Risk Disclosure Statement

1. Regulatory Notice and Status of TradeFIQ

1.1 TradeFIQ is a Technology Platform

TradeFIQ LTD provides software tools that enable users to build, backtest, and deploy algorithmic trading strategies on third-party financial exchanges. TradeFIQ is not a broker, dealer, investment manager, portfolio manager, financial planner, financial adviser, fund administrator, or any other type of regulated financial firm in any jurisdiction in which it operates or provides Services.

1.2 No Financial Regulation in Most Jurisdictions

TradeFIQ is incorporated in England and Wales as a technology company. We are not authorised or regulated by the Financial Conduct Authority (FCA) in the United Kingdom, the Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC) in the United States, the Australian Securities and Investments Commission (ASIC), the Monetary Authority of Singapore (MAS), the Autorité des marchés financiers (AMF), or any other financial regulatory body as a financial services firm.

We do not hold, manage, or have custody of your trading capital. We do not execute trades on our own account or on behalf of users as a principal or agent acting under a financial services licence. All trades are executed directly through your connected exchange accounts using API keys you provide and control. (This is separate from your TradeFIQ Platform Wallet, a distinct balance TradeFIQ does hold on your behalf for deposits and copy-trading fees; see our Terms of Service, Section 6A.)

1.3 Not Financial Advice

Nothing published, communicated, or displayed by TradeFIQ (including on our website, within the platform, in our documentation, in our blog, in the portfolios of managers you may copy, in support communications, or through any other channel) constitutes or should be construed as financial advice, investment advice, trading recommendations, tax advice, legal advice, or any other form of professional advice. Any educational content, market data, performance statistics, backtest results, or example strategies are provided for informational and illustrative purposes only.

The fact that TradeFIQ provides tools capable of executing trades automatically does not imply any endorsement of any strategy, recommendation to trade, or assessment of a strategy's suitability for your individual financial circumstances, objectives, or risk tolerance.

2. General Market and Trading Risks

2.1 Market Volatility

Financial markets are subject to continuous fluctuations in price driven by an enormous range of factors, including economic data releases, central bank decisions, geopolitical events, corporate announcements, regulatory developments, sentiment shifts, and macroeconomic trends. Prices can move rapidly and sharply in either direction, including to zero in the case of some assets. The value of your investments can fall as well as rise, and you may receive back less than you invested, or nothing at all.

2.2 Liquidity Risk

Not all markets and assets are equally liquid. In markets with low trading volumes (including many smaller cryptocurrencies, emerging market instruments, and thinly traded stocks), you may be unable to buy or sell positions at the prices shown on the screen, or at all. Low liquidity can lead to significant slippage between the price at which an order is placed and the price at which it is actually executed, or to orders failing to fill entirely.

Even in normally liquid markets, liquidity can evaporate rapidly during periods of extreme market stress, flash crashes, or major news events, resulting in large price gaps and increased slippage.

2.3 Leverage Risk

Many financial instruments (including cryptocurrency perpetual futures, margin accounts, leveraged CFDs, and options) allow trading with leverage, meaning you can control a position larger than your actual capital. While leverage can amplify profits, it amplifies losses to exactly the same degree. A leveraged position can be liquidated entirely and swiftly if the market moves against you, causing you to lose your entire margin deposit and, in some cases, incur additional obligations to the exchange (though many exchanges operate with negative balance protection).

TradeFIQ supports strategies that may use leveraged instruments. If your strategy uses leverage, you must understand completely the mechanics of the leveraged instrument in question before deploying automated orders.

2.4 Currency and Exchange Rate Risk

If you trade instruments denominated in a currency different from your home currency, you are exposed to additional risk from changes in exchange rates. A movement in exchange rates may increase or reduce the returns on your investment when measured in your home currency.

2.5 Regulatory and Legal Risk

Laws and regulations governing financial markets and trading activities change frequently and vary significantly between jurisdictions. Regulatory actions (such as trading restrictions, asset freezes, exchange closures, or tax changes) can affect your ability to trade certain instruments or access your funds. It is your responsibility to comply with all applicable laws and regulations in your jurisdiction of residence.

3. Algorithmic and Automated Trading: Specific Risks

3.1 Strategy Failure

An automated trading strategy may fail to operate as intended due to logical errors in the strategy code, incorrect parameter configurations, or unexpected market conditions. A strategy that appears to function correctly in testing may behave differently in live trading due to subtle differences in data quality, timing, and execution environment. Strategy failure can result in large and rapid financial losses without any human intervention unless safeguards are explicitly programmed by the user.

3.2 Overfitting and Curve Fitting

A common risk in algorithmic trading is overfitting: the process of optimising a strategy excessively against historical data such that it appears to perform extremely well in backtesting but fails in live markets. An overfitted strategy has essentially memorised past price patterns rather than identifying genuine, repeatable market inefficiencies. Backtest results must never be taken as a reliable prediction of future live performance.

TradeFIQ provides backtesting tools for research purposes only. All backtest results displayed on the platform carry the inherent limitations of historical simulation and should be interpreted with appropriate scepticism.

3.3 Slippage

In automated trading, slippage refers to the difference between the expected price of a trade when an order is triggered and the actual price at which it is executed. Slippage occurs due to latency between order placement and execution, changes in the order book while the order is in transit, and insufficient liquidity at the target price level. High-frequency or market-order strategies may be particularly susceptible to slippage, and actual returns in live trading may differ materially from backtested results even where all other conditions are equal.

3.4 Exchange API Failures and Rate Limits

TradeFIQ connects to exchanges via their public APIs. Exchange APIs may experience downtime, rate limiting, data latency, or unexpected behaviour changes without notice. If an exchange API is unavailable or returns incorrect data, your automated strategy may:

• Fail to place orders it was intended to place;
• Fail to cancel orders it was intended to cancel;
• Receive stale or incorrect market data, leading to erroneous trade signals;
• Experience partial execution of orders intended to be atomic.

TradeFIQ monitors API connectivity but cannot guarantee uninterrupted access to any exchange's API. We are not liable for losses caused by exchange API failures.

3.5 Connectivity and Infrastructure Failure

The reliable operation of automated trading strategies requires continuous, stable internet connectivity between TradeFIQ's servers and the connected exchanges, as well as the operational availability of TradeFIQ's own infrastructure. Network outages, server failures, distributed denial-of-service (DDoS) attacks, datacenter issues, or other technical failures affecting TradeFIQ's infrastructure or your internet connection may result in strategies not executing as intended, potentially causing significant financial losses.

3.6 Black Swan and Tail Risk Events

Extraordinary, rare, and unpredictable events (commonly referred to as "black swan" events) can cause sudden, severe, and highly abnormal market dislocations. Examples include: the sudden collapse of a major exchange, a flash crash causing prices to plummet within seconds, a major government-imposed trading halt, a systemic financial crisis, or other extreme events that fall entirely outside the historical data range on which a strategy was trained. By definition, such events cannot be reliably anticipated by any algorithm. The losses that result from black swan events may be catastrophic and may occur faster than any automatic safeguard can respond.

3.7 Cascade and Feedback Loop Risk

When many algorithmic trading systems react to similar market signals simultaneously, it can cause feedback loops and cascade effects that amplify market volatility beyond what any individual strategy anticipated. Your own strategy may contribute to or be harmed by such dynamics.

3.8 Tax and Reporting Complexity

Automated trading strategies may generate a very large number of taxable events (trades) within a short period of time. The tax treatment of such events (particularly for cryptocurrency assets) varies significantly between jurisdictions and may be complex. You are solely responsible for complying with all applicable tax obligations arising from your trading activity. TradeFIQ does not provide tax advice; you should consult a qualified tax adviser in your jurisdiction.

4. Historical Performance Disclaimer

Past performance of any strategy, system, index, benchmark, or individual trader is not a reliable indicator of, and does not guarantee, future results.

Any performance statistics, returns, win rates, Sharpe ratios, maximum drawdowns, or other metrics shown on the TradeFIQ platform (whether in a manager's copy-trading portfolio, the strategy builder, backtest results, or any other part of the platform) are based on historical or simulated data and are subject to the following material limitations:

• Hindsight bias: Backtest results are calculated using data that was not available at the time trades would have been made in real time.
• Survivorship bias: Historical datasets may not include assets that failed, were delisted, or became illiquid, which can make historical performance appear better than it would have been in practice.
• Simulation assumptions: Backtests make assumptions about trade execution, fees, and slippage that may differ substantially from real-world conditions.
• Data quality: Historical exchange data may contain errors, gaps, or inconsistencies that affect backtest accuracy.
• Market regime change: Market conditions, correlations, and volatility regimes change over time. A strategy optimised on historical data may fail when market conditions shift to a different regime.

All performance information on TradeFIQ's platform must be treated as illustrative and hypothetical only.

5. Exchange Counterparty Risk

Your trading capital is held on third-party cryptocurrency or financial exchanges, not by TradeFIQ. The safety and availability of your trading capital depends entirely on the security, solvency, and operational reliability of those exchanges. TradeFIQ has no custody of, control over, or responsibility for your trading capital. (Your separate TradeFIQ Platform Wallet balance, used for deposits and copy-trading fees, is held by TradeFIQ; see our Terms of Service, Section 6A, for the risks specific to that balance.)

Risks associated with holding funds on exchanges include:

• Exchange insolvency: Exchanges can become insolvent or face financial difficulties, as demonstrated by high-profile failures in the cryptocurrency industry. If an exchange becomes insolvent, your funds may be lost or inaccessible, potentially permanently.
• Security breaches and hacks: Exchanges are frequent targets of sophisticated cyberattacks. If an exchange is hacked, user funds may be stolen with little or no recourse.
• Regulatory action: Regulators in various jurisdictions have taken action against exchanges, including freezing operations, halting withdrawals, or seizing assets. Such actions may prevent you from accessing your funds.
• Operational failure: Exchanges may experience extended outages, technical failures, or withdraw services in your jurisdiction without notice.
• No deposit protection: Unlike bank deposits in many jurisdictions, funds held on cryptocurrency exchanges are generally not covered by government deposit insurance schemes (such as FSCS in the UK or FDIC in the USA). The loss of exchange-held funds is generally not recoverable through TradeFIQ or any insurance scheme.

You should never hold more funds on any exchange than you are prepared to lose entirely.

5A. Managed Portfolio (Copy Trading) Risk

TradeFIQ allows eligible users to publish a managed portfolio that other users may follow ("copy trade"), automatically mirroring a share of trades onto the follower's own connected exchange account. TradeFIQ does not vet, endorse, guarantee, or take any responsibility for the trading decisions, competence, or future performance of any manager. Manager eligibility is based on a PnL threshold TradeFIQ sets and reviews each calendar quarter; this is an eligibility gate, not a certification, licence, or performance guarantee, and does not mean a manager will remain profitable going forward.

Additional risks specific to copy trading include: a manager's trading may perform materially worse than your own independent judgement would have; mirrored trade sizing depends on your own configured allocation and connected exchange balance, and may not replicate the manager's results exactly due to timing, slippage, or balance differences between accounts; a manager may be downgraded and their portfolio unlisted at any time, ending your ability to continue following them; and copy fees are held from your Platform Wallet for the relevant period and are not refundable once captured following a profitable period, though they are released back to you following an unprofitable one (see our Terms of Service, Section 6A.2, for the exact mechanism).

6. No Guarantee of Profit

TradeFIQ makes no representation, warranty, or guarantee, express or implied, that the use of our platform, tools, strategies (whether created by you or mirrored from a manager you copy) will result in profits. There is no guarantee that any strategy will be profitable over any time period. The algorithmic tools provided by TradeFIQ are neutral instruments; their financial outcomes depend entirely on market conditions, the quality of the strategy, and execution factors, none of which TradeFIQ controls or guarantees.

Any testimonials, case studies, example results, or hypothetical performance figures that may appear on TradeFIQ's marketing or platform are not representative of what any user will necessarily achieve and should not be relied upon as indicative of future performance.

7. Only Trade Capital You Can Afford to Lose

You should only allocate to automated trading strategies capital that you could afford to lose in its entirety without affecting your standard of living, financial security, or ability to meet your obligations.

You must not use borrowed money, credit card debt, emergency funds, retirement savings, money belonging to others, or funds required to meet your essential living expenses or financial obligations to fund trading activity through TradeFIQ or any connected exchange. The volatile and unpredictable nature of financial markets means that even well-designed strategies can suffer losses that are rapid, severe, and unrecoverable.

8. Seek Independent Financial Advice

Before you begin trading or deploying any automated strategy with real capital, we strongly recommend that you:

• Consult a qualified, regulated, and independent financial adviser who can assess whether trading and algorithmic strategies are suitable for your personal financial circumstances, investment objectives, risk appetite, and experience level;
• Consult a tax adviser in your jurisdiction to understand the tax implications of automated trading activity;
• Fully educate yourself on the mechanics of any financial instrument (e.g. futures, perpetual swaps, options, margin accounts) before trading it with an automated strategy;
• Paper trade or test any strategy in a simulated environment before deploying it with real funds;
• Start with small amounts of capital when deploying a live strategy for the first time, and only scale up once you have validated its real-world behaviour.

9. Jurisdiction-Specific Regulatory Warnings

9.1 United Kingdom: FCA Warning

TradeFIQ LTD is not authorised or regulated by the Financial Conduct Authority (FCA) of the United Kingdom as a financial services firm. TradeFIQ does not provide regulated investment services as defined by the Financial Services and Markets Act 2000 (FSMA). Cryptocurrencies are not regulated investments under FCA rules in most instances. You will not have access to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) in connection with your use of TradeFIQ's software services.

The FCA has issued multiple warnings about the high risks of cryptocurrency investments. Please visit fca.org.uk for more information.

9.2 Australia: ASIC Warning

TradeFIQ LTD does not hold an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC). TradeFIQ does not provide financial product advice, dealing services, or managed investment scheme services as those terms are defined under the Corporations Act 2001 (Cth). As such, the consumer protections afforded to recipients of regulated financial services in Australia do not apply to your use of TradeFIQ's platform.

ASIC has warned investors of the high risks associated with cryptocurrency assets and automated trading. Australian residents should seek advice from a holder of an AFSL before making investment decisions. More information is available at asic.gov.au and moneysmart.gov.au.

9.3 United States: SEC / CFTC Notice

TradeFIQ LTD is not registered with the Securities and Exchange Commission (SEC) as a broker-dealer, investment adviser, or in any other regulated capacity, nor is it registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading adviser (CTA), commodity pool operator (CPO), or futures commission merchant (FCM). TradeFIQ does not offer trading in securities as defined by the Securities Act of 1933 or the Securities Exchange Act of 1934.

U.S. persons accessing the platform represent that they understand and accept that TradeFIQ is a technology tool provider and that they are solely responsible for ensuring that their own trading activity complies with all applicable U.S. federal and state securities, commodities, and tax laws.

The SEC has warned investors about the risks of automated trading systems, including the risks of algorithm failure and market manipulation. See sec.gov and cftc.gov for more information.

9.4 Singapore: MAS Notice

TradeFIQ LTD does not hold a Capital Markets Services (CMS) licence issued by the Monetary Authority of Singapore (MAS) and does not carry on any regulated activity under the Securities and Futures Act (Cap. 289) of Singapore. TradeFIQ's services are not directed at Singapore residents; if you are a Singapore resident or are accessing the platform from Singapore, you do so at your own risk and initiative.

The MAS has classified many digital payment tokens (DPTs) as high-risk assets and has specifically warned consumers that DPT trading platforms may not be regulated and that consumers should exercise extreme caution. See mas.gov.sg for guidance.

9.5 Canada

TradeFIQ LTD is not registered with any Canadian securities regulatory authority, including the Ontario Securities Commission (OSC), the Autorité des marchés financiers (AMF) of Quebec, or any other provincial regulator. Canadian users access TradeFIQ's services as a technology tool and are responsible for ensuring their own compliance with applicable Canadian securities, commodities, and tax law.

9.6 European Union

TradeFIQ LTD does not hold authorisation from any EU National Competent Authority under MiFID II (Markets in Financial Instruments Directive) or any other EU financial services regulatory framework. Cryptocurrency assets may or may not be classified as financial instruments under the laws of individual EU member states, and the regulatory landscape is evolving rapidly, including under the EU Markets in Crypto-Assets Regulation (MiCA). EU users are responsible for ensuring their own compliance with all applicable law.

10. User Acknowledgement and Acceptance of Risk

11. Questions and Contact

If you have questions about this Risk Disclosure Statement or any aspect of the risks described herein, please contact us:

• Email: legal@hello.tradefiq.com
• General support: support@hello.tradefiq.com
• Postal address: TradeFIQ LTD, 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ, United Kingdom

This Risk Disclosure Statement should be read in conjunction with our Terms of Service and Privacy Policy.