Risk disclosure: the risks of trading and the steps you can take

Trading crypto-assets and other financial instruments carries significant risk, including the loss of part or all of the amount invested. This page explains what you should know before you start, in eight topics with practical suggestions.

General risk warning

LiraX scans the market for you using artificial intelligence and probability-based analysis, and the system runs automatically. That does not mean the outcome is predictable or that losses are prevented. The price of cryptocurrencies, shares and other instruments can change in a very short time and in unexpected ways, and past results are not an indication of future results.

Having no trading experience does not reduce risk either. On the contrary, a beginner finds it harder to judge risk correctly. That is why we suggest starting only with an amount you could afford to lose, and never investing borrowed money or your emergency savings.

Risk and potential return are linked: instruments that offer a higher chance of return usually carry a higher chance of loss. However good the results shown in a platform's marketing, they are individual and historical; they do not mean the same will happen in your account. The figures in user reviews on this site likewise reflect only the experience of the people concerned.

Reading this document is not a substitute for financial advice. If you are unsure about your finances, debts, income stability or goals, it makes sense to get an opinion from an independent professional before you invest.

Remember: No automated system guarantees profit or can promise that capital will be preserved. Your decisions and the amount you deposit are your responsibility.

Eight types of risk

Open each card to read what the risk is and what you can do about it.

Market risk

Crypto-assets are far more volatile than traditional markets. Prices can swing sharply within minutes on news, investor sentiment, regulatory statements and global events. A move like that can quickly cut the value of a position and cost you part or all of the amount you deposited.

An algorithm can recognise patterns, but it cannot know the market's next move for certain. Probability-based analysis can be wrong.

Suggestion: Consider spreading your investment over several time points and assets, do not tie a large amount to one trade, and set your loss limit in advance.

Liquidity risk

Liquidity describes how easily an asset can be bought or sold without moving its price. When buyers or sellers thin out, orders can be delayed, partly filled, or executed at a price different from the one you expected. That difference is called slippage.

Slippage can grow in moments of sudden news and in low-volume assets, so the cost you expected ends up lower than the cost actually paid.

Suggestion: Prefer high-volume, widely known assets, and consider using smaller trade sizes in very volatile periods.

API and integrations

The platform can connect to your exchange account with an API key. A key entered incorrectly, missing permissions or an expired connection can make trades stop or behave unexpectedly. If a key falls into someone else's hands, your account is open to unauthorised activity.

Connection errors are sometimes not noticed straight away, which is why it matters that notifications are switched on.

Suggestion: Give the key only the permissions it needs, keep withdrawal permission switched off, never share the key, and rotate it at regular intervals.

Counterparty risk and custody

Your assets are held at the exchange or payment provider you connect. A financial problem, security breach, trading restriction or legal obstacle at those institutions can delay your access or lead to the loss of part of the assets. Crypto-assets do not have state guarantee cover like a bank deposit.

LiraX cannot control these third parties or the continuity of their services.

Suggestion: Know the institutions you use, do not keep all your capital in one place, and read their terms.

Operational risks

Software bugs, infrastructure failures, delays in data feeds and internet connection problems can cause a trade to be executed wrongly, late or not at all. Even advanced systems cannot eliminate such events completely.

User error is an operational risk too: a wrongly entered setting, a wrongly chosen strategy or a misread report can lead to unexpected results.

Suggestion: Talk to your personal manager before changing settings, check the dashboard regularly and keep notifications on.

Cybersecurity and phishing

Theft of account details, unauthorised access, and phishing through fake sites or messages are among the most common attacks on financial platforms. Attackers may pose as the support team and ask for your password, verification code or API key.

LiraX staff never ask you for your password or verification code.

Suggestion: Turn on two-factor authentication, use a separate strong password for every account, and log in only through our official domain. See the Security page for details.

Models and automation

Bots, algorithms and automated strategies rely on historical data and certain assumptions. When market conditions depart from those assumptions, a model can behave differently from what was expected. A strategy that looks good in back-tests may not deliver the same result in the live market.

Safeguards can pause trading in extremely volatile periods, but a safeguard does not remove loss and does not guarantee that capital is preserved.

Suggestion: Understand the logic of the strategy, follow results through the reports regularly and keep your expectations realistic.

Service availability

The platform may be temporarily unavailable because of planned maintenance, updates, heavy traffic or an unexpected fault. In that situation you might not be able to change your strategy settings or submit a withdrawal request.

Even a short interruption while the market is open can affect the outcome if prices are moving sharply.

Suggestion: Do not leave critical actions until the last minute, and follow maintenance notices through email notifications.

Before you start

Four simple preparations will not remove your risk, but they help you keep control.

You can go through the steps below with your personal manager after registering. We suggest you do not invest until you have completed all of them.

  1. 1

    Understand the strategy

    Find out what the strategy you pick does, under which conditions it opens and closes trades and when it may pause. Your personal manager talks you through this with examples. Do not commit money to something you do not understand.

  2. 2

    Set your loss limit

    Write down in advance the amount you can afford to lose and do not go above it. The limit should be low enough not to affect your monthly income or emergency savings. Even if the market moves in your favour, try not to raise the limit afterwards.

  3. 3

    Protect your account

    Turn on two-factor authentication, enable login notifications and create API keys with read and trade permissions only. Do not reuse your password on other sites and keep your device up to date.

  4. 4

    Monitor your strategies

    Read the reports regularly. When you notice something unexpected, pause the strategy and write to the support team.

If you understand the risks, ask your manager your questions

Registration is free. You can talk through every step with your personal manager before you decide.

Create Free Account