Risk Disclosure

Trading crypto-assets, futures and CFDs involves a high risk of loss. Prices can move quickly and unpredictably, and leverage magnifies losses as well as gains. You can lose all the money you deposit, sometimes within minutes. CFDs are complex instruments and most retail clients who trade CFDs lose money. Only use money you can afford to lose, and do not use a product until you understand how it works.

This Risk Disclosure is provided by Trade Llama LTD ("Trade Llama", "we", "us") and forms part of our Terms. It describes the main risks of using the Trade Llama platform, but it cannot describe every risk. Last updated: 23 October 2026.

1. General risks

You can lose all the money you invest. The value of crypto-assets, futures and CFDs can fall as well as rise, and you may get back less than you put in, or nothing. Only trade with money you can afford to lose. Do not use money you need for living expenses or debt repayments, and do not borrow money to trade.
No investment advice. We do not provide investment, financial, legal or tax advice or recommend any product, asset or trade. Information on the platform is general information only, and every decision to trade, convert, buy or subscribe is your own. If you are unsure whether a product is right for you, ask an independent, qualified adviser.
Past performance is not a reliable indicator of future results. Historical prices, returns and reward rates do not predict what will happen, and examples are illustrations, not promises.
Suitability questionnaire. We may ask you to complete a suitability questionnaire and may limit your access to some products based on your answers. The questionnaire is not advice, and its outcome does not mean that a product is suitable for you or that you will not lose money.
Monitoring. You are responsible for monitoring your account, positions, orders and margin at all times, including when you are not logged in.

2. Crypto-asset risks

Volatility. Crypto-asset prices can rise or fall sharply within minutes, driven by supply and demand, sentiment, news and regulatory announcements. Crypto-assets are not backed by any government or central bank, and a crypto-asset can lose all of its value.
Liquidity. Some crypto-assets trade in small volumes. You may be unable to buy or sell at the price you want, or at all, and large orders can move the price against you.
Stablecoins. Stablecoins such as USDT aim to keep a stable value against a reference currency, but they can lose that link (de-peg), and their value depends on the issuer. Products margined, priced or settled in USDT carry this risk.
Forks and delistings. A blockchain may split in two (a fork), change its rules, suffer an attack or stop working, and we may choose not to support a fork or airdrop. We may also suspend or delist a crypto-asset or trading pair, for example for legal, security or liquidity reasons; you may then have to close positions or convert or withdraw the asset within a set period.
Irreversible transfers. Blockchain transactions generally cannot be cancelled or reversed. Crypto-assets sent to the wrong address, on the wrong network or without a required memo or tag may be lost permanently, and we may be unable to recover them. Network congestion can delay transfers and raise network fees.
Regulatory status differs by country. Crypto-assets may be regulated, restricted, taxed or banned differently from one country to another, and their legal status can change suddenly, affecting prices worldwide.

3. Leverage, margin and liquidation

Futures and CFDs on the platform are traded with leverage, which lets you open a position worth more than the margin you put up and magnifies both gains and losses.

How losses are magnified

Profit and loss are calculated on the full size of your position, not on your margin. With 10x leverage, a 1% price move changes your position's value by 10% of your margin; with 50x leverage, by 50%. The higher the leverage, the smaller the move needed to wipe out your margin. Fees, spreads, funding payments and overnight charges reduce your margin further. A short (sell) position loses money when the price rises, and there is no limit to how far a price can rise.

Margin requirements and margin calls

To keep a position open, you must hold at least the required maintenance margin. The requirement changes as prices move or your position grows, and we may change margin requirements and leverage or position limits because of market conditions, including for open positions. If your margin falls towards the required level, you need to add funds or reduce your positions. We may warn you when your margin is low (a margin call), but do not rely on it: prices can move faster than any warning.

Automatic liquidation

If your margin falls below the maintenance margin, your position may be liquidated automatically, in whole or in part, without further notice, at the prevailing market price, which in fast or illiquid markets can be considerably worse than the liquidation price shown. You lose the margin used by the position, and liquidation fees may apply. If margin is shared between positions (cross margin), a loss on one position can lead to the others being liquidated too.

A position may be closed at a price beyond what your margin covers, so that your loss exceeds the margin allocated to it. [Negative balance: state whether negative-balance protection applies, and to which products.]

Worked example

These figures are made up for illustration only. They are not real prices, leverage limits or margin rates on the platform, and the example ignores fees, spreads and funding payments.

You use 1,000 USDT of margin to open a long (buy) position with 10x leverage when the price of a crypto-asset is 50,000 USDT. Your position is worth 10,000 USDT (0.2 units).
If the price rises 5% to 52,500 USDT, you gain 500 USDT, or 50% of your margin. If it falls 5% to 47,500 USDT, you lose 500 USDT, half of your margin.
Assume a maintenance margin rate of 0.5% of the position value. Your position would be liquidated if the price fell to about 45,226 USDT, a fall of roughly 9.5%. By then you would have lost about 955 USDT, and you may lose the rest on liquidation.
With 50x leverage and the same 1,000 USDT of margin (a 50,000 USDT position), the same assumptions put the liquidation price at about 49,246 USDT, a fall of roughly 1.5%.

4. Futures

The platform offers USDT-margined perpetual contracts and coin-margined perpetual and quarterly contracts. These are leveraged derivatives: you do not own the underlying crypto-asset, and all the risks in section 3 apply. Read the contract specifications before you trade.

USDT-margined perpetual contracts

Margin, profit and loss are in USDT, so your result also depends on the value of USDT (see section 2). Perpetual contracts have no expiry date, but holding costs, including funding payments, add up over time.

Coin-margined contracts

Coin-margined contracts use a crypto-asset (for example, BTC) as margin and pay profit and loss in that asset, so the value of your margin moves with the price of the coin. If you hold a long position and the price falls, you lose on the position and your margin is worth less. Profit and loss are not directly proportional to the price movement, which makes them harder to estimate.

Funding payments

Funding payments keep the price of a perpetual contract close to the price of the underlying asset. At regular intervals, holders of long positions pay holders of short positions, or the other way round, depending on the funding rate, which can be positive or negative and can change sharply. Funding payments are deducted from or added to your margin and can contribute to liquidation. Check the current rate and interval before you open or keep a position.

Quarterly contracts, expiry and delivery

Quarterly contracts have a fixed expiry date, and before expiry their price can differ unpredictably from the spot price. Positions still open at expiry are settled automatically (delivery) at the settlement price set under the contract specifications, which may differ from the last traded price. You cannot choose the time or price of settlement, and to keep your exposure you must open a new position, possibly at a less favourable price and with new fees.

5. CFDs on forex, indices, commodities and stocks

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail clients who trade CFDs lose money. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

You do not own the underlying asset

A contract for difference (CFD) pays the difference in the price of an underlying asset, such as a currency pair, stock index, commodity or share, between opening and closing a position. You do not own or receive the underlying asset and have no voting or other shareholder rights, and a CFD opened on the platform can only be closed on the platform. CFDs are leveraged, so section 3 applies. If an instrument is priced in a currency other than that of your margin, exchange rates also affect your result.

Spreads and overnight funding

The buying price of a CFD is higher than its selling price, so a new position starts at a loss, and this spread can widen sharply around news, at market open and close, or when liquidity is low. Positions held past the daily cut-off time are usually charged, and in some cases credited, overnight funding, which over time can exceed any gain. Check the applicable spreads and charges before you trade.

Market hours and price gaps

CFDs follow the trading hours of their underlying markets. While a market is closed (for example at weekends or on public holidays) or trading is halted, you may be unable to open, close or change positions. When the market reopens, the price can jump ("gap") far from the last price, and stop-loss and other orders are executed at the next available price, which can be much worse than the price you set. A stop-loss therefore does not guarantee that your loss will be limited to the level you chose.

Corporate actions on stock CFDs

Dividends, share splits, rights issues, mergers, takeovers, suspensions and delistings can affect CFDs on a company's shares. We may adjust your position or account to reflect such an event (for example, a dividend adjustment, usually credited to long positions and debited from short positions), change margin requirements or close positions. Adjustments may not match exactly what a shareholder would receive, and if a share is suspended or delisted you may be unable to close your position.

6. Spot trading and Convert

Slippage. A market order is executed at the best prices available when it reaches the market, which may differ from the price displayed when you placed it, especially for large orders, less liquid pairs and fast markets.
Limit orders. A limit order is executed only at your price or better, and may be filled partly or not at all.
Spreads and fees. The difference between buying and selling prices, together with trading fees, is a cost to you.
Convert at a quoted rate. Before you confirm a conversion, we show you the quoted rate and the amount you will receive. The rate includes a spread and may differ from prices shown elsewhere. A quote may be valid only for a limited time, and a new quote may be less favourable. A confirmed conversion cannot be reversed.
No borrowing. Spot trading and Convert do not use borrowed funds, so you cannot lose more than you spend, but the asset you buy can still lose all of its value.

7. Buying crypto by card

You can buy crypto with a Visa or Mastercard bank card, including through Apple Pay or Google Pay.

Price and fees. Before you confirm, we show you the price, the fees and the amount of crypto you will receive. The rate includes a spread, can be higher than market prices shown elsewhere, and may change if the quote expires.
Card issuer charges. Your card issuer may treat the purchase as a cash advance or foreign-currency transaction and charge fees, interest or a conversion margin. These charges are not set by us or included in the amounts we show you.
Declines and delays. Your card issuer may decline a payment, and security checks such as 3-D Secure or fraud screening may delay it.
Chargebacks. A completed purchase generally cannot be cancelled. Disputing a payment you authorised (a chargeback) can lead to your account being restricted and to us seeking to recover the payment and related costs from you. Only use a card that is yours or that you are authorised to use.
Crypto risk. Crypto bought by card is subject to all the risks in section 2, and because of fees and spreads the price must rise before you break even.

8. Earn products

Earn products (Simple Earn with flexible and fixed terms, and Cash Plus) carry these risks:

Variable rates. The rates shown are variable and may change at any time, including while your assets are subscribed. A rate shown is not a promise of any return, and past rates do not indicate future rates.
Not a bank deposit. Earn products are not bank deposits or savings accounts and are not covered by any deposit protection or investor compensation scheme. Your subscribed assets and rewards are not insured or guaranteed by us or anyone else.
Fixed terms lock your funds. Assets in a fixed-term product are locked until the term ends: you may not be able to redeem early, or doing so may cost you some or all of the rewards. While locked, the assets cannot be sold, used as margin or withdrawn, even if their price falls sharply.
Redemption delays. Redemptions from flexible products can be delayed or limited, for example during high demand, market stress or technical problems.
Price risk. Subscribed assets remain exposed to price movements, and a fall in price can exceed the rewards you earn.
Counterparty and operational risk of the platform. You rely on Trade Llama to hold your assets, pay rewards and return your assets when you redeem. If we suffer financial difficulties, insolvency, a security breach, an operational failure or regulatory action, rewards and the return of your assets could be delayed, reduced or lost. [Earn: describe how rewards are generated and whether subscribed assets are used by Trade Llama or by third parties.]
Product changes. Subject to each product's terms, we may change it, suspend new subscriptions or close it.

9. Technology and security

Outages and delays. Trade Llama is a web platform used through your browser. The platform, our service providers, blockchain networks or your internet connection may be slow or unavailable, for example because of maintenance, heavy traffic, software errors or third-party failures. You may then be unable to place or cancel orders, add margin or withdraw, and positions can be liquidated while you are unable to act.
Cyber attacks. Hacking, denial-of-service attacks and malware targeting us, our service providers or your devices could disrupt the service or lead to the loss of data or assets.
Keeping your credentials safe. You are responsible for keeping your login details, email, phone and devices secure; anyone who obtains them may be able to trade or withdraw from your account. Use a unique, strong password. Your sign-in session is stored in your browser, so sign out on shared devices and avoid browser extensions you do not trust.
Phishing. Fraudsters may send messages that appear to come from Trade Llama or set up fake websites and social media accounts. Never share your password or one-time codes with anyone, including anyone claiming to work for Trade Llama, and be wary of anyone who promises guaranteed returns or offers to trade for you. If in doubt, contact support@tradellama.com.
Withdrawal mistakes. Check every withdrawal address, network and memo or tag before you confirm. Crypto sent to a wrong address or network is usually lost permanently.

10. Market data

Prices, charts and other market data on the platform are for information. Some of it comes from third parties: for example, charts are provided by TradingView, and some market prices are loaded by your browser from Binance's public market data. Third-party data may be delayed, incomplete or wrong, and we do not guarantee its accuracy or timeliness.

The prices at which your orders are executed, your positions are valued and liquidation is triggered are determined by the platform at that moment, and may differ from prices shown in charts, tickers and market overviews or on other exchanges.

11. Counterparty risk

When you use the platform, you depend on Trade Llama, and on the third parties we work with, to meet their obligations.

If Trade Llama became insolvent, suffered a serious security breach or faced regulatory action, you could lose access to your account, and the return of your assets could be delayed, reduced or prevented. Unless our Terms expressly state otherwise, do not assume that your assets would be returned in full.
Your assets on the platform are not covered by deposit insurance, deposit protection or an investor compensation scheme.
The failure or errors of the banks, payment providers and other service providers we use could also affect you.
For futures and CFDs, any profit depends on the counterparty to your trade being able to pay it.
If the issuer of a stablecoin or the project behind a crypto-asset fails, the asset may lose some or all of its value.

12. Regulatory and legal risks

Trade Llama LTD (Entity Number 395021) is registered with the Cayman Islands Monetary Authority (CIMA) as a Virtual Asset Service Provider (VASP), Registration #1849203.

What registration means. Registration with CIMA does not mean that CIMA approves or endorses any product, that every product or service on the platform falls within the scope of that registration, or that we are licensed or authorised in your country. It is not a guarantee against loss.
Your country's rules. The services may be restricted or unavailable in your country, and you are responsible for checking that you may lawfully use them where you live. Protections that would apply with a firm licensed in your country may not be available to you.
Changes in law. Laws and regulators' approaches to crypto-assets, derivatives and CFDs change frequently. A change could require us, sometimes at short notice, to restrict or stop a product in your country, delist assets, close or limit positions or change leverage or margin limits, which may cause you losses.
Compliance checks. We must verify your identity and monitor activity to prevent money laundering, fraud and sanctions breaches. Deposits, withdrawals and trading may be delayed or refused during checks, and the law may require us to freeze funds or report activity to the authorities.
Governing law. Our Terms are governed by the laws of the Cayman Islands, and disputes are decided by the courts of the Cayman Islands. Mandatory consumer-protection rules of your country of residence still apply where the law says so.

13. Tax

You are responsible for determining, reporting and paying any taxes on your activity on the platform, including trading profits, conversions, funding payments and Earn rewards. Tax rules for crypto-assets and derivatives differ between countries and can change, sometimes retroactively, and exchanging one crypto-asset for another may be taxable even if you never convert into fiat money. We do not provide tax advice. Where the law requires, we may share information about you and your transactions with tax authorities. Keep your own records and consult a qualified tax adviser.

14. Conflicts of interest

Our interests may differ from yours. For example:

We earn fees, spreads and other charges on your activity, so we benefit when you trade more, whether you make or lose money.
Where we, or a company connected to us, are the counterparty to your trade or conversion, or set the prices at which you trade, your loss may be our gain.
We decide which assets and products to list, the rates on Earn products, and the margin, leverage and other terms that apply.
We or connected parties may hold or trade the same assets as you.
People who share referral codes may benefit when you sign up or trade, which gives them a reason to encourage you to use the platform.

We aim to identify conflicts of interest and manage them fairly, but we cannot remove all of them. You can ask us for more information at support@tradellama.com.

15. Acknowledgement and contact

This Risk Disclosure does not describe every risk. Read it together with our Terms and the product terms, contract specifications and fees shown on the platform.

By opening an account or using the services, you confirm that you have read and understood this Risk Disclosure, that you accept the risks it describes, and that you alone are responsible for your decisions to trade, convert, buy or subscribe. If you do not understand these risks, do not use the services.

We may update this Risk Disclosure from time to time; the current version is published on the website with the date of its last update. If you have questions, contact us at support@tradellama.com.

Trade Llama LTD, 521 Fifth Avenue, 17th Floor, Office 17B, New York, NY 10175, United States. Registered with the Cayman Islands Monetary Authority (CIMA) as a Virtual Asset Service Provider (VASP), Registration #1849203; Entity Number 395021.