Mandatory Crypto Trading Risk Disclosure & Warnings
This mandatory **Crypto Trading Risk Disclosure** outlines the significant financial and technological risks associated with using our services. By accessing **AI Finance Bites**, you acknowledge that trading involves a high probability of financial loss.
⚠️ CRITICAL WARNING: HIGH RISK OF LOSS
Trading in financial instruments, including but not limited to Cryptocurrency, Forex, Contracts for Difference (CFDs), and leveraged trading, carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. You should not invest money that you cannot afford to lose.
1. Leverage & Margin Risks in Crypto Trading
One of the primary dangers outlined in this **Crypto Trading Risk Disclosure** is the use of leverage. While leverage can amplify gains, it also amplifies losses. A small market movement against your position can result in the total loss of your initial margin funds and any additional funds deposited to maintain your position. This is known as a “Margin Call.”
2. Risks Associated with Infrastructure (VPS/Proxies)
Any service or recommendation regarding specialized market infrastructure, such as Trading VPS Hosting or Market Access Proxies, is subject to technological risk.
- Hardware Failure: Servers can fail, leading to an inability to execute or close trades.
- Connectivity Loss: Internet disruptions can prevent your algorithms from receiving market data.
- Security Breaches: While we recommend secure tools like NordVPN, no system is immune to hacking.
AI Finance Bites is not responsible for execution failures caused by third-party infrastructure providers.
3. Regulatory Warnings (SEC & FCA Compliance)
Different jurisdictions have different rules regarding crypto assets. As part of our **Crypto Trading Risk Disclosure**, we remind you to verify the regulatory status of any broker you use.
- United States: CFD trading is generally prohibited. US residents should use regulated exchanges like Coinbase.
- United Kingdom: The Financial Conduct Authority (FCA) has banned the sale of crypto-derivatives to retail consumers.
4. Affiliate Disclosure & Conflicts of Interest
Our website contains links to affiliate partners. If you click on a link for a broker (e.g., Exness) or a tool (e.g., TradingView) and make a purchase, we may receive a commission. This does not affect the price you pay, but it introduces a financial incentive for us to feature these products.
By using the information on this site, you acknowledge that you fully understand and accept the potential risks involved. For more details, please read our Terms of Use and Privacy Policy.
