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Risk Disclosure

Last Updated: December 23, 2025

IMPORTANT WARNING

Trading futures, forex, stocks, and options involves substantial risk of loss and is not suitable for every investor. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Please read this entire disclosure carefully before engaging in any trading activity.

General Risk Disclosure

Trading in financial markets carries a high level of risk and may not be suitable for all investors. The high degree of leverage that is often obtainable in trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains.

Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

No Guaranteed Returns

There are no guarantees of profit or success in trading. Past performance is not indicative of future results. Any trading results shared, including those of the instructor or other members, should not be interpreted as typical, expected, or guaranteed outcomes.

Individual results will vary based on market conditions, capital allocation, risk management, discipline, and numerous other factors outside of our control.

Educational Content Only

All information provided by JacobTradesz is strictly for educational purposes. Nothing we provide constitutes:

  • Financial advice or recommendations
  • Investment advice or portfolio management
  • Trading signals or guaranteed strategies
  • Legal, tax, or accounting advice
  • A solicitation to buy or sell any financial instruments

You are solely responsible for evaluating the merits and risks of any trading strategy or investment and for making your own independent decisions.

Hypothetical Performance

Hypothetical or simulated performance results have certain inherent limitations. Unlike actual performance records, simulated results do not represent actual trading and may not reflect the impact of material economic and market factors on actual trading.

Simulated results are also achieved through retroactive application of a strategy designed with the benefit of hindsight and do not account for slippage, commissions, or other real-world trading costs.

Prop Firm Trading Risks

If you choose to trade with proprietary trading firms, understand that:

  • You must pass evaluation phases which have specific rules and requirements
  • Violation of rules can result in account termination and loss of evaluation fees
  • Not all traders who pass evaluations will receive payouts
  • Prop firm policies, rules, and payment structures can change at any time
  • You are trading with simulated funds during evaluations, not real capital
  • Some prop firms have higher failure rates than disclosed success rates

Market Volatility

Financial markets are inherently volatile and unpredictable. Factors affecting markets include:

  • Economic data releases and central bank policies
  • Geopolitical events and global crises
  • Market sentiment and mass psychology
  • Liquidity conditions and institutional positioning
  • Unexpected news events and "black swan" occurrences

These factors can cause rapid and substantial price movements that may result in significant losses.

Leverage Risks

Trading on margin and using leverage magnifies both potential gains and losses. A relatively small market movement can have a proportionally larger impact on your account. You may sustain losses that exceed your initial investment.

You should maintain adequate capital in your account to maintain positions and avoid forced liquidation. If the market moves against your position, you may be required to deposit additional funds on short notice.

Technical and Platform Risks

Trading platforms and technology systems are subject to potential failures, including:

  • Internet connectivity issues
  • Platform outages or technical malfunctions
  • Order execution delays or failures
  • Data feed errors or pricing discrepancies
  • Cybersecurity threats and unauthorized access

You accept these risks and agree that we are not responsible for any losses resulting from technical failures.

Emotional and Psychological Factors

Trading can be psychologically demanding and emotionally stressful. Common psychological challenges include:

  • Fear and greed affecting decision-making
  • Revenge trading after losses
  • Overconfidence following winning streaks
  • Analysis paralysis and inability to execute
  • Stress, anxiety, and impact on mental health

You should only trade if you can handle these emotional demands and maintain discipline under pressure.

Regulatory Considerations

JacobTradesz is not a registered investment advisor, broker-dealer, or financial institution. We do not provide financial advice or manage client funds. You should consult with licensed financial professionals before making investment decisions.

Trading regulations vary by jurisdiction. It is your responsibility to ensure compliance with all applicable laws and regulations in your country or region.

Tax Implications

Trading activities may have tax consequences. Different jurisdictions treat trading income differently, and you may be subject to capital gains taxes, income taxes, or other tax obligations. You should consult with a qualified tax professional regarding your specific situation.

Personal Responsibility

By using our services, you acknowledge and accept that:

  • You are solely responsible for all trading decisions and their outcomes
  • You will not hold JacobTradesz liable for any trading losses
  • You have sufficient knowledge and experience to evaluate the risks
  • You are trading with risk capital you can afford to lose
  • You have read and understood this entire risk disclosure
  • You agree to conduct your own due diligence and research

Seeking Professional Advice

If you are uncertain about any aspect of trading or how it may affect you, we strongly recommend seeking advice from independent financial, legal, and tax advisors before proceeding.

Acknowledgment

By accessing and using JacobTradesz services, you acknowledge that you have read, understood, and agree to this Risk Disclosure in its entirety. You accept full responsibility for your trading decisions and outcomes.

Questions

If you have any questions about these risks or this disclosure, please contact us via Twitter at @jacobtradesz before using our services.