Risk Disclaimer & Liability Notice

1. No Investment Advice

GridTraderPro is a software tool for executing trading strategies. GridTraderPro does not provide investment advice, financial advice, trading recommendations, or any form of guidance whatsoever.

Nothing on this website, in the software, or in any documentation constitutes:

• Investment or financial advice
• A recommendation to buy, sell, or hold any security
• Encouragement to trade
• Professional investment management services
• A guarantee of any returns or profits

Before making any trading decisions, you should consult a licensed financial advisor, investment manager, or tax professional who understands your complete financial situation.

2. General Trading Risks

Securities trading involves substantial risk of loss and is not suitable for everyone. Key risks include:

• Market Risk: Security prices can fluctuate sharply and cause substantial losses.
• Liquidity Risk: During market stress, securities may not be sellable at any price, trapping you in positions.
• Volatility Risk: Extreme price swings can trigger automatic order execution or margin calls.
• Overnight Gap Risk: Markets can gap down (or up for shorts) overnight, causing losses beyond your stop levels.
• System Risk: Broker outages, API failures, or data center issues can prevent order execution or cancellation.
• Slippage Risk: Execution prices can differ significantly from expected prices, especially during volatile markets.
• Currency Risk: Currency fluctuations on international stocks can add losses to your trading losses.
• Counterparty Risk: Your broker could fail or be forced to liquidate your positions at unfavorable prices.

3. Grid Trading Specific Risks

Grid trading is not suitable for every market condition. The points below describe the situations in which the strategy works against you:

• Trending markets: Strong unidirectional price movements (trending markets) can cause cascading losses across all grid levels. If a stock falls from $100 to $50, long entries are triggered one after another while no exit level is reached, so the open position and the capital committed to it keep growing.
• Multi-Level Accumulation Risk: Grid trading simultaneously holds multiple positions. Each position requires margin, and combined losses can trigger margin calls across your entire account.
• Capital Requirement Underestimation: Grid trading requires SUBSTANTIAL capital to cover all levels. Many traders underestimate required capital, leading to forced liquidations.
• Cascading losses: A stock in sharp decline triggers long entries at progressively lower prices and ties up more capital with every step. Losses on long positions are limited to the capital committed; on uncovered short positions they are not — see section 4.
• Overnight gaps: Gaps over nights/weekends can skip entire grid levels, jumping past your exit prices and triggering margin calls before you can react.
• Forced Liquidation During Crisis: During market crashes or volatility events, brokers may force-close your grid positions at the absolute worst prices, locking in the losses.

4. Short positions

Uncovered short positions can cause losses exceeding the amount committed to them.

If GridTraderPro is configured to execute short sales, you must understand that short selling is fundamentally different from buying stocks. Your loss potential is NOT limited to your account balance.

• No upper limit: When you short a stock at $100, it can climb to $200, $1,000 or higher. If the position is not covered, the loss grows with the price and has no upper limit — you could owe more than you committed.
• Short Squeeze Risk: A coordinated buying event or short squeeze can cause price spikes of 50-500%+ in hours, causing substantial losses before you can close positions.
• Forced Buyback at Worst Price: Your broker may force-buy your short position to close it, and they will do so at the market price - which could be significantly higher than when you shorted it.
• Margin Call Spiral: Losses on short positions reduce your account equity and trigger margin calls. As your buying power shrinks, the broker may force-liquidate OTHER positions to cover the short losses, cascading into full account liquidation.
• Regulatory Restrictions: Short selling can be restricted or banned (SSR - Short Sale Restriction, trading halts), preventing you from closing your position even if you want to.
• Borrow Availability: Brokers may not be able to borrow shares for you to short, or can recall borrowed shares at any time, forcing immediate buyback.
• Dividends & Splitting: You must pay dividends on short positions (losing money while waiting for losses to recover). Stock splits and bonuses create additional short squeeze risk.
• Coverage of the short position: Whether a short position is covered depends on your broker's securities lending. If no borrow is available or an existing borrow is recalled, your broker may reject or close the position or charge additional fees. Uncovered short positions can cause losses exceeding the amount committed to them.

5. Day Trading and Intraday Margin Rules

Day trading means buying and selling the same security on the same trading day. There is no obligation to close positions the same day — day trading describes a pattern of behaviour, not a requirement. New US rules have applied since June 2026:

• The Pattern Day Trader designation has been eliminated. Until June 2026, four or more day trades in five business days triggered that designation and required a minimum account value of $25,000. Neither applies any longer; brokers are no longer required to count day trades.
• $2,000 minimum equity: margin accounts remain subject to the ordinary margin rules, including a minimum equity balance of $2,000.
• Real-time buying power: what you can move intraday is determined by your real-time intraday margin excess rather than the prior day's closing balance. That figure can change continuously during the trading day.
• Intraday margin deficit calls: trading beyond your available intraday margin triggers a call, which you have five business days to satisfy. Deficits below 5% of account equity or below $1,000 do not trigger any measure.
• Restriction after repeated breaches: three breaches within a rolling twelve-month period result in a 90-day restriction on creating or increasing short positions and debit balances.
• Forced liquidation remains possible: if a margin call is not met, your broker may close positions without warning, potentially at unfavourable prices.
• Your broker may be stricter: Interactive Brokers, Charles Schwab and Alpaca may apply their own, stricter house rules. What your broker has agreed with you always prevails.

This description reflects the position as of September 2026 and is not legal or investment advice. Regulatory requirements change; the rules in force at the relevant time and your broker's terms are what govern.

6. Software risks

GridTraderPro is provided as it stands in the version supplied. Like any software it may contain defects that cause unintended trades, financial losses or malfunctions.

• Software Bugs: All software contains bugs. GridTraderPro may malfunction, execute unintended trades, or freeze at critical moments. A single defect can cause substantial losses.
• User Misconfiguration: Incorrectly configured settings can cause the software to execute contradictory orders, over-leverage positions, or violate risk limits. You are responsible for correct configuration.
• Network Failures: Internet outages, broker API failures, or data center issues may prevent the software from placing or cancelling orders. You could be unable to exit losing positions.
• Connection Loss During Trades: If your internet connection drops while executing trades, orders may be partially executed, leaving you in unwanted positions.
• Market Data Delays: The software relies on real-time market data. Delays or incorrect data can cause the software to make trading decisions based on stale prices.
• Broker API Changes: Brokers frequently change their APIs. Updates to broker systems could break GridTraderPro's functionality, causing unexpected behavior.
• Authentication Failures: API tokens, passwords, or broker authentication can fail unexpectedly, preventing order execution or account access.
• Calculation Errors: The software performs complex mathematical calculations. Rounding errors, floating-point precision issues, or algorithmic flaws could cause incorrect position sizing or pricing.
• Execution Mismatches: Orders may execute at different prices than calculated due to slippage, partial fills, or rejections - creating position mismatches.
• Historical Backtesting Limitations: Backtesting cannot account for all real-world factors: market microstructure, liquidity changes, regulatory events, or black swan events. Past performance in backtests does NOT predict future results.
• Broker integrations at different maturity levels: GridTraderPro supports Interactive Brokers, Charles Schwab and Alpaca. The Alpaca integration for live trading is at beta stage: it is functional but has not been tested to the same extent as the other integrations. Expect possible differences in order execution, status reporting and reconnection. Alpaca paper trading is fully supported; we recommend trying the integration there first.

7. No Warranty or Guarantee

8. No Guarantee of Profits

GridTraderPro DOES NOT guarantee any profits whatsoever.

• Backtesting Results are Not Predictive: Historical backtesting results cannot predict future performance. Markets change. Strategies fail. What worked in backtests may completely fail in real trading.
• Simulated Results ≠ Real Results: Backtesting simulations do not account for real-world slippage, partial fills, commissions, or the psychological factors of real trading. Real-world returns are regularly worse than simulated ones.
• Zero Profit Guarantee: There is NO guarantee that any trading strategy, even one with profitable backtests, will generate profits in the future. Markets are unpredictable.
• Strategy Failure: All trading strategies eventually fail or underperform. GridTraderPro strategies are no exception.
• Commission and Fee Erosion: Trading commissions, exchange fees, and bid-ask spreads will erode your capital. Over-trading can result in net losses despite correct directional predictions.

Videos, screencasts and demonstrations: videos on this website, on our YouTube channel or on any other platform serve product demonstration purposes only. Any settings, market situations, orders or results shown are examples and not representative results. They are neither a recommendation for a particular configuration nor for a particular security, are not investment advice, and are no assurance that comparable outcomes can be repeated. A recording shows a single point in time under the market conditions of that moment; the same settings can produce losses under different conditions. Older videos may also show an earlier program version whose behaviour differs from the current one.

9. User Responsibility & Acknowledgment

By using GridTraderPro, you acknowledge and accept:

• You understand that trading securities involves a substantial risk of losing all the capital you invest.
• You are using ONLY capital that you can afford to lose completely.
• You are solely responsible for all trading decisions, including those GridTraderPro executes automatically according to the parameters you set.
• You understand the specific risks of grid trading, short selling, and day trading.
• You have the financial resources and risk tolerance to absorb potential losses without hardship.
• You will monitor your positions continuously and not rely solely on automated systems.
• You have read and understood this entire disclaimer.
• You have had the opportunity to consult a qualified professional before you begin trading.
• You understand that NO ONE can predict market movements with certainty.
• You accept all financial consequences of using GridTraderPro, positive or negative.

10. Limitation of Liability

11. Indemnification

You agree to indemnify, defend, and hold harmless Algogrid Software GmbH, its officers, employees, and agents from any and all claims, damages, losses, liabilities, costs, and expenses (including attorneys' fees) arising from:

• Your use of GridTraderPro
• Your trading activities
• Your violations of any law or regulation
• Your breach of this disclaimer
• Claims by third parties related to your trading
• Any damages you cause to others through your trading

This indemnity applies only to the extent permitted by applicable law; mandatory consumer protection provisions are reserved.

12. Regulatory Status

GridTraderPro is NOT a regulated financial product.

• No Authorisation, No Supervision: GridTraderPro and its operators are not authorised or registered by the Swiss Financial Market Supervisory Authority (FINMA) and are not subject to any prudential supervision. Nor are we registered with the SEC, FINRA, CFTC or any other regulatory authority.
• Not a Financial Service: Providing this software is not a financial service within the meaning of the Swiss Financial Services Act (FinSA/FIDLEG). We provide neither investment advice nor portfolio management, we do not execute orders on your behalf and we make no personal recommendations.
• Not Licensed as an Advisor: We are NOT licensed investment advisors, portfolio managers, or securities dealers.
• No Management of Client Assets: We do not manage assets on your behalf and have no access to your broker account. You run your own account; the software acts solely with the credentials you store locally.
• Your Responsibility: You are responsible for complying with all applicable laws, regulations, and tax obligations in your jurisdiction.
• Regulatory Changes: Laws governing algorithmic trading, day trading, and securities trading are subject to change. You are responsible for staying informed and complying with current regulations.

13. Credentials and the Security of Your Computer

• How credentials are stored: GridTraderPro runs entirely on your Windows PC. The broker credentials and API keys you enter are stored unencrypted in the local configuration and are never transmitted to us.
• Your responsibility: Protecting that computer — disk encryption, user account, anti-virus, physical access — is your responsibility.
• Use API keys with the least possible permissions and revoke them with your broker immediately if you suspect compromise.
• Keep your licence key confidential and do not share it.
• We strongly recommend enabling two-factor authentication on your broker account.
• Monitor your broker account regularly for unauthorised activity.
• We are not responsible for unauthorised access resulting from compromised credentials or a compromised computer.

How we handle your personal data is described in our Privacy Policy.

14. Modifications to Disclaimer

We reserve the right to modify this disclaimer at any time. Modifications are effective immediately upon posting to this website. Your continued use of GridTraderPro after modifications constitutes acceptance of the modified disclaimer.

15. Governing Law & Jurisdiction

This disclaimer is governed by the laws of Switzerland, without regard to its conflict of law principles. The exclusive place of jurisdiction is the Canton of Solothurn, Switzerland. Mandatory places of jurisdiction in favour of consumers are reserved.

Contact Information

If you have questions about this disclaimer:

• Provider: Algogrid Software GmbH, Erlenweg 2, 4535 Hubersdorf, Switzerland (UID CHE-327.160.098)
• Address: Erlenweg 2, 4535 Hubersdorf, Switzerland
• Email: info@gridtraderpro.com
• Website: www.gridtraderpro.com

Severability

If any provision of this Disclaimer is or becomes invalid or unenforceable, the remaining provisions shall remain in full force and effect. The invalid or unenforceable provision shall be replaced by a valid provision that most closely achieves the economic purpose of the invalid provision.