# Risk Disclosure

_Last updated: July 2026_

**Read this before enabling a live rule.** BTCMatic executes **your** instructions against volatile markets, automatically and without confirmation prompts. If you would not place an order manually, do not encode it in a rule.

## 1. Market risk

Cryptocurrency prices are highly volatile and can fall rapidly and substantially, including to zero. Automated buying strategies (DCA, dip-buying) do not eliminate this risk — they systematically _add_ exposure while conditions hold. You can lose the entire amount you deploy. Past performance, including backtest results, does not predict future results.

## 2. Automation risk

- **Rules do exactly what they say**, not what you meant. A wrong threshold, amount, or cooldown can spend far more (or less) than intended. Test with **dry-run mode** and small amounts first.
- **Execution is not guaranteed.** Data sources, exchanges and networks fail. The system is designed to fail safe — on stale or missing data your rules go quiet rather than misfire — which means fires can be missed, delayed, or (in rare recovery scenarios) notifications duplicated.
- **Fills differ from triggers.** Between the price that triggered a rule and your order's execution, the market moves; slippage and exchange fees affect the result.

## 3. Backtesting limitations

Backtests replay historical candles through your rule with a simplified fill model (candle-close price ± configured slippage, exchange fee tiers). They cannot capture intra-candle movement, real order-book depth, exchange outages, or your own future behaviour. Data gaps are flagged in the report but still reduce fidelity. Treat backtest output as a sanity check, never as a projection of returns.

## 4. Exchange and counterparty risk

Your funds sit on **your** exchange account, subject to that exchange's solvency, security, terms, and jurisdiction. BTCMatic does not custody funds and cannot protect you from an exchange freeze, hack or insolvency. API keys are restricted to trade-only scope and your exchange should additionally enforce our IP allow-list (see https://btcmatic.com/security) — but a leaked key with trade scope can still be misused to trade on your account. Guard your keys and revoke them at the exchange if in doubt.

## 5. Software risk

BTCMatic is software. Despite extensive automated testing, defects are possible. Notifications may arrive late; a bug could evaluate a condition incorrectly. Where rules move money, we default new order rules to dry-run mode and cap blast radius by design, but the residual risk is yours.

## 6. Regulatory and tax risk

Cryptocurrency regulation changes quickly and varies by jurisdiction. You are responsible for the legality of your trading and for reporting and paying taxes on your transactions. BTCMatic provides execution-only software and no advice of any kind.

**Only deploy funds you can afford to lose. If you are unsure whether automated trading is appropriate for you, consult a licensed financial adviser.**

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Canonical page: https://btcmatic.com/legal/risk  
Machine index: https://btcmatic.com/llms.txt · Agent notes: https://btcmatic.com/agents.md