General warning. Past performance of any strategy, algorithm or market does not predict future results. No part of this platform guarantees profit or capital preservation, and nothing on this site should be read as investment advice.
Market risk
Prices move, sometimes violently, and positions lose value when they move against you.
Liquidity risk
Orders cannot always be filled at the price you see.
API & integration risk
Automated trading depends on connections that can break.
Counterparty risk
Funds held at third parties carry third-party risk.
Operational risk
Software and infrastructure can fail at the worst moment.
Cyber risk
Accounts are attacked; protection is layered but never absolute.
1. Introduction: risk is part of the deal
Every section below follows the same pattern: what the risk is, and one practical step that reduces it. None of the steps eliminate risk — nothing does. The goal is to trade with eyes open: understand what can go wrong, decide how much of it you can afford, and never fund an account with money you need for rent, food or debts.
2. Market risk
Crypto markets are volatile: double-digit daily moves happen, and events — regulatory news, exchange incidents, macroeconomic data — can reprice assets in minutes. An automated strategy follows its rules mechanically, which limits panic but does not limit losses: if the market moves against an open position, the loss is real, automation or not.
What helps: set the risk limits in your account before you start, size positions so a bad day is survivable, and remember that leverage, where used, multiplies losses exactly as it multiplies gains.
3. Liquidity risk
Liquidity is how easily an asset can be bought or sold without moving its price. In thin markets, an order fills partially or at a noticeably worse price than expected — the difference is called slippage. During fast moves, liquidity can vanish: the exit you see on the chart may not exist at the size you need.
What helps: prefer strategies on liquid assets during volatile periods, and treat backtest results that ignore slippage with scepticism.
4. API and integration risks
Automated trading runs through API connections to exchanges. Connections drop, exchanges throttle or pause endpoints, keys expire, and a misconfigured permission can silently disable a strategy. An interruption mid-position leaves the strategy blind exactly when decisions matter.
What helps: create API keys with withdrawal rights disabled, verify permissions after any exchange maintenance, and check the platform's connection status after installing updates.
5. Counterparty risk and custody of funds
Trading happens at third parties: exchanges, liquidity providers, payment processors. Each carries its own risk — an exchange can be hacked, freeze withdrawals or fail. Where funds are held with a counterparty, that counterparty's problems become your problems, regardless of how well the strategy performed.
What helps: keep only the working balance on trading venues, withdraw profits on a schedule, and read the withdrawal policy so the process is familiar before you need it.
6. Operational risks
Software has bugs, servers restart, databases fail over, and updates occasionally break things at 3 a.m. Operational risk is the chance that the machinery of trading — not the market — causes the damage: a strategy that kept a position open because its stop signal never arrived, or a dashboard that showed stale prices.
What helps: strategies include protective stops executed server-side where possible; know how to pause your strategies manually, and treat unexplained behaviour as a reason to stop, not to wait.
7. Cybersecurity and phishing
Accounts with money attract attackers. The common vectors are phishing pages that copy the sign-in screen, "support agents" who ask for 2FA codes, and malware that reads credentials from the browser. No platform feature can compensate for a password handed to the wrong person.
What helps: a unique password you use nowhere else, 2FA enabled, sign-in notifications turned on, and a standing rule that no legitimate employee will ever ask for your password or codes. The Security page has the full checklist.
8. Model and automation limits
The algorithmic models behind automated strategies are built on historical data. Markets change character — correlations break, volatility regimes shift — and a model that performed well can stop working without notice. Automation also removes the human hesitation that sometimes prevents the worst decisions, which cuts both ways.
What helps: judge strategies on months, not days; diversify across strategies with different approaches; and treat any result — good or bad — as information, not destiny.
9. Service availability
The platform undergoes maintenance, and outages happen despite redundancy: during an outage you may be unable to change settings, pause a strategy or request a withdrawal until service is restored. Exchange-side outages have the same effect even when the platform itself is up.
What helps: positions carry server-side risk controls that do not depend on your browser being open; subscribe to status notifications if you run size, and plan changes for calm periods rather than during market events.
10. Before you start
Three closing steps. First, understand the strategy you are enabling — its assets, its risk limits, its worst historical drawdown. Second, decide your maximum acceptable loss in money, not percentages, and configure limits accordingly. Third, protect the account itself: 2FA on, sign-in notifications on, and API withdrawal rights off. Risk can be managed, and managing it is what makes the difference between trading and gambling.