Risk Disclosure

Effective date: January 1, 2026 · Last updated: May 25, 2026

PLEASE READ THIS RISK DISCLOSURE CAREFULLY. IT CONTAINS IMPORTANT INFORMATION ABOUT THE RISKS ASSOCIATED WITH TRADING FINANCIAL INSTRUMENTS AND WITH USING AUTOMATED TRADING TOOLS SUCH AS STRATSCRIBE.

This Risk Disclosure is incorporated by reference into StratScribe's Terms of Service and forms part of the agreement between you and StratScribe AI ("StratScribe").

1. No Financial Advice

StratScribe is a software tool that converts written trading strategy descriptions into executable code and provides backtesting simulations. Nothing on this platform constitutes financial advice, investment advice, trading recommendations, or a solicitation to buy or sell any financial instrument, security, derivative, cryptocurrency, or other asset.

StratScribe is not registered as an investment adviser, broker-dealer, commodity trading adviser, futures commission merchant, or in any other regulated financial capacity in any jurisdiction. We do not assess your financial situation, risk tolerance, investment objectives, or suitability for any strategy. All decisions to develop, test, deploy, and trade any strategy are made solely by you.

You should consult a qualified, licensed financial adviser before deploying any automated trading strategy with real capital.

2. Trading Involves Substantial Risk of Loss

Trading financial instruments — including equities, options, futures, forex, cryptocurrencies, CFDs, and other derivatives — involves a substantial risk of loss and is not appropriate for all individuals. You may lose some or all of your invested capital. Losses can exceed your initial deposit in products that allow leverage or margin trading.

The following factors, among others, contribute to trading risk:

• Market volatility: Prices can move rapidly and unpredictably due to economic data, geopolitical events, regulatory changes, or market sentiment.
• Leverage and margin: Using leverage amplifies both gains and losses. Margin calls can require you to deposit additional funds or result in forced liquidation of your positions.
• Liquidity risk: Some instruments may be difficult to buy or sell at the desired price, particularly during periods of market stress.
• Counterparty risk: The risk that a broker, exchange, or counterparty fails to fulfill its obligations.
• Regulatory risk: Changes in laws or regulations may affect the legality or profitability of a trading strategy in your jurisdiction.

3. Backtest Limitations

Backtests generated by StratScribe are historical simulations only. Past performance — including backtest results — is not indicative of future results. Backtest results have the following inherent limitations:

• Look-ahead bias: While StratScribe's validation process checks for common look-ahead bias patterns, it cannot guarantee complete elimination. Look-ahead bias occurs when a strategy uses information that would not have been available at the time a trade would have been made, artificially inflating backtest performance.
• Survivorship bias: Historical datasets may exclude securities or instruments that have been delisted, gone bankrupt, or otherwise ceased trading, which can cause backtests to overstate performance.
• Curve-fitting / overfitting: A strategy optimized extensively on historical data may perform well in backtests but fail in live trading due to overfitting to past noise rather than genuine market structure.
• Execution assumptions: Backtests assume idealized execution. They cannot fully account for slippage, partial fills, liquidity gaps, market impact, bid-ask spread, overnight gaps, or borrow costs for short positions.
• Regime change: Market conditions, volatility regimes, correlations, and structural factors change over time. A strategy that performed well in one market regime may perform poorly or fail in another.
• Data quality: Backtest accuracy depends on the quality and completeness of the historical data used. Errors or gaps in historical data will affect backtest results.

Walk-forward testing and Monte Carlo simulation, where available, are analytical tools to help identify potential overfitting and estimate outcome distributions. They do not guarantee live trading performance.

4. AI-Generated Code Risks

StratScribe uses artificial intelligence to generate trading code. You acknowledge and accept the following risks:

• Logic errors: Despite automated validation, generated code may contain logic errors that cause it to behave differently from your stated intent. You are responsible for reviewing all generated code before deployment.
• Misinterpretation: The AI may misinterpret ambiguous or complex strategy descriptions. The generated code may not accurately reflect your intended strategy.
• Platform-specific behaviour: Code that behaves correctly on one platform (e.g. TradingView paper trading) may behave differently on another platform or broker due to platform-specific execution rules, API limitations, or data feed differences.
• Dependency on third-party AI: StratScribe's code generation relies on Anthropic's AI API. Changes to Anthropic's models or services may affect the quality or behaviour of generated code.

You are responsible for thoroughly reviewing, testing, and validating all generated code before deploying it to a live trading account.

5. Automated Execution Risks

Deploying automated trading strategies via broker webhooks carries significant additional risks beyond manual trading:

• Execution failures: System failures, internet connectivity issues, server downtime, or broker API outages can cause orders to be missed, delayed, or duplicated.
• Configuration errors: Incorrect configuration of position sizing, instrument symbols, account type, order type, or risk parameters can result in unintended trades, including trades of incorrect size or in the wrong direction.
• Runaway strategies: A malfunctioning automated strategy can execute a large number of unintended trades in a short period. You must monitor automated strategies and use available kill switches and position limits.
• Latency: Delays between signal generation and order execution may result in fills at prices significantly different from the signal price.
• API changes: Broker APIs may change without notice, which may cause integrations to malfunction.

You must maintain active oversight of all automated strategies. You must never deploy an automated strategy to a live account that you have not first thoroughly tested on a paper or simulation account.

6. Proprietary Trading Firm (Prop Firm) Risks

StratScribe supports integration with proprietary trading firm (prop firm) challenge and funded accounts, including via Tradovate and Apex Trader Funding. If you use StratScribe in connection with a prop firm account, you acknowledge:

• Prop firms impose specific rules including maximum daily loss limits, maximum drawdown limits, minimum trading day requirements, consistency rules, and restrictions on holding positions overnight or during news events.
• Violating prop firm rules — including through the use of automated strategies — may result in immediate disqualification, forfeiture of your challenge fee, and termination of your funded account.
• It is your sole responsibility to understand and comply with all rules applicable to your prop firm account before deploying any automated strategy.
• StratScribe does not monitor your prop firm account parameters, enforce prop firm rules, or guarantee that any generated strategy will comply with the rules of any specific prop firm.

7. Cryptocurrency and Unregulated Market Risks

If you use StratScribe to develop strategies for cryptocurrency markets (including via Binance.US, Kraken, Bybit, or OKX), you acknowledge the following additional risks:

• Cryptocurrency markets operate 24/7 and can experience extreme volatility.
• Cryptocurrency exchanges are not regulated to the same standard as traditional financial exchanges in most jurisdictions.
• Certain cryptocurrency exchanges may not be legally accessible in your jurisdiction. You are solely responsible for ensuring your use of any exchange complies with applicable law.
• Cryptocurrencies are not insured by any government deposit insurance scheme. Exchange failures can result in total loss of funds held on the exchange.

8. Regulatory Compliance

Trading regulations vary significantly by jurisdiction and by asset class. You are solely responsible for understanding and complying with all laws and regulations applicable to your trading activities, including but not limited to:

• Securities laws and regulations (including registration requirements for algorithmic trading in your jurisdiction);
• Derivatives and futures regulations (including CFTC and NFA rules for US persons, IIROC rules for Canadian persons, ESMA rules for EEA persons);
• Pattern day trader rules (applicable to US persons trading equities in margin accounts);
• Wash sale rules and tax reporting obligations;
• Algorithmic trading disclosure requirements;
• Anti-money laundering (AML) and know-your-customer (KYC) requirements of your broker;
• Any jurisdiction-specific restrictions on trading particular instruments or using particular brokers.

StratScribe does not provide legal or regulatory compliance advice. If you are uncertain about the regulatory requirements applicable to your trading activities, consult a qualified legal or compliance professional.

9. No Liability for Trading Losses

To the maximum extent permitted by applicable law, StratScribe, its directors, officers, employees, agents, and contractors shall not be liable for any trading losses, financial losses, or other damages of any kind arising from your use of the Service, including but not limited to losses resulting from:

• Generated code that does not perform as expected;
• Backtest results that do not reflect live trading performance;
• Automated execution failures or errors;
• Misconfiguration of broker integrations;
• Violations of prop firm rules;
• Any reliance on information or tools provided through the Service.

This limitation applies regardless of the theory of liability (contract, tort, negligence, or otherwise) and even if StratScribe has been advised of the possibility of such losses.

10. Acknowledgement

By using the Service, you confirm that:

(a) You have read and understood this Risk Disclosure in full;

(b) You understand that trading financial instruments involves substantial risk of loss;

(c) You understand that StratScribe is a software tool and does not provide financial advice;

(d) You accept full responsibility for all trading decisions and outcomes arising from your use of the Service;

(e) You have the financial resources to bear the risks of trading and the potential loss of all capital you deploy.

11. Contact

Questions regarding this Risk Disclosure:
hello@stratscribe.com
StratScribe AI, Canada