Risk Disclosure

This Risk Disclosure document outlines the material risks associated with cryptocurrency trading and the use of TargetHit's trading signals and Auto-Trade features. By using our Service, you acknowledge that you have read, understood, and accepted these risks.

1. Cryptocurrency Market Risks

1.1 Extreme Volatility

Cryptocurrency markets are characterized by extreme price volatility. Prices can move by 10%, 20%, or more within a single day. This volatility can result in rapid and significant losses, regardless of the quality of trading signals.

1.2 Market Manipulation

Cryptocurrency markets may be subject to manipulation, including pump-and-dump schemes, wash trading, and spoofing. These activities can cause artificial price movements that may not be predictable by any trading system.

1.3 Liquidity Risk

Some cryptocurrency markets may have limited liquidity, especially during periods of high volatility. This can result in difficulty executing trades at desired prices, leading to slippage and unexpected losses.

1.4 24/7 Market Operations

Cryptocurrency markets operate 24 hours a day, 7 days a week. Significant price movements can occur at any time, including when you are unable to monitor your positions.

2. Trading Signal Risks

2.1 No Guaranteed Returns

TargetHit does not guarantee any returns on investment. Trading signals are not predictions of certain outcomes, but rather analyses based on market data and algorithms.

2.2 Past Performance

Past performance of trading signals does NOT guarantee future results. Historical win rates, profit factors, and other performance metrics are based on past market conditions that may not repeat. Market conditions change constantly, and strategies that worked in the past may fail in the future.

2.3 Signal Accuracy

While we strive to provide accurate signals, no signal system is 100% accurate. Signals may result in losses, and there may be periods of consecutive losing trades.

2.4 Signal Delay

There may be delays between signal generation and your receipt of the signal. Market conditions may change during this time, affecting the viability of the trade.

3. Auto-Trade Specific Risks

3.1 Execution Risk

• Slippage: Actual execution prices may differ from signal prices due to market movement between signal generation and order execution
• Partial Fills: Orders may only be partially filled due to available liquidity
• Execution Delays: Network latency, exchange congestion, or system issues may cause delays in trade execution

3.2 Technical Risks

• API Failures: Exchange APIs may experience downtime, rate-limiting, or errors that prevent trade execution
• System Outages: Our systems or your exchange may experience outages that affect Auto-Trade functionality
• Network Issues: Internet connectivity problems may disrupt communication between our systems and your exchange
• Software Bugs: Despite testing, software may contain bugs that cause unexpected behavior

3.3 Configuration Risks

• Incorrect Settings: Misconfigured position sizes, leverage, or other settings may result in larger losses than intended
• API Key Issues: Incorrect or expired API keys may cause trade failures or unexpected behavior

3.4 Unattended Operation

Auto-Trade operates without your direct supervision. Trades may be executed while you are asleep, away, or otherwise unable to intervene. You are responsible for monitoring your positions and account balance.

4. Leverage and Margin Trading Risks

4.1 Amplified Losses

Leverage amplifies both gains and losses. Trading with leverage can result in losses that exceed your initial investment.

4.2 Liquidation Risk

If the market moves against your leveraged position significantly, your position may be liquidated by the exchange. This can result in a total loss of the funds allocated to that position.

4.3 Margin Calls

You may be required to deposit additional funds to maintain leveraged positions. Failure to meet margin requirements may result in forced liquidation.

4.4 Funding Rates

Perpetual futures contracts involve funding rate payments that can erode profits or increase losses over time, especially for positions held for extended periods.

5. Potential for Total Loss

6. Suitability

6.1 Not Suitable for All Investors

Cryptocurrency trading is not suitable for all investors. You should not trade unless you:

• Have sufficient knowledge and experience in trading
• Understand the risks involved in cryptocurrency markets
• Can afford to lose your entire investment
• Have financial stability that will not be affected by potential losses
• Can make informed decisions independently

6.2 Self-Assessment

Before using our Service, honestly assess whether you:

• Understand how cryptocurrency trading works
• Understand how leverage and margin trading work
• Have read and understood our Terms of Service and this Risk Disclosure
• Are comfortable with the possibility of significant losses
• Are not using funds needed for essential expenses

7. Recommendation to Seek Professional Advice

We strongly recommend that you consult with a qualified financial advisor before making any trading decisions. A financial advisor can help you understand whether trading is appropriate for your financial situation and risk tolerance.

Consider consulting with professionals including:

• Licensed financial advisors
• Tax professionals familiar with cryptocurrency
• Legal advisors regarding regulatory requirements in your jurisdiction

8. No Guaranteed Returns Disclaimer

9. Independent Research

We encourage all users to conduct their own independent research before making trading decisions. Our signals should be one factor in your decision-making process, not the sole basis for trades. Consider:

• Your own technical and fundamental analysis
• Current market conditions and news
• Your personal risk tolerance and financial situation
• Multiple sources of information and analysis

10. Regulatory Considerations

Cryptocurrency regulations vary by jurisdiction. You are responsible for understanding and complying with all applicable laws and regulations in your jurisdiction. Cryptocurrency trading may be restricted or prohibited in certain regions.

11. Exchange and Counterparty Risk

When trading on cryptocurrency exchanges, you face counterparty risk. Exchanges may:

• Experience security breaches resulting in loss of funds
• Become insolvent or cease operations
• Freeze withdrawals or restrict access to funds
• Modify their terms of service unfavorably

12. Acknowledgment

By using TargetHit's services, you acknowledge that:

• You have read and understood this Risk Disclosure in its entirety
• You understand the risks associated with cryptocurrency trading
• You accept full responsibility for your trading decisions
• You will not hold TargetHit liable for any trading losses
• You are using only funds that you can afford to lose without financial hardship

Contact Us

If you have any questions about these risks or need clarification, please contact us at support@targethit.ai before using our Service.