Risk Disclosure

This Risk Disclosure describes important risks of trading and of using Patrick Martin Exclusive's automated trading software (the "Software"). It is part of our Terms of Use and of any license agreement. It cannot describe every risk. New and unforeseen risks may arise at any time.

1. General Risk of Loss

The value of securities can fall as well as rise, sometimes sharply and without warning. Any trade can lose money. A series of losing trades can significantly reduce, or eliminate, the value of your account. Losses can occur even when the Software operates exactly as designed.

2. No Guarantee and No Advice

• Patrick Martin Exclusive does not guarantee, promise or project any profit, return, win rate or level of performance, and no statement on the Site should be read that way.
• No trading strategy, technical setup, indicator or AI model works in all market conditions. Strategies that worked in the past can stop working.
• Patrick Martin Exclusive is not your investment adviser, broker or fiduciary. The Software is not personalised to you and does not consider your financial situation, objectives, tax position or risk tolerance. Whether the Software is suitable for you is your decision alone.

3. Simulated and Hypothetical Performance

The Software is developed and evaluated in a supervised paper-trading (simulated) environment. Any results we describe or share are simulated unless we expressly state otherwise in writing.

Simulated or hypothetical performance results have many inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Because the trades have not actually been executed, the results may have under- or over-compensated for the impact of certain market factors, such as lack of liquidity, slippage, fees and the price impact of orders. Simulated trading programs are generally designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There are frequently sharp differences between simulated results and the actual results subsequently achieved.

In particular, paper-trading environments may fill orders that would not fill in live markets, may fill them at better prices, may not reflect partial fills or queue position, may omit or mis-record regulatory and exchange fees, and cannot reproduce the psychological pressure of risking real money. Past performance, whether actual or simulated, is not indicative of future results.

4. Risks of Automated and Algorithmic Trading

• Trades without your real-time review. Once running, the Software can submit orders in seconds without asking you. It can place trades you would not have placed, or fail to place or exit trades you would have.
• Speed magnifies mistakes. A configuration error, data error or software defect can cause many unintended orders or losses before anyone notices.
• Software defects. Despite testing, the Software may contain bugs, and updates may introduce new ones. Testing reduces but cannot eliminate the possibility of error.
• Model and overfitting risk. Rules designed or tuned on historical data may fit past noise rather than lasting patterns and may perform worse, or very differently, in the future.
• Crowding. Many traders use similar technical setups. When they act at once, prices can move against all of them.

5. Artificial Intelligence Risks

• The Software consults a third-party large-language model as an advisor. AI models can be wrong, inconsistent or overconfident, can misread data or news, and can produce plausible-sounding but false reasoning.
• The model provider may change, update, restrict or discontinue the model, change its pricing, or suffer outages. When the model is unavailable or its spending cap is reached, the Software will not receive proposals, which may mean fewer or no trades.
• A confidence score from an AI model is not a probability of profit.
• The AI cannot place orders by itself, and every proposal must pass the Software's rules and risk controls. However, those controls cannot make an AI suggestion correct.

6. Technology, Data, Connectivity and Broker Risks

• Outages. Your computer or server, internet connection, power supply, the broker's systems, the market-data feed, the AI provider or Patrick Martin Exclusive's systems may fail, slow down or disconnect at any time, including when you have open positions.
• Data quality. Market data can be delayed, incomplete, incorrect or limited to a subset of trading venues (for example, a single-exchange data feed may not reflect the full market). Decisions based on flawed data can be flawed.
• Broker changes. Brokers can change their APIs, order types, fees, margin rules or account policies, reject or cancel orders, restrict trading in a security, or close accounts.
• Clock and timing errors can cause stale-data decisions or orders at unintended times.
• Cybersecurity. Devices, accounts and API keys can be compromised. Anyone with your API keys may be able to trade in your account.

7. Market Risks

• Volatility and gaps. Prices can jump between trades, between minutes or overnight, skipping over stop prices entirely.
• Liquidity. In thin markets you may be unable to buy or sell at the expected price, or at all.
• Trading halts and circuit breakers. Exchanges and regulators can halt trading in a single stock or the whole market, leaving you unable to exit a position until trading resumes, often at a very different price.
• News and events. Earnings, economic releases, legal actions, offerings, geopolitical events and rumours can move prices suddenly.
• Systemic events. Market-wide crashes, "flash" events and disruptions can affect all securities at once.

8. Low-Priced and Small-Capitalisation Stocks

The Software's small-cap configuration trades low-priced stocks (roughly $1 to $5 per share). These securities carry additional, serious risks:

• extreme volatility, with moves of tens of percent in minutes;
• wide bid-ask spreads and limited liquidity, which raise trading costs and can prevent exits;
• greater exposure to manipulation schemes such as "pump and dump" promotions;
• dilution from frequent share offerings, reverse splits, delisting and limited public information; and
• more frequent trading halts, including volatility halts.

Small-cap configurations use higher loss limits than the core configuration, which means larger losses can occur before trading halts.

9. Order Execution Risks

• Limit orders protect the entry price but may fill partially, late or not at all, so the Software may miss trades.
• Stop orders are not guaranteed. Once triggered, a stop may fill at a price far worse than the stop price, especially in gaps, halts or fast markets.
• Profit targets may never be reached.
• Bracket order behaviour depends on the broker; exit legs can be rejected, cancelled or left unfilled.
• Partial fills and order rejections can leave positions or orders in states the Software must reconcile, during which it may halt trading.

10. Day-Trading and Account Rules

• FINRA's day-trading margin rules (including the "pattern day trader" requirements, as they may be amended) and your broker's own policies can restrict how often you may day trade and may require minimum account equity.
• In a cash account, sale proceeds must settle before they can be reused without restriction. Buying with unsettled funds and selling before payment settles can cause good-faith violations or freeriding violations, which may lead your broker to restrict your account.
• Brokers may close positions, restrict trading or close accounts under their policies. Those actions are outside our control.

11. Risk Controls Are Not Guarantees

The Software includes position limits, exposure limits, loss limits, cooldowns, order caps, data-freshness and spread checks, a market-stress watchdog, broker reconciliation and a kill switch. These controls reduce certain risks but do not prevent losses. A loss limit stops new entries; it does not guarantee that losses stop at that level. Controls can fail, can be misconfigured and can halt trading at an inopportune time, for example leaving you unable to enter a trade you wanted. You remain responsible for monitoring your account.

12. Costs, Fees and Taxes

• Commissions, regulatory and exchange fees, spreads, slippage, market-data fees, AI usage costs and the license fee all reduce your returns. Frequent trading can make costs significant relative to account size.
• Short-term trading gains are generally taxed as ordinary income. Frequent trading can trigger wash-sale rules that defer losses. You are responsible for your own tax reporting; consult a tax professional.

13. Security of Your Account and API Keys

You are responsible for keeping your brokerage credentials and API keys secure. Never share keys that grant withdrawal or transfer permissions with anyone, including Patrick Martin Exclusive. Enable two-factor authentication with your broker, store keys securely, rotate them periodically and revoke them immediately if you suspect compromise.

14. Third-Party and Counterparty Risk

Your assets are held by your broker, not by Patrick Martin Exclusive. Broker failure, fraud, operational errors or insolvency may delay or prevent access to your assets. SIPC protection, where available, has limits and does not protect against market losses. Review your broker's disclosures carefully.

15. Regulatory and Legal Risk

Laws and regulations governing securities, automated trading, AI and software may change in ways that restrict, alter or end the availability of the Software or particular features, or that affect your ability to use it. Using the Software for any manipulative or unlawful practice is prohibited and may expose you to serious civil and criminal liability.

16. Suitability and Your Responsibility

Automated trading is not suitable for everyone. Consider your financial situation, experience, objectives and ability to bear losses. Use only risk capital, meaning money whose loss would not affect your standard of living, your obligations or your retirement. Start with paper trading or small amounts, monitor the Software actively and seek independent advice from a licensed professional.

17. Acknowledgment

By requesting a license quote or using the Software, you acknowledge that you have read and understood this Risk Disclosure, that you accept the risks described here and any other risks of trading, and that you are solely responsible for your trading decisions and their outcomes. Questions can be sent to p.martin.exclusive@gmail.com.