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Risk Disclosure Statement

Version 1.0|Effective: June 8, 2026|Last Updated: June 8, 2026

IMPORTANT: READ THIS DOCUMENT CAREFULLY BEFORE USING THIS PLATFORM. THIS DOCUMENT SUPPLEMENTS THE TERMS OF SERVICE.

Purpose

This Risk Disclosure Statement is designed to inform you of the material risks associated with using THIS PLATFORM for algorithmic trading. This is not a comprehensive list of all risks. You should not trade unless you understand the nature and extent of your exposure to risk.

1. General Trading Risks

Trading in securities, options, cryptocurrencies, and other financial instruments involves substantial risk. You can lose some or all of your invested capital. The degree of risk depends on many factors, including market volatility, leverage, position size, and the financial instruments traded.

  • Past performance of any strategy, indicator, or bot is not indicative of future results.
  • There is no guarantee that any trading strategy will be profitable.
  • Losses can exceed your initial investment, particularly when trading on margin.

2. Algorithmic & Automated Trading Risks

Automated trading introduces risks that are distinct from manual trading:

Speed of Execution

Bots can place orders much faster than human reaction time. A misconfigured bot can generate significant losses in seconds or minutes.

Compounding Errors

A logical error in a bot’s strategy may be repeated across many trades before detection, compounding losses.

Black Swan Events

Automated systems are typically designed for “normal” market conditions. Extreme market events may cause unexpected behavior.

Parameter Sensitivity

Small changes in bot parameters can produce dramatically different results.

Overfitting

A strategy that performs well in backtesting may be “overfit” to historical data and perform poorly in live markets.

3. Backtesting Limitations

Backtesting results are HYPOTHETICAL and subject to material limitations.

  • Survivorship bias: Historical data may exclude delisted or failed assets.
  • Look-ahead bias: Strategies may inadvertently use information not available at the time of the simulated trade.
  • Execution assumptions: Backtests typically assume perfect fills. In live markets, you will experience slippage, partial fills, and rejected orders.
  • Market impact: Backtests do not account for the market impact of your own orders.
  • Regime changes: Historical market patterns may not persist.
  • Data quality: Historical data may contain errors, gaps, or adjustments.

A profitable backtest does not guarantee profitable live trading.

4. Paper Trading vs. Live Trading

  • Paper trades always fill at the requested price; live trades experience slippage.
  • Paper trading does not account for liquidity constraints.
  • Paper trading does not produce the psychological effects of risking real capital.
  • Paper trading results are generally more favorable than live results.

5. Platform and Technology Risks

  • System Outages: The Platform may experience downtime due to maintenance, bugs, infrastructure failures, or cyberattacks. During an outage, the Platform cannot execute trades, close positions, or enforce risk limits.
  • Broker API Dependencies: The Platform depends on third-party broker APIs. Broker API outages, rate limiting, degraded performance, or API changes may prevent trade execution.
  • Internet Connectivity: A loss of internet connectivity between the Platform and your broker will prevent trade execution.
  • Data Accuracy: Market data may be delayed, inaccurate, or unavailable.
  • Software Bugs: Despite rigorous testing, the Platform may contain software defects that affect trading behavior.

6. Slippage and Execution Risks

  • Orders may be filled at prices materially different from expected prices.
  • Market orders are particularly susceptible to slippage during volatile periods.
  • Limit orders may not fill at all.
  • Stop-loss orders are not guaranteed to limit losses, particularly during gaps or halts.

7. Regulatory Risks

  • Algorithmic and automated trading may be subject to regulations that vary by jurisdiction.
  • Rules and regulations may change without notice.
  • You are solely responsible for compliance with applicable laws.

8. Third-Party Risks

The Platform integrates with third-party brokers and data providers. Argix Labs does not control and is not responsible for the actions, omissions, or failures of these third parties.

Your relationship with your broker is governed by separate agreements. Review your broker’s terms carefully.

9. Acknowledgment

BY USING THIS PLATFORM, YOU ACKNOWLEDGE THAT:

  1. You have read and understood this Risk Disclosure Statement.
  2. You understand that trading involves substantial risk of loss.
  3. You are financially able to bear the risk of trading and the potential loss of your invested capital.
  4. You understand that past performance is not indicative of future results.
  5. You understand that backtesting results are hypothetical and may differ materially from live trading results.
  6. You accept full responsibility for your trading decisions and the bots you configure and deploy.