If you remember nothing else from this page, remember this: your capital is at risk, target returns are not guaranteed, and you should never invest money you cannot afford to lose.
Capital at risk — read carefully
The value of your investments can go down as well as up. You may not recover the amount originally invested. Target returns are not guaranteed and past performance is not a reliable indicator of future results. Cryptocurrency investments are highly volatile and may result in the total loss of capital.
This Risk Disclosure explains the principal risks associated with investing through the TradersFarm platform. It is not exhaustive — every investment carries its own combination of risks, and the interaction between them can be complex. Our aim is to give you enough information to make an informed decision and to understand that no amount of professional management can eliminate risk entirely.
Principal risks
The following risks apply to investments made through TradersFarm. The list is organised by category; the order does not imply relative importance, as the relevance of each risk depends on your individual portfolio and circumstances.
Market risk
The value of any investment can fall as well as rise in response to market movements. Equities, commodities, currencies, and digital assets are all subject to price volatility that may result in losses exceeding your initial investment in nominal terms before risk controls apply.
Liquidity risk
Some positions cannot be sold immediately at a fair price. Investment plans and vaults have defined durations, and early exit may incur fees or be unavailable. You should not invest capital you may need access to within the lock period.
Cryptocurrency-specific risk
Digital assets are exceptionally volatile and unregulated in many jurisdictions. Individual tokens can lose all value, stablecoins can lose their peg, and custody — even institutional-grade — carries residual operational risk.
No guarantee of returns
Target returns are based on historical performance and current analysis. They are not promises. Actual returns may be materially lower, and capital is at risk.
Past performance disclaimer
Past performance is not a reliable indicator of future results. A strategy that performed well in one market regime may underperform in another, and historical figures should never be read as a forecast.
Investor responsibility
You are responsible for your investment decisions. We provide professional management within agreed mandates, but suitability ultimately depends on your individual circumstances, which only you can fully assess.
Suitability assessment
Our onboarding includes a suitability assessment, but it is not a substitute for independent advice. If you are unsure whether an investment is suitable, consult a qualified adviser licensed in your jurisdiction.
Tax considerations
Investment returns may have tax consequences that vary by jurisdiction. We do not provide tax advice. You are responsible for understanding and meeting your tax obligations.
Market risks in detail
Market risk is the risk that the value of your investments falls because of movements in market prices. It encompasses equity risk (the risk that share prices fall), interest-rate risk (the risk that changes in rates re-price fixed-income holdings), currency risk (the risk that exchange-rate movements erode returns), and commodity risk (the risk that commodity prices move against your positions). Diversification reduces but does not eliminate market risk, because in periods of stress correlations between asset classes can rise sharply — precisely when diversification is most needed.
Drawdowns happen
A drawdown is the decline in value from a peak to a subsequent trough. Even well-constructed portfolios experience drawdowns; this is a normal feature of investing rather than evidence of mismanagement. Our risk controls aim to limit the magnitude and duration of drawdowns, but they cannot prevent them entirely. You should be psychologically and financially prepared to experience drawdowns during your investment horizon.
Liquidity risks in detail
Liquidity risk is the risk that you cannot access your capital when you need it, or that you can only access it on unfavourable terms. Investment plans have defined durations (typically 30–180 days) and early exit may incur a fee of 2–5%. Vault plans are locked for their full duration and do not permit early withdrawal, because the underlying capital is committed to a yield strategy. You should not commit to a lock period any capital you may reasonably need before it ends.
Cryptocurrency-specific risks
High volatility. Cryptocurrencies can lose a substantial proportion of their value — sometimes the majority — within short periods. Individual tokens have lost all value. Even established assets such as Bitcoin have experienced peak-to-trough declines exceeding 70%.
- Custody risk. Although we use institutional-grade cold storage, no custodial arrangement is entirely without operational risk.
- Regulatory risk. The regulatory treatment of digital assets varies by jurisdiction and is evolving. Changes may affect the value, liquidity, or legality of holdings.
- Stablecoin risk. Stablecoins are not risk-free and may lose their peg to the underlying asset, which can affect the value of holdings denominated in them.
- Network risk. Blockchain networks can experience congestion, forks, or failures that delay or prevent transactions.
No guarantee of returns
TradersFarm publishes target returns for each plan based on historical portfolio performance and current market analysis. These targets are not guarantees. Any platform that promises guaranteed high returns is not acting professionally, and we would advise extreme caution in dealing with one. Actual returns are influenced by market conditions and may be higher or lower than target — including materially lower, and including negative.
Investor responsibility & suitability
You are responsible for your investment decisions and for ensuring that any investment is suitable for your circumstances. Our onboarding includes a suitability assessment covering your objectives, time horizon, and risk tolerance, but this is a tool to guide plan selection — not a personalised recommendation or financial advice. If you are in any doubt about the suitability of an investment, you should consult an independent adviser licensed in your jurisdiction.
Tax considerations
Investment returns may give rise to tax liabilities, the nature and amount of which depend on your jurisdiction, residency, and individual circumstances. We do not provide tax advice and nothing on this platform should be read as such. You are responsible for understanding and meeting your own tax obligations, and we recommend consulting a qualified tax adviser where appropriate.
What we do to manage risk
While we cannot eliminate risk, we work to manage it through the practices described on our operations page: diversification, mandate caps, stop-loss discipline, negative balance protection, and segregated client accounts. These controls reduce the probability and magnitude of loss but do not remove the possibility of loss altogether.
If you are uncomfortable with any of this
That is a reasonable response, and we would rather you invest with that discomfort acknowledged than ignore it. If, having read this disclosure, you conclude that the risks are not appropriate for you, do not invest. If you would like to discuss any aspect of this disclosure before deciding, please contact our team.
Acknowledgement
By opening an account and making any investment with TradersFarm, you acknowledge that you have read and understood this Risk Disclosure, that you accept the risks described, and that you are investing capital you can afford to commit. This disclosure forms part of your agreement with TradersFarm AG and should be read alongside our Terms of Service.