Risk Disclosure

Last updated 2026-05-13

Trading securities and cryptocurrencies involves substantial risk of loss. You may lose some or all of your invested capital. Only trade with funds you can afford to lose entirely.

1. Risk of Loss

All trading activity carries the risk that you may lose money rapidly. The historical and current performance of any security or strategy is not a reliable indicator of future results. There is no investment that guarantees a return. You should not trade with money you cannot afford to lose.

2. Market Risk

Equities, options, futures, and cryptocurrency markets can move sharply due to economic events, corporate announcements, geopolitical developments, regulatory changes, or technical factors. Prices may move against your position in seconds, and stop-loss orders may not protect you from losses in fast-moving markets.

3. Volatility Risk

Cryptocurrencies and certain equities (such as small-cap, penny stocks, and IPOs) can experience extreme price volatility. Daily moves of 10–50% are not uncommon for some assets. Volatility can amplify both gains and losses.

4. Leverage Risk

If you trade with margin, options, futures, or other leveraged instruments, you can lose more than your initial investment. Margin calls require additional capital deposits with little or no notice. Leverage magnifies losses as well as gains.

5. Liquidity Risk

Some securities and cryptocurrencies may be illiquid — meaning you may be unable to exit a position at a desired price or in a desired timeframe. After-hours trading, low-float stocks, and altcoins are particularly susceptible to liquidity gaps.

6. Regulatory Risk

Cryptocurrency markets in particular are subject to evolving regulation. Changes in U.S. federal, state, or international regulation may impair Subscriber's ability to trade, transfer, or hold certain assets. Securities markets are similarly subject to regulatory action that may affect trading availability or price.

7. Technology and Execution Risk

Trading platforms, exchanges, and internet connections may experience outages, latency, or data errors. Crown Media Group is not responsible for Subscriber losses caused by technology failures, brokerage execution issues, or third-party platform problems.

7A. Automated Trading Bot Risk (Paper Trader and Live Trader tiers)

If Subscriber authorizes the Kingdom Edge bot to place trades on Subscriber's Alpaca account, additional risks apply:

Bot malfunction: Software bugs, network failures, or upstream API issues may cause the bot to miss trades, place duplicate trades, or otherwise behave unexpectedly. Subscriber assumes the risk of all bot-driven activity.
API key compromise: While Crown Media Group encrypts stored API keys, no system is impenetrable. Subscriber should rotate keys periodically and revoke them whenever subscription is cancelled.
Strategy drawdown: Every strategy experiences losing periods. Trend-following, mean-reversion, and breakout strategies all have well-documented historical drawdowns of 10–40% from peak. Subscriber should expect drawdown phases and not over-allocate capital to a single strategy.
Slippage and partial fills: The bot's logical buy/sell price will not always match the actual fill price, particularly during fast markets, in low-liquidity names, or at open/close. The Company is not liable for slippage costs.
Order rejection: The brokerage may reject orders for many reasons (insufficient buying power, restricted symbol, day-trading limits, pattern-day-trader rules). The bot will log rejections but cannot guarantee orders execute.
Paper-mode is not a perfect simulation of live trading: Paper accounts simulate fills idealistically; live markets introduce real slippage, partial fills, and execution delays. Strong paper performance does not guarantee similar live performance.

8. Cybersecurity Risk

Cryptocurrency wallets, exchanges, and online brokerage accounts can be hacked, frozen, or compromised. Subscriber is responsible for securing their own credentials, private keys, and accounts.

9. Psychological Risk

Trading is mentally and emotionally demanding. Loss aversion, recency bias, and fear/greed cycles cause many traders to make suboptimal decisions. The information in the Service does not protect against psychological risk; it is the Subscriber's responsibility to develop discipline.

10. No Refunds for Trading Losses

Crown Media Group will not refund subscription fees or compensate Subscribers for trading losses, regardless of whether the loss followed information delivered by the Service. By subscribing, Subscriber acknowledges that all trading decisions and outcomes are solely Subscriber's responsibility.

11. Suitability

Trading securities and cryptocurrencies is not suitable for all investors. Subscriber should consider their own financial situation, investment objectives, risk tolerance, time horizon, and need for liquidity before engaging in any trading activity. Consultation with a licensed financial advisor is strongly recommended.

This Risk Disclosure has been drafted for the educational-research-tool model. Legal review is in progress.