Risk Disclaimer

Asset-Independent Platform

Amaltash is designed as an asset-independent platform, supporting automated trading across multiple asset classes. Currently supported assets include:

• US Equities: Stocks listed on major US exchanges (NYSE, NASDAQ) through supported brokerage integrations
• ETFs: Exchange-traded funds covering various sectors, indices, and asset classes
• Cryptocurrencies: Bitcoin, Ethereum, and other digital assets traded on supported cryptocurrency exchanges

Expanding Asset Support

We are continuously expanding our supported asset classes. If you are interested in trading assets not currently supported, please contact our support team at support@amaltash.com. We welcome feature requests and can often add new asset classes quickly based on user demand.

US Equity Volatility

• Market Hours: US equity markets have defined trading hours, but pre-market and after-hours trading can experience higher volatility and lower liquidity
• Earnings Announcements: Individual stocks can experience significant price swings around quarterly earnings reports
• Economic Events: Federal Reserve announcements, economic data releases, and geopolitical events can cause market-wide volatility
• Circuit Breakers: Extreme market movements may trigger trading halts that prevent order execution

ETF Volatility

• Underlying Asset Risk: ETF prices are influenced by the volatility of their underlying assets, which may include stocks, bonds, commodities, or other securities
• Tracking Error: ETFs may not perfectly track their underlying index, especially during volatile periods
• Leveraged ETFs: Leveraged and inverse ETFs can experience extreme volatility and are designed for short-term trading only

Cryptocurrency Volatility

• Extreme Price Swings: Cryptocurrencies can experience 10-30% price movements in a single day, and sometimes within hours
• 24/7 Markets: Cryptocurrency markets never close, meaning significant price movements can occur at any time
• News Sensitivity: Prices can react dramatically to regulatory announcements, security breaches, or social media posts
• Flash Crashes: Sudden, severe price drops can occur due to large orders, technical issues, or market manipulation

Strategy Performance Risks

• Backtesting Limitations: Strategies that perform well in backtests may fail in live trading due to overfitting, curve-fitting, or changing market conditions
• Market Regime Changes: Strategies optimized for certain market conditions may perform poorly when conditions change
• Execution Differences: Live trading involves slippage, fees, and timing differences not fully captured in backtests
• Strategy Decay: As market participants adapt, previously profitable strategies may lose their edge over time

Operational Risks

• Software Bugs: Errors in strategy code or platform software could lead to unexpected trades or losses
• Connectivity Issues: Network outages could prevent strategy execution or position management
• Unintended Behavior: Strategies may execute trades you did not anticipate under certain market conditions
• No Human Judgment: Automated systems cannot adapt to unprecedented events the way a human trader might

Understanding Leverage Risks

If you use leverage or margin trading through connected exchanges or brokers, you face additional risks:

• Amplified Losses: Leverage magnifies both gains and losses. A 10x leveraged position means a 10% market move results in a 100% change in your position
• Liquidation Risk: If the market moves against your leveraged position, you may be forcibly liquidated, losing your entire margin
• Funding/Interest Costs: Holding leveraged positions incurs ongoing costs that can erode returns
• Margin Calls: You may be required to add additional funds to maintain positions, and failure to do so results in liquidation
• Losses Exceeding Deposits: In extreme cases, you could lose more than your initial deposit

Platform Risks

• System outages, maintenance windows, or degraded performance
• Software bugs that could affect trade execution or strategy behavior
• Data feed delays or errors in market data
• Security vulnerabilities or cyberattacks

Exchange and Broker Risks

• Exchange or broker outages, especially during high volatility periods
• API rate limits that could prevent strategy execution
• Changes to APIs that could break integrations
• Order execution delays or failures
• Security breaches or insolvency of exchanges/brokers

Network Risks

• Internet connectivity issues affecting trade execution
• Latency differences affecting order timing
• DNS failures or routing problems

Understanding Liquidity

Liquidity refers to the ability to buy or sell an asset without significantly affecting its price. Liquidity varies across asset classes and individual securities:

• Thin Order Books: Some assets have limited liquidity, meaning large orders can move prices significantly
• Slippage: You may not be able to execute trades at expected prices, especially during volatile periods
• Inability to Exit: In extreme market conditions, you may be unable to close positions at any reasonable price
• Spread Widening: The difference between bid and ask prices can widen dramatically during stress periods

Asset-Specific Liquidity

• US Equities: Large-cap stocks are highly liquid, while small-cap and penny stocks may have limited liquidity
• ETFs: Popular ETFs are highly liquid, but niche or newly-launched ETFs may have lower liquidity
• Cryptocurrencies: Liquidity varies significantly between major coins (Bitcoin, Ethereum) and smaller altcoins

General Regulatory Environment

The regulatory environment for trading varies by asset class and jurisdiction:

• Legal Uncertainty: Laws regarding trading may change, potentially affecting your ability to trade certain assets
• Geographic Restrictions: Trading certain assets or using certain strategies may be prohibited in your jurisdiction
• Tax Implications: Trading has complex tax implications that vary by asset class and jurisdiction
• Regulatory Changes: Exchanges and brokers may be required to implement new rules that affect your trading activities

Asset-Specific Regulations

• US Equities: Subject to SEC regulations, pattern day trader rules, and other securities laws
• ETFs: Subject to securities regulations and may have specific restrictions on leveraged or complex products
• Cryptocurrencies: Evolving regulatory landscape with significant variation between jurisdictions; potential for delistings or trading restrictions

Understanding Counterparty Risk

When you trade through exchanges or brokers, you are exposed to counterparty risk:

• Insolvency Risk: Exchanges and brokers can fail, freeze withdrawals, or declare bankruptcy, potentially resulting in loss of funds
• Security Breaches: Trading platforms have been hacked, resulting in user fund losses
• Withdrawal Restrictions: Platforms may impose withdrawal limits or delays

Protection Varies by Asset Class

• US Equities: SIPC insurance provides limited protection (up to $500,000) if a broker fails, but does not protect against market losses
• ETFs: Same SIPC protection as equities when held through a brokerage account
• Cryptocurrencies: Generally not insured; exchange failures can result in total loss of funds

Understanding Strategy Risks

When using trading strategies (whether your own or from the marketplace), understand these risks:

• No Guaranteed Returns: No strategy guarantees profits. Every strategy can and will experience losing periods
• Historical Performance Limitations: Past performance, whether backtested or live, does not predict future results
• Strategy Creator Risk: For marketplace strategies, you are trusting the creator's skill and intentions
• Modification Risk: Strategy updates by creators could affect performance (positively or negatively)
• Crowding Risk: Popular strategies may become less effective as more users deploy them

Before You Trade

Consider the following before trading:

• Never trade with money needed for rent, mortgage, bills, or other essential expenses
• Never trade with emergency funds or retirement savings
• Never borrow money to trade or invest
• Only use discretionary income that you could lose without financial hardship
• Set strict limits on how much you are willing to lose and stick to them

Disclaimer of Warranties

Amaltash makes no representations, warranties, or guarantees regarding:

• The profitability of any trading strategy or approach
• The accuracy or completeness of market data or analytics
• The performance, reliability, or availability of our platform
• The suitability of our services for your particular circumstances
• The legality of trading in your jurisdiction
• The security or solvency of any connected exchange or broker

As-Is Provision

THE SERVICES ARE PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED.

Your Acknowledgment

By using the Amaltash platform, you acknowledge and confirm that:

• You have read and understood this Risk Disclaimer in its entirety
• You understand that trading financial assets and using automated trading involve substantial risks, including the risk of total loss of capital
• You are trading with risk capital that you can afford to lose without affecting your financial security
• You have not received any guarantees of profits from Amaltash or any strategy creators
• You are solely responsible for your trading decisions and the management of your funds
• You will not hold Amaltash liable for any trading losses or damages resulting from your use of the platform
• You understand that past performance does not guarantee future results