Platform-Specific Risks

Third-Party Dependencies

Algobread.ai relies on third-party brokerage platforms and data providers. Issues with these services can affect trade execution, data accuracy, and platform functionality.

API Limitations

Trading through APIs may have limitations including rate limits, connection timeouts, and potential for data delays. These factors can impact trading performance and risk management.

4. Regulatory and Tax Considerations

Futures trading is subject to complex regulations that vary by jurisdiction. Tax implications of futures trading can be significant and complex. You are responsible for understanding and complying with all applicable laws and regulations.

5. Suitability Warning

SUITABILITY REQUIREMENTS:

Futures trading is suitable only for sophisticated investors who:

Understand the risks involved
Have sufficient risk capital
Can afford to lose their entire investment
Have experience with derivatives trading
Can monitor their positions regularly

6. No Guarantees

Algobread.ai provides no guarantees regarding:

Trading results or profitability
System uptime or performance
Execution of trades at specific prices
Prevention of losses
Accuracy of market data

7. Risk Management Recommendations

Never risk more than you can afford to lose
Use appropriate position sizing
Implement stop-loss orders where appropriate
Diversify your trading strategies
Monitor your positions regularly
Maintain adequate capital reserves
Consider consulting with financial professionals

8. Acknowledgment

By using algobread.ai, you acknowledge that you have read, understood, and accepted all risks described in this disclosure. You understand that futures trading can result in the complete loss of your investment and you assume full responsibility for all trading decisions and their consequences.

9. Contact Information

For questions about these risk disclosures, please contact us at support@algobread.com