Risk Disclaimer

1. General Risk Warning

Trading financial instruments, including cryptocurrencies, foreign exchange (forex), and contracts for difference (CFDs), carries a high level of risk and may not be suitable for all investors. Before deciding to trade, 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. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.

8Fund provides simulated trading services for evaluation purposes. While we strive to create a realistic trading environment, simulated trading differs significantly from live market conditions.

2. Simulated vs Real Trading

All trading activities conducted on the 8Fund platform are simulated and do not involve real capital markets. No actual securities, currencies, or commodities are bought or sold. The funds displayed in your account are virtual and for evaluation purposes only.

Key Differences from Live Trading

• Execution: Simulated trades may execute at prices that would not be available in real markets
• Liquidity: Simulated environments assume infinite liquidity, which does not exist in real markets
• Slippage: Real markets experience slippage, especially during volatile periods or with large orders
• Spreads: Simulated spreads may not reflect actual market conditions
• Market Impact: Large orders in real markets can move prices; this does not occur in simulations

Success in simulated trading does not guarantee success in live trading. The psychological and financial pressures of risking real capital significantly affect trading performance.

3. No Financial Advice

8Fund does not provide investment advice, financial advice, trading advice, or any other type of advice. None of our Services should be construed as financial or investment advice.

Any information provided through our platform, including market data, analysis tools, and educational content, is for informational purposes only. Such information:

• Does not constitute a recommendation to buy, sell, or hold any financial instrument
• Should not be relied upon as the sole basis for any investment decision
• May not be suitable for your individual circumstances
• Does not take into account your personal financial situation or goals

We strongly recommend that you seek independent professional advice before making any trading or investment decisions.

4. Past Performance Disclaimer

Past performance is not indicative of future results. Historical trading results, whether simulated or real, do not guarantee future performance. Market conditions change constantly, and strategies that worked in the past may not work in the future.

When evaluating trading performance, consider that:

• Markets are inherently unpredictable
• Historical data may not capture extreme market events
• Backtested strategies often perform worse in live conditions
• Survivorship bias can distort performance statistics
• Short-term results may not be sustainable over longer periods

Any examples of past performance shown on our platform or in our marketing materials are for illustrative purposes only and should not be considered as typical or expected results.

5. Leverage & Volatility Risks

Trading with leverage allows you to control larger positions with smaller amounts of capital. While this can amplify profits, it equally amplifies losses.

Leverage Risks

• Magnified Losses: A small adverse movement can result in losses exceeding your initial margin
• Margin Calls: You may be required to deposit additional funds or have positions liquidated
• Rapid Account Depletion: High leverage can quickly erode account balances

Volatility Risks

• Price Gaps: Markets can gap significantly, bypassing stop-loss orders
• Flash Crashes: Sudden price movements can cause immediate and substantial losses
• Illiquidity: During volatile periods, it may be difficult to exit positions at desired prices

6. Cryptocurrency Risks

Cryptocurrency markets present unique risks beyond those of traditional financial markets:

• Extreme Volatility: Cryptocurrency prices can fluctuate dramatically within short periods
• 24/7 Markets: Continuous trading means significant moves can occur at any time
• Regulatory Uncertainty: Changing regulations can significantly impact cryptocurrency values
• Security Risks: Exchanges and wallets may be vulnerable to hacking
• Market Manipulation: Cryptocurrency markets may be subject to manipulation
• Technology Risks: Protocol failures or forks can affect values
• Limited History: Cryptocurrencies have limited track records compared to traditional assets

7. Loss of Capital Warning

You should never trade with money you cannot afford to lose. Trading should only be done with risk capital—funds that, if lost, would not affect your standard of living or financial security.

Before trading, honestly assess whether you can afford to:

• Lose your entire trading capital
• Sustain multiple consecutive losses
• Experience extended periods without profits
• Cover any additional costs such as fees and commissions

If losing the capital you plan to trade would cause financial hardship, you should not trade. Consider starting with smaller amounts and only increasing your risk exposure as you gain experience and can genuinely afford potential losses.

8. Psychological Factors

Trading success depends not only on strategy but also on psychological factors that can significantly impact decision-making:

• Fear and Greed: Emotional responses can lead to poor trading decisions
• Overconfidence: Success can lead to excessive risk-taking
• Revenge Trading: Attempting to recover losses quickly often leads to larger losses
• FOMO: Fear of missing out can cause impulsive entries
• Confirmation Bias: Seeking information that supports existing beliefs
• Loss Aversion: Holding losing positions too long while cutting winners short

Simulated trading does not fully replicate the psychological pressures of trading with real money. Many traders who succeed in simulated environments struggle when real capital is at risk.

9. Regulatory Notice

8Fund operates as a simulated trading evaluation service. We are not a broker, exchange, or financial institution. Our services:

• Do not involve the execution of real market trades
• Do not provide access to live financial markets
• Are not regulated as financial services in most jurisdictions
• Should not be confused with real trading or investment services

Regulations regarding simulated trading, prop trading, and trader evaluation services vary by jurisdiction. It is your responsibility to ensure that your participation in our Services complies with applicable laws in your jurisdiction.

10. Acknowledgment

By using 8Fund Services, you acknowledge and confirm that:

• You have read and understood this Risk Disclaimer in its entirety
• You understand that all trading on our platform is simulated
• You are aware of the risks associated with trading financial instruments
• You will not trade with funds you cannot afford to lose if you transition to live trading
• You understand that past performance does not guarantee future results
• You have not relied on 8Fund for financial, investment, or trading advice
• You accept full responsibility for your trading decisions

If you do not understand or accept any part of this Risk Disclaimer, you should not use our Services.

For questions about this Risk Disclaimer, please contact us at legal@8fund.io.