Risk Disclosure

Important: Trading and investing involve substantial risk of loss and are not suitable for everyone. You should carefully consider whether trading is appropriate for you in light of your financial circumstances and risk tolerance. Never trade with money you cannot afford to lose.

1. General Trading Risks

Market Risk

Financial markets are volatile. Prices can move rapidly and unpredictably. Past performance, historical data, backtested results, and AI-generated projections do not guarantee future price movements or trading outcomes.

Capital Loss

You may lose some or all of your invested capital. No trading strategy eliminates the risk of loss entirely. Even risk-managed strategies can experience drawdowns and losses.

Leverage Risk

Trading on margin or with leverage magnifies both gains and losses. A small adverse price movement can result in losses exceeding your initial outlay.

Liquidity Risk

Some instruments may become illiquid, meaning you may not be able to exit a position at your desired price or at all. Slippage can occur, particularly during volatile market conditions.

2. AI-Specific Risks

AI Limitations

AI-generated analysis, insights, strategy rules, and signals are produced by machine learning models. These models can be incorrect, incomplete, biased, or outdated. AI does not understand context the way a human does and may miss important factors relevant to your trading decisions.

No Predictive Capability

Trader AI does not predict market movements. AI-generated scenarios and observations are based on historical patterns and available data — they are not forecasts. Markets can and do behave in ways that no model anticipates.

Model Drift

AI model performance may degrade over time as market conditions change. Past accuracy of AI analysis is not indicative of future accuracy.

3. Data Status and Labelling

All data on the Platform is clearly labelled. You must always check the data status before making decisions:

  • Live: Real-time market data where available
  • Delayed: Market data with a time delay (typically 15 minutes)
  • Paper / Simulated: Results from a simulated trading environment using virtual funds
  • Backtested: Historical simulation of a strategy against past market data
  • Illustrative: Example data created for demonstration or educational purposes

4. Backtesting and Simulated Results

Backtested and simulated results have inherent limitations:

  • They are produced with the benefit of hindsight
  • They do not account for actual market impact, slippage, or liquidity constraints
  • They may not reflect the psychological and emotional aspects of live trading
  • They assume orders are filled at stated prices, which may not occur in live markets
  • Results may be overfitted to historical data and not generalise to future conditions

5. Paper Trading Limitations

Paper trading provides a simulated environment for practice. It does not fully reproduce:

  • Live execution quality, speed, and fill rates
  • Market impact of your orders
  • Slippage during volatile conditions
  • The emotional and psychological factors of trading with real capital

6. Strategy and Signal Risks

AI-generated strategy rules and trading signals are educational research outputs. They are not trading recommendations or investment advice. You remain fully responsible for:

  • Reviewing and validating any strategy or signal before use
  • Setting appropriate risk controls (position size, stop losses, exposure limits)
  • Understanding the strategy logic and its potential weaknesses
  • Monitoring positions and exiting when conditions change

7. No Financial Advice

Trader AI is an AI-assisted research and analysis platform only. Nothing on the Platform constitutes:

  • Financial advice or investment recommendations
  • A solicitation or offer to buy or sell any financial instrument
  • Personalised trading guidance based on your financial situation
  • Tax, legal, or regulatory advice

You should consult qualified professionals for advice specific to your circumstances.

8. Your Responsibilities

By using the Platform, you acknowledge and agree that:

  • All trading decisions are yours alone and made at your own risk
  • You are responsible for understanding the instruments you trade
  • You should not rely solely on AI-generated content for trading decisions
  • You should conduct independent research and verification
  • You should only trade with risk capital you can afford to lose

9. Regulatory Considerations

Trader AI is not authorised or regulated by the Financial Conduct Authority (FCA) or any other regulatory body. We do not execute trades, manage investments, hold client funds, or provide regulated financial services.

If you require regulated financial advice or services, you should consult an FCA-authorised firm or appropriately qualified professional.

10. If You Are Unsure

If you do not fully understand the risks associated with trading, or if you are unsure whether trading is suitable for you, you should seek independent professional advice before using the Platform or engaging in any trading activity.

Last updated: August 2026