Risk disclosure

Trading crypto assets carries a high risk of loss and may not be suitable for you. Read this disclosure carefully before using Bitlot. Only trade what you can afford to lose.

This disclosure describes the main risks of using Bitlot. It cannot describe every risk. It should be read with our terms of service. If you do not understand a risk described here, do not trade until you do.

What Bitlot is, and what it is not

Bitlot is software. It connects to your own account on a supported exchange through an API key you create, and it places and manages trades on that account according to the settings you choose.

• Bitlot is not an exchange, broker, custodian, fund manager or investment adviser.
• Bitlot does not decide whether trading is right for you, and it does not check whether a tool, a leader, a position size or a leverage level suits your circumstances.
• Every trade placed through Bitlot is your trade, on your account, at your risk. Profits and losses are yours alone.

Market risk

Volatility

Crypto asset prices can move sharply and unpredictably, sometimes within minutes. Prices can gap through stop-loss levels, liquidity can disappear, and the value of a position can fall to zero.

Liquidity and slippage

The price you see is not always the price you get. In fast or thin markets, an order can fill at a much worse price than expected, fill only in part, or not fill at all. Smaller coins and quiet trading hours carry wider spreads and larger slippage. Market orders, including the ones used to close a position at a stop-loss, accept whatever price is available at the time.

Markets never close

Crypto markets trade 24 hours a day, every day. Large moves can happen while you are asleep, offline or unable to act.

Stablecoins

Most trading on Bitlot is priced and settled in stablecoins such as USDT or USDC. A stablecoin can lose its peg, be frozen by its issuer, or fail. If that happens, the value of your balance and your positions can fall even if the coin you are trading does not move.

Concentration

Crypto assets often rise and fall together. Holding several positions does not mean your risk is spread; many positions can lose value at the same moment.

Leverage and futures risk

Leverage and liquidation

Futures and perpetual contracts let you trade with leverage. Leverage magnifies losses as well as gains. If losses reduce your margin below the exchange's maintenance requirement, the exchange will liquidate your position, usually with an additional fee. With cross margin, losses can draw on other funds in your exchange account.

A small price move against a highly leveraged position can wipe out the whole margin for that position. The higher the leverage, the smaller the move needed.

Funding and exchange fees

Perpetual contracts charge or pay a funding rate at regular intervals. Funding can be a significant cost if you hold a position for a long time, and it can change quickly. Your exchange also charges its own trading fees and liquidation fees. These costs reduce your result and are separate from Bitlot's fee.

Exchange risk controls

Exchanges apply their own rules, and can change them without notice. These include position limits, margin requirements, auto-deleveraging (where the exchange reduces or closes your profitable position to cover another trader's loss) and forced closure in extreme markets. Bitlot does not control these and cannot prevent them.

Margin and position settings

Your margin mode (cross or isolated), position mode (one-way or hedge) and leverage are settings on your exchange account. They change how orders behave and how much you can lose. A setting changed on the exchange, or outside Bitlot, can make Bitlot's orders behave differently from what you expect. Some settings cannot be changed through Bitlot on every exchange.

Automation risk

Automated trading follows rules mechanically. It does not remove market risk and can increase the speed at which losses occur. Automated orders may fail or behave unexpectedly because of:

• software bugs or configuration mistakes;
• exchange outages, maintenance or rate limits;
• API errors, network delays or connectivity problems;
• slippage, partial fills and price gaps.

You remain responsible for the settings you choose and for monitoring your account.

Auto Trader

Auto Trader opens trades automatically when the market matches the rules you set. It can open several positions in a short time, and it can keep opening positions in a falling or rising market for as long as your rules and limits allow. A rule set that worked in one kind of market can lose steadily in another. Auto Trader does not know about news, your other holdings or your financial situation.

Protective exits depend on Bitlot running

Take-profit, stop-loss, smart exit and rebuys are monitored and triggered by Bitlot's software. They are not always resting orders on your exchange. If Bitlot, your exchange's API or the connection between them is unavailable or delayed, an exit may trigger late, at a worse price, or not at all. A stop-loss limits a loss only if it can be executed; in a fast market the fill can be far beyond the level you set.

Trading without a stop-loss

Some tools let you trade without a stop-loss. A position without a stop-loss stays open however far the price moves against you, until you close it, the exchange liquidates it, or another exit rule applies.

Rebuys

A rebuy adds to a losing position to lower its average entry price. This increases the size of the position and the amount you can lose. If the price keeps moving against you, each rebuy makes the loss larger, and with leverage it brings liquidation closer.

Smart exit and trailing exits

Smart exit and other trailing exits close a position after the price pulls back from its best level. They can close a position early, before a further move in your favour, or late, after much of the profit has gone. They do not lock in any particular result.

Changes you make outside Bitlot

If you place, change or close orders directly on your exchange, move funds, or run other software on the same account, Bitlot's view of your positions can become wrong and its automation can act on the wrong information. Positions can be left without the exits you configured.

Copy trading

When you copy a leader, their trades are placed on your account. A leader's past results do not predict future results. Copied trades may be filled at different prices than the leader's, or skipped, and your results will differ from theirs.

• Leaders are not advisers. Leaders are other Bitlot users. Bitlot does not vet their skill, licence them, or supervise their decisions. A leader owes you no duty and does not know your circumstances.
• Leaders can change. A leader can change strategy, take more risk, use higher leverage, trade badly, or stop trading at any time and without notice.
• Your result will differ. Your account size, balance, leverage, exchange, fees and the time your orders reach the exchange all differ from the leader's. A trade that is profitable for the leader can be a loss for you.
• Statistics are history. A leader's displayed results describe the past, may cover a short period, and may not include every cost you would pay. A strong record often includes risks that have not yet gone wrong.
• Stopping does not undo. When you stop copying, new trades stop, but positions already open on your account remain yours to manage and may still lose money.

Signals, analytics and educational content

Signals and Academy articles are general information, not advice or a recommendation to trade. They may be wrong or out of date.

Signals are produced from market data and data supplied by third parties. Prices, balances, profit and loss figures, charts and analytics shown in Bitlot can be delayed, incomplete or inaccurate. Your exchange's own records are the authoritative record of your balances, orders and positions. Notifications can arrive late or not at all, so do not rely on them as your only way of watching your account.

Demo mode

Demo mode trades on exchange test environments with test funds. Demo results do not predict Live results. Test environments have different prices, thinner order books, different fills and no real consequences, so a strategy can look better or worse in Demo than it would with real money. Check which mode you are in before you place or automate a trade; in Live mode, every order uses real funds.

Past performance and testing

Past performance, whether your own, a leader's or a strategy's, does not predict future results. Results from backtests or simulations are hypothetical: they are built with hindsight, assume orders fill at prices that may not have been available, and usually leave out some real-world costs and delays.

Third-party exchange risk

Your funds are held by your exchange, not by Bitlot. You are exposed to the exchange's own risks, including insolvency, hacks, account restrictions, changes to its products or API, and regulatory action.

• An exchange can suspend trading, delist a market, freeze your account, or stop serving your country.
• An exchange can change or withdraw its API, or limit how often Bitlot may use it. During heavy load, orders can be delayed or rejected.
• Bitlot's features differ between exchanges. A tool, order type or setting available on one exchange may be missing or behave differently on another.
• Bitlot cannot recover funds lost on, or withheld by, an exchange.

API key and account security

• Your API key. Bitlot only accepts keys with read and trade permissions and refuses keys that can withdraw. A trade-only key cannot move funds off the exchange, but anyone who obtains it could still place trades that lose your money. Create a separate key for Bitlot, never enable withdrawal, and restrict the key to Bitlot's IP addresses.
• Keys can stop working. Exchanges can expire or disable a key, and you can revoke it. When a key stops working, Bitlot can no longer manage your account: open positions stay open on the exchange without Bitlot's exits, and you must manage them yourself.
• Your Bitlot account. Anyone who can sign in to your Bitlot account can trade on your linked exchange accounts. Use a strong, unique password and turn on two-factor authentication. Tell us at once at support@bitlot.trade if you suspect unauthorised access.
• Security incidents. No system is immune to attack. Despite the measures we take, a security incident at Bitlot, at your exchange or on your own device could lead to losses.

Service availability

Bitlot depends on exchanges, networks, data providers and hosting services outside our control. The service may be unavailable, slow or inaccurate at times, including during exchange outages, maintenance, heavy market activity or software faults. During those times orders may not be placed, changed or closed as expected, and you may be unable to reach your account through Bitlot. Keep your exchange login available so that you can manage positions directly on the exchange if you need to.

Fees and the fuel balance

• Fees are charged per profitable close. Bitlot's fee is a share of the realised profit on each winning close, not of your net result. You can pay fees on winning trades while losing money overall, and fees are not refunded because of later losses. See pricing and the terms of service.
• Costs reduce your return. Bitlot's fee, exchange fees, funding and slippage all reduce your result. A strategy must earn more than its total costs before it makes anything.
• The fuel balance is held by Bitlot. Unlike your trading funds, the fuel you top up is held by Bitlot. It is a prepayment for fees. It is not a bank deposit, it earns no interest, and it is not covered by any deposit insurance or investor compensation scheme. If Bitlot became insolvent, you could lose some or all of your unused fuel. Keep only what you need for fees.
• Low fuel blocks new positions. If your fuel balance falls below the minimum, Bitlot will not open new positions, including automated and copied ones. Closing positions is never blocked. A strategy that expects to keep opening trades will stop doing so until you top up.
• Top-ups and withdrawals. Top-ups are made with Binance Pay or on-chain USDT. An on-chain payment sent to the wrong address, on the wrong network or in the wrong asset may be lost and cannot be reversed. Withdrawals of unused fuel are subject to checks and may take time.

Referrals and incentives

Bitlot pays referral rewards based on the fees referred users pay. People who recommend Bitlot, a leader or a strategy to you may be rewarded for doing so. Treat recommendations accordingly and make your own decision.

Legal, regulatory and tax risk

• Regulation is changing. The law on crypto assets, derivatives and automated trading differs between countries and changes often. A change in law, or action by a regulator, could restrict or end your access to Bitlot or to your exchange, sometimes at short notice.
• Restricted locations. Bitlot is not available in every country. See our restricted countries page. You are responsible for making sure that using Bitlot, your exchange and leveraged products is lawful where you live.
• Limited protection. Bitlot is software, and the protections that apply to regulated investment services, such as compensation schemes and ombudsman services, are unlikely to apply to your use of it or to your crypto assets.
• Tax. Trading may create tax obligations, and frequent automated trading can create many taxable events. You are responsible for your own tax reporting. Records and exports from Bitlot are provided for convenience and may not meet your tax authority's requirements.

No guaranteed profit

Nothing about Bitlot is guaranteed to make money. No tool, strategy, signal or leader can promise any return, and you may lose some or all of the funds you trade with.

Not financial advice

Bitlot provides software, not financial, investment, legal or tax advice. Consider your circumstances and, if needed, seek independent advice before trading.

Your responsibilities

By using Bitlot you confirm that you understand the risks described here and accept them. In particular:

• trade only with money you can afford to lose, and never with borrowed money or money you need for living costs;
• understand each tool and each setting before you turn it on, and start in Demo mode or with small amounts;
• choose position sizes, leverage and exits that fit your own situation;
• check your account regularly, including while automation is running;
• keep your exchange login, API keys and Bitlot account secure;
• stop trading and seek independent advice if you are unsure.

Changes and contact

We may update this disclosure as Bitlot, the exchanges or the law change. We will post the new version here with a new "last updated" date. Questions about this disclosure: support@bitlot.trade.