Back to home

Risk Disclosure

TradeMate — Operated by TXTech

Effective Date: May 14, 2026

IMPORTANT NOTICE: PLEASE READ THIS RISK DISCLOSURE IN FULL BEFORE USING TRADEMATE.

This Risk Disclosure is incorporated by reference into the TradeMate Terms of Service. By using the Service, you acknowledge that you have read, understood, and accepted all risks described herein. If you do not understand any portion of this document, you should seek independent professional advice before using TradeMate or engaging in any trading activity.

1. General Risk Warning

Trading in financial markets carries a substantial risk of loss, including the possible loss of your entire invested capital. The following disclosure describes risks associated with trading financial instruments, including equities, options, futures contracts, foreign exchange, cryptocurrencies, and other financial products, as well as the specific risks associated with using AI-generated trading analytics and signal software.

Trading is not suitable for everyone. You should carefully consider whether trading is appropriate for you in light of your financial situation, investment objectives, level of experience, and risk tolerance. You should only trade or invest with capital that you can afford to lose entirely without affecting your standard of living or financial security.

TradeMate strongly encourages all users to:

  • Consult a licensed financial advisor, broker, or investment professional before making any trading or investment decisions
  • Thoroughly understand the instruments you intend to trade, including their mechanics, leverage characteristics, and risk profiles
  • Develop a personal risk management plan before executing any live trades
  • Continuously monitor and evaluate the risks associated with open positions

Past performance — whether of specific securities, market indices, trading strategies, or AI-generated signals — is not indicative of future results. Financial markets are dynamic, and conditions that produced certain outcomes in the past may not recur or may produce materially different results in the future.

2. AI and Algorithmic Signal Risks

2.1 Nature of AI-Generated Signals

TradeMate's trade signals and market analysis are generated by artificial intelligence systems, including large language models, machine learning models, and algorithmic analytical tools (collectively, "AI Systems"). These AI Systems analyze market data, historical price information, technical indicators, and other inputs to produce signals, recommendations, scores, and analytical commentary.

You must understand and accept the following with respect to AI-generated signals:

2.2 AI Systems Can and Do Make Errors

AI Systems are not infallible. They may produce incorrect, inconsistent, incomplete, or misleading signals due to model limitations, data quality issues, distributional shifts in market conditions, overfitting to historical patterns, or inherent uncertainty in financial markets. No AI system can reliably predict future market movements.

2.3 AI Hallucinations and Confabulation

Large language models and generative AI systems may produce outputs — including market commentary, analysis, or explanations of signals — that appear confident and well-reasoned but are factually incorrect, made up, or inconsistent with underlying data. This phenomenon, commonly called "hallucination," is a known limitation of generative AI. You should treat all AI-generated narrative analysis critically and independently verify factual claims before relying on them.

2.4 Past Performance of AI Signals Is Not Predictive

Historical signal performance data, backtesting results, or win-rate statistics presented by TradeMate represent outcomes in past market conditions. These results were achieved under specific market regimes, liquidity conditions, and volatility environments that may not recur. AI models that perform well in backtesting or historical simulation may perform significantly worse in live market conditions due to overfitting, market impact, execution slippage, transaction costs, and regime changes.

2.5 Signal Latency and Execution Gap

There is always a gap between when an AI signal is generated and when a user may receive, review, and act on that signal. Market conditions can change materially during this interval. A signal that was actionable at generation time may no longer be valid by the time you receive it or by the time your broker executes a corresponding order. TradeMate is not responsible for any losses attributable to signal latency or execution timing.

2.6 Signals Are Not Personalized

AI-generated signals are produced based on generalized market analysis and are not tailored to your individual financial situation, tax position, risk tolerance, portfolio composition, or investment objectives. A signal that may be appropriate for one user may be entirely inappropriate for another.

3. Not Financial Advice

TradeMate is not a licensed financial advisor, registered investment advisor (RIA), broker-dealer, commodity trading advisor, or any other type of regulated financial professional or entity. Nothing provided by TradeMate — including trade signals, market analysis, educational content, AI commentary, portfolio analytics, or any other feature of the Service — constitutes financial advice, investment advice, trading advice, tax advice, legal advice, or any other form of professional advice.

All content and outputs provided by the Service are for informational and educational purposes only. The provision of a signal or recommendation does not constitute a solicitation or offer to buy or sell any security, financial instrument, or commodity.

You should not rely on TradeMate as a substitute for professional financial advice. Before making any trading or investment decision, you should consult a licensed financial advisor who understands your complete financial circumstances.

4. Market Risk

4.1 Price Volatility

Financial instruments can experience extreme price volatility in short periods of time. Prices may move sharply against your position due to economic data releases, central bank decisions, geopolitical events, corporate earnings announcements, regulatory changes, or unpredictable market sentiment shifts. Even well-reasoned trading positions can result in significant losses due to adverse price movements.

4.2 Liquidity Risk

Not all financial instruments trade with equal liquidity at all times. In thinly traded or illiquid markets, you may be unable to enter or exit a position at a desired price, or at all. Illiquidity can cause significant slippage between expected and actual execution prices, amplifying losses or reducing gains. Liquidity can deteriorate suddenly, particularly during periods of market stress.

4.3 Gap Risk

Financial markets can "gap" — meaning prices can move discontinuously between trading sessions or following news events — resulting in execution at prices significantly different from the last traded price or from the price at which you intended to trade. Stop-loss orders do not guarantee protection against gap risk. You may lose more than anticipated on a position that gaps beyond your stop level.

4.4 After-Hours and Pre-Market Risk

Trading activity in extended hours (pre-market and after-hours sessions) is subject to heightened risks compared to regular trading hours, including reduced liquidity, wider bid-ask spreads, increased price volatility, and limited participation from institutional market makers. AI-generated signals developed during regular trading hours may not appropriately account for after-hours conditions.

4.5 Concentration Risk

Concentrating capital in a small number of securities, sectors, or correlated positions amplifies the impact of adverse price movements. TradeMate's signals do not inherently account for your existing portfolio composition or diversification needs. You are responsible for managing concentration risk in your own portfolio.

5. Technology Risk

5.1 System Availability and Downtime

The TradeMate platform, including AI signal generation, market data feeds, brokerage integrations, and all other features, may experience interruptions, outages, errors, or degraded performance due to software bugs, infrastructure failures, third-party service disruptions, planned maintenance, cyberattacks, or other causes. During periods of system downtime, you may not receive signals on time, may be unable to access your account, or may be unable to monitor or manage open trading positions.

TradeMate makes no guarantee of continuous, uninterrupted, or error-free service availability.

5.2 API and Brokerage Integration Failures

TradeMate integrates with third-party brokerage platforms and data providers via application programming interfaces (APIs). These third-party services may experience outages, API changes, rate limiting, authentication failures, or other issues that disrupt TradeMate's ability to retrieve account data, display market information, or support your use of the platform. TradeMate is not responsible for failures or disruptions originating from third-party providers.

5.3 Data Accuracy and Delays

Market data displayed within TradeMate, including prices, quotes, volume, and other market information, may be delayed, incomplete, or inaccurate due to data feed errors, processing delays, or third-party data provider limitations. You should not rely exclusively on data displayed in TradeMate for real-time trading decisions without independently confirming current prices through your broker or another authoritative data source.

5.4 Signal Delivery Failures

AI-generated signals may fail to be delivered to you in a timely manner due to technical failures, email delivery issues, push notification failures, application errors, or network issues. A failure to deliver a signal does not create any liability on the part of TXTech.

5.5 Cybersecurity Risks

The Service and your connected brokerage account may be subject to cybersecurity threats, including unauthorized access attempts, phishing attacks, credential theft, and malware. While TradeMate implements security controls, no system is completely immune to cybersecurity threats. You are responsible for maintaining the security of your TradeMate account credentials and any API keys connected to your brokerage account. A compromise of your API keys could allow unauthorized third parties to access your brokerage account.

6. Leverage and Margin Risk

6.1 Amplified Losses from Leverage

If you trade on margin or use leveraged financial products (such as options, futures, margin-purchased securities, or leveraged ETFs) through your connected brokerage account, the risks associated with trading are amplified. Leverage allows you to control a larger position than your capital would otherwise permit, which can amplify both gains and losses. Losses on leveraged positions can exceed the amount of capital you initially deposited or invested.

6.2 Margin Calls

If you maintain margin positions, your broker may issue a margin call requiring you to deposit additional funds or liquidate positions if the value of your account falls below required maintenance margins. Margin calls can occur rapidly during periods of high volatility, and you may be forced to close positions at unfavorable prices.

6.3 TradeMate Does Not Manage Margin

TradeMate's AI signals and analytical tools do not account for your brokerage account's specific margin requirements, your current leverage ratio, or the margin calls that may result from following a particular signal. You are solely responsible for managing your margin usage and ensuring you meet your broker's margin requirements at all times.

7. Paper Trading vs. Live Trading

7.1 Simulated Environment Limitations

TradeMate's paper trading feature provides a simulated trading environment intended for practice, strategy testing, and education. Paper trading results are subject to significant limitations that mean they cannot reliably predict or replicate live trading performance.

7.2 Key Differences Between Paper and Live Trading

Paper trading differs from live trading in the following material ways:

Execution Assumptions: Paper trading typically assumes immediate execution at quoted prices. In live trading, orders are subject to real market conditions, including bid-ask spreads, available liquidity, order queue priority, partial fills, and slippage. These execution differences can materially affect the profitability of a strategy.

Transaction Costs: Paper trading may not accurately account for real-world transaction costs, including brokerage commissions, exchange fees, regulatory fees, and financing costs for margin positions.

Market Impact: In paper trading, your simulated orders have no market impact. Large live orders can move prices against you, particularly in less liquid securities.

Psychological Factors: Trading with real capital involves psychological pressures — including fear, greed, and loss aversion — that are absent in simulated trading. Your actual decision-making behavior with real money may differ significantly from your paper trading behavior.

Regime Sensitivity: A strategy that appears profitable in paper trading may be specifically tuned to historical market conditions (data snooping bias) and may fail to perform when deployed in different market regimes.

Positive paper trading results do not guarantee, predict, or suggest that you will achieve similar results in live trading. You may lose money in live trading even if your paper trading results were positive.

8. Regulatory Risk

8.1 Changing Regulations

Financial markets are extensively regulated, and the regulatory environment is subject to change. New laws, regulations, rules, guidance, or enforcement actions by the SEC, FINRA, CFTC, IRS, state regulators, or international regulatory bodies could affect the legality, profitability, or viability of trading strategies you employ using TradeMate's signals.

8.2 Tax Implications

Trading activity may have significant tax consequences, including the treatment of short-term vs. long-term capital gains, wash-sale rules, constructive sale rules, Section 1256 contracts, and other tax-relevant considerations. TradeMate does not provide tax advice. You should consult a qualified tax professional regarding the tax treatment of your trading activity.

8.3 Jurisdictional Restrictions

Regulatory requirements governing trading activity, access to certain financial instruments, and use of AI-driven analytics tools vary significantly by jurisdiction. You are solely responsible for determining whether your use of TradeMate and any trading activity you undertake is lawful and compliant in your jurisdiction.

8.4 Platform Regulatory Status

TradeMate is an analytics platform and is not registered with any financial regulatory authority. Changes in how regulators treat AI-generated financial content, trading analytics software, or similar services could affect TradeMate's ability to operate or provide certain features. In the event of any regulatory change affecting the Service, TradeMate will use commercially reasonable efforts to notify users, but cannot guarantee that the Service will remain available or unchanged.

9. User Responsibility

9.1 Sole Responsibility for Trading Decisions

You are solely responsible for all trading decisions you make and all trading activity in your brokerage account. Your decision to act on any signal, recommendation, or analysis provided by TradeMate is entirely your own. TXTech, its officers, directors, employees, and agents have no responsibility or liability for any trading losses, missed opportunities, or adverse outcomes resulting from your use of or reliance on the Service.

9.2 Know Your Risk Tolerance

Before using TradeMate's live trading features, you should have a clear understanding of your own risk tolerance — the maximum amount of capital you are willing to risk in the market — and you should not exceed that threshold regardless of signal recommendations.

9.3 Maintain an Independent Risk Management Strategy

TradeMate's signals do not constitute a complete trading or risk management strategy. You should apply your own risk management practices, including position sizing, stop-loss discipline, portfolio diversification, and capital preservation rules, independent of and in addition to any guidance provided by the Service.

9.4 Monitor Your Positions

You are responsible for continuously monitoring your open trading positions and portfolio. TradeMate does not guarantee that it will alert you to adverse market conditions, risk events, or changes that may affect your positions. You should not rely on TradeMate as your sole source of position monitoring.

9.5 Verify Information Independently

Before acting on any information provided by TradeMate, you should independently verify that information from authoritative sources, including your broker, recognized financial data providers, and official regulatory or company filings.

10. Acknowledgment of Risk

By using the TradeMate Service — and in particular by enabling live brokerage account integration or live trading features — you acknowledge and confirm the following:

  1. I have read and understood this Risk Disclosure in its entirety.
  2. I understand that trading financial instruments carries substantial risk of loss, including the potential loss of all capital I commit to trading.
  3. I understand that TradeMate's AI-generated signals and market analysis are not financial advice and are provided for informational purposes only.
  4. I understand that TradeMate is not a licensed financial advisor, broker-dealer, or investment advisor.
  5. I understand that past performance of AI signals, strategies, or market analysis does not guarantee future results.
  6. I understand and accept the technology risks, market risks, regulatory risks, and other risks described in this document.
  7. I confirm that I am trading with capital I can afford to lose without adversely affecting my financial security.
  8. I accept sole responsibility for all trading decisions I make and all trading activity in my connected brokerage account.
  9. I acknowledge that TXTech has no liability for any trading losses I incur in connection with my use of the Service.
  10. I have consulted or have had the opportunity to consult a licensed financial professional regarding my trading activity.

This Risk Disclosure was last updated on May 14, 2026. It is incorporated by reference into the TradeMate Terms of Service. Questions regarding this disclosure may be directed to support@yourtrademate.io.