Risk Disclosure

1. General Trading Risks

1.1 Market Risk

Financial markets are inherently volatile and unpredictable. Stock prices can fluctuate dramatically due to various factors including:

• • Economic conditions and market sentiment
• • Political events and regulatory changes
• • Company-specific news and earnings reports
• • Global economic events and crises
• • Interest rate changes and monetary policy

1.2 Liquidity Risk

Some investments may become difficult to sell quickly at fair market prices, especially during market stress or for smaller, less-traded securities.

1.3 Leverage Risk

If you use margin or leverage in your trading account, losses can exceed your initial investment. Leverage amplifies both potential gains and potential losses.

2. Automated Trading System Risks

2.1 Technology Risk

• • System failures, outages, or connectivity issues
• • Software bugs or programming errors
• • Data feed interruptions or inaccuracies
• • Cybersecurity threats and system breaches
• • Hardware failures or infrastructure problems

2.2 Algorithm Risk

AI algorithms and trading models may:

• • Make incorrect trading decisions based on flawed analysis
• • Fail to adapt to changing market conditions
• • Execute trades at unfavorable prices
• • Generate false signals leading to losses
• • React poorly to unprecedented market events

2.3 Execution Risk

Automated systems may experience delays or failures in trade execution, potentially resulting in:

• • Missed trading opportunities
• • Execution at worse-than-expected prices
• • Partial fills or order rejections
• • Duplicate or erroneous orders

3. AI and Machine Learning Risks

3.1 Model Limitations

AI models used in daVinci CORE have inherent limitations:

• • Models are based on historical data and may not predict future performance
• • "Black box" nature may make decision-making processes opaque
• • Overfitting to past data may reduce future effectiveness
• • Model degradation over time without proper maintenance

3.2 Data Dependencies

• • AI decisions depend on the quality and accuracy of input data
• • Corrupted or delayed data feeds can lead to poor decisions
• • Historical data may not represent future market conditions
• • Market regime changes may invalidate model assumptions

3.3 Performance Variability

AI performance can vary significantly across different market conditions, time periods, and asset classes. There is no guarantee that AI-driven strategies will be profitable.

4. Broker and Third-Party Risks

4.1 Broker Risk

• • Broker insolvency or financial difficulties
• • Trading platform outages or technical issues
• • Changes in broker terms, fees, or policies
• • Regulatory actions against your broker
• • Custody risk for your assets

4.2 Integration Risk

daVinci CORE relies on API connections with third-party brokers:

• • API changes may disrupt service
• • Connection failures may prevent trading
• • Rate limits may affect execution speed
• • Third-party maintenance may cause delays

5. Regulatory and Legal Risks

5.1 Regulatory Changes

• • New regulations may restrict automated trading
• • Tax law changes may affect profitability
• • Compliance requirements may increase costs
• • Cross-border regulatory differences

5.2 Jurisdictional Risk

Different jurisdictions have varying regulations regarding automated trading. Users are responsible for ensuring compliance with all applicable laws in their jurisdiction.

6. Performance Disclaimers

6.1 Past Performance

6.2 Hypothetical Results

Any hypothetical or backtested results have inherent limitations:

• • Do not represent actual trading results
• • May not account for all transaction costs
• • Benefit from hindsight bias
• • May not reflect real market conditions

6.3 No Performance Guarantee

daVinci CORE makes no representations or warranties regarding future performance. All trading results depend on market conditions, execution timing, and individual account circumstances.

7. Risk Management Recommendations

7.1 Position Sizing

• • Never risk more than you can afford to lose
• • Diversify your investments across different assets
• • Consider your overall financial situation
• • Maintain adequate emergency funds outside of trading

7.2 Monitoring and Control

• • Regularly monitor your account and positions
• • Set appropriate stop-loss levels
• • Review and adjust risk parameters periodically
• • Maintain the ability to manually override the system

7.3 Education and Understanding

Before using automated trading systems, ensure you understand:

• • Basic trading and investment principles
• • How the automated system works
• • Your risk tolerance and investment goals
• • All associated costs and fees

8. User Acknowledgment

By using daVinci CORE, you acknowledge that you:

• • Have read and understood this Risk Disclosure
• • Understand the risks associated with automated trading
• • Are solely responsible for your trading decisions
• • Have the financial capacity to bear potential losses
• • Will seek professional advice if needed

9. Questions and Support

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