Market risk
Cryptocurrency markets are volatile and can move sharply with little warning. Automation executes your configured strategy faster and more consistently than a human could — it does not predict the market or eliminate the possibility of loss.
- Sudden liquidity gaps can cause orders to fill at a worse price than expected.
- A backtest showing strong historical performance is not a guarantee of future results.
- Exchange outages or API failures can delay or prevent a bot from closing a position.
Leverage and liquidation risk
Futures trading with leverage multiplies both gains and losses. Higher leverage means a smaller adverse price move can wipe out your allocated margin.
- Only trade with capital you can afford to lose entirely.
- Lower leverage and conservative risk profiles reduce, but do not eliminate, liquidation risk.
- Stop-loss orders can still fill at a worse price than configured during fast-moving markets.