Alpace

Risk Disclosure

Welcome to Alpaca (“Alpaca”), a website and online/mobile services provided to you by AlpacaDB, Inc. (“Alpaca”, “we”, or “us”). We provide investment analysis tools and related written reports that illustrate a hypothetical based on mathematical principals from past results and through AlpacaAlgo (“Algo”) and AlpacaScan (“Scan”, collectively “Products”) we provide services and functions for you to research, build, and test your investment strategies and your trading algorithms (“Services”).

WUsing our Products and Services may expose you to a variety of risks, before using Products or any related Services provided by us, you should read and understand these risks.

TRADING IS NOT SUITABLE FOR EVERYONE. TRADING IS INHERENTLY HIGH RISK AND TRADING USING ALGORITHMS CAN RESULT IN A COMPLETE LOSS OF YOUR FUNDS. YOU SHOULD MONITOR YOUR TRADING ACTIVITY AT ALL TIMES.

IMPORTANT: The projections or other information generated by Alpaca Products and/or Services, whether directly or indirectly, regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.

General Risk in Using Analysis with Scan

Past Results are no guarantee of future results. Scan is a publication that provides you with information regarding price history of investment products for educational and entertainment purposes only and we provide no investment, financial, regulatory, tax or legal advice. The numbers and labels used in Scan are meant only to provide a hypothetical illustration of mathematical principles using candlestick charts and patterns. Scan is not investment advice and any observations concerning any security, investment product or strategy, or trading instructions provided in Scan are not a recommendation to buy, sell or hold such security or investment product, or to make any other investment decisions. We offer no advice regarding the nature, potential value, risk or suitability of any particular investment strategy, transaction, security or investment product.

General Risks in Live Algorithmic Trading

Past results are no guarantee of future results. Algo is an investment tool that provides services and functions for you to research, build, and test investment strategies and trading algorithms. We provide no investment, financial, regulatory, tax or legal advice. The back test results indicate performance based on past results only and are meant only to provide a hypothetical illustration of mathematical principles using candlestick charts and patterns. HYPOTHETICAL ILLUSTRATIONS OR SIMULATED TRADING DO NOT REPRESENT ACTUAL TRADING. Algo is not investment advice and any observations concerning any security, investment product or strategy, or trading instructions provided in Algo are not a recommendation to buy, sell or hold such security or investment product, or to make any other investment decisions. We offer no advice regarding the nature, potential value, risk or suitability of any particular investment strategy, transaction, security or investment product.

Algorithmic trading is subject to a variety of risks, not all of which are foreseeable or can be enumerated here. These risks, whether or not foreseeable, can manifest in such ways that your algorithm may not function as you had intended. Past results are no guarantee of future results and because the data inputs used to create the algorithm are taken from past results, there is no guarantee that your algorithm will be successful even if it does perform as you had intended. It is your responsibility to thoroughly test, understand and experience the performance of your algorithm before you put it into production and further that you continually monitor its performance and act in accordance with your personal risk tolerance.

You understand that Algo is a complex tool and can help in your research of your investments, and that by using Algo, your trades may be executed in high volume and without regard to the cost of trade execution. Further, you understand that although your algorithm may indicate a profit, the cost of execution may, in aggregate, amount to a loss. You agree that Alpaca is not liable for any losses you may incur in using Algo, whether due to the performance of your trades or due to other costs such as order processing costs. We make no representation as to the practicality or feasibility of monitoring your algorithms and you knowingly and expressly agree to accept all risks in connection with your use of Algo. You understand that trading is inherently risky and that trading with algorithms can multiply that risk further. It is your responsibility to understand your own risk tolerance, the amount of risk you are taking by using Algo, and to make your own decisions about if and how to use the Products according to your risk tolerance and you understand and agree to the terms as set forth in this Risk Disclosure.

Risks of Trading and Investing with Products and Services

When using Products and Services, there are risks that you must understand before using.

  1. Inherent Risks in Publications. Our publications are based on the historical price data, sourced from a third party vendor, Xignite. We do not guarantee the accuracy, reliability or availability of all such investment prices. Using this historical data, we identify chart patterns based on known candlestick analysis however; we make no guarantee or prediction about future results. You understand that our publications are based on historical data and therefore you should not rely on our publications to predict future results. You should not make any assumption that technical indicators, analysis techniques or trading methods derived from Products or Services will yield a profit or prevent a loss.

    No Warranty. We do not guarantee the accuracy, reliability or availability of our Products and Service along with any of our third party vendors or of any internet service providers (“ISPs”). You understand that failures or inefficiencies in any ISP throughout the chain of production may cause delay or otherwise impact the accuracy, reliability or availability of our Products or Services in unforeseeable ways.

    Publication. You understand that our publications are not tailored to you or anyone else’s specific goals or interests. Therefore, you must exercise extreme caution and due diligence whenever interpreting the information provided by our publications. Our Products and Services are provided on an as-is basis only.

  2. Risks Associated with Backtesting. Backtesting with Algo is the process of applying a trading strategy algorithm to historical data, particularly to test the success rate of the algorithm during that time period. We do not guarantee the accuracy, reliability or availability in performing a backtest. In order to conduct a backtest, users must input data into a dataset from which an algorithm is built. That algorithm is then tested against historical data by remote servers. Throughout this process, you understand that there are inherent risks due to potential errors in data accuracy, infrastructure or user error.

    3rd Party Data. Data is sourced from a third party vendor and the accuracy of such data is not guaranteed. For example, if a vendor data provider or other data source transmitted inaccurate or incomplete data, the backtest results which rely on the accuracy of that data may be altered as a result. Therefore, you must assume the risk that data may not always be accurate and/or up to date and understand that this likewise effects the accuracy of any backtest reliant on such data.

    Infrastructure Risks. The infrastructure along the chain of use between you and Alpaca in the performance of any of our Products or Services may likewise cause errors in connectivity. You understand that there may be outages or other problems obstructing the performance of an ISP, server or other 3rd party service that we rely on which may alter the results of a backtest, cause errors in live tracking or cause other errors in our Products or Services. Risks related to infrastructure issues include without limitation, disruption of power, internet access or hardware functionality from your computer or service provider, or the hardware or service providers of our servers or other technology partner.

    User Error. User error may also pose a risk when working with Products and Services. You understand that there are many types of user errors, not all of which can be included here and you accept all risks, whether or not specifically identified here when you input data, interpret results and in making any decisions. Common types of user error include without limitation, misinterpretation of what is being input into the data set, misinterpretation of backtesting results or reliance on past results based on past market conditions to apply in current market conditions

    Assumption of the Risks. We make no guarantee that our Products and Services will be error-free or uninterrupted. You understand that errors in the code or program could result in inaccurate backtest results. You assume any and all risks related to the use of backtesting and understand that results may vary with each use and over time.

  3. Risks Associated with Live Algorithmic Trading. When you engage in live algorithmic trading, this means that your algorithms will send a “buy” signal to your linked broker account in accordance with the algorithm you built. Once you enter a position, your algorithm will not re-enter until the exit strategy has been executed. Your exit strategy may be determined manually based on your input or automatically calculated for you based on your data inputs. Alpaca does not hold or have any control of your funds, if you use our Products and/or Services, you understand that execution of trades and account management is solely between you and the party holding and executing your trades and therefore you understand that you must contact your broker for any action that you would like to take with respect to your trading activities.

    Integration with Broker. We do not guarantee that integration with your broker will be error-free or uninterrupted. When we integrate our Products and Services with a broker, we do so through an Application Program Interface (“API”). Whenever any changes are made either on our side or on the broker’s side, you understand that these changes may create, exacerbate or expose errors in the integration. Alpaca has no control over whether your broker makes any changes to their system and your broker has no obligation to inform Alpaca of any changes or make any corrective actions. Therefore, you understand and accept the risk that we make no warranty that our integration is error-free or that it will continue to function error-free or without interruption.

    Your broker is the party that actually holds funds and executes the trades, therefore if your broker fails to comply with laws and regulations applicable to your trading product or trading style including without limitation, algorithmic trading, you may longer trade through that account without warning. It is your responsibility to understand how any actions affecting your broker can in turn affect you and how such actions would be communicated to you through your broker.ontrol of Alpaca.

    Infrastructure Risks. The infrastructure along the chain of use between you and Alpaca in the performance of any of our Products or Services may likewise cause errors in connectivity. You understand that there may be outages or other problems obstructing the performance of an ISP, server or other 3rd party service that we rely on which may alter the results of a backtest, cause errors in live tracking or cause other errors in our Products or Services. Risks related to infrastructure issues include without limitation, disruption of power, internet access or hardware functionality from your computer or service provider, or the hardware or service providers of our servers or other technology partner.

    Application Functionality. You understand that Algo is an application that is operated remotely over a cloud service and subject to a variety of risks inherent in application functionality. We make no guarantee that our Products and Services, which includes our Algo application, will function error free. Therefore, by using Algo, you accept any risks associated in its function including without limitation that Algo may miss opportunities, send signals not as you intended or not send signals at all. Further, errors in functionality may limit your ability to terminate, “force exit,” or edit your algorithm.

    You Risk Loss of Investment. You understand that you may lose all or a substantial portion of your investment whether due to leveraging, lack of liquidity in that there may be no secondary market, restrictions on transferring funds, taxation or fee structures. Algo does not provide investment advice and you should seek the services of a professional if you do not understand any of these terms or do not understand the risk you are assuming when you make such trades.

    3rd Party Services. Services sourced from third party vendors cannot be guaranteed accurate or error free. You understand that these services are subject to the risks explained herein including without limitation, infrastructure risks, integration risks and risks associated with application functionality.

    Updates to Application and System Maintenance. We may periodically perform application and system updates and maintenance. During this time, you understand that our Products and Services may experience a down time and not function. It is also possible that after such update or maintenance work, your algo may perform differently and/or may add or remove functionality. Such updates may occur with or without advance notice and you understand and agree that Alpaca will not be liable for any damages caused as a result.

    Additional Risks and Best Practices. When using our Products and Services, you understand that you are in control of your investment. It is your responsibility to track your performance at all times and understand your own risk tolerance. When creating a strategy, you may find it helpful to perform multiple backtests during multiple time frames to see how your algorithm performed in the past. Additionally, you may want to live test your algorithm before actually connecting it to real money trades. By doing this, you will experience how your algorithm could hypothetically perform in current market conditions notwithstanding broker fees, limitations on liquidity or any other factors not calculated.

Other Risks

  1. Logins, Passwords and Social Networking Accounts. In order to use our Products and Services, you are required to provide login credentials, whether by creating your own account or by linking your account with us using a Social Networking Account (“SNA”) such as Facebook or Google+. Your use of such login credentials is separate and independent of your broker account. By signing in with your SNA to use the Services, you authorize us to retrieve and/or send such information as is necessary to complete the sign in process. This may include storing a unique authorization code, an “ID Token” that is necessary for your SNA to connect with the Services. You understand that inherent in any such user account method, someone with your information could log in for you and alter your account and therefore, you assume any risks associated with your login. Please refer to our privacy policy for additional information located at http://www.alpaca.ai/privacy-policy/

  2. Server Security. Servers are physical hardware that stores and calculates data and is otherwise responsible for many of the computational processes required for the use of Products and Services. These servers are located remotely and outside the control of Alpaca. This means that there may be risks to the physical components of the servers or the software security beyond our control and may also be outside our knowledge. We do not host any of your information nor do we directly send the trading signals. These functions are performed by the servers we use. We cannot guarantee the security of the servers and you understand that by using Products and Services that depend on such servers that you are assuming theses risks.

  3. Risk Disclosures By Connected Parties. When using our Products and Services, you may have the option to use the services of other parties such as login credentials from Facebook or Google or real money trading through your connected broker. In all such cases, you must read and understand the risk disclosures issued by the connected party and understand how those risks may apply to your use of our Products and Services and your relationship with Alpaca.

  4. The Risk of the Occurrence of Multiple Adverse Events. The occurrence of any events associated with these risks, alone or in combination with any other risks, could result in the loss of all or substantially all of your deposit into your brokerage account when connected to our live trading algorithms, built, tested and performed by you. You understand that losses can happen more quickly when using algorithmic tradingand that you should discuss with an investment professional the risks associated with trading in general and algorithmic trading in particular before committing real money. You use live trading algorithms at your own risk and it is your obligation to thoroughly and appropriately test any trading algorithm before you put it in production and further to continually monitor the operation of any trading algorithm in production to ensure it is running properly and in compliance with any applicable rules.