Risk Disclosure

What LoopTrading is — and what it isn't

LoopTrading is software that runs strategies you configure against your own exchange account. It is not a financial adviser, broker, dealer, or fiduciary. It does not recommend trades, predict market direction, or guarantee any outcome. Every parameter — anchor price, buy/sell offsets, ladder rungs, snowball percentage, stop-loss — is your decision.

Specific risks you should understand

Market risk

Cryptocurrency prices are extremely volatile. A single asset can move 10-30%+ in a day; some have lost >90% of their value over weeks or months. Grid and ladder strategies typically buy on dips — if the dip continues into a prolonged downtrend, you will accumulate a position at progressively higher costs than the current market, and may hold that loss for an extended time before any recovery (if it recovers at all).

Execution risk

• Exchange APIs can fail, rate-limit, or return stale data. Your bot may miss a trigger.
• Market orders fill at the best available price, which may differ meaningfully from the displayed price during volatility (slippage).
• Limit orders may sit unfilled if the market never returns to your price.
• Order rejection (insufficient balance, lot size, minimum notional, exchange downtime) may stop your bot from acting at expected moments.

Software risk

Like all software, LoopTrading may contain bugs. We take reasonable care — automated testing, code review, observability — but we cannot guarantee bug-free operation. State drift, race conditions, or unexpected exchange behavior may cause your bot to act differently than intended, or not act at all.

Infrastructure risk

We depend on third parties (cloud hosts, databases, message providers, exchanges) whose outages can interrupt service. While we run health monitoring and self-healing mechanisms, you should expect occasional downtime windows during which your bots may pause or skip ticks.

Custody risk

Your funds remain on the exchange. Exchange insolvency, hacks, regulatory seizure, or account freezes are the exchange's risk, not ours — but they affect you directly. We strongly recommend:

• Only trade with capital you can afford to lose entirely;
• Never enable withdrawal permissions on any API key you connect here;
• Enable 2FA on every exchange account;
• Diversify across exchanges if you hold substantial capital.

Strategy risk

Grid, ladder, and trailing strategies work well in some market conditions and poorly in others. Past performance — including backtests and sandbox simulations — is not indicative of future results. A strategy that earned during a 3-month sideways market can lose during a 3-month downtrend. We provide a sandbox so you can test configurations against simulated price paths; use it.

Tax and regulatory risk

Cryptocurrency taxation varies widely by jurisdiction. Every trade your bot makes may be a taxable event. We do not provide tax advice. Consult a qualified tax professional in your jurisdiction. Be aware that regulations around crypto trading are evolving and may change in ways that affect your ability to use the Service.

Practical safety recommendations

• Start small.Run a $25-50 bot for a full week before increasing size. Verify that fills, fees, and P&L match what your exchange reports.
• Use the sandbox first. Test any strategy on simulated paths before going live.
• Enable email notifications for trade fills and daily summaries so you notice quickly if something looks wrong.
• Set a portfolio cap.Limit total committed dollars across all your bots to a number you're comfortable losing.
• Use the "no-loss sell" safety net.It refuses non-stop-loss sells that wouldn't profit after fees.
• Monitor regularly.Automated does not mean "unattended." Check your dashboard at least daily.

By using LoopTrading

You acknowledge that you have read and understood this risk disclosure, accept that cryptocurrency trading involves substantial risk of loss, and agree that any losses you incur are your sole responsibility. See our Terms of Service for the full legal framework governing use of the Service.