1. Beta and Counsel Review Status

This Risk Disclosure is a working beta and counsel-review draft. It is written to describe the major risks of the current LoopTrading application before broader public access, paid billing expansion, LLC formation, and final legal review. It is not a substitute for advice from a qualified lawyer, financial professional, tax professional, or compliance adviser.

Cryptocurrency trading is highly risky. Automated trading can make losses happen faster. You can lose your entire deposit, more than you expected to risk, and any funds held at an exchange if that exchange fails, freezes, or restricts your account. Only trade with money you can afford to lose.

2. What LoopTrading Is and Is Not

LoopTrading is self-directed software. It lets you configure automated cryptocurrency trading strategies and send instructions to exchange accounts you connect. You choose the exchange, API key, symbol, strategy, order size, limits, offsets, stop settings, and whether a bot is started, paused, or stopped.

LoopTrading is not a bank, broker-dealer, exchange, investment adviser, commodity trading adviser, money transmitter, custodian, portfolio manager, tax adviser, or fiduciary unless a future counsel-approved launch document says otherwise. The Service does not hold customer funds, accept deposits, process withdrawals, or guarantee any trading outcome.

LoopTrading is a financial technology company, not a bank, and is not insured by the Federal Deposit Insurance Corporation (FDIC). Crypto assets are not bank deposits. They are not insured or guaranteed by the FDIC, the Securities Investor Protection Corporation (SIPC), or any other governmental agency or insurance program — whether held at your exchange or anywhere else. If your exchange fails, is hacked, or suspends withdrawals, no federal deposit insurance applies to your crypto assets, and you may lose the entire amount you committed.

3. No Financial, Investment, Legal, or Tax Advice

Nothing in LoopTrading is financial, investment, legal, accounting, or tax advice. Strategy guides, sandbox simulations, backtests, assistant responses, educational text, warning labels, default values, examples, rankings, and Top Loops data are provided for general product education. They are not recommendations to buy, sell, hold, trade, use a strategy, connect an exchange, or risk any amount of money.

You are solely responsible for deciding whether any asset, exchange, strategy, parameter, trade, or level of risk is appropriate for you.

4. Market and Crypto-Asset Risk

Crypto-asset markets can be extremely volatile, fragmented, thinly traded, and event-driven. Prices may move sharply without warning because of liquidity shortages, news, regulatory developments, exchange outages, token unlocks, forced liquidations, market manipulation, smart-contract issues, stablecoin depegs, or broader market stress.

A strategy can keep buying into a falling market and hold losses for a long time.
A sell trigger may execute after a sharp price gap at a worse price than expected.
A stop-loss can reduce downside in some scenarios but cannot guarantee an exit price.
An asset can become illiquid, delisted, halted, or effectively worthless.
Frequent trading can generate fees, slippage, taxes, and operational complexity.

5. Automated Strategy Risk

Automation does not remove risk. It can amplify both good and bad settings because bots may continue acting while you are away from the screen. Incorrect symbols, order sizes, offsets, quote currencies, exchange keys, stop-loss values, trailing settings, or strategy choices may cause unexpected trades or losses.

LoopTrading strategies perform differently in different market conditions. A setup that works during sideways movement may fail in a trend. A setup that works in a strong trend may fail in chop. A strategy that appears profitable before fees may be unprofitable after fees, slippage, spread, partial fills, and taxes.

6. Strategy-Specific Risks

Grid Loop, Grid Ladder, Dynamic Grid, and Range Loop: these strategies generally buy lower and sell higher. They can build inventory during a continued decline and may hold losses until recovery, if recovery happens at all.
Stack Loop and DCA / Time Loop: these strategies can accumulate larger positions over time. Averaging down can lower entry cost, but it also increases exposure to a falling asset.
Trend Loop: moving-average signals are delayed by design. The strategy can enter after much of a move has already happened, exit after a reversal has already begun, or repeatedly lose money during sideways whipsaw markets.
Trailing Stop: trailing logic can protect some gains after price rises, but it can also sell during ordinary pullbacks and miss later rebounds. A gap can fill below the expected trail.
Reverse Grid: selling first can leave you without the asset if price continues higher, and buying back lower may never happen.
New Listing / Listing Sniper: new listings are especially risky. Liquidity can be thin, spreads can be wide, price discovery can be violent, and first-hour losses can be severe. Watch mode and small test sizes are strongly recommended.

7. Exchange, API, and Execution Risk

LoopTrading depends on exchanges and APIs that we do not control. Orders may fail, fill partially, fill late, fill at unexpected prices, be rejected, be cancelled, or be subject to exchange minimums and rate limits. Market data can be stale, delayed, missing, or inconsistent across venues.

Market orders can suffer slippage, especially during volatility.
Limit orders may not fill, may fill partially, or may become stale.
Exchange outages can prevent a bot from entering, exiting, cancelling, or reconciling orders.
Exchange fee schedules, symbols, lot sizes, minimum notionals, and API rules can change.
Your exchange account terms may restrict automation, API usage, geography, products, or order types.

8. Custody and Exchange Account Risk

Your funds remain at your exchange. LoopTrading does not custody assets, insure balances, or control exchange solvency. Exchange insolvency, hacks, account freezes, withdrawal limits, delistings, sanctions blocks, legal process, or regulator actions can affect your funds directly.

Never enable withdrawal permission on an API key connected to LoopTrading. Use the minimum API permissions needed, enable strong authentication on your exchange account, monitor connected keys, and revoke any key you no longer trust.

9. Software, Security, and Infrastructure Risk

LoopTrading may contain defects, delays, incorrect assumptions, display errors, data mismatches, worker failures, queue delays, race conditions, or integration issues. Cloud providers, databases, email providers, payment processors, analytics tools, monitoring systems, and exchanges may experience outages or incidents that affect the Service.

Security controls reduce risk but cannot eliminate it. Unauthorized access to your LoopTrading account, email account, device, exchange account, or API keys could lead to unauthorized trading, privacy loss, or financial loss.

10. Sandbox, Backtests, and Hypothetical Results

Sandbox simulations and backtests are hypothetical. They are based on assumptions, historical data, simulated paths, estimated fees, and product logic that may not match future market conditions or live execution. Hypothetical results do not guarantee actual performance and should not be treated as typical or expected results.

A backtest can look strong because of the selected time period, asset, fee assumptions, liquidity assumptions, data quality, or missing real-world frictions. Before increasing size, test small, compare fills to your exchange records, and evaluate whether the strategy still makes sense after fees, slippage, taxes, and drawdowns.

11. Public Metrics and Performance Displays

Top Loops, dashboards, analytics, summaries, leaderboards, and other performance displays may be incomplete, delayed, anonymized, filtered, or calculated differently from exchange statements or tax reports. They are not endorsements, ratings, personalized recommendations, or guarantees that any user will achieve similar results.

Public or shared results may omit context such as account size, drawdown, strategy age, risk level, taxes, open positions, exchange restrictions, liquidity, and whether the user changed settings during the period.

12. Billing and Performance-Fee Risk

If you choose a performance-fee plan, LoopTrading may calculate software usage fees from realized bot trading profit during a billing period. Billing calculations depend on application records, exchange data, fees, closed-cycle logic, carry-forward amounts, and the plan terms shown in the app. Review billing history and report suspected errors promptly.

A performance fee is a software billing model, not a promise of profit, investment management relationship, pooled account, profit-sharing partnership, or advisory arrangement. Counsel should review this billing model before paid public launch.

13. Tax, Accounting, and Regulatory Risk

Every bot trade may be a taxable event. Tax rules for digital assets vary by jurisdiction and may change. LoopTrading data may not match your exchange, wallet, or tax provider records. You are responsible for your own tax reporting, accounting records, and legal compliance.

Crypto regulation is evolving. Laws, exchange rules, sanctions requirements, licensing expectations, consumer-protection rules, privacy rules, tax rules, or marketing standards may change and may affect whether you can use the Service or how the Service operates.

14. Practical Safety Recommendations

Start with sandbox testing and very small live amounts.
Use API keys with trading and read permissions only; never withdrawals.
Set portfolio-level limits and avoid risking funds needed for living expenses.
Understand each strategy before starting it and avoid copying settings blindly.
Check your exchange account, open orders, balances, and LoopTrading dashboard regularly.
Keep independent records from your exchange for taxes and dispute resolution.
Pause or stop bots when you do not understand what they are doing.
Contact support and revoke affected API keys immediately if something appears wrong.

15. Your Acknowledgment

By using LoopTrading, you acknowledge that you have read and understood this Risk Disclosure; that cryptocurrency trading and automation involve substantial risk of loss; that LoopTrading does not provide investment, legal, accounting, or tax advice; and that you are solely responsible for your exchange accounts, API keys, bot settings, trading decisions, and trading outcomes.

The Terms of Service and Privacy Policy provide additional terms governing use of the Service and handling of data.