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Important Risk Warning: Cryptocurrency trading involves significant risk of financial loss. You may lose some or all of your invested capital. Only trade with funds you can afford to lose entirely. Automated trading tools do not eliminate market risk.
Risk Disclosure
Last updated: 2026-03-12 · GridPilot
1. Nature of Cryptocurrency Markets
Cryptocurrency markets are highly volatile and operate 24 hours a day, 7 days a week. Prices can move dramatically in short periods due to market sentiment, regulatory news, exchange events, or technical factors. This volatility creates both opportunities and significant risk of loss.
2. Automated Trading Risk
While automated trading bots can execute strategies consistently without emotional interference, they do not reduce or eliminate market risk. Specifically:
- Bots execute the strategy and parameters you configure — poor configuration leads to losses.
- No strategy performs well in all market conditions. Grid strategies underperform in strongly trending markets.
- Technical failures (internet outage, API errors, exchange downtime) can cause the bot to stop functioning or enter unexpected states.
- Backtested results do not predict future performance. Markets change.
3. Leverage Risk
Some bot configurations support leveraged trading (futures/perpetual contracts). Leverage amplifies both potential gains and potential losses. Using leverage can result in losses exceeding your initial capital. Beginners are strongly advised to use the Safe preset with no leverage until they understand how the system behaves.
4. Exchange and Counterparty Risk
Your funds are held on the exchange you connect to, not by GridPilot. Exchange-related risks include:
- Exchange insolvency, hacking, or withdrawal freezes.
- API changes that break bot functionality.
- Exchange fees and slippage affecting strategy performance.
- Regulatory actions affecting exchange operations in your jurisdiction.
5. Technology Risk
- Software bugs may cause unintended order placement.
- Network interruptions may prevent the bot from responding to market moves.
- Operating system or Python environment changes may affect functionality.
- API key compromise (if your device is infected with malware) could result in unauthorized trades.
6. Regulatory Risk
Cryptocurrency regulation varies by jurisdiction and is evolving rapidly. Trading cryptocurrency may be restricted or prohibited in your country. It is your responsibility to ensure your trading activity complies with all applicable local laws and regulations. GridPilot does not provide legal advice.
7. No Return Guarantees
GridPilot makes no promises about returns, profitability, or strategy performance. Any historical backtesting results shown are for informational purposes only and do not constitute a guarantee or prediction of future results.
8. Recommended Risk Management
Before running any live bot, we recommend:
- Starting with the Safe preset on testnet/demo/paper trading mode.
- Only allocating capital you can afford to lose completely.
- Setting conservative stop-loss and max drawdown parameters.
- Monitoring bot activity daily, especially during the first weeks.
- Keeping API withdrawal permissions disabled on all API keys used with the bot.
9. Seeking Independent Advice
If you are uncertain whether automated cryptocurrency trading is appropriate for your financial situation, consult a qualified independent financial adviser before proceeding.
10. Acknowledgement
By using GridPilot software, you confirm that you have read and understood this Risk Disclosure, and that you accept full responsibility for any trading outcomes resulting from your use of the Software.