Crypto Trading: Risk Disclosure

Risk Overview

Investing of any kind carries risk and it is possible to lose some or all of your money. The services provided have inherit risks around the platform and products. We make no representation regarding the likelihood or probability that any actual or hypothetical investment will achieve a particular outcome or perform in any predictable manner.

Statements and depictions are the opinions, findings, or experiences of individuals who generally have purchased the program. Results vary, are not typical, and rely on individual effort, capital, as well as unknown conditions, and other factors. We do not solely measure earnings or financial performance. We track completed transactions and satisfaction of services through voluntary surveys. You should not, however, equate reported sales transactions with financially successful transactions. Further clients that do not continue with the program, or attempt to do what's required to continue to have operations continue for their store hardly see results.

The Company may link to content or refer to content and/or services created by or provided by third parties that are not affiliated with the Company. The Company is not responsible for such content and does not endorse or approve it. The Company may provide services by or refer you to third-party businesses. Some of these businesses have common interests and ownership with the Company.

We emphasize that no information set forth on this website is an invitation to trade any specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to lose. This website does not take into account your own individual financial and personal circumstances. It is intended for educational purposes only and NOT as individual investment advice. Do not act on this information without advice from your investment professional, who you should expect to determine what is suitable for your particular needs and circumstances. Failure to seek detailed professional, personally-tailored advice prior to making any investment could result in actions contrary to your best interests and loss of capital.

Crypto Disclaimer

Required Disclaimer - Trading crypto currency (“crypto”) carries a high level of risk, and may not be suitable for all investors. The high degree of volatility can work against you as well as for you. Before deciding to invest in crypto you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that 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. You should be aware of all the risks associated with forex trading, and seek advice from an independent financial advisor if you have any doubts.

The purchase, sale or advice regarding crypto can only be performed by persons registered with (unless exempt from registration) (i) the CFTC (futures commission merchants, introducing brokers, commodity trading advisors, commodity pool operators, and licensed associated persons of such entities), and/or (ii) the SEC (broker-dealers and/or investment advisers and their licensed associated persons), and (iii) a state regulator (each, an “Intermediary”). Neither we, nor our affiliates or associated persons involved in the production and maintenance of our products and services or this website, is an Intermediary. All purchasers of products and services referenced on this website are encouraged to consult with an investment professional regarding any trading strategy or a particular trade. We make no representation that you will or are likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

Backtesting

CFTC RULE 4.41(b)(1)/NFA RULE 2-29 - SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE BEING SHOWN.

NO REPRESENTATION IS BEING MADE THAT ANY PERSON WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Risk Management in Trading: Understanding the Risks

Trading is a serious financial endeavour that involves investing capital, and as with any investment, there are inherent risks. At Sequence, we prioritize safety measures and implement risk mitigation strategies, but it's important to be aware of the associated risks when using automated trading systems.

Sequence’s Strategy: The Dollar-Cost Averaging (DCA) Approach

Our trading system utilizes a DCA strategy, which does not require a stop-loss feature. While stop-loss orders are common in other trading strategies, our approach relies on consistent and incremental investments to minimize risk. Additionally, we use little to no leverage in our products.

Understanding Derivatives and Collateral

Derivative contracts allow investors to gain exposure to the price movements of an asset without owning it. At Sequence, we use derivatives contracts to gain exposure to Bitcoin without owning the asset (for linear strategies) or using it as collateral (for inverse strategies). Investors must provide collateral to gain this exposure. For inverse perpetual contracts, investors can hold Bitcoin and buy Bitcoin derivatives contracts priced in USD.

Inverse Perpetual and Linear Contracts

Our strategy works with inverse perpetual contracts, which enable investors to hold Bitcoin and buy Bitcoin derivatives contracts priced in USD. Linear contracts, on the other hand, are the contracts used in our USD collateralized derivatives strategy, where investors use USD as collateral to buy USD-priced derivatives contracts.

Understanding Convexity and Leverage

Convexity, in the context of futures contracts, refers to the curvature of the relationship between the futures price and the spot price of the underlying asset. When using collateral from a non-stable asset to buy contracts priced in USD, there are significant risk implications if the market moves against the trade. While leverage can hedge against exchange counterparty risk and offer further upside, it also comes with increased risk due to convexity. We have margin requirements for everyone using derivatives products and do not use more than 1.5x (for inverse contracts - BTC/ETH as collateral) and 2.5x (for linear - USD as collateral) to ensure a wide safety net for our clients.

Spot Counter Trading

Instead of holding margin coins on your exchange account, you can use Sequence's $POT products (minimum required $10,000 per traded pair). This allows you to counter-trade the market with an inverse strategy.

Managing Counterparty Risks in Trading

Counterparty risks can arise from the choice of exchange and stablecoin. At Sequence, we only work with the most reputable and secure exchanges that offer high liquidity and Merkle Tree proof of reserves to mitigate exchange-related risks. For derivative products, we currently only derivative products on Bybit, OKX and Binance. While we offer two of the most trusted and widely-used stablecoins, it's important to note that there are still significant counterparty risks associated with any stablecoin. This is a risk that all traders must take into consideration. By being mindful of these risks and making informed choices, traders can minimize counterparty risks and protect their investments in the volatile world of trading.

More questions?

💌 support@tradewithsequence.com

Sequence is a crypto algo trading software business.All interested parties are to check in advance whether they are legally entitled to purchase the products or activate and/or access services presented on the website/presentation. No recommendations are made to activate this service or invest in any other investment.Access to products and services on this website may be restricted for certain persons or countries. It is your responsibility to make sure that you are abiding to the laws and regulations of your domicile. Sequence offers a signals trading service that is self-custodial. You have full access, rights and understanding close any position at your own discretion, risk and responsibility.We make best efforts to ensure the accuracy and correctness of the information here, we do not accept any liability or responsibility for any errors or omissions.Trading carries risks. Exchanges carry risks. Coins carry risk. DYOR (Do Your Own Research).