Risk Disclosure

1. General Risk Warning

Before using SFZ Capital's algorithmic trading platform, you must understand:

• Financial markets are inherently risky and unpredictable
• No trading system can guarantee profits
• You may lose your entire investment
• Trading is not suitable for everyone
• Never trade with money you cannot afford to lose

Important: SFZ Capital is a software platform provider, not a financial advisor, broker, or investment manager.

2. Market Risks

2.1 Price Volatility

Prices can fluctuate rapidly due to economic news, political events, or market sentiment. Extreme volatility can result in significant losses within seconds.

2.2 Liquidity Risk

Some securities may have limited liquidity, resulting in slippage, partial fills, or inability to exit positions.

2.3 Gap Risk

Prices can "gap" between trading sessions. Stop-loss orders may not execute at intended prices during gaps.

3. Algorithmic Trading Risks

3.1 Strategy Failure

Strategies that performed well historically may fail in live market conditions. Market conditions change constantly.

3.2 Over-Optimization (Curve Fitting)

Strategies optimized on historical data may be "over-fitted" and fail in future markets.

3.3 Execution Differences

Live trading may differ significantly from backtested results due to slippage, market impact, and latency.

3.4 Simulated Results

Paper trading and backtesting results are simulated and do not represent actual trading. Simulated performance does not reflect real market conditions, execution costs, or emotional factors that affect live trading decisions.

3.5 Technical Indicators

SFZ Capital provides 40+ technical indicators including moving averages (SMA, EMA, HMA, DEMA, TEMA), oscillators (RSI, MACD, Stochastic, CCI, Williams %R, MFI), trend indicators (ADX, SuperTrend, Parabolic SAR, Ichimoku Cloud), volatility measures (Bollinger Bands, ATR, Keltner Channels, Donchian Channels), and volume analysis tools (OBV, VWAP, CMF, A/D). These indicators are mathematical tools only — they do not predict future prices, guarantee profits, or constitute trading advice. All indicators can generate false signals and should be used as part of a comprehensive trading strategy with proper risk management.

4. Technical Risks

• System Failures: Hardware, software, or network issues can prevent trade execution
• Connectivity Issues: Internet disruptions can prevent bots from executing trades
• Data Quality: Inaccurate data can lead to incorrect trading decisions
• Third-Party Dependencies: Our platform integrates with third-party service providers such as Alpaca (brokerage API) and Stripe (payments), over which we have no control

5. Leverage & Margin Trading

High Risk: Leverage amplifies both gains AND losses. You can lose more than your initial investment.

• Amplified Losses: Small adverse movements can exceed your initial investment
• Margin Calls: You may need to deposit additional funds immediately
• Forced Liquidation: Brokers may close positions without your consent

6. No Investment Advice

SFZ Capital:

• Does NOT provide investment, financial, legal, or tax advice
• Is NOT a registered investment advisor or broker-dealer
• Does NOT recommend specific securities or strategies
• Does NOT manage your funds

Consult qualified professionals before making investment decisions.

7. Governing Law

This Risk Disclosure is part of the Terms of Service and is governed by German law. For dispute resolution and jurisdiction details, refer to the Terms of Service.

8. Acknowledgment

By using SFZ Capital, you acknowledge that:

• You have read and understood this Risk Disclosure
• You understand trading involves substantial risk of loss
• You are solely responsible for your trading decisions
• Past performance is not indicative of future results
• To the extent permitted by applicable law, SFZ Capital shall not be liable for losses resulting from market movements or user trading decisions
• You are trading with capital you can afford to lose

Statutory Rights: This Risk Disclosure does not limit any statutory rights that cannot be excluded under applicable law.