Risk Disclosure
Important Information About Trading Risks
WARNING
Trading and investing in financial markets involves substantial risk of loss and is not suitable for everyone. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.
1. General Risk Warning
All forms of trading and investment carry a high level of risk and may not be suitable for all investors. Before engaging in any trading activity on CocoonaiTrade, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
2. Market Volatility
Financial markets are highly volatile and can experience rapid price movements due to various factors:
- Economic events and policy changes
- Political instability and global events
- Market sentiment and speculation
- Liquidity constraints
- Technology failures or cyber attacks
Such volatility can result in significant gains or losses in short periods of time.
3. Cryptocurrency Trading Risks
Cryptocurrency trading carries unique risks:
- Extreme Volatility: Crypto prices can fluctuate dramatically within hours
- Regulatory Uncertainty: Changing regulations may affect market value
- Technology Risks: Smart contract bugs, blockchain forks, or protocol changes
- Market Manipulation: Low liquidity markets may be subject to manipulation
- Irreversible Transactions: Cryptocurrency transactions cannot be reversed
- Wallet Security: Loss of private keys results in permanent loss of funds
4. Forex Trading Risks
Foreign exchange trading involves specific risks:
- Leverage Risk: High leverage can magnify both profits and losses
- Currency Risk: Exchange rate fluctuations can be unpredictable
- Interest Rate Changes: Central bank policies affect currency values
- Geopolitical Events: Political instability impacts currency markets
- Liquidity Risk: May not be able to exit positions at desired prices
5. Copy Trading Risks
When copying professional traders on our platform, be aware that:
- Past performance does not guarantee future results
- You bear full responsibility for copied trades
- Trader strategies may change without notice
- Time delays in copying may affect outcomes
- Different account sizes may yield different results
6. ProFirm Automated Trading Risks
Automated trading systems carry additional risks:
- Algorithm performance may vary in different market conditions
- System failures or connectivity issues may prevent trade execution
- Backtested results may not reflect future performance
- Over-optimization may lead to poor live trading results
7. No Guarantees
CocoonaiTrade does not guarantee:
- Specific investment returns or profits
- Protection against losses
- Continuous availability of the platform
- Execution of trades at specific prices
- Recovery of invested capital
8. Technical and Operational Risks
Technology-related risks include:
- Platform downtime or technical failures
- Internet connectivity issues
- Delayed price quotes or order execution
- Data transmission errors
- Cybersecurity threats
9. Seek Professional Advice
Before making any investment decisions, we strongly recommend that you:
- Consult with independent financial advisors
- Understand the risks specific to each investment
- Only invest money you can afford to lose
- Diversify your investment portfolio
- Continuously educate yourself about financial markets
Acknowledgment
By using CocoonaiTrade's services, you acknowledge that you have read, understood, and accepted the risks described in this disclosure. You confirm that you are aware that you could lose some or all of your invested capital and that you are willing to accept this risk.
Have Questions About Trading Risks?
Our support team is available to help you understand the risks involved.