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Trading Bots - Risk Warning

Detailed information on Trading Bots Risk Warning

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Written by Support Specialist
Updated today

Trading Bots allow users to automatically place orders based on pre-set parameters or trading strategies.

No Guaranteed Returns or Investment Advice: Using Trading Bots does not mean that your returns are guaranteed. Please note that any information provided by us in relation to the Trading Bots should not be regarded as financial, trading or investment advice, and that your investment is subject to risks and the potential loss of some or all of the principal invested. Examples or past performance of any trading strategies deployed by the Trading Bots are not indicative of future Trading Bot performance and results. Crypto.com does not make any representation or warranty that the use of Trading Bots will be profitable.

Risks of Trading Strategies: Each trading strategy and Trading Bot carries its own specific risks. For Trading Bots which involve margin or derivatives trading (such as the Funding Arbitrage Trading Bot), please refer to the additional risk warnings on Margin Trading and Derivatives Trading below, as well as the detailed description of the respective Trading Bot in the relevant FAQs. It is your responsibility to ensure that you fully understand the risks of any trading strategy and conduct full due diligence to ensure that the Trading Bot is suitable for your use.

Sole Responsibility for Use of Trading Bots: By using the Trading Bots, you agree that you are solely responsible for making your own independent assessment of any information provided by us and that you have read through and are aware of all the Exchange terms and conditions (in particular Annex I: Risk Disclosure Statement) and relevant FAQs here applicable to the Trading Bots and the specific risks involved. The use of Trading Bots constitutes an authorised instruction by You. You understand that Trading Bots execute your instructions only and that the operation of any such Trading Bots are solely determined by parameters set by you. If the Trading Bot involves any margin or derivative transactions/ orders, you are responsible for monitoring the relevant thresholds (such as margin calls and liquidation thresholds), monitoring market conditions and the impact on your Trading Bot transactions, and complying with the applicable rules. We do not make any representation or warranty in respect of your use of Trading Bots and will not be liable to you for any loss which may arise from or in connection with your use of any Trading Bot.

High Market Risk and Price Volatility: Virtual Asset trading is subject to high market risk and price volatility. The price of a Virtual Asset may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling Virtual Assets. You must be prepared to lose all or more than the Virtual Assets you use in relation to any Trading Bot.

Additional Fees: Transactions entered into using a Trading Bot may incur trading, transaction or other product-related fees. If you enter into certain trading strategies and the market moves in an opposite direction, you may be subject to margin calls and/or additional fees. You should consider the impact of these fees on the performance of your Trading Bot strategy before using the Trading Bots.

No Guarantee of Execution: We will use reasonable endeavours to execute your instructions in connection with the Trading Bots, but do not guarantee that the instructions will be wholly or partially executed or will be executed by a certain time or at a certain price. You agree that we shall not be liable for any loss which may arise due to unfulfilled Trading Bot orders or instructions due to technical issues, faults or other errors. During extreme market conditions or volatility, you agree that we may terminate or cancel your Trading Bot instructions, and that your order may be executed at a different price.

Please consult your own tax, legal and other advisers if you are unsure of the risks of using Trading Bots. Subject to applicable laws, you agree that Crypto.com shall not be liable to you in respect of any losses in connection with your use of the Trading Bots. You expressly acknowledge that any use of a Trading Bot at your own risk is based on your own independent review, discretion and assessment of its suitability for you, taking into account your specific objectives, financial situation, investment experience, knowledge, and needs.

Important Note on Margin Trading

Please be mindful that margin trading is subject to high market risk, so trade cautiously. We strongly recommend you seek professional advice regarding your particular situation before conducting margin trading. The risk of loss in financing a transaction using borrowed Virtual Assets can be substantial. You may lose all or more than the Virtual Assets you place to secure the borrowed Virtual Assets. You may be called upon at short notice to make additional Virtual Asset contributions. If you do not make such contributions within the prescribed time, your Virtual Assets may be lost without further notice to you. We will not be responsible or liable for any losses you make in relation to margin trading. You should therefore carefully consider whether such arrangements are suitable for you in light of your objectives, financial circumstances, your risk tolerance, and trading experience. You should be capable of bearing a full loss of the amounts traded as a result of or in connection with any order and any additional loss over and above the initial amounts traded that may become due and owing by you. In considering whether to trade, or use any margin trading facility or other service, you should inform yourself and be aware of the risks generally, and in particular should note the specific risk factors which may apply.

Important Note on Derivatives Trading

Please be mindful that trading in derivative contracts is subject to high market risk, so trade cautiously. We strongly recommend you seek professional advice regarding your particular financial situation before conducting Derivatives trading. The risk of loss can be substantial. You may lose all or more than your Virtual Assets balance when trading. You may be called upon at short notice to make additional Virtual Asset contributions as well. If you do not make such contributions within the prescribed time, your Virtual Assets may be lost without further notice to you. We will not be responsible or liable for any losses you make in relation to margin trading. You should therefore carefully consider whether such arrangements are suitable for you in light of your objectives, financial circumstances, risk tolerance, and trading experience. You should be capable of bearing a full loss of the amounts traded as a result of or in connection with any order. This also includes any additional loss over and above the initial amounts traded that may become due and owing by you. In considering whether to trade or use any Derivative trading facility or other services, you should inform yourself and be aware of the risks generally, and in particular should note the specific risk factors which may apply.

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