Risk Disclosure

1. General Trading Risks

• The value of securities can fluctuate significantly, and you may lose some or all of your invested capital.
• Leveraged and margin trading amplifies both potential gains and losses.
• Market liquidity can vary, and you may not be able to exit positions at desired prices.
• System outages, network issues, or brokerage downtime may prevent you from managing positions during critical periods.
• Slippage between expected and executed prices can occur, especially in volatile markets.

2. Options Trading Risks

• Options trading carries a high degree of risk and is not appropriate for all investors.
• Buyers of options may lose the entire premium paid.
• Sellers of options may face unlimited loss potential (naked calls) or substantial losses (puts and covered strategies).
• Complex multi-leg strategies carry unique risks including execution risk and margin requirements.
• Options are time-decaying assets; their value erodes as expiration approaches.
• Early assignment risk exists for American-style options.

3. Past Performance Disclaimer

Past performance of any strategy, algorithm, or trading system is not indicative of future results. Historical backtests and paper trading results do not account for all real-world factors including slippage, market impact, and liquidity constraints. Hypothetical performance results have inherent limitations and should not be relied upon as indicators of future performance.

4. Paper vs. Live Trading

AlphaDesk supports both paper (simulated) and live trading modes. You should be aware that:

• Paper trading results may differ significantly from live trading due to the absence of real market impact, slippage, and partial fills.
• Emotional and psychological factors present in live trading are absent in paper trading.
• Successful paper trading performance does not guarantee successful live trading.
• Ensure you are connected to the correct environment (paper vs. live) before executing trades.

5. No Investment Advice

AlphaDesk does not provide investment advice, tax advice, or financial planning services. The platform is a software tool that facilitates trading and analysis. Any information provided by the platform, including AI-generated analysis, is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security.

You should consult with a qualified financial advisor before making any investment decisions.

6. AI-Generated Analysis Disclaimer

AlphaDesk uses Anthropic's Claude AI to generate market analysis, trade ideas, and strategy recommendations. You should understand that:

• AI-generated analysis may contain errors, inaccuracies, or hallucinations.
• AI models have knowledge cutoff dates and may not reflect the most current market conditions or events.
• AI analysis does not constitute professional financial advice.
• The AI may not fully understand your personal financial situation, risk tolerance, or investment objectives.
• You should independently verify all AI-generated information before acting on it.
• Automated strategy execution based on AI signals carries additional risk of unintended trades.

7. Regulatory Notice

AlphaDesk is not a registered broker-dealer, investment adviser, or financial institution. Securities trading is facilitated through Alpaca Securities LLC, a registered broker-dealer and member of FINRA/SIPC. Alpaca's terms, disclosures, and regulatory status govern the brokerage relationship.

8. Pattern Day Trader (PDT) Rule

Accounts with less than $25,000 making 4+ day trades in 5 business days may be flagged as pattern day traders, restricting trading activity.

9. Counterparty Risk

AlphaDesk relies on Alpaca Securities LLC as its executing broker. Alpaca is a member of FINRA/SIPC. Your securities are protected up to $500,000 by SIPC.

10. Tax Implications

Trading profits are subject to capital gains tax. Consult a tax professional. AlphaDesk does not provide tax advice.

11. Order Execution Risk

Market orders execute at the next available price, which may differ from the displayed price. Limit orders may not fill if the price target is not reached.

12. Contact

For questions about this risk disclosure, contact us at legal@tradingalpha.net.