Risk disclosure for trading and automation.

Last updated October 18, 2026

Cryptocurrency trading and automated execution involve substantial risk of loss. This page outlines the risks you must understand before using KLINEO's trading tools.

Only invest funds you can afford to lose.

Important: read carefully before using KLINEO.

Cryptocurrency trading and automated execution involve substantial risk of loss. This disclosure statement outlines critical risks you must understand before using KLINEO's trading tools.

100%
of your investment can be lost.
10%
adverse price move can wipe out a 10x position.
24/7
Crypto markets never close, all 365 days a year.
None
of your funds are held by KLINEO. They stay on the exchange.

Nine chapters. Jump to one, or read straight through.

What this disclosure covers

General Trading Risks

1.1 Risk of Total Loss

Cryptocurrency trading is extremely volatile and carries a high risk of loss. You may lose your entire investment. The value of cryptocurrencies can fluctuate significantly in short periods, and prices may fall below purchase levels unexpectedly.

1.2 Market Volatility

Cryptocurrency markets operate 24/7/365 and are subject to extreme price volatility driven by:

  • Sudden market sentiment shifts
  • Regulatory announcements and legal changes
  • Large holder ("whale") activities
  • Exchange technical issues or outages
  • Liquidity shocks and cascading liquidations
  • Macroeconomic events and geopolitical factors

1.3 Leverage & Margin Trading

If you or an automated strategy use leverage (margin trading), losses can exceed your initial investment. Leveraged positions can be liquidated rapidly during volatile market conditions, resulting in total position loss.

Leverage warning

Leverage amplifies both gains and losses. A 10x leveraged position can be wiped out by a 10% adverse price movement.

Simplified: 100% ÷ leverage, ignoring fees and maintenance margin, which bring liquidation sooner. An illustration, not advice.

10%Against a 10x position, a price move of about this size wipes out the margin.

Automated Execution Risks

2.1 Past Performance Does Not Guarantee Future Results

Historical strategy results, simulations, and backtests are NOT indicative of future results. Market conditions change, strategies that worked previously may fail, and model performance can deteriorate.

2.2 Automation Follows Configured Rules

Automated execution follows the rules and permissions you approve. You remain responsible for reviewing:

  • Which assets a rule may trade
  • When it may enter or exit positions
  • Position, loss, and exposure limits
  • Changes to strategy configuration
  • Whether leverage is permitted

2.3 Execution Delays & Slippage

Automated orders may not execute at the expected or displayed price due to:

  • Network latency and API delays
  • Market liquidity differences
  • Order size variations
  • Exchange execution speed differences
  • High-volatility periods causing slippage

This can result in worse entry or exit prices and reduced profitability compared with a simulation or quoted route.

2.4 Live Results Differ From Models

Live results can differ from a strategy model or backtest due to:

  • Different account sizes and position scaling
  • Timing differences between observation and execution
  • Platform fees reducing your net returns
  • Your custom risk control settings
  • Exchange fees and spreads varying by user

2.5 Strategy Behavior Changes

A strategy may:

  • Behave differently as market conditions change
  • Increase effective risk when volatility rises
  • Stop or reduce activity when inputs are stale
  • Produce unexpected signals after configuration changes
  • Fail closed when an exchange or data source is unavailable

2.6 Drawdowns & Losing Streaks

Even successful traders experience significant drawdowns (peak-to-trough declines). During losing streaks, your account value may decline substantially before (or if) it recovers. You must have sufficient risk tolerance and capital to withstand these periods.

A KLINEO chart of BTC/USDT on the four-hour view, with a bullish and a bearish path sketched from the same price.
A chart can sketch a bullish and a bearish path. Live results can differ from a model.

Platform & Technical Risks

3.1 System Failures & Downtime

KLINEO relies on complex technology infrastructure. Potential failures include:

  • Server outages preventing trade execution
  • Internet connectivity issues
  • Exchange API downtime or rate limits
  • Software bugs causing incorrect trade execution
  • Database failures or data corruption

Technical failures may result in missed trades, delayed exits, or incorrect position sizing, potentially causing losses.

3.2 Exchange Risks

Cryptocurrency exchanges themselves carry risks:

  • Exchange hacks or security breaches
  • Exchange insolvency or bankruptcy
  • Regulatory shutdowns or restrictions
  • Withdrawal freezes or delays
  • Margin call liquidations during market stress

KLINEO is not responsible for exchange failures. Your funds are held on exchanges, not by KLINEO.

3.3 API Key Security

While KLINEO encrypts API keys and never requests withdrawal permissions, risks include:

  • Potential unauthorized access if platform is compromised
  • User error in API key configuration
  • Phishing attacks targeting your credentials

Best practice

Always use API keys WITHOUT withdrawal permissions. Regularly rotate your API keys and monitor exchange activity.

Financial Risk Considerations

5.1 Only Invest What You Can Afford to Lose

Never invest money you cannot afford to lose entirely. Do not use funds needed for:

  • Living expenses, rent, or bills
  • Retirement savings
  • Emergency funds
  • Debt repayment
  • Children's education or essential expenses

5.2 Borrowed Funds

Borrowed funds warning

NEVER trade with borrowed money, loans, credit cards, or mortgages. This can lead to devastating financial consequences if losses occur.

5.3 Diversification

Do not allocate all your funds to a single asset or trading strategy. Diversify across:

  • Multiple strategies with distinct risk profiles
  • Multiple assets and market conditions
  • Different asset classes beyond crypto
  • Traditional investments (stocks, bonds, real estate)

5.4 Risk Management

KLINEO provides risk control tools (max daily loss, max position size, etc.), but these do NOT eliminate risk. Markets can gap beyond stop-loss levels, and risk controls may fail during extreme volatility or technical issues.

Psychological Risks

6.1 Emotional Trading Decisions

Automated trading can create false confidence or panic. Common psychological pitfalls include:

  • Stopping or overriding a strategy during drawdowns without a defined process
  • Increasing position sizes after wins (overconfidence)
  • Chasing strategies with recent gains
  • Ignoring risk controls when winning
  • Revenge trading after losses

6.2 Stress & Mental Health

Trading losses can cause significant stress, anxiety, and impact mental health. If trading causes emotional distress, interferes with daily life, or leads to addictive behavior, stop immediately and seek professional help.

KLINEO Disclaimers

7.1 No Liability for Losses

KLINEO is a technology platform connecting users to exchanges and market data. We are NOT responsible for:

  • Trading losses incurred by manual or automated trades
  • Strategy performance or user decisions
  • Exchange failures, hacks, or insolvencies
  • Technical issues preventing trade execution
  • Market movements or cryptocurrency volatility

7.2 No Guarantee of Third-Party Data

KLINEO displays data received from exchanges and other providers. We cannot independently guarantee every historical or third-party data point. Past statistics may be incomplete, delayed, or inaccurate.

7.3 Plan Access and Usage Limits

Paid plans provide 30 days of access with limits on connected accounts, running bots, metered AI requests and live workflows. No automatic charge or platform fee is deducted from individual trades. Existing passes retain the original realized-gain allowance and expiry. Exchange fees and separately purchased marketplace services remain separate.

Your Responsibilities

By using KLINEO, you acknowledge and accept that:

  • You have read and understood this Risk Disclosure in full
  • You understand cryptocurrency trading and its risks
  • You can afford to lose your entire investment
  • You are solely responsible for manual and automated trading decisions
  • You will independently review strategies and market information
  • You will monitor your account and risk exposure regularly
  • You will not rely solely on historical performance data
  • You understand KLINEO provides no guarantees of profit

Recommendation: Seek Professional Advice

Before using KLINEO or trading cryptocurrencies, consult with:

  • A licensed financial advisor about investment suitability
  • A tax professional about tax implications
  • A legal advisor about regulatory compliance in your jurisdiction

Automated trading is not suitable for everyone.

Cryptocurrency trading is extremely risky and not suitable for everyone. You may lose your entire investment. Only proceed if you fully understand and accept these risks.

By using KLINEO's trading tools, you acknowledge that you have read, understood, and accept all risks outlined in this disclosure.

Questions about these risks? Contact us at risk@klineo.xyz or support@klineo.xyz

Company details

KLINEO is operated by Zaum International Private Limited.

Company registration: C-0423/2014

Zimm Building, Majeedhee Magu Road, Male' 20160, Maldives
support@klineo.xyz

Contact the operating company for account, platform, or legal questions.

About KLINEO and its team