Copy Trading Risk Disclosure
Detailed information regarding the inherent risks, technical limitations, and responsibilities associated with automated copy trading execution.
1. Purpose of This Disclosure
This Copy Trading Risk Disclosure is provided to inform you of the significant risks associated with utilizing our copy trading functionality. Copy trading involves automatically replicating the trades executed by other traders ("Lead Traders") on our platform.
Engaging in copy trading is inherently high-risk and speculative. By choosing to copy a Lead Trader, you are delegating certain trading decisions to another individual or algorithm. You must fully comprehend these risks before allocating capital to any copy trading strategy.
2. No Guarantee of Performance
Past performance, statistics, historical metrics, and risk scores of any Lead Trader are not reliable indicators of future results. Financial markets are volatile and unpredictable.
A Lead Trader who has achieved substantial profits in the past may suffer significant losses in the future. You should never assume that a successful track record guarantees continued profitability or shields your capital from market risks.
3. Dependency on Lead Trader
When you initiate a copy trading relationship, your financial outcomes become highly dependent on the decisions of the Lead Trader. You are exposed to the risks of their judgment, emotional discipline, and risk management strategies.
Lead Traders may change their trading style, adjust their risk tolerance, trade unfamiliar instruments, or suddenly cease trading altogether without prior notice. These changes can adversely affect the performance of your copied portfolio.
4. Technical and Execution Risk
The execution of copied trades relies on complex technical infrastructure. Latency between the time a Lead Trader places an order and when the corresponding order is executed in your account may result in "slippage."
As a result, your execution price, and consequently your profits or losses, may differ significantly from those of the Lead Trader. Furthermore, technical failures, network outages, or insufficient margin in your account may prevent certain trades from being copied, leading to a divergence between your portfolio and the Lead Trader's portfolio.
5. Concentration and Diversification Risk
Copying a single Lead Trader, or multiple Lead Traders who employ similar strategies, can result in a highly concentrated portfolio. Such concentration amplifies your exposure to specific market movements, sectors, or asset classes.
A lack of diversification increases the likelihood of severe drawdowns. You are responsible for ensuring that your overall investment portfolio remains adequately diversified in accordance with your financial goals and risk tolerance.
6. No Advisory Relationship
A trader’s availability on the platform, popularity or historical results do not establish suitability for your circumstances or guarantee future performance. Review the strategy, risks, costs and the limitations of its record before subscribing.
We do not evaluate whether a particular Lead Trader's strategy is suitable for your individual financial situation. You must conduct your own independent research and due diligence before copying any trader.
7. Limitation of Liability
To the maximum extent permitted by applicable law, Ark Stone Trading shall not be held liable for any direct, indirect, or consequential losses arising from your use of the copy trading functionality.
This limitation of liability encompasses losses resulting from the performance of Lead Traders, execution delays, slippage, system failures, or any deviations between the Lead Trader's account and your account. You engage in copy trading entirely at your own risk.
8. Your Responsibility
As a user of the copy trading platform, it is your exclusive responsibility to implement safeguards to protect your capital. This includes setting appropriate risk limits, maximum drawdown thresholds, and stop-loss parameters where available.
Continue monitoring copied positions and account information. Copying ARM717 applies only to trades newly opened after you subscribe. Positions already open in ARM717’s account are not copied on entry. Stopping copying ARM717 closes only the open positions copied from ARM717. Pending copied orders associated with ARM717 are cancelled. It does not close manually opened positions. Closing prices can differ from the prices shown when you confirm. Stopping copying is not a withdrawal request. You could lose all capital allocated to a copy-trading strategy.
9. Fees and open positions
Performance fees apply to eligible closed-trade profits after previous losses are recovered. The initial investment fixes the tier. Open positions are excluded from the fee calculation; the monthly calculation does not require them to be closed.
The Finance Team deducts the copy-trading performance fee manually on the first working day of the following month, before CFD trading hours begin. Calculation and deduction are separate steps; the platform does not automatically deduct this fee.
Read the current copy-trading fee schedule and setup and stopping guide.
