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Risk Disclosure

Understanding the risks of automated trading before you begin

Last Updated: May 28, 2026

Critical Warning

Trading securities involves substantial risk of loss, including the potential loss of your entire investment. Automated trading carries additional risks beyond those of manual trading. You should carefully consider whether trading is appropriate for your financial situation.

Only trade with money you can afford to lose completely.

General Trading Risks

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.

No trading strategy, including those executed through DipSkip, can eliminate these fundamental market risks.

Automated Trading Risks

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.

Speed Risk: Automated trading can execute many trades in seconds. A bug in your strategy could result in significant losses before you have time to react.

AI Feature Risks

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.

Backtesting Limitations

HYPOTHETICAL RESULTS HAVE INHERENT LIMITATIONS. Backtesting shows how a strategy might have performed historically, NOT how it will perform in the future.

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.

Third-Party Service Risks

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

Clone Trader Risks

DipSkip's Clone Trader feature lets you automatically mirror trades disclosed by US politicians (House and Senate members), corporate insiders (officers, directors, 10%+ owners), and institutional fund managers. This feature carries several risks beyond those of standard DipSkip trading that you must understand before subscribing to any clone figure.

Clone Trader does not replicate the original trader's outcomes. Mirroring a politician or insider does not mean you will make (or avoid) what they made. Their cost basis, timing, holding period, tax treatment, and access to information are not yours.

Data Comes From Public Government Filings

DipSkip does not originate this data. We aggregate it from publicly available US government sources, including:

  • SEC EDGAR — Form 4 (insider transaction filings) and Form 13F (institutional holdings).
  • U.S. House Clerk (clerk.house.gov) — Periodic Transaction Reports (PTRs) for House members.
  • U.S. Senate eFD (efdsearch.senate.gov) — Periodic Transaction Reports for Senators.

We do not have any private feed, advance notice, or non-public relationship with any politician, insider, fund, regulator, or filer. Every position we mirror was already public at the time we ingested it. DipSkip is not affiliated with, endorsed by, or sponsored by any politician, insider, fund, government agency, or filing source.

Snapshots Are Not Perfect

The portfolio snapshots, holdings, and transaction lists shown for any clone figure are our best-effort reconstruction based on the filings available to us. They may be:

  • Incomplete — a filing may be missing, embargoed, retracted, late, or not yet released by the source.
  • Inaccurate — the source itself may contain errors, typos, wrong tickers, misclassified transactions, or amended filings that supersede earlier ones.
  • Outdated — the filer's actual portfolio may have moved significantly between the trade date and the disclosure date.
  • Misinterpreted — our pipeline must classify transaction types (purchase vs. grant vs. tax withholding vs. gift, etc.); we may classify them differently than you, the filer, or a different vendor would.

Parsing and Extraction Errors

Many filings — particularly congressional PTRs — are published as scanned or unstructured PDFs. DipSkip validates extractions differently depending on the source format:

  • For SEC Form 4 (structured XML): the filing is a structured XML document, so DipSkip parses the disclosed values directly from named fields and represents them exactly as filed. Every extracted transaction is run through automated deterministic checks (ticker format, date sanity, share/amount bounds).
  • For House and Senate PTRs (LLM-based extraction from PDF): when a PTR's embedded text is missing or column-shredded and the model must read the PDF image directly — or when an extracted row is low-confidence — we run the extraction a second, independent time with a more conservative prompt and persist only the transactions that both passes confirm. Transactions reported by one pass but not the other are dropped silently — they do not result in a mirror trade. PTRs that parse cleanly from embedded text are extracted on a single pass. Every extracted transaction is additionally run through the deterministic checks above, and any transaction whose combined confidence falls below our threshold is held for manual review rather than auto-traded.

Where a second pass runs, it is meant to filter single-pass hallucinations by relying on uncorrelated failures between the two prompts. It is not a guarantee. Both passes can agree on the same wrong answer, especially when the underlying PDF is corrupt or ambiguous, and a single-pass extraction carries the model's own first-read risk. The pipeline can produce errors:

  • Tickers may be misread (e.g., "MO" vs "MOH"), especially in low-quality scans, even when both passes agree.
  • Dollar-range disclosures (how congressional PTRs report amounts) are converted to share counts using the current market price — the actual share count traded by the filer is not disclosed and is unknown.
  • Transactions may be missed entirely if a filing is malformed, password-protected, image-only, or in an unexpected layout.
  • On filings that get a second pass, a transaction the second pass omits as ambiguous will be dropped even if the first pass had it right — the trade-off for catching hallucinations is occasionally missing a legitimate disclosure.

If we detect an error after a trade has been mirrored, we cannot unwind the trade — orders sent to your broker are final once filled.

Disclosure Lag

Mandatory disclosure rules do not require filers to report in real time:

  • STOCK Act (Congress): politicians have up to 30 days from notification (and up to 45 days from the transaction) to file a PTR.
  • SEC Form 4 (insiders): generally must be filed within 2 business days of the transaction.
  • SEC Form 13F (institutional managers): filed quarterly, up to 45 days after quarter-end.

By the time DipSkip mirrors a trade, the underlying price, the filer's view of the position, and the surrounding market context may all have changed materially. You are buying or selling at today's price, not the price the filer paid. The filer may have already exited the position by the time we see it.

Cost Basis and Fill Price Will Differ

Your cost basis on any cloned position will not match the filer's. Common reasons include:

  • Many insider acquisitions are compensation events — restricted stock units, option exercises, or grants — where the insider's effective cost is well below market price (sometimes zero). You pay the full market price.
  • You buy days or weeks after the filer, into a different market.
  • Position sizing is scaled to your allocation, not theirs; ratios are approximate, not exact.
  • For dollar-range PTR disclosures, you select low, midpoint, or high of the disclosed bracket — but the filer's actual amount is not knowable.
  • Slippage, commissions, partial fills, and short-sale restrictions may further alter your execution.

You Are Responsible

  • DipSkip does not recommend any clone figure or endorse following any individual's trading activity.
  • Choosing to subscribe to a clone figure is your decision. DipSkip is not your investment adviser.
  • Past trading activity by any figure — politician, insider, or fund — is not predictive of future results, and copying that activity is not a guarantee of any outcome.
  • You should review the figure's filing history, the data-source disclosures on the subscribe form, and the most recent extracted filings before enabling auto-trade.

You assume all risk of inaccurate, missing, delayed, or misinterpreted public filing data. DipSkip provides no warranty as to the accuracy, completeness, or timeliness of any snapshot or filing surfaced through the Clone Trader feature.

Regulatory Considerations

Trading Regulations

You are ultimately responsible for understanding and complying with all applicable trading regulations, including any margin, day-trading, or short-sale rules imposed by FINRA, the SEC, or your broker.

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

Risk Mitigation Recommendations

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.

Acknowledgment

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].

Key Warning

Trading involves substantial risk. You may lose some or all of your investment. Only trade with money you can afford to lose.

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