Risk Disclaimer

Options are complex financial instruments that carry significant risks. Understanding these risks is essential before engaging in options trading:

The Trading School and all educational materials are designed to teach concepts and strategies. They should not be interpreted as recommendations to make specific trades.

When using educational content, you should:

• Conduct your own research and due diligence
• Consider your personal financial situation and goals
• Consult with a licensed financial advisor if needed
• Practice with paper trading before using real money

Any examples, case studies, or historical performance data shown on FainTrading are for educational purposes only and should not be used to predict future results:

• Historical examples may not reflect current market conditions
• Backtesting results are hypothetical and may not reflect real trading
• Paper trading results differ from live trading due to slippage and emotions
• Market conditions change and strategies that worked before may not work in the future

Paper trading on FainTrading simulates order execution using market data. Live trading replaces those simulations with real orders routed to your broker and the exchange. The gap between the two can be large, especially on options.

• No capital at risk: paper orders do not move money, affect your margin, or create real positions with your broker.
• Spread and slippage: live orders must cross the bid-ask spread. On out-of-the-money or low-volume options, the spread can exceed 10% of the contract price, while the simulator may fill closer to the theoretical mid.
• Partial fills and latency: large orders may fill in pieces at worse prices. Submission-to-fill latency is usually sub-second but can spike to several seconds during high-volatility events.
• Commissions, regulatory fees, and exchange fees: live trades incur per-contract broker commissions and per-contract regulatory fees (OCC, SEC, FINRA) that the simulator may not reproduce exactly.
• Margin, buying power, and assignment: your broker enforces margin requirements and may close or exercise positions without notice (assignment on short options, margin calls). The simulator cannot fully model these broker-side decisions.
• Emotional and behavioral factors: discipline under real P&L and unrealized loss differs substantially from simulated trading. Historical simulator results do not predict how you will behave live.

FainTrading provides AI-assisted explanations and, where enabled, automated trading signals and bot execution. These features are technical tools — not advice — and can be incorrect, delayed, or unavailable. You remain solely responsible for every order placed through your brokerage account.

The AI and automated features:

• May return incorrect, outdated, or fabricated information (model hallucinations), including invented ticker data, prices, or strategy parameters
• May be delayed — signals, quotes, and analytics rely on data feeds that can lag real market prices by seconds or minutes, especially on low-liquidity instruments
• Do not replace professional financial, investment, or tax advice and must not be the sole basis for any trading decision
• May fail to submit, cancel, or modify orders because of network issues, broker downtime, rate limits, or authentication errors — with no guarantee of automatic retry or compensation
• Execute orders through your brokerage (tastytrade). FainTrading is not the counterparty or broker — order execution, fills, and slippage are the broker's responsibility
• Do not remove your responsibility to monitor open positions, cancel stale orders, and take manual action if automation misbehaves or the data feed stops

Market data on FainTrading is sourced from your connected brokerage (tastytrade) and third-party vendors. Availability, accuracy, and latency depend on the data tier you have with the provider, on network conditions, and on our own rate limits.

• Delayed vs real-time data: depending on your data entitlements, quotes may be delayed by several minutes. Treat any quote older than its displayed timestamp as potentially stale.
• Rate limits: our servers enforce per-user limits on quote requests, chart requests, and websocket messages. When a limit is hit, older cached values may be displayed until fresh data arrives.
• Gaps and outages: provider outages, exchange halts, holidays, and after-hours periods can leave quotes empty, frozen, or unreliable — especially for illiquid options contracts.
• Computed values: Greeks, implied volatility, probability of profit, and similar analytics are computed using standard options-pricing models (Black-Scholes and binomial approximations). These are estimates, not traded prices.
• Corporate actions: splits, special dividends, ticker changes, and option-series adjustments may take time to propagate into strikes, deltas, and P&L. Always re-verify affected positions with your broker.

By using FainTrading, you acknowledge and agree that:

• You are solely responsible for your trading decisions
• You should only trade with capital you can afford to lose
• You will conduct your own research before trading
• You understand the risks associated with options trading
• You will seek professional advice if needed
• You are of legal age to trade in your jurisdiction

FainTrading is operated by Faintech Solutions SRL, a registered software company. We are NOT a registered broker-dealer, investment advisor, or financial institution in any jurisdiction.

If you connect to tastytrade for live trading, you are subject to tastytrade's terms and the regulations of the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) or equivalent regulatory bodies in your jurisdiction.

If you have questions about this Risk Disclaimer, please contact us at support@faintrading.com.