Risk Disclosure

Important Notice

Trading financial instruments involves substantial risk and may not be suitable for all investors. You should carefully consider your financial situation, experience level, and risk tolerance before participating in our challenges or trading with a funded account.

1. General Trading Risks

Financial markets are inherently volatile and unpredictable. Trading involves significant risk of loss, and you should never trade with money you cannot afford to lose.

• Past performance is not indicative of future results
• Market conditions can change rapidly and without warning
• Economic events, geopolitical factors, and news can cause extreme price movements
• Technical analysis and trading strategies do not guarantee profits
• Even experienced traders can experience significant losses

2. Leverage & Margin Risks

Our trading accounts use leverage (up to 1:20), which amplifies both potential profits and losses.

• Leverage can magnify losses as well as gains
• Small market movements can result in large account fluctuations
• You can lose your entire account balance in a short period
• Margin calls and forced liquidations can occur during volatile markets
• Overnight positions carry additional risks due to gaps and slippage

3. Proprietary Trading Specific Risks

Prop trading challenges and funded accounts have unique characteristics:

• Challenge Fees: Registration fees are non-refundable if you fail the challenge
• Strict Rules: Violating trading rules results in immediate account termination
• No Guarantee of Funding: Passing a challenge does not guarantee long-term funding
• Profit Targets: Meeting profit targets requires skill, discipline, and favorable market conditions
• Drawdown Limits: Exceeding drawdown limits results in account closure
• Simulated Environment: Challenge accounts are demo accounts, not live trading

4. No Guarantee of Profits

BareProp does not guarantee profits or success.

• Most traders fail to pass prop trading challenges
• Even funded traders may not generate consistent profits
• Market conditions can make it difficult or impossible to meet targets
• Your trading strategy may not work in all market environments
• Emotional and psychological factors can negatively impact performance

5. Technology & Platform Risks

Trading platforms and technology are subject to various risks:

• Internet connectivity issues can prevent order execution
• Platform downtime or technical glitches may occur
• Slippage and requotes can affect trade execution prices
• Automated trading systems (EAs) can malfunction
• Cybersecurity threats and data breaches are possible

While we strive to maintain reliable infrastructure, we cannot guarantee uninterrupted service or perfect execution.

6. Market-Specific Risks

Forex Markets:

• Currency pairs are affected by interest rates, economic data, and geopolitical events
• Exchange rates can be extremely volatile during news releases
• Liquidity can dry up during off-hours or crisis periods

Metals & Commodities:

• Prices are influenced by supply/demand, inflation, and global events
• Gold and silver can experience sharp price swings

Indices:

• Stock indices reflect broader market sentiment and economic conditions
• Corporate earnings, central bank policies, and global events drive volatility

7. Regulatory & Legal Risks

Regulatory environment can change:

• Prop trading regulations vary by jurisdiction and may change
• Your country may restrict or prohibit prop trading services
• Tax obligations on trading profits are your responsibility
• Legal disputes may be subject to BVI jurisdiction and laws

8. Psychological & Emotional Risks

Trading can be emotionally and mentally challenging:

• Stress, anxiety, and fear can impair decision-making
• Overconfidence after wins can lead to reckless behavior
• Revenge trading after losses often results in bigger losses
• Addiction to trading can negatively impact personal life
• Financial losses can cause significant emotional distress

9. No Investment Advice

BareProp does not provide investment, financial, or trading advice. All content on our website, including educational materials, is for informational purposes only. You are solely responsible for your trading decisions and should consult with a qualified financial advisor before trading.

10. Third-Party Risks

We rely on third-party service providers for:

• Trading platform infrastructure (MetaTrader 4/5)
• Payment processing and KYC verification
• Cloud hosting and data storage

Failures or issues with third-party providers may affect our services and your trading experience.

11. Payout Risks

Payouts are not guaranteed and are subject to:

• Successful completion of KYC verification
• Compliance with all trading rules and terms
• Company solvency and financial health
• Detection of suspicious or fraudulent activity
• Payment processor availability and restrictions

12. Your Responsibilities

By participating in our program, you acknowledge that:

• You have read and understood all risks outlined in this disclosure
• You have sufficient knowledge and experience to trade financial instruments
• You accept full responsibility for your trading decisions and outcomes
• You will not trade with money you cannot afford to lose
• You will comply with all trading rules and terms of service
• You understand that BareProp is not liable for your trading losses

13. Contact Us

If you have questions about the risks involved in prop trading, please contact us:

Email: support@bareprop.com
Company: BareProp Limited
Registered: British Virgin Islands