⚠️ Risk Disclosure Statement

Last Updated: January 18, 2026

🚨 CRITICAL WARNING 🚨

TRADING AND INVESTING INVOLVE SUBSTANTIAL RISK OF LOSS.

You can lose SOME OR ALL of your invested capital. With certain instruments (options, futures, margin), you can lose MORE THAN your initial investment.

NEVER TRADE WITH MONEY YOU CANNOT AFFORD TO LOSE.

1. Understanding the Risks

Before using Aftermath Analytics or engaging in any trading activity, you MUST understand and accept the following risks:

1.1 Market Risk

Securities, options, futures, forex, and cryptocurrency markets are volatile and unpredictable.

Prices can move rapidly in either direction
Market conditions can change without warning
Volatility can increase dramatically during news events, earnings, or crises
Gaps (price jumps) can occur overnight or during low liquidity periods

Historical Example: During the 2020 COVID crash, the S&P 500 fell 34% in 23 days. Many traders experienced catastrophic losses.

1.2 Leverage Risk

Trading with leverage amplifies both gains AND losses.

Margin Trading: Borrowing money to trade can result in losses exceeding your account balance
Options: Can expire worthless, resulting in 100% loss of premium paid
Futures: Small price movements can lead to substantial losses due to leverage
Crypto Leverage: Some exchanges offer 100x leverage, which can wipe out accounts in seconds

Example: A $10,000 account with 10x leverage becomes $100,000 in buying power. A 10% adverse move wipes out the entire account.

1.3 Liquidity Risk

You may be unable to exit a position at your desired price
Low-volume securities may have wide bid-ask spreads
During market crashes, liquidity can evaporate instantly
Stop-loss orders may not execute at intended prices (slippage)

1.4 Counterparty Risk

Broker Failure: Your broker could go bankrupt (SIPC insurance covers up to $500k, but not all losses)
Exchange Failure: Crypto exchanges have failed, resulting in total loss of funds
Clearing House Risk: In extreme events, clearing houses can fail

1.5 Systematic Risk

Economic recessions, wars, pandemics can cause broad market declines
Interest rate changes can affect all asset classes
Regulatory changes can impact entire sectors overnight
No diversification can eliminate systematic risk

2. Specific Instrument Risks

2.1 Stocks & ETFs

Individual stocks can go to zero (bankruptcy risk)
Sector-specific ETFs can decline 50%+ during downturns
Dividend cuts can cause sharp price drops
Earnings misses can result in -20% single-day moves

2.2 Options

Buyers: Options can expire worthless (100% loss of premium)
Sellers: Unlimited loss potential on naked calls
Theta Decay: Time value erodes daily, even if you're directionally correct
Implied Volatility (IV) Crush: Options can lose value after earnings even if the stock moves your way

Statistic: Studies show that approximately 75% of options expire worthless, resulting in total loss for buyers.

2.3 Futures

High leverage (often 10:1 to 50:1) magnifies losses
Margin calls can force liquidation at unfavorable prices
Overnight gaps can bypass stop-losses
Contract rollovers can cause unexpected losses

2.4 Forex

Extreme leverage (up to 500:1 in some jurisdictions)
24-hour markets mean positions are at risk overnight
Currency interventions by central banks can cause violent moves
Geopolitical events can trigger flash crashes

2.5 Cryptocurrency

Extreme Volatility: 20-50% daily swings are not uncommon
Regulatory Risk: Governments can ban or heavily regulate crypto
Hacking Risk: Exchanges and wallets can be hacked
Zero Intrinsic Value: Crypto has no cash flows or assets backing it
Manipulation: Low liquidity makes manipulation easier

Example: Bitcoin fell from $69,000 to $15,000 (-78%) in 2022. Many altcoins lost 90%+ of their value.

3. Risks Related to Aftermath Analytics

3.1 Technology Risk

Our software may contain bugs or errors
Data feeds may be delayed, inaccurate, or incomplete
Service outages may prevent you from accessing information
Backtested results are hypothetical and do not reflect real trading

3.2 Model Risk

AI Predictions: AI models can be wrong, often spectacularly
Overfitting: Strategies that worked historically may fail in the future
Regime Changes: Market dynamics change, rendering past patterns useless
Black Swan Events: Models fail during unprecedented events (2008, COVID)

3.3 Interpretation Risk

You may misinterpret signals or data
Confirmation bias may lead you to see what you want to see
Information overload can cause analysis paralysis or rash decisions

4. Past Performance Disclaimer

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

Historical backtests are hypothetical and do not represent actual trading
Backtests do not account for slippage, commissions, or market impact
Survivorship bias: Failed strategies are not shown
Curve fitting: Strategies can be optimized to look good on historical data but fail in real-time
Market conditions change, and historical patterns may never repeat

Example: A strategy with a 90% win rate in backtests could fail immediately in live trading due to changed market conditions.

5. No Guaranteed Returns

WE MAKE NO GUARANTEES ABOUT PROFITABILITY.

Any "expected moves," "win rates," or "signals" are educational estimates only
Success rates shown in examples are not guarantees
AI-generated recommendations can be completely wrong
Even "high probability" trades can and do lose

6. Psychological Risks

Emotional Trading: Fear and greed can cause irrational decisions
Overtrading: Access to tools can lead to excessive trading and losses
Revenge Trading: Trying to recover losses often leads to bigger losses
Overconfidence: Success can lead to recklessness and eventual blow-up

7. Statistical Reality of Retail Trading

Studies show that:

70-90% of retail day traders lose money
Only 1-5% of traders are consistently profitable long-term
The average retail trader underperforms a buy-and-hold strategy
Transaction costs (commissions, spreads, slippage) erode returns significantly

8. Regulatory Disclaimer

Aftermath Analytics is NOT a registered investment advisor, broker-dealer, or financial advisor.

We are not regulated by the SEC, FINRA, CFTC, or any financial authority
We do not provide personalized investment advice
We do not recommend specific securities for your individual situation
You should consult a licensed financial advisor before trading

9. Your Acknowledgment

By using Aftermath Analytics, you acknowledge and agree that:

You have read and understood this Risk Disclosure Statement
You accept the substantial risks of trading and investing
You are using the Service for educational purposes only
You will make your own independent investment decisions
You will not hold Aftermath Analytics liable for any trading losses
You are trading with risk capital you can afford to lose
You understand that professional traders with decades of experience still lose money regularly

🚨 FINAL WARNING 🚨

IF YOU CANNOT ACCEPT THESE RISKS, DO NOT USE THIS SERVICE.

IF YOU CANNOT AFFORD TO LOSE MONEY, DO NOT TRADE.

Trading is not a get-rich-quick scheme. Most people lose money. The odds are against you. Proceed with extreme caution.

10. Contact

For questions about risks, contact us at: risk@aftermathanalytics.com

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