Risk Disclosure
Comprehensive information about the risks associated with using Lukra's AI trading system and automated trading strategies.
Important Risk Warning
Trading securities involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is appropriate for you in light of your circumstances, knowledge, and financial resources.
1. General Trading Risks
Market Risk
- Price Volatility: Security prices can fluctuate significantly and unpredictably
- Market Conditions: Adverse market conditions can result in substantial losses
- Liquidity Risk: You may not be able to sell securities at desired prices
- Economic Factors: Economic events can impact security values
Leverage Risk
- Amplified Losses: Leveraged positions can result in losses exceeding your initial investment
- Margin Calls: You may be required to deposit additional funds
- Forced Liquidation: Positions may be closed without your consent
- Interest Costs: Borrowing costs can reduce returns
2. AI Trading System Risks
Algorithm Risk
- Model Limitations: AI models may not perform as expected in all market conditions
- Data Dependencies: System performance depends on data quality and availability
- Technical Failures: System errors or malfunctions can result in losses
- Overfitting: Models may perform well in backtesting but poorly in live trading
Automation Risk
- No Human Intervention: Trades execute automatically without manual oversight
- Rapid Execution: High-frequency trading can amplify losses quickly
- System Dependencies: Reliance on technology infrastructure and connectivity
- Parameter Changes: Algorithm parameters may be adjusted without notice
3. Specific Asset Class Risks
Equity Securities
- Company Risk: Individual company performance can impact stock prices
- Sector Risk: Industry-specific factors can affect related securities
- Dividend Risk: Dividend payments are not guaranteed
- Voting Rights: Limited control over company decisions
Cryptocurrency
- Extreme Volatility: Cryptocurrency prices can change dramatically
- Regulatory Risk: Government regulations can impact cryptocurrency values
- Technology Risk: Blockchain technology risks and security concerns
- Liquidity Risk: Limited liquidity compared to traditional securities
4. Operational Risks
- Technology Failures: System outages, data corruption, or cyber attacks
- Brokerage Risk: Dependence on third-party brokerage services
- Execution Risk: Orders may not execute at expected prices
- Settlement Risk: Delays or failures in trade settlement
5. Risk Management
While our AI system includes risk management features, you should:
- Monitor Performance: Regularly review your trading activity and results
- Set Limits: Establish appropriate position sizes and loss limits
- Diversify: Avoid concentrating all investments in a single strategy
- Stay Informed: Keep up with market conditions and system updates
6. No Guarantees
Important: Lukra does not guarantee profits or protection from losses. Past performance does not guarantee future results. You should only invest money you can afford to lose.
7. Contact Information
If you have questions about these risks or need clarification, please contact us:
Questions About Trading Risks?
Our risk management team is here to help you understand the risks and make informed decisions.