# Risk Disclaimer

**Last Updated**: 2026-02-14
**Version**: 1.0.0

## How It Works

### Understand Risks

Acknowledge that trading financial instruments carries substantial risk of loss and may not be suitable for all investors.

### Capital Risk

Only invest capital you can afford to lose completely, as losses can exceed initial investments.

### Past Performance

Understand that past performance does not guarantee future results and simulated results have limitations.

### Risk Management

Implement appropriate risk management strategies and consider consulting with financial advisors.

> This risk disclaimer outlines the significant risks associated with trading financial instruments using our platform

## Tips & Best Practices

- Never invest more than you can afford to lose

- Use stop-loss orders and position sizing to manage risk

- Diversify your trading strategies and instruments to spread risk

## Frequently Asked Questions

### Is trading suitable for everyone?

No, trading financial instruments involves substantial risk and may not be appropriate for all investors. You should carefully consider your financial situation, investment objectives, and risk tolerance before engaging in trading activities.

### What are the main risks of trading?

The main risks include potential loss of principal, leverage risk, market volatility, liquidity risk, and technology-related risks. Prices can fluctuate rapidly and dramatically, leading to significant losses in a short period.

### Can I lose more than my initial investment?

Yes, depending on the type of trading and use of leverage, it is possible to lose more than your initial investment. In some cases, losses can exceed the amount deposited in your account.

## Important Notes

> The information provided on this platform is for educational, research, and workflow-validation purposes only and does not constitute investment advice. Trading involves substantial risk of loss. Past performance is not indicative of future results. You should consult with qualified financial advisors before making investment decisions.

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Source: https://stratcraft.ai/help/risk-disclaimer/