Risk Disclosure

Version 1.0.0 · Effective 2026-04-18

Last Updated: April 18, 2026

Version: 1.0.0

This Risk Disclosure is a supplement to the TradeStreak Terms of Service, Privacy Policy, and Educational Use Disclaimer. It highlights — in plain English — risks you should understand before you make any real-money investment decision, whether or not that decision was informed by content you saw in TradeStreak.

Reading this document does not make you a qualified investor. It does not substitute for the formal prospectus, offering memorandum, or risk disclosures required by applicable law for a specific security, fund, or product. Read those primary sources directly and consult a licensed professional.

1. All Investing Involves Risk of Loss

Any investment in securities (stocks, ETFs, mutual funds, bonds, options, futures), cryptocurrencies, derivatives, or other financial instruments can lose value — including losing the entire amount invested. Some instruments (e.g., leveraged derivatives, short positions, options sold naked, certain crypto products) can produce losses greater than the amount invested. Do not invest money you cannot afford to lose.

2. Past Performance Is Not a Guarantee of Future Results

Historical returns — of a specific security, a market index, a strategy, a backtest, a scenario simulation in TradeStreak, a copy-trading leaderboard, an "optimal path" in a learning scenario, or your own past trades — are not reliable predictors of future performance. Market conditions change. Regimes rotate. Companies, sectors, and entire asset classes that outperformed for years can underperform for years afterward.

3. Educational Simulations Diverge From Real Trading

The paper-trading feature and scenario simulations in TradeStreak simplify real markets by ignoring or approximating:

• Execution slippage — real orders don't always fill at the displayed quote, especially in volatile markets or thin liquidity;
• Bid-ask spreads — simulated trades may use the last trade price, not the spread you'd actually pay;
• Transaction costs — commissions, SEC fees, exchange fees, regulatory fees, exchange data fees, and payment-for-order-flow impacts;
• Market impact — your real orders affect the market when size is meaningful relative to liquidity;
• Taxes — capital gains (short-term vs long-term), wash-sale rules, state/local taxes, crypto-specific rules, foreign tax withholding;
• Margin and leverage mechanics — real margin calls, pattern-day-trader restrictions, securities-lending revenue or cost, short-sale fails-to-deliver;
• Order rejection and rate limits — your broker's risk controls;
• Regulatory halts, circuit breakers, and trading suspensions;
• Emotional and behavioral reality — simulating has no real downside, so your risk-taking in the app does not reflect what you would do with your own money at stake.

A strategy that "works" in TradeStreak's simulator may fail, or fail catastrophically, in real markets.

4. Data Limitations

Quotes, fundamentals, news, charts, and corporate-action data come from third-party providers (Polygon.io, Financial Modeling Prep) and may be:

• Delayed (often 15 minutes for free market-data tiers);
• Stale (failure to refresh on a provider outage);
• Incorrect (ticker changes, mergers, splits, dividends, symbol reuse);
• Incomplete (missing thin-volume stocks, international symbols, or OTC securities);
• Subject to correction after the fact.

Never place a real order based on data shown in TradeStreak without verifying it in your broker's trading screen moments before the order is placed.

5. AI-Generated Content Risks

Several features use large language models to produce natural-language content (daily market briefings, scenario roasts, character voice commentary, AI mentor explanations). These models can:

• Hallucinate — state false facts with confidence;
• Be outdated — train-date cutoffs mean recent events, earnings results, regulatory actions, or price movements may be missing or wrong;
• Omit critical context (a brief explainer is not a full analysis);
• Amplify biases present in their training data;
• Fail gracefully but silently — when a call fails we may show template fallback text that looks authoritative.

AI output is never reviewed by a licensed financial professional before you see it. Treat it as a starting point for your own research, not a conclusion.

6. Specific Risks by Asset Class

Stocks and ETFs

• Company-specific risk (earnings miss, fraud, management changes, litigation);
• Sector and macro risk (rates, inflation, policy, geopolitics);
• Liquidity risk in thinly traded names;
• Index funds are subject to the risks of the underlying index.

Cryptocurrency

• Extreme price volatility (50%+ drawdowns are routine, not exceptional);
• Regulatory uncertainty in most jurisdictions (including the U.S.);
• Exchange counterparty risk — exchanges have failed and customer funds have been lost (FTX, Mt. Gox, Celsius, and others);
• Smart-contract and protocol risk for on-chain assets;
• Permanent loss if you lose access to your private keys;
• Many tokens have no underlying cash flow, no regulatory disclosure, and no recourse if they go to zero.

Options, Futures, and Leveraged Products

• Can lose the entire premium (options) or produce losses far greater than initial margin (futures, short options);
• Time-decay (theta) works against option buyers;
• Assignment risk on short options;
• Leverage amplifies both gains and losses — a small adverse price move can wipe out a leveraged position;
• Complex strategies require understanding of Greeks, volatility, and margin mechanics that TradeStreak does not teach in depth.

Margin Lending

• Your broker can issue a margin call and liquidate your positions at unfavorable prices without notifying you first;
• Interest accrues on borrowed funds daily;
• Using margin magnifies losses and can result in owing more than your account is worth.

Short Selling

• Theoretically unlimited loss potential — a stock can rise without a ceiling;
• Subject to stock-borrow fees, buy-ins, and short-squeeze dynamics;
• May trigger pattern-day-trader rules;
• Subject to regulatory restrictions (locate requirements, Reg SHO).

7. Behavioral and Cognitive Risks

Research consistently shows that individual investors' behavior is the single largest driver of underperformance relative to the market:

• Overconfidence — performing well in a simulator can produce unwarranted confidence in your real-money abilities;
• Recency bias — overweighting the most recent trend in your decision-making;
• Anchoring to your purchase price or a recent high;
• Loss aversion — cutting winners short, letting losers run;
• Confirmation bias — seeking out information that supports the position you already hold;
• FOMO-driven entries — buying after large price increases because "everyone else is".

TradeStreak's scenarios and roast feedback are partly designed to surface these biases. Awareness is the first step; it does not eliminate them.

8. Tax Risk

Investing has real tax consequences that vary by:

• Whether you hold in a taxable account, a retirement account (IRA, 401(k), Roth), or a non-U.S. wrapper;
• Holding period (long-term vs short-term gains);
• Wash-sale rules (which can disallow losses if you buy a substantially identical security within 30 days);
• Specific-share-identification vs first-in-first-out accounting;
• State and local tax regimes.

TradeStreak does not provide tax advice. Consult a CPA or tax attorney before making decisions with tax consequences.

9. Cybersecurity and Fraud Risk

• Your own device is typically the weakest link — use a strong passcode, Face/Touch ID, OS updates, and avoid sideloading untrusted apps;
• Phishing attempts impersonating TradeStreak, your broker, or the IRS are common — we never ask for your password, brokerage password, or one-time codes via email or text;
• If you connect a brokerage account, use only the official in-app flow — do not paste credentials into any page you reach outside the app;
• Enable two-factor authentication everywhere it is offered.

10. Regulatory Risk

Rules for securities, crypto, margin, options, and similar instruments change. A practice that is legal today may be restricted or prohibited tomorrow. TradeStreak's educational content may lag regulatory changes. You are responsible for complying with all applicable laws, including any trading-window or pre-clearance rules imposed by your employer (common in finance and healthcare industries).

11. No Recourse Through TradeStreak

If you suffer a loss on a real-money trade — whether or not you believe TradeStreak's content influenced your decision — TradeStreak is not liable and does not have the authority or mechanism to reimburse you, broker a dispute with your custodian, or compel any other remedy. Disputes with your broker are between you and your broker. Our maximum aggregate liability is limited by the Terms of Service.

12. Your Acknowledgment

By using TradeStreak, you acknowledge that you have read and understood this Risk Disclosure, the Educational Use Disclaimer, and the Terms of Service, and that you accept the risks described above. You agree that you alone bear responsibility for your real-money investment decisions and their outcomes.

13. Contact

Questions: legal@tradestreak.app