Risk disclosure
Automated trading can be convenient, but it is never risk-free. This page explains the main risks of using Forge Capmoor in plain language, and what you can do about each one.
General warning. Trading cryptoassets and other financial instruments is high risk. You can lose some or all of the money you put in, and you should only use money you can afford to lose. Cryptoassets are largely unregulated as investments, are not covered by the Financial Services Compensation Scheme, and you are unlikely to be able to bring a claim to the Financial Ombudsman Service for trading losses. Nothing on this website is personal advice or a promise of profit. Past performance does not indicate future results.
1. Market risk
Prices of cryptoassets and shares can rise and fall sharply in minutes. A move of 10% in a day is not unusual for some cryptoassets, and news, regulation, large sales by big holders or a change in sentiment can trigger it. Because your gains and losses follow those prices, the value of your account can fall as quickly as it can rise.
What you can do: only invest what you could lose without changing your everyday life, and decide a maximum loss before you start.
2. Liquidity risk
Liquidity is how easily an asset can be bought or sold at a fair price. In quiet or stressed markets there may be few buyers or sellers, so an order can be filled at a worse price than expected, a difference known as slippage. In extreme conditions an order may not be filled at all.
What you can do: keep position sizes modest and expect that results in fast markets can differ from the price you saw a moment earlier.
3. API keys and integrations
To trade on your behalf, the platform may connect to an exchange account through an API key. A key with too many rights, a key pasted into the wrong place or a mistake in the connection settings can lead to unwanted trades or to your account being accessed by someone else.
What you can do: give each key only the rights it needs, never enable withdrawals on a trading key, restrict it to our IP addresses where the exchange allows, and revoke it if you have any doubt.
4. Counterparty and custody risk
Your assets may sit with third-party exchanges and payment providers that we do not control. If one of them fails, suffers a breach, freezes withdrawals or is subject to a regulatory order, you could be delayed or lose part or all of the assets held there.
What you can do: spread assets across providers where sensible, and read the terms and protections of any exchange you connect.
5. Operational risk
Software has bugs, data feeds can fail, servers can go down and internet connections can drop. A technical fault at our end, at an exchange or at your end can delay an order, cause it to be repeated or stop a strategy at a bad moment.
What you can do: check your dashboard regularly, keep notifications on and tell your manager straight away if something looks wrong.
6. Cyber security and phishing
Criminals target people who hold money online. They send convincing emails, texts and calls, build clone websites and try to trick you into revealing passwords or codes. If they succeed they can take control of your account.
What you can do: turn on two-factor login, never share codes, only use the official website address, and read our security and fraud warning pages.
7. Models and automation
Our algorithm is built to spot patterns and short-term trends using probability analysis. Models are trained on the past, and markets change. A strategy that worked in one period may perform poorly in another, and automation can repeat a mistake quickly. Nothing about automation guarantees a result, and no strategy wins every time.
What you can do: understand the strategy you switch on, review it regularly and do not treat any past result as a forecast.
8. Service availability
The platform may be unavailable during maintenance, upgrades or unexpected outages, and third-party services we rely on can be unavailable too. While that lasts you may be unable to view your account, change settings or withdraw funds, and markets can move in the meantime.
What you can do: do not rely on being able to act at a specific moment, and keep your manager's contact details to hand.
Risk controls, and what they do not do
The platform includes protective mechanisms that are designed to respond to periods of high volatility. When market conditions become extremely unstable, the system can stop trading. This may limit some exposure, but it does not prevent losses, it cannot cover every scenario, and it does not guarantee that your capital is safe. A pause can also mean you miss a recovery.
Risk settings can also be misjudged. A cautious strategy can still lose money, and an aggressive one can lose it faster. If you are unsure which suits you, your personal manager can explain the trade-offs, but the final choice is yours.
Similarly, having no trading experience does not mean having no risk. The platform is designed so beginners can use it, and a personal manager is there to help, yet you are still responsible for deciding whether to invest and how much.
How a loss can happen in practice
Suppose you put £1,000 into a strategy and the market falls sharply over a few days. Even if the strategy pauses, your account could be worth £800 or less by the time trading stops, and it could stay there for weeks. If you needed that money for a bill, you would have no choice but to withdraw at a loss. This is illustrative only and not a forecast, but it is why we stress that you should only use money you can afford to lose.
Tax and legal considerations
Profits from cryptoassets may be subject to Capital Gains Tax or Income Tax in the UK, and you are responsible for keeping records and reporting what you owe to HM Revenue and Customs. Tax treatment depends on your circumstances and may change. We cannot give tax advice, so speak to a qualified adviser if you are unsure.
UK rules for first-time investors
Under FCA rules on promoting cryptoassets, firms must give clear risk warnings and, for first-time investors, allow a short cooling-off period before an investment can go ahead. You may also be asked to answer questions to check that you understand the risks. These rules exist to slow things down so you can think, and we encourage you to use that time.
9. Before you start
Take a few minutes to run through this list. If you cannot tick every line, wait until you can.
- Understand the strategy. Ask your manager to explain what it does and when it may pause, in words you are comfortable with.
- Decide your acceptable loss. Write down the amount you could lose without hardship, and do not go beyond it.
- Protect your account. Use a unique password, switch on two-factor login and keep API permissions minimal.
- Keep control. Review your strategies and alerts on a regular schedule, and stop or change a strategy if it no longer suits you.
- Keep other savings separate. Do not use emergency money, borrowed money or money you need for bills.
10. Questions
If anything here is unclear, ask before you deposit. You can write to [email protected], use the contact page or read the FAQ and crypto basics guide.