Legal

Risk Disclosure

Last updated: March 1, 2025

Important Risk Warning

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex, you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment.

1. General Risk Warning

The purchase and sale of foreign currencies and contracts for difference (CFDs) involves significant risk. Forex trading is speculative in nature, and not all investors will profit. It is possible to lose more than your initial investment if you trade on margin. Past performance of any trading system or Expert Advisor (EA) is NOT necessarily indicative of future results. The performance figures shown on our website are historical and do not guarantee future performance.

2. Leverage Risk

Forex trading commonly involves the use of leverage, which can magnify both gains and losses. A small price movement in the underlying currency pair can result in a much larger gain or loss relative to your deposit. For example, leverage of 1:100 means that a 1% adverse move in the market could result in the loss of your entire deposit. Higher leverage increases risk proportionally. You should only trade with funds you can afford to lose entirely.

3. Algorithmic and EA Trading Risk

While automated Expert Advisors (EAs) remove emotional decision-making from trading, they carry their own set of risks: • System failures: Technical failures in software, hardware, or internet connectivity can prevent orders from being placed or executed as intended. • Over-optimization: EAs optimized on historical data ("curve-fitted") may not perform well on future market conditions. • Market condition changes: EAs designed for specific market conditions may perform poorly when conditions change. • Execution risk: Slippage, requotes, and latency can cause actual trade execution to differ from intended execution. • No guaranteed profits: No EA, including ours, can guarantee consistent profits.

4. Market Risk

Currency markets are affected by numerous factors including: • Economic data releases and central bank decisions • Geopolitical events and political instability • Market sentiment and speculative activity • Changes in interest rates and inflation • Natural disasters and unexpected global events These factors can cause sudden and extreme price movements that may adversely affect open positions.

5. Counterparty and Broker Risk

AlgoTradeBase is not a broker and does not hold or manage your funds. Your trading capital remains in your own brokerage account. However, you are exposed to the risk of your chosen broker, including: • Broker insolvency or failure to meet obligations • Requotes, slippage, and execution quality • Spread widening during volatile market conditions • Platform downtime or technical issues We recommend using regulated, reputable brokers with appropriate fund protection schemes.

6. No Financial Advice

AlgoTradeBase provides software tools and subscription services only. Nothing on our website, in our communications, or provided through our services constitutes: • Financial advice or investment recommendations • A solicitation or offer to buy or sell any financial instrument • A guarantee of trading profits or specific results • Professional financial, legal, or tax advice You should seek independent financial advice from a qualified professional before making any investment decisions.

7. Regulatory Considerations

Forex trading regulations vary by country. It is your responsibility to ensure that using automated trading software and Forex trading is legal in your jurisdiction. Some countries restrict or prohibit retail Forex trading. We do not offer our services in jurisdictions where such services are prohibited. AlgoTradeBase is not regulated as a financial services provider. We provide software subscriptions only.

8. Virtual Private Server (VPS) Risk

While we deploy EAs on enterprise VPS infrastructure with high uptime, technology can fail. In the event of VPS downtime, EAs may stop executing, and open positions may remain unmanaged. You are responsible for monitoring your trading account and should have contingency plans, including knowing how to manually close positions if required.

9. Currency Risk

If your trading account is denominated in a currency different from your home currency, exchange rate movements may affect the value of your profits or losses when converted back to your home currency.

10. Acknowledgment

By using AlgoTradeBase services, you acknowledge that: • You have read and understood this Risk Disclosure • You are aware of and accept the risks associated with Forex and algorithmic trading • You are trading with funds you can afford to lose • You are not relying on AlgoTradeBase for financial advice • You are responsible for your own trading and investment decisions If you do not understand or accept these risks, you should not use our services.