1. General Trading Risks
- Market Volatility: Crypto and forex markets can experience extreme price swings in short periods, which may result in substantial losses.
- Liquidity Risks: Certain assets may become illiquid, preventing you from executing trades at desired prices.
- 24/7 Trading: Cryptocurrency markets operate continuously, without daily settlement periods to mitigate risk.
2. System Reliability & Trade Execution
- All trades are executed directly through third-party exchanges (e.g., Binance, Coinbase), not via our servers.
- Ongoing trades remain unaffected if MagicTradeBot experiences downtime.
- New trading opportunities may be missed during outages or technical issues.
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The bot’s ability to detect trading opportunities depends on:
- Consistent system uptime
- Stable API connectivity to exchanges
- Accurate and uninterrupted market data feeds
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In the event of an outage:
- Existing trades continue to run on the exchanges
- New opportunity scanning will pause until services are restored
The following elements are essential for proper operation:
- Your server and internet connection (for self-hosted setups)
- Exchange API availability (e.g., Binance/Coinbase system status)
- Our license validation service (checked every 6 hours)
3. Leverage & Margin Trading Warnings
- Amplified Losses: Using 10:1 leverage means a 10% adverse market move can wipe out your entire margin.
- Liquidation Risks: Margin calls and forced liquidations may occur without warning, leading to a total loss of invested capital.
- Negative Balances: With cross-margin accounts, you could owe more than your original deposit under highly volatile conditions.
4. Cryptocurrency-Specific Risks
- Regulatory Uncertainty: Government actions can restrict or ban cryptocurrency trading with little to no prior notice.
- Network Congestion: Spikes in Ethereum network usage can lead to excessive gas fees, making USDT and other transactions costly or delayed.
- Smart Contract Vulnerabilities: USDT and similar tokens rely on smart contracts, which may be susceptible to bugs or exploits.
5. No Guarantees
- Past performance of any strategy does not guarantee future results.
- MagicTradeBot provides execution tools only; it does not offer financial advice.
- You are solely responsible for your trading decisions and their outcomes.
6. Recommended Risk Management
- Start Small: Test your strategies using minimal capital before scaling up.
- Use Stop-Loss Orders: Set strict stop-losses to manage downside risk.
- Monitor Leverage: Avoid excessive leverage; we recommend a maximum of 5:1 for beginners.
- Diversify: Do not allocate more than 5–10% of your total capital to any single strategy.
7. Legal Disclaimer
By using MagicTradeBot, you confirm that you:
- Understand and accept all associated risks
- Assume full responsibility for your trading results
- Are of legal age in your jurisdiction to engage in financial trading