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Risk Disclosure

Last Updated: May 2026

1. Nature of Cryptocurrency Trading

Cryptocurrency markets are:

  • Highly Volatile: Prices can change 10–50% in a single day
  • Unregulated: Limited investor protections compared to traditional markets
  • 24/7 Markets: Price movements occur at any time, including while you sleep
  • Susceptible to Manipulation: Lower liquidity enables market manipulation
  • Technically Complex: Smart contract bugs, hacks, and exchange failures can occur

2. Leverage Risk

  • Leverage can result in losses exceeding your initial deposit
  • Liquidation can happen within seconds during volatile moves
  • Funding rates can erode positions over time
  • Slippage during high volatility can worsen losses

3. AI and Algorithmic Trading Risks

SKALDIX uses artificial intelligence, which has inherent limitations:

  • No Guarantee: AI predictions are probabilistic, not certain
  • Historical Bias: AI learns from past data that may not predict future events
  • Black Swan Events: AI cannot predict unprecedented events (hacks, regulations, crashes)
  • Technical Failures: Software bugs, server outages, or connectivity issues can occur
  • Market Regime Changes: Models trained on trending markets may fail in ranging markets

4. Technical and Operational Risks

  • Server Downtime: Our servers or Bybit’s servers may experience outages
  • API Failures: Connection between SKALDIX and Bybit may fail
  • Delayed Execution: Orders may not execute at expected prices
  • Internet Connectivity: Your connection issues can prevent order management
  • Wide Stop-Loss: Our strategy uses wider stops to avoid false triggers — individual losses can be larger

5. Exchange Risks

  • Bybit or any exchange could be hacked or become insolvent
  • Exchanges may freeze withdrawals or trading
  • Regulatory actions could restrict exchange access in your jurisdiction
  • Exchange system overloads during high volatility periods

6. Financial Risks

You could lose:

  • Your entire trading capital
  • More than your initial deposit (with certain leverage settings)
  • Time and opportunity costs

7. Psychological Risks

  • Trading can be addictive and affect mental health
  • Losses can lead to emotional decision-making
  • Over-trading and revenge trading after losses
  • False confidence during winning streaks

8. Regulatory Risks

  • Cryptocurrency regulations vary by jurisdiction and change frequently
  • New laws may affect your ability to trade futures
  • Tax obligations for trading profits are your responsibility
  • You must ensure compliance with all applicable local laws

9. What SKALDIX Does NOT Do

  • We do NOT guarantee profits
  • We do NOT provide financial advice
  • We do NOT protect against all losses
  • We do NOT have control over exchange operations
  • We do NOT compensate for trading losses

10. Your Responsibilities

  • Understand all risks before trading
  • Use only funds you can afford to lose
  • Set appropriate position sizes for your account
  • Monitor your positions regularly
  • Keep your API keys and account secure
  • Comply with laws in your jurisdiction
  • Seek professional financial advice if needed

11. Acknowledgment

12. Contact

If you have questions about these risks, contact us at [email protected] or via Telegram at @skaldix_support.