Trading cryptocurrencies — especially leveraged derivatives — involves substantial risk of loss. You can lose your entire balance, and with some venues more than your initial margin. Never trade with funds you cannot afford to lose.
Market risk
Crypto markets are extremely volatile and trade continuously. Prices can gap violently at any hour; stop orders do not guarantee an exit price. Past performance — including backtests — never guarantees future results. Backtests are simulations over historical data and are subject to overfitting, survivorship effects, and idealized fills.
Leverage and liquidation
Leverage multiplies both gains and losses. Positions can be liquidated automatically by the exchange when margin requirements are breached, realizing the loss immediately. Funding rates on perpetual futures add a continuous cost that can turn a flat position into a losing one.
Permissionless (HIP-3) markets
Markets deployed permissionlessly by third-party deployers carry elevated risk: low liquidity, high volatility, incomplete documentation, unproven oracles, and increased liquidation risk. They are not reviewed, verified, or approved by BuildTrade™ or by the exchange. Assess each deployer and market yourself before trading.
Automation risk
Automated strategies can malfunction, react to bad data, or behave unexpectedly in market conditions they were not designed for. Connectivity loss between our servers, your configuration, and the exchange can delay or prevent order placement or cancellation. Supervise automated trading and size positions accordingly.
Counterparty and technology risk
Exchanges can halt trading, delist markets, suffer outages, restrict withdrawals, or fail entirely. Smart contracts and bridges can contain exploitable defects. BuildTrade™ relays orders but cannot control or guarantee any third-party venue.
Regulatory and tax risk
The legal treatment of cryptocurrency trading varies by jurisdiction and changes quickly. You are responsible for the legality of your trading and for your own tax reporting.