Risk Disclosure

Before using DipSkip to trade securities, you should understand the inherent risks of trading:

Market Risks

• Loss of Capital: You may lose some or all of your invested capital. Past performance does not guarantee future results.
• Market Volatility: Security prices can fluctuate rapidly and unpredictably. Market conditions can change without warning.
• Liquidity Risk: You may not be able to buy or sell securities at your desired price, especially in volatile or illiquid markets.
• Margin Risk: If trading on margin, you may lose more than your initial investment and be subject to margin calls.

Automated trading through DipSkip carries unique risks that you must understand:

Software and Technical Risks

• Software Defects: DipSkip software may contain bugs, errors, or defects that could cause unintended trades, failure to execute trades, or other unexpected behavior.
• Script Errors: Your trading scripts may contain logic errors that produce unintended trading behavior, potentially resulting in significant losses.
• Connectivity Failures: Internet outages, server downtime, or network issues may prevent order execution or cause delayed execution.
• Data Errors: Market data may be delayed, incorrect, incomplete, or unavailable, causing strategies to make decisions based on inaccurate information.

Execution Risks

• Order Rejection: Orders may be rejected by the broker for various reasons including insufficient funds, margin requirements, or regulatory restrictions.
• Partial Fills: Orders may be partially filled, leaving you with positions different from what you expected.
• Slippage: Orders may be filled at prices different from what was expected, especially in fast-moving markets.
• Rapid Execution: Automated strategies can execute trades faster than you can intervene, potentially resulting in rapid and significant losses.

DipSkip includes AI-assisted features that carry their own risks:

• No Predictive Ability: The AI cannot predict market movements or guarantee profitable strategies.
• Code Errors: AI-generated code may contain bugs or produce unintended results.
• Not Investment Advice: AI suggestions are for educational purposes only and do not constitute personalized investment advice.
• User Responsibility: You are solely responsible for reviewing, understanding, and testing all AI-generated code before use.

Never execute a trading strategy you do not fully understand, even if it was generated by AI.

Key Limitations

• Hindsight Bias: Backtests are created with knowledge of what happened, which is not available in live trading.
• No Slippage: Backtests typically assume perfect execution at historical prices.
• No Market Impact: Backtests don't account for how your orders would have moved prices.
• Liquidity Assumptions: Backtests assume you could execute at any price shown in historical data.
• Changing Conditions: Market conditions change; what worked in the past may not work in the future.
• Curve Fitting: Strategies optimized on historical data may be overfit and fail in live trading.

PAST PERFORMANCE, WHETHER ACTUAL OR HYPOTHETICAL, IS NOT INDICATIVE OF FUTURE RESULTS.

DipSkip relies on third-party services that may fail or experience issues:

Brokerage Risks

• Your broker (Tradier) may experience outages or technical issues
• Orders may be rejected, delayed, or incorrectly executed by the broker
• Broker APIs may be unavailable or return incorrect data
• Your brokerage account is subject to the broker's terms and conditions

Data Provider Risks

• Market data may be delayed, incorrect, or unavailable
• Data feeds may have gaps or errors
• Real-time data is not guaranteed to be truly real-time

Infrastructure Risks

• Cloud hosting services may experience outages
• Internet service disruptions may prevent platform access
• Authentication services may be temporarily unavailable

Pattern Day Trader (PDT) Rules

Under FINRA rules, if you execute 4 or more day trades within 5 business days, you may be classified as a Pattern Day Trader and required to maintain at least $25,000 in your margin account.

DipSkip includes PDT protection features, but you are ultimately responsible for understanding and complying with all applicable trading regulations.

Tax Implications

Trading activity may have significant tax implications. Consult with a qualified tax professional regarding your specific situation.

Prohibited Activities

You are prohibited from using DipSkip for any illegal trading activity, including but not limited to:

• Market manipulation (spoofing, layering, wash trading)
• Insider trading
• Pump and dump schemes

While risks cannot be eliminated, you can take steps to manage them:

• Test Thoroughly: Always test new strategies in paper trading mode before using real money.
• Start Small: Begin with small position sizes when deploying new strategies with real money.
• Monitor Regularly: Regularly monitor your running scripts and account activity.
• Use Stop-Losses: Implement stop-loss and other risk management measures in your strategies.
• Understand Your Code: Never execute a strategy you don't fully understand.
• Risk Capital Only: Only trade with money you can afford to lose completely.

By using DipSkip, you acknowledge that:

• You have read and understood this Risk Disclosure
• You understand that trading involves substantial risk of loss
• You understand the specific risks of automated trading
• You are solely responsible for your trading decisions
• You will only trade with money you can afford to lose
• You will test strategies thoroughly before using real money
• DipSkip is not responsible for trading losses

Questions?

If you have questions about trading risks, please consult with a qualified financial professional before trading. You can also contact us at [email protected].