Risk Disclaimer

Trading Risk

Trading stocks, options, and cryptocurrencies involves substantial risk and is not suitable for every person. You should carefully consider whether trading is appropriate for you in light of your financial condition. The high degree of leverage available in trading can work against you as well as for you. You could sustain a total loss of your initial investment and potentially more.

No Guarantees

No trading strategy — whether generated by AI or by a human — is guaranteed to produce profits. AlgoThesis makes no representations or warranties regarding:

• The accuracy of AI-generated strategies or analysis.
• The profitability of any strategy, past or future.
• The reliability of backtesting results as indicators of future performance.
• The completeness of market data or catalyst information.

Backtesting Limitations

Backtesting results shown on AlgoThesis are hypothetical. They are based on historical data and do not account for:

• Real-world execution costs, slippage, and latency.
• Market impact of your trades.
• Liquidity constraints.
• Broker-specific fees and margin requirements.
• Changes in market conditions, regulations, or economic environment.
• Survivorship bias in historical data.

Past performance is not indicative of future results.

AI Limitations

The AI models used by AlgoThesis (Google Gemini, Anthropic Claude) are general-purpose language models. They can produce incorrect, incomplete, or misleading outputs. AI models may:

• Misinterpret your thesis or market conditions.
• Generate strategies with logical errors.
• Fail to account for relevant risk factors.
• Produce different results for the same input at different times.

Always review generated strategies carefully before deploying them with real capital. Do not blindly trust AI-generated trading signals.

Paper Trading vs. Live Trading

Paper trading (simulated trading) results may differ significantly from live trading. Paper trading does not involve real money and does not reflect the psychological impact of risking actual capital. Slippage, partial fills, and market conditions in live trading cannot be fully replicated in simulation.

Third-Party Brokerages

AlgoThesis connects to third-party brokerages (Alpaca, Coinbase, Kraken) to execute trades on your behalf when you enable live trading. We are not responsible for:

• Brokerage outages, delays, or execution failures.
• Incorrect order execution by the brokerage.
• Changes to brokerage fees, margin requirements, or policies.
• Security breaches at the brokerage level.

Cryptocurrency Risk

Cryptocurrency markets are extremely volatile, operate 24/7, and are largely unregulated. Cryptocurrency prices can decline rapidly and you may lose your entire investment. Cryptocurrency is not legal tender and is not backed by any government.

Your Responsibility

By using AlgoThesis, you acknowledge and agree that:

• You are solely responsible for your trading decisions.
• You have read and understood these risks.
• You will not invest money you cannot afford to lose.
• You will consult a licensed financial advisor if you are unsure.
• You will not hold AlgoThesis, its founders, employees, or affiliates liable for any trading losses.

Contact

Questions about this disclaimer? Contact us at legal@algothesis.com.