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Risk Disclosure Notice

Last updated: 15 January 2026
CRITICAL CAPITAL NOTICE Trading cryptocurrencies and digital assets entails severe financial hazard. There is an inherent probability of losing all allocated capital. You should never commit funds that you cannot afford to lose completely.

This Risk Disclosure Notice is issued by Blue Tree to inform all existing and prospective users of the substantial financial and operational hazards linked to digital asset markets and algorithmic trading systems.

This document cannot detail every risk associated with crypto assets and automated algorithms. You must independently evaluate your financial position, investment experience, and risk tolerance before deploying automated strategies.

1. Severe Volatility and Valuation Hazards

Digital assets, including major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), are subject to extreme, unpredictable price swings. Market valuations can change drastically within seconds due to:

  • Shifting global regulatory postures and legal announcements;
  • Sudden liquidity evaporation on centralized and decentralized spot order books;
  • Macroeconomic shifts, interest rate changes, and geopolitical events;
  • Market sentiment shocks driven by social media coverage and large volume ("whale") transfers.

Unlike traditional equities or bank accounts, digital assets are generally not insured by statutory deposit guarantee mechanisms such as the Financial Services Compensation Scheme (FSCS) in the United Kingdom.

2. Algorithmic and Technological Limitations

While Blue Tree provides quantitative machine learning and rule-based trade execution interfaces, automated platforms are subject to technical limitations:

  • Historical Model Limitations: Backtesting and algorithmic models rely on historical price patterns. Market dynamics can shift fundamentally, rendering algorithmic indicators invalid;
  • Latency and Slippage: Rapid market developments may cause trades to execute at prices significantly worse than anticipated ("slippage"), especially during times of abnormal volatility;
  • API Failures and Connection Gaps: Algorithmic execution depends on the operational stability of third-party exchanges. If an external API disconnects or halts orders, automatic risk stops may fail to execute.

3. No Guarantees or Profit Assurances

Past performance is neither a guarantee nor a reliable indicator of future results. No calculation, projection, simulation, or platform demonstration constitutes a guarantee of profit. Simulated calculators on the platform reflect hypothetical mathematical formulas and do not account for trading fees, spreads, slippage, liquidity vacuums, or actual trading conditions.

4. Counterparty and Custodial Vulnerability

Blue Tree does not act as a custodian for fiat currency or cryptocurrency holdings. User funds remain lodged with external crypto exchanges or personal digital wallets connected via API keys. You bear total responsibility for evaluating the solvency, security safeguards, licensing status, and jurisdictional reliability of any third-party exchange with which you trade.

5. Regulatory and Taxation Risks

The regulatory framework surrounding crypto assets remains in dynamic development globally and within the United Kingdom. Changes in legal frameworks, tax laws, or regulatory prohibitions may negatively impact asset availability, liquidity, or the legality of automated trading software. You are solely responsible for calculating and remitting all taxes (including Capital Gains Tax and Income Tax) payable to relevant tax authorities.

6. Independent Advice Recommendation

Blue Tree operates strictly as a software and analytics developer. No communication, platform feature, or documentation published by Blue Tree should be regarded as investment, taxation, or legal advice. If you have any uncertainty regarding the appropriateness of digital asset operations, you should seek guidance from an authorized, independent financial advisor.

7. Inquiries

For additional details regarding our software architecture, please reach out via [email protected] or write to King William Street 65, EC4N 7BJ London, United Kingdom.