Engaging in algorithmic trading of perpetual futures through Algotoria carries substantial risk, including the potential loss of all invested capital. We urge you to proceed with a full understanding of this reality and consider your financial position, investment objectives, and tolerance for risk before utilizing our services.
About Algotoria
Algotoria offers a Software as a Service (SaaS) platform designed for the algorithmic trading of perpetual futures, focusing on major cryptocurrency pairs such as BTCUSDT and ETHUSDT. Operating on prominent Centralized Crypto Exchanges (CEXs) like Binance, our platform interfaces directly with your trading account via a secure API connection. Algotoria is engineered to autonomously execute trading strategies, managing the opening and closing of perpetual futures positions on your behalf. To facilitate these transactions, our system utilizes USDT stablecoin and Bitcoin as collateral.
Comprehensive Risk Disclosure
1. Market Volatility Risk
The cryptocurrency market's high volatility can significantly affect the value of BTCUSDT and ETHUSDT pairs, posing a risk to investments. Despite our algorithms' design to navigate market movements, the unpredictable nature of cryptocurrencies means risk cannot be entirely eliminated.
2. Leverage and Liquidation Risk
Our platform enables trading with leverage, which can both increase potential returns and amplify potential losses. Unfavorable market movements could result in the liquidation of positions, leading to the possible forfeiture of all collateral, including Bitcoin and USDT.
3. Algorithmic Trading Execution Risk
Dependence on algorithmic trading introduces risks related to software reliability and execution speed. Latency issues, connectivity disruptions, or software anomalies may hinder trade execution, impacting trading outcomes.
4. Stablecoin Collateral Risk
Employing USDT as collateral involves risk, particularly if deviations from its peg occur. Such fluctuations could affect collateral value and impact trading margins and viability.
5. Counterparty and Platform Risk
Trading on CEXs subjects you to risks associated with these platforms, including but not limited to security vulnerabilities, operational downtime, and regulatory changes. These factors could affect your asset security and trading capability.
6. Regulatory Risk
The evolving legal landscape of cryptocurrency trading and derivatives might influence the availability and conditions of using perpetual futures and certain assets as collateral.
7. Automated Trading Strategy Risk
While algorithmic trading strategies aim to optimize trading efficiency and remove emotional biases, there's no guarantee of success. Market anomalies, unforeseen global events, or saturation of similar trading strategies may diminish effectiveness.
8. Systemic Market Manipulation Risk
Potential market manipulation in the cryptocurrency sector can create unfavorable trading conditions that might adversely affect algorithmic trading performance.