Risk Disclosure

Trading cryptocurrencies, digital assets, foreign exchange contracts, and equities involves significant capital risk. This disclosure statement highlights substantial market and operational risks associated with algorithmic market engagement.

1. Purpose and Non-Advisory Nature

This Risk Disclosure Statement is provided by Pledgement to help you assess the intrinsic hazards of interacting with decentralized asset markets and using automated decision-support algorithms. Pledgement provides software tools, computational market indicators, and technical models. Pledgement is not an accredited investment advisor, broker, or portfolio manager under Canadian federal or provincial securities regulations. Nothing contained on our platform constitutes personal financial guidance, an offer, or an endorsement of any trade strategy.

2. Extreme Price Volatility and Market Risk

Digital currencies, including Bitcoin (BTC), Ethereum (ETH), altcoins, and related derivatives, experience extreme volatility. Asset values can fluctuate violently within fractions of a second due to:

• Shifting macro-economic indicators and interest rate movements;
• Regulatory updates, policy shifts, or statutory interventions;
• Whale orders, concentrated exchange liquidation cascades, and flash crashes;
• Market sentiment swings, media coverage, and community speculation.

Such rapid fluctuations may cause automated triggers or stop-loss mechanisms to experience execution slippage, resulting in losses greater than anticipated.

3. Algorithmic and Technological Hazards

Automated trading scripts, algorithmic models, and AI analytics rely on complex computer code, data feeds, and server infrastructure. Users must understand several inherent technological risks:

• Latency & Slippage: Market pricing changes between signal detection and exchange order fill can create considerable variance in executed prices;
• API Failures & Rate Limits: Connectivity drops between user exchanges and analytical dashboards can delay, misfire, or abort automated operations;
• Model Misalignment: Mathematical models trained on historical data may perform unpredictably in unforeseen, unprecedented, or anomalous market regimes;
• Infrastructure Downtime: Internet outages, cloud host interruptions, and scheduled software updates can interrupt active monitoring.

4. Liquidity & Execution Vulnerabilities

Certain digital tokens or peripheral currency pairs suffer from thin order books. In illiquid markets, executing entry or exit orders may require taking unfavorable prices across wide spreads, potentially precipitating severe drawdowns. Furthermore, third-party centralized or decentralized exchanges can temporarily halt trading, disable withdrawals, or face platform insolvency beyond Pledgement’s control.

5. Simulation Models vs. Live Trading

Visual aids, return calculators, and past algorithmic backtests showcased on the Platform are hypothetical calculations designed for educational comparison. Hypothetical or backtested outcomes possess inherent limitations:

• They do not reflect the full impact of real-time trading friction, exchange taker fees, maker discounts, or network gas fees;
• They are generated with the benefit of hindsight and may overfit historic patterns that do not recur;
• Simulated liquidity assumes fills that may not be matched in active market conditions.

6. Regulatory and Legal Uncertainty

The regulatory architecture surrounding digital assets, automated financial tools, and decentralized finance is evolving in Canada and across the globe. Future regulatory actions, taxation rulings, or governmental directives may limit or restrict the operation, conversion, or holding of digital assets without warning. Users are personally responsible for verifying that their engagement complies with their local legal requirements.

7. Cybersecurity and Credential Ownership

Digital asset interactions carry permanent risks of theft, phishing, unauthorized access, and malicious attacks. While Pledgement enforces robust architectural defenses, users are solely accountable for the safeguarding of their account passwords, two-factor authentication devices, and private API access privileges. Pledgement cannot reverse transactions on external public blockchains.

8. User Prudence and Independent Advice

Before using automated analytical tools or allocating funds to volatile digital assets, you should rigorously assess your financial goals, risk appetite, and experience level. If you harbor any uncertainty regarding your financial capacity to withstand total capital loss, you must consult an accredited, independent financial professional licensed in your jurisdiction.

9. Contact and Administrative Information

If you have questions regarding the technical disclosures set out in this statement, please reach out to our team:

Pledgement
Bank Street 156, V6C 1A1 Vancouver, CA
Email: [email protected]
Telephone: +1 (416) 067-8740