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Risk Disclosure

Last updated: April 2026

IMPORTANT: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. You could lose some or all of your invested capital. Do not trade with money you cannot afford to lose. Please read this entire risk disclosure carefully before using any Lighthouse Trading services.

1. Market Risk

Cryptocurrency markets are highly volatile and can experience rapid, significant price movements at any time. The following risks apply:

  • Cryptocurrency prices can decline rapidly and without warning, and you may sustain a total loss of your invested capital
  • Markets operate 24/7 and are subject to extreme volatility, manipulation, and regulatory changes that can result in rapid and significant losses
  • Leverage magnifies both gains and losses. Using leverage can result in losses exceeding your initial deposit
  • Market liquidity can vary significantly, and you may not be able to exit positions at your desired price
  • Cryptocurrency regulation varies by jurisdiction and is subject to change, which may adversely affect the value of your holdings

2. Hypothetical Performance

The performance results shown on Lighthouse Trading are based on backtested and/or hypothetical performance results that have certain inherent limitations:

  • They are prepared with the benefit of hindsight — no strategy can guarantee the same results in the future
  • They do not represent actual trading — no account was actually traded using these strategies during the backtest period
  • Backtested results cannot account for the impact of financial risk in actual trading, including but not limited to: the ability to adhere to a strategy despite losses, liquidity constraints, and market impact
  • Overfitting risk exists — strategies optimized on historical data may not perform similarly on future data
  • Backtested results do not reflect actual trading, do not account for slippage, liquidity, or market impact, and are subject to survivorship bias
  • Returns shown are before tax and may not reflect the tax implications in your jurisdiction

There is no guarantee that any strategy will achieve similar results in live trading. Past performance is not indicative of future results.

3. Technical Risk

Automated trading systems can experience technical failures that may result in unintended trades or losses:

  • API errors, exchange downtime, network latency, and incorrect signal execution
  • Webhook delivery failures, order execution delays, or incorrect fills
  • System downtime or maintenance periods during which strategies cannot execute
  • Internet connectivity issues on your end or on the exchange's infrastructure
  • Software bugs or unexpected behavior in strategy logic under unusual market conditions

Lighthouse Trading does not guarantee uninterrupted or error-free operation of its platform or strategies.

4. API Keys & Account Security

When you connect your exchange account via API keys, you grant Lighthouse Trading permission to execute trades on your behalf. You should be aware of the following:

  • We recommend using trade-only API keys with withdrawals disabled
  • We encrypt your API keys at rest, but we cannot guarantee absolute security against all threats
  • You are solely responsible for the security of your exchange account and API credentials
  • Lighthouse Trading will never request your exchange password, withdrawal permissions, or private wallet keys
  • If you suspect unauthorized access, revoke your API keys immediately on your exchange

5. No Guarantee of Profit

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown on this platform:

  • There is no guarantee of execution at the signal price due to market conditions, slippage, and latency
  • Strategies may experience extended drawdown periods where the account value decreases significantly
  • The platform charges fees for access to strategies and execution services — these fees are non-refundable regardless of trading performance

6. Regulatory Risk

Lighthouse Trading is not registered as a broker-dealer, investment advisor, or commodity trading advisor with any regulatory authority. This platform does not operate under the supervision of any financial regulatory body.

  • Cryptocurrency regulation varies by jurisdiction — it is your responsibility to ensure that your use of this platform and cryptocurrency trading is legal in your jurisdiction
  • Users from restricted jurisdictions are prohibited from using this platform
  • Regulatory changes may occur at any time and could impact the availability of our services or the legality of cryptocurrency trading in your region

7. Your Responsibility

By using Lighthouse Trading, you acknowledge and accept all of the risks described in this disclosure. You agree that:

  • You are trading with funds that you can afford to lose entirely
  • You are not relying on Lighthouse Trading for financial, investment, or tax advice
  • You accept full responsibility for all trading activity on your connected exchange accounts
  • You will consult your own independent financial advisor before making any investment decisions

Lighthouse Trading is not a financial advisor. All information, strategies, signals, and automated tools provided on this platform are for educational and informational purposes only.

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