1. Introduction
This Risk Disclosure & Disclaimer ("Disclosure") is provided by Pocketfolio (CORPORATE ID: 3-102-938342) ("Pocketfolio," "we," "our," or "us"). It applies to all users of the Pocketfolio platform, website, APIs, and related services (collectively, the "Platform").
The purpose of this Disclosure is to help you understand the nature and magnitude of risks associated with using our automated funding rate arbitrage tools and crypto trading technology.
By using Pocketfolio, you acknowledge and agree that you fully understand, accept, and assume all associated risks.
2. General Risk Warning
Trading or holding digital assets involves high levels of risk.
The value of cryptocurrencies can fluctuate dramatically and may become worthless.
You should only invest funds you can afford to lose, and you should carefully evaluate your financial situation, risk tolerance, and understanding of crypto markets before participating in any automated strategies.
Pocketfolio provides no guarantee of profit or protection from loss.
3. Market Volatility Risk
The price of cryptocurrencies and derivatives can be highly volatile.
Market movements can occur suddenly and unpredictably, resulting in significant losses within a short period.
Arbitrage and funding rate opportunities depend on dynamic market conditions, which can change rapidly and may disappear before trades are executed.
Pocketfolio's algorithms attempt to identify and execute profitable opportunities, but market fluctuations may result in realised losses.
4. Liquidity Risk
Specific cryptocurrencies or exchanges may experience low liquidity, resulting in slippage or the inability to exit positions at desired prices.
During extreme market events, order execution may be delayed, rejected, or suspended.
Pocketfolio is not responsible for losses caused by illiquid market conditions or exchange-related disruptions.
5. Counterparty and Custodial Risk
Pocketfolio relies on third-party exchanges and APIs to enable users to execute trades through their own connected accounts.
You acknowledge that:
- These third parties may suffer technical failures, insolvency, or security breaches
- In the event of a partner exchange or custodian failure, Pocketfolio may not be able to recover your assets
- Pocketfolio conducts due diligence on partners but cannot eliminate counterparty risk
- Pocketfolio does not guarantee the solvency, operational continuity, or regulatory compliance of third-party service providers
6. Technology and Execution Risk
Automated trading relies on software, APIs, and internet connectivity.
System failures, latency, exchange outages, or network disruptions may affect execution timing or accuracy.
Although Pocketfolio employs secure and redundant systems, technical failures can still occur.
You acknowledge that such failures may result in missed trades, incorrect positions, or unintended losses.
7. Regulatory and Legal Risk
Cryptocurrency regulations vary by jurisdiction and are subject to rapid change.
Legal developments may restrict or prohibit certain crypto activities, exchanges, or assets.
You are solely responsible for ensuring that your use of Pocketfolio complies with the laws of your jurisdiction.
Pocketfolio reserves the right to restrict access for users in certain countries to ensure compliance with applicable laws.
8. No Financial or Investment Advice
Pocketfolio provides automated trading technology and market data.
We do not offer investment, financial, tax, or legal advice.
All information, models, and performance analytics are provided for educational and informational purposes only and should not be interpreted as personalised investment advice.
By using Pocketfolio, you acknowledge that:
- No employee, representative, or algorithm acts as your financial advisor
- Decisions to use any tools or features are made solely at your discretion
- You are responsible for your own investment decisions and the management of your portfolio
If you are unsure about the suitability of crypto or arbitrage investments, you should consult a licensed financial advisor before using our platform.
9. Funding Rate Arbitrage Specific Risks
Pocketfolio's strategies often involve exploiting differences in funding rates across perpetual futures markets and spot exchanges.
These strategies carry unique risks:
- Funding rate differentials may converge unexpectedly
- Changes in leverage or margin requirements can impact profitability
- Exchanges may alter their funding rate methodology or suspend markets without notice
- Extreme volatility can cause liquidations or forced position closures
Pocketfolio attempts to minimise these risks via risk management protocols, but losses may still occur.
10. Liquidation Risk
If an exchange's margin level requirements are breached due to price movement or funding changes, your position may be liquidated.
Liquidation may occur even in hedged arbitrage positions if:
- The exchange modifies leverage parameters
- API errors cause desynchronization
- Collateral fails to update due to delayed data or maintenance
Pocketfolio does not control liquidation mechanisms and is not liable for losses incurred due to forced liquidations or margin call events on third-party exchanges.
11. Taxation and Reporting Risk
You are solely responsible for determining and fulfilling any tax obligations arising from your trading or investment activities.
Pocketfolio does not provide tax reporting or advice.
Depending on your jurisdiction, you may be required to report capital gains, losses, or income from funding rates and arbitrage profits.
12. Past Performance and Hypothetical Returns
Any past performance data or hypothetical returns displayed on the Pocketfolio Platform are provided for illustrative purposes only and should not be construed as a guarantee of future results.
Markets evolve, and actual performance can differ materially from historical models.
13. Limitation of Liability
Pocketfolio shall not be liable for any:
- Loss of capital, profits, or opportunity
- Data or system errors
- Exchange, network, or custodian failures
- Acts of God or market disruptions
Your sole remedy in the event of dissatisfaction with the Platform is to discontinue use.
14. Acknowledgement
By creating an account or using the Pocketfolio Platform, you:
- Confirm that you have read and understood this Risk Disclosure
- Accept full responsibility for your decisions and potential losses
- Acknowledge that no profit or outcome is guaranteed
15. Contact Information
For any questions about this Risk Disclosure, please contact:
Pocketfolio (CORPORATE ID: 3-102-938342)
Corporate ID: 3-102-938342
(3-102-938342 SOCIEDAD DE RESPONSABILIDAD LIMITADA)
Registered Address: SAN JOSÉ MONTES DE OCA SAN PEDRO, PROVINCE ONE SAN JOSÉ, COUNTY FIFTEEN MONTES DE OCA, DISTRICT ONE OF SAN PEDRO, LOS YOSES, AVENUES EIGHT AND TEN, STREET THIRTY NINE, LY CENTER, San José, Costa Rica
