Risk Disclosure

1. Futures Trading Risk

Trading futures contracts, including Nasdaq-100 (NQ) E-mini futures, involves a high degree of risk. You should carefully consider whether futures trading is appropriate for you in light of your financial condition. Key risks include:

• Loss of capital. You may sustain a total loss of the funds you deposit with your broker to establish or maintain a futures position. You may also be required to deposit additional funds (margin calls) beyond your initial deposit.
• Leverage. Futures are leveraged instruments. The high degree of leverage can work against you as well as for you. Leverage can lead to large losses as well as gains.
• Market volatility. Futures markets can be highly volatile. Price movements may be rapid, unpredictable, and significant, particularly during news events, economic releases, or periods of market stress.
• Liquidity risk. Under certain market conditions, it may be difficult or impossible to liquidate a position. This can occur during fast markets, market gaps, or when trading halts are imposed.
• Overnight and weekend risk. Futures positions held overnight or over weekends are subject to gap risk where the market opens at a significantly different price than the previous close.

2. Algorithmic Trading Risk

GRIP Alpha Model is an automated algorithmic trading system. Algorithmic trading carries specific risks beyond general market risk:

• Technology failures. Software, hardware, internet connectivity, or exchange system failures may prevent orders from being executed, cause execution at unintended prices, or result in positions being held when they should have been closed.
• Model risk. All trading models are based on historical data and assumptions that may not hold in future market conditions. Strategy performance may deteriorate or fail entirely in unprecedented market environments.
• Execution risk. Slippage, order rejection, and partial fills are inherent in automated trading and may result in different outcomes than expected.
• Alpha decay. Trading strategies may lose their effectiveness over time as market conditions change or as more capital follows similar approaches.

3. Past Performance

Past performance is not indicative of future results. This is not a mere formality — it is a critical truth of all trading and investing.

• All performance figures displayed on this website are gross of fees unless otherwise stated
• Performance figures are independently verified by CIPM-certified auditors, which verifies the accuracy of historical reporting — not future results
• Historical returns, including audited returns, should not be interpreted as a guarantee or prediction of future performance
• Market conditions that produced historical results may not recur

4. Not Investment Advice

SkySail does not provide investment advice, financial advice, tax advice, or legal advice. Nothing on this website or in any communication from SkySail should be construed as a recommendation to buy, sell, or hold any security or futures contract. You should consult with qualified financial, tax, and legal professionals before making investment decisions.

5. Non-Custodial Structure

While GRIP Alpha Model operates on a non-custodial basis (your funds remain in your own brokerage account), this structure does not eliminate risk:

• Trades executed by GRIP in your account carry the same market risk as any other trade
• Non-custodial structure does not protect against trading losses
• You are responsible for maintaining adequate margin in your account

6. Suitability

Futures trading and algorithmic trading services are not suitable for all investors. You should only trade with capital you can afford to lose entirely. Consider whether this is appropriate given your:

• Financial situation and goals
• Risk tolerance
• Investment experience
• Understanding of futures and leveraged instruments

7. Regulatory Notice

SkySail is a technology company that licenses algorithmic trading software. SkySail is not a registered investment advisor, broker-dealer, commodity trading advisor (CTA), commodity pool operator (CPO), or any other type of regulated financial entity. The GRIP Alpha Model is software, not a managed account or investment fund.

8. Acknowledgment

By using SkySail's services, you acknowledge that you have read, understood, and accept all risks described in this disclosure. You agree that SkySail is not liable for any losses resulting from the use of GRIP Alpha Model.

Questions

If you have questions about these risks or need clarification, contact us at:
support@getskysailstrategies.com