Risk Statement & Disclaimers

What AlphaHouse IS:

• A software technology provider offering automated trading tools
• A platform connecting users to cryptocurrency exchanges via API
• An algorithm execution service for pre-defined trading strategies

What AlphaHouse IS NOT:

• ❌ NOT a Broker-Dealer: We do not execute trades on our own behalf or custody funds
• ❌ NOT an Investment Advisor: We do not provide personalized investment advice or recommendations
• ❌ NOT a Financial Institution: We are not a bank, credit union, or regulated financial entity
• ❌ NOT a Fiduciary: We have no fiduciary duty to act in your best interests
• ❌ NOT Regulated: We are not regulated by the SEC, CFTC, FINRA, FCA, or any financial regulator

No Financial Advice:

AlphaHouse provides NO financial advice, investment recommendations, or guidance on whether cryptocurrency trading is suitable for you. Our automated systems execute pre-programmed strategies WITHOUT considering your individual circumstances, risk tolerance, financial situation, or investment objectives.

No Fiduciary Relationship:

By using AlphaHouse, NO fiduciary relationship, advisory relationship, or duty of care is created between you and AlphaHouse. You are SOLELY responsible for all trading decisions, including:

• Choosing which trading systems to subscribe to
• Determining appropriate position sizes and leverage
• Deciding when to start or stop automated trading
• Managing your exchange account and risk exposure
• Monitoring performance and making adjustments

Consult Your Own Advisors:

Before using AlphaHouse or engaging in cryptocurrency trading, you MUST consult with qualified professionals, including but not limited to:

• A licensed financial advisor regarding investment suitability
• A certified accountant regarding tax implications
• A legal advisor regarding regulatory compliance in your jurisdiction
• A risk management professional regarding appropriate position sizing

DO NOT rely on AlphaHouse, its employees, or its documentation as a substitute for professional advice.

High Degree of Risk:

Cryptocurrency trading involves a HIGH DEGREE OF RISK and is NOT suitable for all investors. You should NOT invest money you cannot afford to lose entirely.

Possibility of Total Capital Loss:

YOU MAY LOSE YOUR ENTIRE INVESTMENT. Cryptocurrencies are highly volatile, and prices can drop to zero. Leveraged trading amplifies losses, and rapid liquidations can wipe out your account balance in minutes.

Past Performance NOT Indicative:

Historical performance data, backtests, and past returns are provided for informational purposes only and do NOT predict or guarantee future results. Strategies that performed well historically may FAIL in the future due to changing market conditions.

• Backtests may suffer from overfitting and look-ahead bias
• Historical data may not reflect future market regimes
• Live trading results often differ significantly from backtests
• Market microstructure and liquidity change over time

Market Volatility:

Cryptocurrency markets are EXTREMELY VOLATILE. Prices can swing +/- 20% or more in a single day. Volatility can:

• Trigger stop-losses and result in losses during temporary price swings
• Cause rapid liquidations of leveraged positions
• Result in slippage where orders execute at worse prices than expected
• Lead to unexpected margin calls and forced position closures

No Guarantee of Profits:

AlphaHouse makes NO promises, warranties, or guarantees about profitability. You may experience:

• Prolonged losing streaks (weeks or months of consecutive losses)
• Drawdowns exceeding 50% of your account balance
• Underperformance compared to simply holding Bitcoin or other assets
• Lower returns than risk-free investments (treasury bonds, savings accounts)

Emotional & Psychological Stress:

Trading can be emotionally taxing. Large losses can cause stress, anxiety, and poor decision-making. Never risk more than you can afford to lose without affecting your mental health or financial well-being.

How Leverage Amplifies Losses:

If you use 5x leverage and the market moves 20% against you, you lose 100% of your position (liquidation). Examples:

• 2x leverage: 10% adverse move = 20% loss
• 5x leverage: 10% adverse move = 50% loss
• 10x leverage: 10% adverse move = 100% loss (liquidation)
• 20x leverage: 5% adverse move = 100% loss (liquidation)

Leverage May Change After Position Entry:

IMPORTANT: Exchanges may reduce your leverage AFTER you enter a position based on:

• Position size exceeding tier limits
• Market volatility spikes
• Exchange risk management policies
• Regulatory changes or restrictions

Reduced leverage means your liquidation price moves CLOSER to the current market price, INCREASING your risk of liquidation. AlphaHouse is NOT responsible for leverage changes imposed by exchanges.

Liquidation Can Occur Rapidly:

During high volatility, liquidation can happen within SECONDS. You may not have time to:

• Add margin to your account
• Manually close positions to prevent liquidation
• Contact support for assistance
• React to price movements

Partial vs. Complete Liquidation:

• Partial Liquidation: Exchange closes some positions to restore margin requirements
• Complete Liquidation: Exchange closes ALL positions, account balance goes to zero (or negative)

Negative Balance Risk:

In extreme market conditions (flash crashes, low liquidity), liquidation may not be fast enough to prevent negative account balances. Some exchanges have "negative balance protection," but others do not. You may owe money to the exchange if your account goes negative.

Margin Maintenance Requirements:

Exchanges require minimum margin levels. If your account falls below maintenance margin:

• Margin call issued (notification to add funds or close positions)
• If not addressed, automatic liquidation occurs
• Liquidation fees applied (typically 0.5-1% of position size)

Recommendation:

If you are new to leveraged trading, START WITH LOW LEVERAGE (1-2x) and SMALL POSITION SIZES. Never use maximum leverage unless you fully understand and accept the risk of total loss.

Automated trading systems execute trades WITHOUT manual approval. This creates unique risks:

• System May Execute Unintended Trades: Due to bugs, configuration errors, or algorithm flaws
• No Human Oversight: Trades happen 24/7 without your constant supervision
• Execution Delays: Network latency, API rate limits, exchange downtime
• Order Failures: Insufficient margin, API errors, exchange maintenance
• Slippage: Orders may execute at worse prices than expected during volatility
• Multiple Trades in Rapid Succession: Can compound losses quickly

You are responsible for monitoring automated trading and stopping it if unexpected behavior occurs. AlphaHouse is NOT liable for losses caused by automated execution.

AlphaHouse uses signals to generate trading recommendations. Risks include:

• Signals Are Predictions, Not Guarantees: Signal accuracy varies, and predictions may be wrong
• Historical Signal Performance Not Indicative: Past signal accuracy does not predict future accuracy
• Signal Data May Be Delayed: Latency can result in stale signals and poor trade timing
• Signal Quality Varies: Signal providers may change models, degrade in quality, or become unavailable
• Overfitting Risk: Signals optimized on historical data may fail on new data

AlphaHouse does NOT guarantee signal accuracy, timeliness, or profitability. You accept all risks associated with signal-based trading.

YOU ARE ULTIMATELY RESPONSIBLE FOR YOUR API KEY SECURITY. Compromised keys can lead to unauthorized trading and total capital loss.

API Key Risks:

• Unauthorized Access: If your AlphaHouse account is compromised, attackers may access API keys
• Phishing Attacks: Fake AlphaHouse emails/sites may trick you into revealing credentials
• Malware: Keyloggers and spyware can steal passwords and API keys
• Weak Passwords: Easily guessable passwords enable account takeover
• Reused Passwords: If other sites are breached, reused passwords compromise AlphaHouse

Your Responsibilities:

• Use strong, unique passwords (12+ characters, mixed case, numbers, symbols)
• Enable two-factor authentication (2FA) on both AlphaHouse and your exchange
• Never share your password or API keys with anyone
• Rotate API keys every 90 days
• Use IP whitelisting on your exchange if available
• Monitor your exchange account regularly for unauthorized trades

AlphaHouse is NOT liable for losses resulting from compromised API keys due to user negligence, weak security practices, or account takeover.

Your funds are held by cryptocurrency exchanges, NOT AlphaHouse. Exchange-related risks include:

• Exchange Insolvency/Bankruptcy: Exchanges can fail, and you may lose all funds (FTX, Mt. Gox, etc.)
• Exchange Hacks: Security breaches can result in theft of customer funds
• Withdrawal Restrictions: Exchanges may freeze withdrawals during liquidity crises
• Regulatory Actions: Governments may shut down or restrict exchanges
• Exchange Downtime: Maintenance or outages prevent trading and withdrawals
• Lack of Insurance: Most crypto exchanges do NOT have FDIC-style deposit insurance

AlphaHouse has NO control over exchanges and is NOT responsible for exchange failures, hacks, insolvency, or loss of customer funds.

• Software Bugs: Code errors may cause incorrect trade execution or losses
• Internet Connectivity Issues: Network outages prevent trade execution
• API Failures: Exchange API downtime or rate limiting
• Cyber Attacks: DDoS attacks, hacking attempts, data breaches
• Server Downtime: AlphaHouse infrastructure failures or maintenance

AlphaHouse is provided "AS IS" without warranties. We are NOT liable for losses caused by technical failures, bugs, or infrastructure issues.

• Uncertain Regulatory Environment: Crypto regulations are evolving and vary by jurisdiction
• Potential Future Restrictions: Governments may ban or restrict crypto trading
• Tax Implications: Trading profits may be taxable; consult a tax professional
• Your Compliance Responsibility: You must comply with all laws in your jurisdiction