Risk Disclosure

Last updated: January 1, 2022

IMPORTANT: Please read this Risk Disclosure statement carefully before using Nexabot. Trading foreign exchange and other financial instruments carries a high level of risk and may not be suitable for all investors.

1. General Risk Warning

Trading foreign exchange (Forex/FX) on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade foreign exchange, 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. Therefore, you should not invest money that you cannot afford to lose.

2. Leverage Risk

Trading Forex involves the use of leverage, which means you can control a large position with a relatively small amount of capital. While leverage can amplify profits, it can also amplify losses. A relatively small market movement can have a proportionately larger impact on your deposited funds. You may sustain a total loss of your initial margin funds and may be required to deposit additional funds to maintain your position.

3. Market Risk

Foreign exchange markets are subject to rapid and significant price fluctuations. Prices can be affected by various factors including economic conditions, political events, natural disasters, market sentiment, and other factors beyond our control. Past performance is not indicative of future results. Historical returns, expected returns, and probability projections are for informational purposes only and may not reflect actual future performance.

4. Automated Trading Risks

Nexabot provides automated trading software. While our algorithms are designed to identify and execute trades based on predefined strategies, there are inherent risks associated with automated trading:

  • Technical failures or system malfunctions may occur
  • Internet connectivity issues may prevent trade execution
  • Algorithms may not perform as expected in all market conditions
  • Slippage and execution delays may affect trade outcomes
  • Past algorithm performance does not guarantee future results
  • Market conditions may change, rendering strategies less effective

5. Prop Firm Trading

If you are using Nexabot to trade prop firm challenges or funded accounts, you should be aware of additional risks. Prop firms have specific rules and requirements that must be followed. Violations of these rules may result in account termination and loss of any potential profits. Nexabot does not guarantee that you will pass prop firm challenges or maintain funded account status. Each prop firm has different rules, and it is your responsibility to understand and comply with them.

6. No Guarantee of Profits

Nexabot does not and cannot guarantee profits or protection against losses. Any statements regarding potential profits or historical performance are based on backtested results or past performance, which do not guarantee future results. You acknowledge that there is a risk of loss in trading and that you are solely responsible for your trading decisions and outcomes.

7. Third-Party Risk

Nexabot connects to third-party brokers and prop firms to execute trades. We are not responsible for the actions, policies, or reliability of these third parties. Broker or prop firm insolvency, regulatory actions, or operational failures may result in loss of funds. You should conduct your own due diligence on any broker or prop firm you choose to work with.

8. Regulatory Considerations

Forex trading is regulated differently in various jurisdictions. It is your responsibility to ensure that your use of Nexabot and any trading activities comply with the laws and regulations of your jurisdiction. Nexabot does not provide legal, tax, or investment advice. You should consult with qualified professionals regarding your specific situation.

9. Capital at Risk

Only trade with capital that you can afford to lose. Do not use funds that are needed for essential expenses such as rent, bills, or living costs. Trading should be done with discretionary capital only. Consider setting strict risk management parameters and stop-loss levels to limit potential losses.

10. Acknowledgment

By using Nexabot, you acknowledge that you have read and understood this Risk Disclosure statement. You understand that trading involves significant risk and that you may lose some or all of your invested capital. You agree that Nexabot is not responsible for any trading losses you may incur. You confirm that you are making your own independent decision to use our services and are not relying on any representation or guarantee from Nexabot regarding potential profits or outcomes.

CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. A significant percentage of retail investor accounts lose money when trading CFDs and FX. You should consider whether you understand how CFDs and FX work and whether you can afford to take the high risk of losing your money.