Risk Disclosure Statement

This Risk Disclosure Statement is issued by Bronxridge to inform prospective and active users of the major risks associated with speculative trading in digital assets and leveraged derivatives, as well as the inherent operational hazards of automated, algorithmic execution software.

1. Volatility and Speculative Nature of Cryptoassets

Cryptocurrency prices are exceptionally volatile. Unlike conventional sovereign currencies or blue-chip equities, digital assets may experience wild price swings of tens of percent within minutes. These fluctuations are driven by shifting investor sentiment, technological vulnerabilities, liquidity shortages, regulatory statements, macroeconomic variables, and unexpected market shocks.

Past returns or historical price actions simulated through backtesting algorithms do not constitute a reliable indicator of future profitability. Trading digital assets is speculative and unsuitable for investors who require stable capital preservation.

2. Algorithmic and Machine Learning Risks

Bronxridge provides an automated quantitative interface powered by machine learning algorithms, statistical pattern recognition models, and high-speed execution interfaces. You must recognize that:

• Model Degradation: Quantitative trading algorithms operate on historical probabilities and market structures. When structural shifts occur, algorithmic assumptions may fail, leading to consecutive losses or heightened drawdown.
• Network Latency and Execution Slippage: While algorithmic orders are triggered automatically, actual execution depends on order book depth, liquidity conditions, and network transmission speeds. In times of extreme volume, orders may fill at prices significantly divergent from indicated trigger levels.
• Software and Connectivity Disruptions: Hardware failures, API connection interruptions, routing latency, or exchange engine maintenance can prevent orders from reaching execution venues or cancel stop-loss thresholds.

3. Leverage and Margin Amplification

Where third-party brokers provide margin or leverage options, profits and losses are magnified proportionately. A small negative movement against your open position can result in immediate margin calls or automated account liquidation. In high-leverage scenarios, your total losses can match or exceed your initial margin deposit within very short timeframes.

4. Counterparty and Brokerage Risks

Bronxridge is an analytics and automation software platform; we do not hold custodial deposits or provide banking services. Capital deposits, fund transfers, and actual order matching are managed through external, independent brokerages, liquidity hubs, or exchange venues. The solvency, operational compliance, and security posture of these external institutions are beyond our direct control. In the event that a third-party partner encounters insolvency, operational fraud, or regulatory suspension, you may face delays or permanent loss of your funds.

5. Regulatory and Taxation Uncertainties

The regulatory framework governing cryptocurrency assets and algorithmic trading is constantly evolving across the United Kingdom and global jurisdictions. Future regulatory enactments, restrictions on retail derivatives, or tax classification rulings issued by HM Revenue & Customs (HMRC) or international watchdogs may adversely affect platform accessibility, token legality, or your tax obligations. It is your sole responsibility to calculate, report, and remit all applicable capital gains taxes, income taxes, and stamp duties arising from your trading actions.

6. No Investment or Advisory Relationship

Bronxridge operates exclusively as a quantitative software provider. No material, indicator, profit simulation, or interactive widget on this platform constitutes an offer, solicitation, or recommendation to acquire or dispose of any security or financial instrument. No fiduciary or advisory relationship is established between Bronxridge and you. You must make autonomous trading decisions and, if necessary, consult an independent, qualified financial advisor licensed by the Financial Conduct Authority (FCA) or the relevant authority in your country.

7. Capital Suitability Statement

You confirm that you possess the technical, financial, and analytical knowledge necessary to comprehend the high level of risk associated with algorithmic trading. You explicitly acknowledge that you have adequate discretionary capital to absorb complete financial loss without adversely affecting your standard of living or essential financial obligations.

8. Inquiries and Formal Notice

For questions or operational clarifications concerning our risk management architecture, contact our compliance team:

Bronxridge Compliance Office
Park Row 120, WC1V 6AA Manchester, GB
Telephone: +44 20 7946 3825
Email: [email protected]