Risk Disclosure
IMPORTANT: PLEASE READ THIS ENTIRE DOCUMENT CAREFULLY BEFORE USING OUR SERVICES
This Risk Disclosure Statement ("Disclosure") is provided by Quantara Capital ("Quantara Capital," "Company," "we," "us," or "our") to ensure you understand the significant risks associated with using our automated trading platform. By using our Services, you acknowledge that you have read, understood, and accepted all risks described herein.
YOU SHOULD NOT USE OUR SERVICES UNLESS YOU FULLY UNDERSTAND AND ARE WILLING TO ASSUME THESE RISKS.
1. General Trading Risks
1.1 Risk of Loss
TRADING IN SECURITIES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. You should only trade with capital you can afford to lose. There is no guarantee of profit, and you may lose some or all of your invested capital.
1.2 Past Performance
PAST PERFORMANCE OF ANY TRADING STRATEGY IS NOT INDICATIVE OF FUTURE RESULTS. Historical returns, whether actual or hypothetical, do not guarantee future performance. Market conditions change, and strategies that performed well in the past may perform poorly in the future.
1.3 No Guaranteed Returns
There is no trading strategy, system, or methodology that guarantees profits or protection from losses. Any statements regarding potential returns are estimates only and should not be relied upon.
2. Equities Trading Risks
2.1 Market Risk
Stock prices fluctuate based on market conditions, economic factors, company performance, investor sentiment, and countless other variables. The value of your positions may decline rapidly and without warning.
2.2 Liquidity Risk
Some securities may have limited trading volume, making it difficult to execute trades at desired prices. In illiquid markets, you may experience significant slippage between the intended price and the actual execution price.
2.3 Volatility Risk
Markets can experience periods of extreme volatility during which prices may move dramatically in short periods. Automated trading systems may execute trades during volatile periods that result in significant losses.
2.4 Gap Risk
Securities may open at prices significantly different from their previous closing prices due to overnight news, earnings announcements, or other events. Stop-loss orders may not protect against gap risk.
2.5 Concentration Risk
Certain strategies may concentrate positions in specific sectors, industries, or securities, which increases exposure to sector-specific or company-specific risks.
3. Options Trading Risks
3.1 Options Are Complex Instruments
OPTIONS TRADING IS HIGHLY SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. Options are complex derivative instruments that require significant knowledge and experience to trade effectively. You should thoroughly understand options mechanics before enabling options trading.
3.2 Total Loss of Premium
If you purchase options (calls or puts), you may lose the entire premium paid if the option expires worthless. This represents a 100% loss of your investment in that position.
3.3 Unlimited Loss Potential
CERTAIN OPTIONS STRATEGIES INVOLVE THEORETICALLY UNLIMITED LOSS POTENTIAL. Writing (selling) uncovered call options exposes you to unlimited risk if the underlying security rises significantly. Writing uncovered put options exposes you to substantial risk if the underlying security declines significantly.
3.4 Time Decay
Options are wasting assets. The time value of an option decreases as expiration approaches (theta decay), which can erode the value of your positions even if the underlying security moves in your favor.
3.5 Implied Volatility Risk
Changes in implied volatility can significantly affect option prices independent of the underlying security's price movement. A decrease in implied volatility can cause option values to decline even when the underlying moves favorably.
3.6 Assignment Risk
If you write options, you may be assigned at any time (for American-style options), requiring you to buy or sell the underlying security at the strike price. Early assignment can occur unexpectedly and may result in unintended positions or margin calls.
3.7 Exercise and Settlement Risk
Options settlement procedures and deadlines are strict. Failure to exercise valuable options before expiration or misunderstanding of settlement procedures may result in losses.
3.8 Complex Strategy Risks
Multi-leg options strategies (spreads, straddles, condors, etc.) involve multiple commissions, may have complex risk profiles, and may be difficult to adjust or close in fast-moving markets.
4. Margin Trading Risks
4.1 Margin Amplifies Losses
TRADING ON MARGIN MAGNIFIES BOTH GAINS AND LOSSES. While margin allows you to control larger positions with less capital, losses can exceed your initial investment. You may lose more money than you deposit in your account.
4.2 Margin Calls
If the equity in your account falls below required maintenance levels, you will receive a margin call requiring you to deposit additional funds or liquidate positions. YOUR BROKER MAY LIQUIDATE YOUR POSITIONS WITHOUT PRIOR NOTICE TO MEET MARGIN REQUIREMENTS. This liquidation may occur at unfavorable prices and may result in significant losses.
4.3 No Control Over Liquidation
In a margin call situation, your broker has the right to decide which securities to sell and at what price. You may not have the opportunity to choose which positions are closed.
4.4 Interest Charges
Margin borrowing incurs interest charges that accumulate daily and reduce your overall returns. These charges apply regardless of whether your positions are profitable.
4.5 Pattern Day Trader Rules
Accounts with equity below $25,000 are subject to pattern day trader restrictions, which limit the number of day trades you can execute. WE RECOMMEND A MINIMUM ACCOUNT SIZE OF $25,000 TO AVOID THESE RESTRICTIONS AND TO MAINTAIN ADEQUATE MARGIN CUSHION.
4.6 Margin Requirement Changes
Your broker may increase margin requirements at any time without advance notice, which may trigger margin calls even without changes in your positions or market prices.
5. Automated Trading Risks
5.1 System and Technology Risks
Automated trading depends on complex technology systems. You face risks including but not limited to:
Software Failures: Bugs, errors, or glitches in our platform, our technology partners' systems, or Interactive Brokers' systems may cause trades to execute incorrectly, fail to execute, or execute multiple times.
Connectivity Issues: Internet outages, network congestion, or communication failures between systems may prevent signals from being transmitted or trades from being executed.
Hardware Failures: Server outages, data center issues, or equipment malfunctions may disrupt service.
Cybersecurity Threats: Despite security measures, systems may be vulnerable to hacking, malware, or other cyber attacks.
5.2 Execution Delays
THERE IS A DELAY BETWEEN WHEN A TRADING SIGNAL IS GENERATED AND WHEN YOUR TRADE IS EXECUTED. While this delay is typically less than 30 seconds, during periods of high volatility or system load, delays may be longer. Price movements during this delay may result in execution at prices significantly different from the signal price.
5.3 Slippage
The price at which your order is executed may differ from the price at which the signal was generated due to market movement, liquidity conditions, or order processing time. Slippage can be substantial during volatile markets or for large orders.
5.4 No Pre-Execution Review
TRADES ARE EXECUTED AUTOMATICALLY WITHOUT YOUR PRIOR REVIEW OR APPROVAL. Once you subscribe to a strategy and connect your account, trades will be placed in your account based on strategy signals. While you may manually exit positions, you cannot review or cancel trades before they are executed.
5.5 Strategy Performance Divergence
Your actual results may differ from the strategy's published or reported results due to:
Differences in execution prices (slippage)
Timing differences in trade execution
Position sizing differences based on your account size and settings
Fees and commissions
Missed trades due to connectivity or system issues
5.6 Over-Reliance on Automation
You should not assume that automated systems will always function correctly or profitably. You are responsible for monitoring your account and positions. System failures may occur without warning.
5.7 Position Sizing Limitations
While you may set maximum position sizes, this does not limit your overall risk exposure. Multiple positions, correlated trades, or rapid strategy signals may result in higher-than-expected exposure.
6. Third-Party Risks
6.1 Dependency on Third Parties
Our Services depend on third-party providers, including:
Your Brokerage: Your brokerage account, trade execution, and custody of your assets (such as Interactive Brokers or other supported brokerages)
Technology Partners: The underlying technology platforms and software providers for strategy signals and trade automation
Independent Strategy Managers: Third-party individuals and entities who create and manage trading strategies on our marketplace platform
We have no control over these third parties and are not responsible for their actions, omissions, failures, or service interruptions.
6.2 Broker Execution Quality
Trade execution quality depends on your brokerage's systems and the market conditions at the time of execution. We do not control execution and cannot guarantee fills at any particular price.
6.3 Third-Party System Outages
Outages or failures at your brokerage or our technology partners may prevent trades from executing, cause execution errors, or prevent you from accessing or managing your positions.
7. Strategy-Specific Risks
7.1 Strategy Selection
You are solely responsible for selecting strategies appropriate for your financial situation, investment objectives, and risk tolerance. Different strategies have different risk profiles, and not all strategies are suitable for all investors.
7.2 Independent Strategy Manager Risks
CRITICAL: STRATEGY MANAGERS ARE INDEPENDENT CONTRACTORS, NOT EMPLOYEES OF QUANTARA CAPITAL. Quantara Capital does NOT vet, approve, or supervise Strategy Managers. This creates significant additional risks:
No Verification: We do not verify Strategy Manager credentials, experience, or qualifications
No Vetting: Anyone can become a Strategy Manager and publish strategies immediately
No Supervision: We do not monitor or supervise Strategy Manager trading decisions
Variable Quality: Strategy quality and professionalism vary widely
Fraud Risk: Strategy Managers may misrepresent performance, credentials, or methodology
Abandonment Risk: Strategy Managers may cease operations without notice
Inexperience: Strategy Managers may lack professional trading experience or expertise
Regulatory Non-Compliance: Strategy Managers may violate securities laws
YOU ASSUME ALL RISKS ASSOCIATED WITH SELECTING AND FOLLOWING INDEPENDENT STRATEGY MANAGERS.
7.3 Strategy Changes
Strategy managers may change their trading approach, increase or decrease trading frequency, or modify their methods without notice. These changes may affect performance and risk characteristics.
7.4 Drawdowns
All trading strategies experience drawdowns (peak-to-trough declines). Drawdowns may be substantial and may take extended periods to recover, if recovery occurs at all. You should be prepared for significant drawdowns in any strategy.
7.5 Correlation Risk
If you subscribe to multiple strategies, those strategies may be correlated and may experience losses simultaneously, amplifying your total portfolio risk.
7.6 Influencer Strategy Risks
Some Strategy Managers may be social media influencers or public personalities. These strategies carry additional risks:
Promotional hype may create unrealistic expectations
Social media popularity does not indicate trading skill or expertise
Influencers may have undisclosed conflicts of interest
Popular strategies may attract excessive capital and underperform expectations
8. Regulatory and Market Structure Risks
8.1 Regulatory Changes
Changes in laws, regulations, or regulatory interpretations may affect the availability of our Services, the trading strategies offered, or your ability to trade certain securities.
8.2 Trading Halts
Exchanges may halt trading in specific securities or across entire markets during periods of extreme volatility or other unusual conditions. During trading halts, you may be unable to exit positions.
8.3 Corporate Actions
Corporate actions such as stock splits, mergers, dividends, or delistings may affect your positions in ways that automated systems may not handle correctly.
9. AI Chatbot Risks
9.1 Informational Tool Only
Our platform includes an AI-powered chatbot that provides informational and educational content. THE AI CHATBOT DOES NOT PROVIDE INVESTMENT ADVICE. Reliance on chatbot information creates risks:
Inaccuracy: The AI may provide incorrect, outdated, or misleading information
Misunderstanding: The AI may misinterpret your questions or provide irrelevant responses
False Confidence: The AI may present incorrect information with unwarranted confidence
No Personalization: The AI cannot assess your individual circumstances or suitability
Technology Limitations: AI has inherent limitations including bias, hallucinations, and reasoning errors
9.2 Not a Substitute for Professional Advice
The AI chatbot cannot replace qualified human financial professionals. You should independently verify important information and consult with licensed advisors before making investment decisions.
See our AI Chatbot Disclaimer for complete terms and limitations.
10. Financial Suitability
10.1 Suitability Determination
YOU ARE SOLELY RESPONSIBLE FOR DETERMINING WHETHER AUTOMATED TRADING IS SUITABLE FOR YOU. Before using our Services, you should carefully consider:
Your investment objectives
Your risk tolerance
Your financial situation and ability to sustain losses
Your investment time horizon
Your understanding of securities, options, and margin trading
Your understanding of automated trading systems
10.2 Minimum Account Recommendation
WE RECOMMEND A MINIMUM ACCOUNT SIZE OF $25,000. This recommendation is based on:
Pattern day trader equity requirements
Adequate margin cushion to withstand normal market fluctuations
Sufficient capital to properly diversify across positions
Buffer against margin calls during volatile periods
Trading with less than the recommended minimum significantly increases your risk of margin calls, trading restrictions, and amplified percentage losses.
10.3 Seek Professional Advice
We strongly encourage you to consult with a qualified financial advisor, tax professional, and/or attorney before using our Services to determine whether automated trading is appropriate for your situation.
11. Acknowledgment and Acceptance of Risks
BY USING QUANTARA CAPITAL'S SERVICES, YOU ACKNOWLEDGE AND AGREE THAT:
You have read and understand this entire Risk Disclosure Statement.
You understand that trading in securities and options involves substantial risk of loss, including the potential loss of your entire investment and, in some cases (such as margin trading and options writing), losses exceeding your initial investment.
You understand that past performance is not indicative of future results.
You understand that automated trading systems carry unique risks, including technology failures, execution delays, and the absence of pre-trade review.
You understand that trades will be executed in your account automatically without your prior approval.
You have the financial resources to sustain potential losses and are trading only with risk capital you can afford to lose.
You are solely responsible for selecting strategies appropriate for your situation.
You understand that Strategy Managers are independent contractors who are not vetted, approved, or supervised by Quantara Capital.
You understand that you assume all risks associated with Strategy Manager selection, including fraud, incompetence, and abandonment.
You understand that the AI chatbot provides informational content only and does not provide investment advice.
You will monitor your account and positions regularly.
Quantara Capital is a technology platform provider, not an investment adviser, and does not provide personalized investment advice.
You have had the opportunity to ask questions and seek independent professional advice before using our Services.
Electronic Signature and Consent
By checking the box below and clicking "I Agree" (or similar acceptance mechanism), you confirm that:
You have read, understood, and agree to this Risk Disclosure Statement
You acknowledge all risks described herein
You consent to engage in automated trading through our platform
You meet the eligibility requirements to use our Services
☐ I HAVE READ, UNDERSTAND, AND ACCEPT THE RISKS DESCRIBED IN THIS RISK DISCLOSURE STATEMENT.
Contact Us:
Quantara Capital
30 Wall Street, 8th Floor
New York NY, 10005
inquiries@quantaracapital.ai
No noise. No black boxes.
Just disciplined, AI‑driven strategies.
