# Risks & Disclaimer

> **Read this page in full before enabling LIVE or switching to Full-Auto.**\
> Using Auto Trade means you accept responsibility for all outcomes resulting from your configuration choices, your exchange account, and the inherent risks of leveraged futures trading.

***

### 1. General trading risk

Futures trading with leverage is one of the highest-risk activities in financial markets. The following apply regardless of whether you use automation:

* **Leverage multiplies losses as much as it multiplies gains.** A position at 10× leverage only needs a 10% adverse move to lose your entire margin allocation on that trade.
* **Liquidation is real.** If the market moves against you and your margin drops below the maintenance requirement, the exchange will forcibly close your position — potentially at a loss exceeding your initial collateral.
* **Funding rates can silently drain a position.** In trending markets, funding can accumulate overnight and reduce your effective PnL even on a winning trade.
* **Slippage and fees reduce all results.** Signal entry prices are calculated at signal time. Your actual fill may differ due to spread, liquidity, and execution latency.
* **Past performance does not predict future results.** Historical signal accuracy, backtest results, or any statistics shown in the app are not a guarantee or even a reliable estimate of future returns.

***

### 2. Signal risk

mrD signals are generated by a quantitative engine processing real market data. They are **not infallible**:

* Signals can fire **in the wrong direction** during abnormal market conditions (flash crashes, low liquidity, news events, exchange anomalies).
* A signal that was correct at fire time can become invalid within seconds if the market moves sharply before your orders are filled.
* **No signal system has a 100% win rate.** Consecutive losses are expected over any sample of trades — this is normal statistical variance, not a system failure.
* AI score and analysis features are **probabilistic outputs**, not financial advice. A high AI score does not guarantee profit; a low score does not guarantee a loss.

***

### 3. Semi-Auto risks

Even with manual approval enabled, risks remain:

| Risk                             | Description                                                                                                                                     |
| -------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------- |
| **Approval delay**               | A signal may still be valid when you see it — or it may have already moved against you. Approving late increases slippage risk.                 |
| **Signal expiry**                | Signals have a validity window. If you do not act in time, the entry zone may no longer be available on the exchange.                           |
| **Misreading the signal**        | Approving a SELL when you intended BUY, or entering the wrong size, can cause unintended exposure.                                              |
| **Distraction / missed signals** | Relying on Semi-Auto while doing other things means signals may pile up unanswered, or you may approve under distraction without proper review. |

***

### 4. Full-Auto risks — read carefully

Full-Auto is the highest-risk mode. **Orders are placed and managed without your per-signal approval.** Every risk below applies from the moment you turn LIVE on.

#### 4.1 You will not be asked before orders are placed

In Full-Auto mode, the system acts immediately when a signal passes your configured filters. There is no confirmation dialog, no delay, and no manual step between signal arrival and order submission to Binance. If your configuration is wrong, **many trades can be placed before you notice**.

#### 4.2 Misconfiguration risk is amplified

Small errors in Trade Config have large consequences in Full-Auto:

| Misconfigured setting           | Possible outcome                                                                                                  |
| ------------------------------- | ----------------------------------------------------------------------------------------------------------------- |
| **Leverage set too high**       | Every AUTO position is opened with excessive leverage; a single adverse move causes liquidation                   |
| **Max open positions too high** | The bot opens 20+ positions simultaneously; total margin usage exceeds your balance                               |
| **Whitelist too broad**         | Low-liquidity or volatile coins are traded; fills are poor and stop-losses may gap through                        |
| **AI score threshold too low**  | Low-confidence signals are executed; win rate drops, drawdown increases                                           |
| **TP volume allocation wrong**  | Too much size at TP1 means you exit early and miss larger moves; too little means partial exits don't reduce risk |
| **SL too tight**                | Normal market noise triggers stop-losses on otherwise valid trades                                                |
| **SL too wide**                 | Losing trades run far beyond intended risk per trade                                                              |

**Test every configuration change in Semi-Auto first.** Only switch to Full-Auto after confirming the settings behave as expected.

#### 4.3 Rapid consecutive signals

In volatile markets, the signal engine may fire multiple signals within a short window. In Full-Auto, each one can result in an order. Without position count limits and whitelist filters properly set, you may end up with:

* Multiple open positions on the same or correlated assets
* Total margin usage far above your intended risk budget
* Difficulty managing or closing positions quickly when the market moves

#### 4.4 No human review of each trade

You will not see each trade before it happens. If a signal is incorrect, the position is entered before you can intervene. The only reliable protection is:

1. **Correct Trade Config** before going LIVE
2. **Narrow whitelist** — only coins you are comfortable holding in a leveraged loss
3. **Hard leverage cap** — never set leverage higher than you can afford to lose on every active position at once
4. **The LIVE kill switch** — one click stops all new signal processing; practice using it before you need it

#### 4.5 The LIVE kill switch does not close existing positions

Turning **LIVE OFF** stops the system from processing **new** signals. It does **not** close positions that are already open. If you have 10 open positions when you hit OFF, those 10 positions remain open on Binance until they hit TP, SL, or you close them manually.

> **In an emergency:** Turn LIVE OFF → go to your Binance account directly → close positions there if needed. Do not assume the app will close them for you.

#### 4.6 Network and connectivity failures in Full-Auto

Full-Auto is especially vulnerable to connectivity issues because there is no human in the loop to compensate:

* If the **signal WebSocket disconnects** (OFFLINE shown), new signals are not received. Existing positions continue to run with whatever SL/TP orders are already on the exchange.
* If **your device sleeps or loses power**, the app stops. Orders already on Binance remain, but no new management actions (e.g., trailing stop updates) will be sent until you reconnect.
* If the **Binance API is temporarily unavailable**, order submissions may fail silently or be queued. The app may show an error — check the Running Positions tab and Binance directly.

Always ensure a **stable internet connection** and consider keeping the app active on a dedicated device or browser tab when running Full-Auto.

#### 4.7 Exchange-side events

The exchange can act independently of the app:

* **Delisting or halting a coin** can strand an open position
* **Forced liquidations** happen on the exchange side; the app has no control over exchange risk engines
* **API rate limits** can delay or reject orders during high-market-activity periods
* **Margin rule changes** (maintenance margin increases, maximum leverage reductions) can affect open and future positions

***

### 5. API keys & account security

* Your Binance API keys grant the app the ability to **read your account** and **place/cancel orders** on your behalf.
* **Never share your API keys** with anyone. Treat them with the same care as a password.
* Use **IP whitelisting** on Binance to restrict which servers can use your keys.
* If you suspect your keys are compromised, **revoke them immediately on Binance** — do not wait.
* The app does not store your keys in a recoverable way, but your device, browser, and network are your responsibility.

***

### 6. Manual overrides and chart adjustments

Dragging SL or TP lines on the chart, or using close/adjust actions in the Positions panel, sends real orders to Binance immediately:

* Dragging **SL upward** on a long position moves your stop closer to current price — you may be stopped out sooner than intended
* Dragging **TP downward** reduces your profit target
* **Closing a position** from the panel sends a market order — you will receive the current market price, which may include slippage
* Any manual override that contradicts your Trade Config settings may cause the automated system to behave unexpectedly on subsequent signals for the same symbol

***

### 7. No investment advice

This documentation and the Auto Trade interface are provided for **operational guidance only**. Nothing in this documentation, in the app UI, or in any signal, score, analysis, or AI output constitutes:

* Personal investment advice
* A solicitation to buy or sell any financial instrument
* Tax advice
* Legal advice

Consult a licensed financial professional before making significant trading or investment decisions.

***

### 8. Your responsibility

By enabling LIVE, you confirm that you:

1. Have read and understood this page
2. Understand that **you are responsible** for your Trade Config, your API key access, and the decisions made by the automated system on your behalf
3. Accept that **signals can be wrong**, automation can behave unexpectedly, and **losses can and do occur**
4. Are operating within the legal and regulatory framework of your jurisdiction
5. Have reviewed your exchange's own risk disclosures and terms of service

**The mrD team does not manage your account, monitor your positions, or accept liability for trading outcomes.**

***

### Quick checklist before enabling Full-Auto

* [ ] I have tested my configuration in Semi-Auto, and it behaves as expected
* [ ] My leverage setting is one that I can absorb losing on every open position simultaneously
* [ ] I have set a **max open positions** limit I am comfortable with
* [ ] My **whitelist** contains only coins I have intentionally selected
* [ ] My **AI score threshold** is high enough to filter low-confidence signals
* [ ] I have a stable internet connection, and my device will not sleep
* [ ] I know how to use the **LIVE kill switch** and where to find it
* [ ] I know how to **close positions on Binance directly** if needed
* [ ] I have read the Getting Started and Trade configuration pages

***

*For configuration details, see* [*Trade configuration.*](/auto-trade/auto-trade-config.md)\
\&#xNAN;*For a guided setup walkthrough, see* [*Getting started.*](/terminal/overview.md)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.mrd-indicators.com/auto-trade/risks-and-disclaimer.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
