You could lose some or all of your invested capital. Only trade with money you can afford to lose.
This Risk Disclosure statement is provided by Fomoed to ensure you understand the risks associated with cryptocurrency trading and automated trading systems. Please read this document carefully before using our Service.
1. General Trading Risks
Volatility Risk
Cryptocurrency markets are highly volatile. Prices can fluctuate dramatically within minutes, hours, or days. This volatility can result in significant gains or losses in a very short period.
80%+
Daily price swings possible
24/7
Markets never close
100%
Possible loss of capital
Liquidity Risk
Some trading pairs may have low liquidity, resulting in:
Difficulty executing trades at desired prices
Slippage between expected and actual execution prices
Inability to exit positions during market stress
Market Risk
Cryptocurrency markets can be affected by:
Regulatory changes and government actions
Exchange hacks, failures, or insolvency
Market manipulation and "whale" activity
Global economic events
Social media and news sentiment
2. Automated Trading Risks
Warning: Automated trading bots can amplify both gains AND losses. A bot that performs well in certain market conditions may perform poorly in others.
Strategy Risk
No strategy works in all conditions: Trend-following strategies fail in ranging markets; grid bots fail in strong trends
Past performance is not indicative of future results: Backtesting cannot predict future market behavior
Parameter sensitivity: Small changes in configuration can dramatically affect results
Technical Risks
System failures: Software bugs, server outages, or connectivity issues may prevent trade execution
API limitations: Exchange rate limits or API changes may affect bot operation
Latency: Delays in execution may result in unfavorable fills
Cascading errors: A single error can trigger multiple unintended trades
Leverage Risks
Leverage amplifies risk. Trading with leverage can result in losses exceeding your initial investment. Liquidation can occur rapidly during volatile market conditions.
3. Specific Strategy Risks
DCA (Dollar Cost Averaging) Bots
May continue buying into a prolonged downtrend
Can deplete available capital if price keeps falling
Recovery may take longer than expected
Grid Trading Bots
Losses occur when price breaks out of the grid range
Capital can become "stuck" in losing positions
Requires careful range selection
AI Agent Bots
AI models may make unexpected decisions
Performance varies with market conditions
Not guaranteed to be profitable
Copy Trading
Past performance of traders does not guarantee future results
Execution delays may result in different entry/exit prices
You inherit the risk profile of the trader you copy
4. Exchange and Counterparty Risks
Your funds remain on third-party exchanges. Risks include:
Exchange insolvency: Exchanges can fail or become insolvent
Security breaches: Exchanges may be hacked
Withdrawal restrictions: Exchanges may freeze withdrawals
Regulatory actions: Exchanges may be shut down by regulators
We do not hold your funds. Fomoed only executes trades via API. Your cryptocurrency remains on your exchange accounts. We cannot protect you from exchange failures.
5. Regulatory Risks
Cryptocurrency regulation varies by jurisdiction and is constantly evolving:
Trading may become restricted or prohibited in your region
Tax obligations may apply to your trading activities
Regulatory changes may affect access to certain exchanges or features
6. Your Responsibilities
By using Fomoed, you acknowledge that:
You have read and understood this Risk Disclosure
You are trading with funds you can afford to lose
You will monitor your bots and positions regularly
You will use appropriate risk management (stop losses, position sizing)
You will not hold Fomoed liable for trading losses
You are responsible for your own trading decisions
You will comply with all applicable laws and regulations
7. No Financial Advice
Fomoed does not provide financial, investment, or trading advice. All trading strategies, signals, and features are for informational purposes only. You should consult a qualified financial advisor before making investment decisions.
8. Recommended Practices
To help manage risk, we recommend:
Start small: Test strategies with small amounts before scaling up
Use stop losses: Always configure stop-loss orders to limit downside
Diversify: Don't put all your capital in a single bot or strategy
Monitor regularly: Check your bots and positions frequently
Understand the strategy: Only use strategies you fully understand
Keep reserves: Maintain funds outside of active trading
Paper trade first: Test strategies in paper trading mode before going live
9. Acknowledgment
By creating an account and using Fomoed, you confirm that:
You have read, understood, and accepted this Risk Disclosure
You understand that trading cryptocurrency is highly speculative
You are prepared for the possibility of losing your entire investment
You will not trade with borrowed money or funds you cannot afford to lose
You accept sole responsibility for your trading decisions and results
10. Contact
If you have questions about the risks involved, please contact us at: