Risk Disclosure

Last Updated: February 7, 2026

⚠️ Platform Status: Beta

Coincise is currently in beta. Use at your own risk. Start with small amounts and thoroughly test all features before committing significant capital.

⚠️ CRYPTOCURRENCY TRADING RISK WARNING

Cryptocurrency trading is HIGHLY SPECULATIVE and carries SUBSTANTIAL RISK OF LOSS.

  • You may lose your entire investment
  • Past performance does NOT guarantee future results
  • Cryptocurrency prices are extremely volatile
  • Markets operate 24/7 with no circuit breakers
  • You should only invest what you can afford to lose

1. General Investment Risks

Market Volatility

Cryptocurrency prices can fluctuate by 10-50% or more in a single day. Price movements are influenced by:

  • Market sentiment and speculation
  • Regulatory announcements
  • Exchange hacks or technical failures
  • Whale manipulation and coordinated trading
  • Macroeconomic events
  • Social media trends and influencer activity

Liquidity Risk

Some cryptocurrencies have low trading volume, making it difficult to enter or exit positions at desired prices. You may experience:

  • Large bid-ask spreads
  • Slippage on orders
  • Inability to sell during market crashes

Loss of Capital

There is a real possibility that you will lose 100% of your invested capital.

Cryptocurrencies can go to zero. Projects can fail. Exchanges can be hacked. Never invest money you need for essential expenses like rent, food, or medical care.

2. Platform-Specific Risks

No Guarantees or Promises

Coincise provides tools and information, but:

  • We do NOT guarantee profits or positive returns
  • We do NOT guarantee accuracy of AI predictions or sentiment analysis
  • We do NOT guarantee uptime - technical issues can occur
  • We do NOT provide financial advice - all tools are educational

Historical Performance

Past performance is NOT indicative of future results.

Backtests, historical returns, and example trades shown on the Platform are for educational purposes only. Market conditions change. What worked in the past may fail in the future.

Third-Party Dependencies

Coincise relies on third-party services that may fail or change:

  • Exchange APIs: Exchanges can limit or revoke API access
  • Data Providers: Market data feeds can be delayed or inaccurate
  • Cloud Infrastructure: AWS, Vercel, or Supabase outages affect our service
  • LLM Providers: OpenAI or Anthropic APIs can experience downtime

3. Exchange & Custody Risks

Centralized Exchange Risks

Your funds are held on cryptocurrency exchanges, which carry significant risks:

  • Exchange Hacks: Exchanges have been hacked, losing billions in user funds
  • Insolvency: Exchanges can go bankrupt (e.g., FTX, Mt. Gox)
  • Withdrawal Freezes: Exchanges may halt withdrawals during market stress
  • Regulatory Action: Governments can shut down or restrict exchanges
  • Account Freezes: Exchanges may freeze your account for compliance reasons

⚠️ Important:

Coincise does NOT custody your funds. We only connect to exchanges via READ-ONLY API keys. However, we cannot protect you from exchange-level risks. Consider using hardware wallets for long-term storage.

API Key Risks

Even READ-ONLY API keys carry risks:

  • If compromised, attackers can see your portfolio and trading history
  • Some exchanges allow read-only keys to place orders (check your exchange settings)
  • API keys can be leaked if our database is breached (we encrypt keys, but no system is 100% secure)

Recommendation: Regularly rotate your API keys and monitor your exchange account for unauthorized activity.

4. Trading Bot & Automation Risks

Bot Malfunction

Trading bots can fail in numerous ways:

  • Logic Errors: Bugs in bot code can cause unexpected trades
  • API Rate Limits: Exchanges may block bots for excessive requests
  • Network Issues: Internet outages can prevent bots from executing
  • Exchange Downtime: Bots can't trade if the exchange is offline
  • Flash Crashes: Bots may sell at the worst possible time
  • Infinite Loops: Bots may repeatedly buy/sell, racking up fees

Strategy Failure

All trading strategies can fail, even those that worked historically.

  • Mean reversion strategies fail in trending markets
  • Trend-following strategies fail in range-bound markets
  • Arbitrage opportunities disappear as markets become efficient
  • Market regimes change without warning

Over-Trading & Fees

Automated bots can trade frequently, accumulating substantial fees:

  • Exchange trading fees (maker/taker fees)
  • Network fees (blockchain transaction costs)
  • Slippage on market orders

Important: Monitor your bot's trading frequency and total fees. High-frequency trading may erode profits even if the win rate is positive.

User Responsibility

You are responsible for:

  • Configuring bot parameters correctly
  • Testing bots with small amounts before scaling up
  • Monitoring bot performance daily
  • Stopping bots during adverse market conditions
  • Understanding the bot's strategy before activating it

5. AI Trader & LLM Risks

AI "Hallucinations"

⚠️ Critical Warning:

Large Language Models (LLMs) can generate false or misleading information that sounds convincing. This is called "hallucination." The AI may:

  • Cite non-existent news articles or data
  • Make up statistics or price predictions
  • Provide outdated information presented as current
  • Misinterpret market data or technical indicators

No Real-Time Market Access

AI models are trained on historical data and do NOT have:

  • Real-time price feeds
  • Breaking news or announcements
  • Order book data or whale movements
  • Insider information or market sentiment shifts

Verify All AI Recommendations

Always independently verify AI-generated insights before trading:

  • Check price data on multiple sources
  • Verify news and announcements
  • Confirm technical indicators on charting platforms
  • Consult multiple AI tools and human experts

6. Regulatory & Legal Risks

Regulatory Uncertainty

Cryptocurrency regulations are evolving and vary by jurisdiction:

  • Bans: Some countries prohibit cryptocurrency trading entirely
  • Restrictions: New regulations can limit trading, withdrawals, or exchanges
  • Tax Obligations: You are responsible for reporting crypto gains/losses
  • KYC/AML: Exchanges may freeze accounts for compliance checks

Your Responsibility:

It is your responsibility to ensure that your use of Coincise and cryptocurrency trading complies with all applicable laws in your jurisdiction. Coincise does not provide legal or tax advice.

Securities Classification

Some cryptocurrencies may be classified as securities by regulators, which could:

  • Result in exchange delistings
  • Trigger legal enforcement actions
  • Cause sharp price declines

7. Market Manipulation

Cryptocurrency markets are less regulated than traditional financial markets and are susceptible to:

  • Pump and Dump Schemes: Coordinated buying followed by mass selling
  • Wash Trading: Fake volume to manipulate price
  • Spoofing: Placing fake orders to trick other traders
  • Insider Trading: Trading based on non-public information
  • Social Media Manipulation: Influencers promoting coins they hold

8. Technical & Cybersecurity Risks

Platform Downtime

Coincise may experience technical issues:

  • Server outages preventing access to your dashboard
  • API failures preventing bot execution
  • Database corruption or data loss
  • Deployment bugs introducing errors

Cybersecurity Threats

  • Data Breaches: Despite encryption, our database could be hacked
  • Phishing: Attackers may impersonate Coincise to steal credentials
  • Account Takeover: Weak passwords can lead to unauthorized access
  • Supply Chain Attacks: Third-party libraries could be compromised

Protect Yourself:

  • Use a strong, unique password
  • Enable two-factor authentication (2FA) on exchanges
  • Verify URLs before logging in
  • Never share API keys with anyone
  • Regularly review exchange account activity

9. Acknowledgment of Risks

By using Coincise, you acknowledge that you understand and accept the following:

  • I understand that cryptocurrency trading involves substantial risk of loss
  • I may lose my entire investment and should only invest what I can afford to lose
  • Coincise does NOT provide financial advice or guarantee profits
  • I am responsible for all trading decisions made using Coincise tools
  • I will independently verify all AI recommendations before trading
  • I understand that bots can malfunction and should be actively monitored
  • I will only use READ-ONLY API keys with no withdrawal permissions
  • I am responsible for complying with all applicable laws in my jurisdiction
  • I have read and understood this Risk Disclosure in its entirety

10. Contact Information

If you have questions about risks or need clarification, contact us at:

  • Support: support@coincise.co
  • Risk Questions: risk@coincise.co

⚠️ FINAL WARNING

Cryptocurrency trading is not suitable for everyone. If you do not fully understand these risks or cannot afford to lose your invested capital, DO NOT USE THIS PLATFORM.

By proceeding, you confirm that you have read, understood, and accepted all risks outlined in this disclosure.