Quawd · Legal

Trading Risk Disclosure

Quawd Trading Risk Disclosure

Version: 0.3 Last updated: 2026-05-08

Read this document carefully before using the Quawd Platform (the "Service") to design, test, or execute any trading strategy. Trading involves substantial risk and is not suitable for every investor. By using the Service you acknowledge that you have read and understood the risks described below.

1. General Risk of Trading

All trading involves a substantial risk of loss. You can lose some or all of the funds you commit to a strategy, and in certain circumstances you can lose more than you commit (for example, if you trade on margin or with leverage at your brokerage). The value of financial instruments fluctuates and prices can move sharply against you. You should not commit funds to a strategy that you cannot afford to lose.

You are solely responsible for the strategies you build, the parameters you choose, and the trades that result from running them. Quawd does not guarantee profitability and does not absorb any trading losses on your behalf.

2. Algorithmic Trading Risk

Strategies executed through the Service are algorithmic — they place orders automatically based on rules you configure. Algorithmic strategies introduce specific risks beyond manual trading:

Model risk. A strategy may be incorrectly specified, may rely on assumptions that break in live markets, or may fit historical noise rather than true patterns.
Overfitting. Backtesting many strategy variants and selecting the best-performing one biases expected live performance downward. A strategy that looks excellent in backtest will, on average, perform worse live than the backtest suggests.
Look-ahead and survivorship bias. Historical data may include information not actually available at the time of the simulated trade, or may exclude assets that delisted, inflating apparent performance.
Execution risk. A strategy may issue orders too fast, too slow, in unintended sizes, or in ways that interact poorly with current market liquidity. The Service makes its best effort to translate strategy logic into orders, but execution semantics differ between brokers and may differ between simulation and live.
Latency, queue position, and market impact. Live markets fill in queues; backtests do not. A strategy that appears profitable assuming immediate fills may be unprofitable when subject to real queue position and adverse selection.

3. Hypothetical Performance — Inherent Limitations

Backtest and paper-trading results shown by the Service are hypothetical. Hypothetical results have inherent limitations, including:

They are designed with the benefit of hindsight.
They do not represent actual trading and do not bear the impact of real market liquidity, slippage, partial fills, queue position, routing, or fees in the way live trading would.
They may not reflect the impact of changes in market structure, fees, or regulations during the simulated period.
The act of selecting a strategy after observing its hypothetical results biases expected live performance downward.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Past performance, including hypothetical performance, does not guarantee future results. This warning applies to every backtest, paper-trading session, equity curve, summary metric (Sharpe ratio, max drawdown, win rate, total return, profit factor, and so on), exported report, and shareable result link produced by the Service.

4. Brokerage Risk

When you connect a brokerage account to the Service:

Quawd does not custody your funds. All funds and securities remain at your brokerage at all times. Quawd has no control over fund movement.
Your brokerage is your counterparty. Order execution, custody, margin lending, and settlement are services your brokerage provides under its own customer agreement. Quawd is not party to that agreement.
Brokerage outages and API failures do occur. A broker outage may cause a strategy to fail to execute, to execute with delay, or to operate on stale state. Quawd cannot prevent or remediate outages at your brokerage.
Margin and leverage. If your brokerage account is margin enabled, losses can exceed your invested capital and you may receive margin calls. The Service does not control your margin status or position-size limits except as you configure into a Strategy.
Pattern day trader, position limits, and exchange rules. Your trading is subject to your brokerage's and exchange's rules. The Service does not enforce these rules; your brokerage does.

5. No Investment Advice; No Suitability Determination

The Service is a tool, not an investment adviser. Quawd does not recommend any Strategy, asset, or trade as suitable for you, and does not evaluate any Strategy against your financial situation, goals, or risk tolerance. The in-product configuration assistant ("Quawd Bot") is scoped to technical strategy parameters; it has no access to your account holdings, financial situation, goals, age, income, or risk tolerance and is prompted to refuse questions about asset allocation, position sizing relative to your net worth, or suitability.

Nothing produced by the Service — including Quawd Bot, backtest results, paper-trading results, or any compiled Strategy — is personalized investment advice. You should consult your own qualified financial, legal, and tax advisers before making any investment decision.

6. Cybersecurity, Connectivity, and Operational Risk

Use of the Service depends on internet connectivity and on systems operated by Quawd, your brokerage, exchanges, and third parties. System failures, network outages, denial-of-service attacks, data delays, market data errors, or any similar event may cause a strategy to behave unexpectedly, fail to execute, execute incorrectly, or execute unintended trades. You are responsible for monitoring your brokerage account and taking corrective action when needed.

You are responsible for the security of your own credentials, including your Account password and any API keys. Compromise of your credentials may allow unauthorized parties to access your Account or your connected brokerage.

7. Data Quality

Strategies are evaluated against market data provided by Quawd's data partners. Market data can contain errors, gaps, late or revised prints, and similar issues. A strategy that relies on specific data values may behave differently than expected if data quality changes, and historical results may be revised.

8. Regulatory Risk

Trading laws, tax laws, brokerage regulations, and exchange rules change. A Strategy that is permissible today may be restricted or prohibited tomorrow. You are responsible for ensuring that your use of the Service complies with all laws and rules applicable to you. This is particularly important for cross-border use, derivatives trading, short selling, and any activity involving leverage.

9. Tax

The Service does not provide tax advice. Trading activity may generate taxable events, and the tax treatment of those events depends on your jurisdiction and circumstances. You are responsible for reporting and paying any applicable taxes. Consult a qualified tax adviser.

10. No Guarantee

Quawd makes no representation, warranty, or guarantee that any Strategy will be profitable, that any backtest result will be reproducible in live trading, or that the Service will be free from errors or interruptions. Use of the Service is at your own risk.

11. Acknowledgment

By using the Service, you acknowledge that:

You have read and understand this Trading Risk Disclosure.
You understand that you can lose some or all of the funds you commit to a Strategy.
You are solely responsible for the Strategies you build and the trades they execute on your behalf.
You understand that hypothetical performance has inherent limitations and does not guarantee future results.
You are not relying on Quawd, the Service, or Quawd Bot for investment, legal, tax, or accounting advice.

If you do not understand or do not accept any of the above, do not use the Service.

12. Contact

Questions about this Disclosure: Email: david@quawd.bot

End of Trading Risk Disclosure.