Risk & disclaimer: the real risks of quant and crypto trading

This page isn't going-through-the-motions legal boilerplate. We write about quant and strategies to help you hit fewer traps, but only if you're clear on what kind of game you're playing. The risks below really do happen — some we've been burned by ourselves. Read this page before you act.

One line up front: Crypto is a high-risk asset class. The money you put in can be lost entirely. If losing a sum would affect your life, that sum shouldn't go into crypto trading.

The risk of crypto itself

Crypto prices swing far harder than stocks or forex. Swings of ten-plus percent in a day are common, and in extreme moves prices have halved in hours. That means:

Severe price swings. An asset you buy can shrink sharply in a very short time, with no "limit-down" mechanism to give you a buffer.
Liquidity risk. With small coins or in extreme moves, you may not be able to fill at your ideal price — or sell at all when you want to.
Irreversibility. On-chain transfers and slip-ups often can't be undone; once an asset is sent to the wrong place or stolen, you most likely won't get it back.
Policy and platform risk. The regulatory landscape shifts and platform rules can change too, and none of that is within your control.

Derivatives and leverage: a possible 100% loss of principal

Highest-risk zone: Leveraged derivatives trading can take your entire principal to zero (a 100% loss) in a very short window, and in extreme cases the loss can even exceed your principal. As a beginner, we strongly suggest you stick to spot only first, get the flow and your mindset steady, and talk about the rest later.

Leverage amplifies both gains and losses. At 10x, a 10% move against you is enough to have your margin liquidated — that position's principal is gone. When the market moves fast, liquidation can happen faster than you can react. Don't let the "go big with a little" stories carry you away — the vast majority of beginners lose their money on derivatives, not on spot.

Quant, bots, copy trading: none guarantee profit

This is the point this site needs to stress most, because it's the most often misunderstood. Handing your trading to a program or to someone else doesn't mean steady gains:

Quant and automation don't guarantee profit. A script just executes your decisions faster and without emotion. If the strategy itself loses, automation only makes you lose faster and more consistently.
Bots (grid / DCA, etc.) don't guarantee profit. They work in certain market conditions and lose steadily in others. In a one-way drop, a grid can keep buying all the way down into a deep hole.
Copy trading doesn't guarantee profit. A lead trader making money in the past doesn't mean they will going forward; their drawdown is your drawdown, and if they get liquidated, you lose along with them.
Past performance doesn't predict the future. No backtest return, track record or return-rate screenshot can be used to infer what happens next. A strategy that made money in the past can stop working tomorrow.

Anyone or any product claiming "steady gains," "capital protection," "fixed daily returns" or "follow me and earn for free" can basically be judged untrustworthy. Promises like that have nothing to do with us — and we never make them.

The nature of this site's content

Be clear on these boundaries of MeowQuant's content:

For information only. Every article, tutorial, parameter, test log and tool on this site is information and a record of operations — not investment, financial or legal advice, and not a recommendation to buy, sell or hold any asset.
Not tailored to you. We don't know your financial situation, risk tolerance or investment goals, and we can't and won't give you personalized investment opinions.
May be out of date or wrong. Platform back ends, API fields and fees can change at any time; we try to keep things updated and correct them openly in corrections, but stale or inaccurate spots may still remain. Follow the current information on the OKX site.

About the third-party platform (OKX)

OKX, which this site covers, is an independent third-party platform; MeowQuant is not its official site and has no affiliation or partnership with it. OKX's services, rules, fees, account security, fund custody and its own risks are all OKX's responsibility, per what it currently publishes on its site and in its user agreement. Any relationship or dispute between you and OKX is nothing to do with MeowQuant. Linking to OKX here is only for your convenience and is not an endorsement of any of its services or risks.

You're responsible for your own decisions

At the end of the day, whether to enter the crypto market, how much money to use, spot or derivatives, copy trading or not, running a given strategy or not — these decisions are yours to make and yours to bear. Before committing any funds, do your homework, use only spare money you can afford to lose entirely, and consult a qualified licensed professional where needed. MeowQuant and its editorial desk accept no liability for any decisions you make based on this site's content, or their outcomes.

One more time: Only use money that you could lose entirely without it affecting your life. Get it working on the demo account first, start small, survive first — then talk about returns.