This Risk Disclosure summarizes important risks of using Fuselit and of automated trading generally. It does not list every possible risk. Read it carefully alongside our Terms of Service and your brokerage's own disclosures before using the Service.
1. Market risk
The value of stocks, ETFs, and other instruments fluctuates and can fall as well as rise. Markets can move sharply, gap overnight, or trade with little liquidity. Past performance — yours or anyone else's — is not indicative of future results. Backtests and historical simulations are not predictions and routinely overstate live results.
2. You make the trading decisions
Fuselit only executes the strategy rules you configure. The Service does not recommend trades, screen for stocks, size positions for you, or evaluate whether a strategy is suitable for your circumstances. You are solely responsible for:
- Selecting symbols, position sizes, stops, and rebuy/exit rules.
- Deciding whether a strategy is appropriate given your goals, experience, time horizon, tax situation, and risk tolerance.
- Monitoring your account and intervening when needed.
Fuselit does not provide investment, financial, tax, or legal advice. If you need advice, consult a licensed professional.
3. Automation and execution risk
Automated trading depends on software, networks, and third-party services that can fail. You should expect — and plan for — events such as:
- Outages and downtime — Fuselit, the brokerage, our hosting provider, or your own internet connection may become temporarily unavailable. Strategies may fail to enter, fail to exit, or run on stale data during outages.
- Slippage and partial fills — orders may execute at prices worse than expected, in smaller size than expected, or not at all, especially in fast or thin markets.
- Bugs and data errors — software is never perfect. Bugs, market-data errors, or unexpected interactions between rules can cause unintended trades or losses.
- Stop and trailing-stop limitations — stops are not guaranteed prices. They may execute well below the trigger in gapping or fast markets.
- Latency — there is unavoidable delay between a market event, our detection of it, and an order arriving at the brokerage.
- Configuration errors — misconfigured strategies (wrong symbol, wrong size, wrong direction, wrong exit) can produce large unintended losses very quickly.
4. Brokerage risk
Your funds and positions are held by your brokerage (currently Alpaca), not by Fuselit. The brokerage is responsible for order routing, execution, custody, margin, and reporting. Brokerage outages, restrictions, margin calls, or business failures are outside Fuselit's control. You accept the brokerage's terms and disclosures directly with them.
5. Margin and short-selling risk
If your brokerage account permits margin or short selling, losses can exceed your initial deposit. You can be required to deposit additional funds on short notice or have positions liquidated at a loss to satisfy margin requirements. Use margin only if you fully understand its mechanics.
6. Concentration and over-fitting
Running many similar strategies on correlated symbols can concentrate risk far more than it appears. Strategies tuned to look great on past data ("over-fit") often perform poorly live. Diversify thoughtfully and treat backtests with skepticism.
7. Demo / paper trading is not real trading
The Fuselit demo and Alpaca paper trading use simulated fills against historical or simulated quotes. Live results differ — sometimes substantially — because of slippage, partial fills, market-impact, after-hours behavior, and queue position. Treat paper performance as directional, not predictive.
8. Tax and regulatory risk
Trading generates taxable events. Tax treatment varies by jurisdiction, account type, and holding period and can be complex (for example, wash sales, short-term vs. long-term gains, foreign-account reporting). You are responsible for your own tax compliance. Trading may also be subject to securities, derivatives, or other regulations in your country.
9. Cybersecurity risk
Despite reasonable safeguards, no online service is fully secure. Compromise of your email, password, brokerage credentials, or device can result in unauthorized trading or transfers. Use strong unique passwords, enable two-factor authentication on every linked account, and review activity regularly.
10. No guarantees
- We do not guarantee profit, capital preservation, freedom from loss, or any specific outcome.
- We do not guarantee that the Service will always be available, accurate, or free of errors.
- We do not guarantee that orders will be received, routed, or filled by the brokerage.
11. Day trading (beta)
If your account is granted access to the day-trading beta, additional risks apply on top of everything above:
- Higher loss velocity. Intraday positions can lose meaningful capital in minutes; the strategy holds for hours at most, not weeks.
- Automatic end-of-day flatten. All open day-trade positions are force-closed shortly before the regular session close (3:50 PM ET by default), regardless of profit or loss. New entries are blocked in the final minutes of the session. There is no opt-out.
- Risk caps are not guarantees. The daily-loss kill switch, per-trade max-loss cap, and concurrent-position cap reduce — but do not eliminate — the chance of large losses. Gaps, slippage, partial fills, broker latency, and bugs can all push actual losses past the configured cap.
- Beta status. Behavior, limits, and configuration may change without notice. Don't use it with capital you can't afford to lose.
12. Acknowledgement
By using Fuselit you acknowledge that you have read and understood these risks, that you are willing to bear them, and that you are using the Service at your own risk. If you are not comfortable with any of the above, do not use the Service for live trading.
13. Contact
Questions about this Risk Disclosure? Email [email protected].