Risk Disclosure

Cryptocurrency markets are extremely volatile and trade continuously, 24 hours a day, 365 days a year. Prices of SOL, BTC, ETH, and other digital assets can move dramatically within minutes in response to market sentiment, liquidity conditions, macroeconomic events, exchange incidents, regulatory announcements, security breaches, or no identifiable reason at all. Digital assets have no intrinsic cash flows, their valuation is contested, and historical price behavior offers limited guidance about future behavior. Sudden gaps, flash crashes, and extended drawdowns are normal features of these markets, not rare exceptions, and they can occur while you are asleep or otherwise unable to react.

The Service trades perpetual futures, which are leveraged derivative instruments. Leverage amplifies both gains and losses: a small adverse price movement produces a proportionally much larger loss on a leveraged position. If the market moves against a position far enough, the position will be liquidated — closed forcibly by the venue — and the margin allocated to it will be lost, in part or in full. Liquidation can occur rapidly during volatile conditions and may happen at prices significantly worse than expected due to slippage and thin liquidity. Perpetual futures also carry funding-rate costs that accrue over time and can erode the value of positions even when the price does not move against them. Risk controls such as stop-losses and daily loss limits are executed on a best-effort basis and reduce, but do not eliminate, these risks — in fast or illiquid markets, exits may fill at materially worse prices than configured, or may not fill in time at all.

The Service executes trades algorithmically, without asking you to confirm each decision. Automated strategies are built on assumptions about market behavior, and markets can and do behave in ways that break those assumptions. A strategy that has performed well in one market regime can perform poorly — including losing money persistently — in another. Automation also means that losses can accumulate without your active involvement: the bot may open, hold, and close positions at any hour. By funding a bot wallet you accept that trading decisions are made by software operating under our management, that no strategy works in all conditions, and that sustained drawdowns, losing streaks, and capital loss are possible outcomes of normal operation.

Nothing displayed on the Service is a promise of future results. Performance figures, win rates, trade histories, statistics, and charts shown on the website or dashboard may be historical, simulated, backtested, or otherwise illustrative, and are provided for informational and demonstration purposes only. Simulated or illustrative results have inherent limitations: they do not reflect actual capital at risk, may not account for slippage, fees, funding costs, or liquidity constraints, and tend to look better than live trading under identical conditions. Past performance — whether real or simulated — is not indicative of future results, and you should not subscribe or size your allocation based on displayed performance figures.

Your bot wallet is custodial: LucidexBot generates and holds the private keys, and you do not have independent access to move the funds yourself. Although key material is encrypted at rest and protected by the safeguards described in our Privacy Policy, custody concentrates risk: a compromise of our systems, loss of encryption keys, operational error, or insolvency of the operation could result in partial or total loss of the funds held in bot wallets. Self-service withdrawals are not yet available, so retrieving funds currently requires a manual request processed by our team, which takes time and depends on our continued operation. You should treat funds in your bot wallet as exposed to counterparty risk against LucidexBot itself, in addition to market risk.

The Service depends on a chain of technical systems: our own software and servers, the Solana blockchain, derivatives trading venues, price oracles and market data feeds, RPC providers, and hosting infrastructure. Any of these can fail, be congested, return incorrect data, or become temporarily unavailable. Network outages, blockchain congestion or halts, exchange downtime, oracle mispricing, software bugs, and failed or delayed transactions can each cause missed entries, missed exits, unhedged exposure, incorrect position sizing, or losses that would not have occurred otherwise. While we monitor and maintain our systems, we cannot guarantee uninterrupted or error-free operation of the Service or of any third-party system it depends on.

Positions are opened on third-party trading venues and protocols that we do not control. These venues carry their own risks, including smart contract vulnerabilities, economic exploits, governance failures, insurance fund shortfalls, auto-deleveraging mechanisms that can close profitable positions early, withdrawal suspensions, and insolvency. A failure at a venue holding open positions or collateral could result in losses unrelated to the performance of the trading strategy itself. Stablecoins or other assets used as collateral, where applicable, can deviate from their intended value.

The legal and regulatory treatment of digital assets, derivatives, and automated trading services is unsettled and varies significantly between jurisdictions. Laws, regulations, and enforcement priorities can change quickly, and such changes could restrict or prohibit your ability to use the Service, our ability to operate it, or the operation of the underlying venues and networks — potentially with little or no notice. You are solely responsible for determining whether your use of the Service is lawful where you live and for any tax obligations arising from your trading activity. We may restrict the Service in particular jurisdictions, or modify or discontinue features, in response to legal or regulatory developments.

Funds held in your bot wallet and positions opened by the Service are not bank deposits and are not protected by any government deposit insurance or investor compensation scheme (such as FDIC or SIPC coverage, or equivalents in other jurisdictions). LucidexBot does not maintain insurance covering user funds. If funds are lost — whether through market losses, technical failure, security breach, or venue insolvency — there is no guarantee fund or protection scheme to make you whole.

Automated leveraged trading is not suitable for everyone. It is appropriate only for people who understand derivatives and digital assets, who have the financial capacity to absorb the total loss of the funds they allocate, and whose financial situation does not depend on those funds. Do not fund a bot wallet with borrowed money, money needed for living expenses, or savings you are not genuinely prepared to lose. If you are unsure whether the Service is appropriate for your circumstances, consult an independent financial adviser before using it. Nothing provided by LucidexBot is financial advice.

By subscribing to the Service and funding a bot wallet, you acknowledge that you have read and understood this Risk Disclosure, that you accept the risks described above and the possibility of losing the entire amount you allocate, and that you are using the Service voluntarily, for your own account, and at your own risk.

Questions about this document can be sent to dev@lucidexbot.com. We aim to respond to all inquiries within a reasonable timeframe.