Investing in financial products, including our algorithmic trading system, entails inherent risks. While our algorithm has shown resilience against daily, weekly, monthly, and yearly volatility swings in the assets we trade, no price action is ever guaranteed. Unforeseeable circumstances or "black swan" events can lead to losses.
Several factors may contribute to these risks:
Regulatory Changes: Sudden regulatory changes or announcements by government authorities regarding cryptocurrency regulations can create market uncertainty.
Security Breaches: Security breaches or hacks targeting cryptocurrency exchanges or trading platforms can disrupt market operations, cause loss of funds, and erode investor confidence.
Market Downturns: Unexpected market crashes or downturns triggered by macroeconomic factors, geopolitical events, or systemic risks can result in sharp declines in asset prices.
When trading digital assets with leverage, it's essential to understand the potential risks involved:
Convexity: Leveraged trading can lead to amplified gains and losses due to convexity on perpetual swaps and inverse contracts.
Exchange Counterparty Risk: Trading on an exchange exposes you to counterparty risk associated with that platform.
Stablecoin De-peg Risk: Stablecoins, designed to maintain a stable value, may experience de-pegging events, affecting their stability.
To mitigate potential risks:
Fund Your Margin Account: Having a funded margin account can provide an added layer of protection and help you manage risks better if the situation arises.
Diversify Your Investment: Spread risk by diversifying your investment across multiple exchanges, strategies, and assets.
Before using our platform, it's crucial to conduct a thorough risk assessment and determine your risk tolerance. Understanding the potential risks associated with trading can help you make informed decisions and implement appropriate personal risk management strategies.
Do you need more information?
Explore these resources:
FAQ: Quick answers to common questions.
Setup Guide: Step-by-step instructions for new users.
Strategy Guides: Detailed explanations of our trading products.
Exchanges: Explore our supported list of exchanges.
Bot Explorer: Select and activate your preferred strategy.
API Key Guides: Learn to generate and manage API keys.
Trading Guidelines: Understand our policies and expectations.
Automated Trading Guide: Insights on mechanics and risks.
All about cryptobots.io: Learn about our company and mission.
Profit Share: Manage your earnings and payments.
Affiliate Network: Track your referrals and commissions.
My Bots: Monitor your active trades and their performance.
In-app Help: Access tutorial videos and help guides.
Glossary: Definitions for cryptocurrency and trading terms.