Investment Risk Disclaimer

Last Updated: November 25, 2025

IMPORTANT RISK WARNING

Trading stocks, options, and other financial instruments involves substantial risk of loss and is not suitable for all investors. You can lose some or all of your invested capital. Past performance does not guarantee future results.

StockGenie provides educational tools and market data analysis, NOT financial advice. We are not a registered investment advisor, broker-dealer, or financial planner.

1. Not Financial Advice

StockGenie and Xlabs7 LLC provide:

  • Educational tools for learning about technical analysis and market monitoring
  • Market data aggregation from publicly available sources
  • Alert systems based on technical indicators you configure
  • AI-powered analysis for research and informational purposes

We do NOT provide:

  • Personalized investment advice or recommendations tailored to your financial situation
  • Buy/sell recommendations for specific securities
  • Portfolio management services
  • Tax, legal, or accounting advice

You are solely responsible for all investment decisions you make. Consult with a licensed financial advisor, tax professional, or attorney before making any investment decisions.

2. Understanding Investment Risks

2.1 Market Risk

Stock prices fluctuate due to economic conditions, company performance, market sentiment, geopolitical events, and other factors beyond anyone's control. You can lose your entire investment, even in companies that seem financially stable.

2.2 Technical Analysis Limitations

Technical indicators (VWAP, moving averages, RSI, etc.) are based on historical price patterns and do not predict future performance. Past patterns may not repeat. Many experienced traders use technical analysis and still incur losses.

2.3 AI Analysis Limitations

Our AI assistant uses machine learning models to analyze market data and company fundamentals. However:

  • AI models can make mistakes or provide inaccurate information
  • AI cannot predict unexpected events (earnings surprises, regulatory changes, black swan events)
  • AI analysis is based on historical data and public information, not insider knowledge
  • AI-generated insights should be verified independently before making decisions

2.4 Automated Trading Risks

WARNING: Automated trading (available on select paid plans) carries additional risks. System errors, connectivity issues, or misconfigured rules can result in unintended trades and significant losses. Always start with paper trading to test your strategies. Never risk more capital than you can afford to lose.

2.5 Data Accuracy

We strive for data accuracy but rely on third-party market data providers. Data may be delayed, incomplete, or incorrect due to:

  • Provider outages or errors
  • Network connectivity issues
  • Exchange data feed delays
  • Corporate actions (splits, dividends) not immediately reflected

Always verify critical data with your broker before making trading decisions.

3. Regulatory Status

Xlabs7 LLC and StockGenie are:

  • NOT registered with the U.S. Securities and Exchange Commission (SEC)
  • NOT registered with the Financial Industry Regulatory Authority (FINRA)
  • NOT a Registered Investment Advisor (RIA)
  • NOT a broker-dealer or trading platform

We provide technology tools for self-directed traders and investors. You are responsible for ensuring your trading activities comply with all applicable securities laws and regulations.

4. Hypothetical Performance

Any backtesting results, hypothetical performance, or simulated trading results shown in our Service or marketing materials:

  • Are based on historical data and may not reflect actual trading results
  • Do not account for market impact, slippage, or real-world execution costs
  • Assume perfect execution at exact prices (unrealistic in live trading)
  • May benefit from hindsight bias (knowing what patterns led to success)
  • DO NOT guarantee future performance or profitability

CFTC RULE 4.41: Hypothetical or simulated performance results have certain limitations. Unlike actual performance records, simulated results do not represent actual trading. Since trades have not been executed, results may under- or over-compensate for market factors such as lack of liquidity. Simulated trading programs are designed with the benefit of hindsight. No representation is being made that any account will achieve profits or losses similar to those shown.

5. Paper Trading vs. Live Trading

Our paper trading feature (available on select paid plans) simulates trading with virtual money. Paper trading results do NOT reflect the challenges of live trading, including:

  • Emotional stress and psychological pressure of risking real money
  • Order execution delays and slippage
  • Commissions, fees, and taxes
  • Liquidity constraints (inability to fill orders at desired prices)
  • Margin requirements and forced liquidations

Success in paper trading does not guarantee success in live trading. Many traders who are profitable in simulation incur losses when trading real money.

6. No Guarantee of Profit

We make NO guarantees, promises, or representations regarding profits, earnings, or investment returns.

Using StockGenie does not ensure profitability. Most retail traders lose money. Even with advanced tools, technical analysis, and AI assistance, there is no "holy grail" strategy that guarantees consistent profits.

7. Testimonials and User Results

Testimonials or success stories from users (if displayed on our website):

  • Represent individual experiences and are not typical results
  • Do not constitute a guarantee that you will achieve similar results
  • May not reflect the full picture (losses not disclosed, survivorship bias)
  • Should not be relied upon as the sole basis for investment decisions

8. International Users

StockGenie currently supports U.S. stock exchanges (NYSE, NASDAQ, AMEX). If you are located outside the United States:

  • Ensure your use of our Service complies with local laws and regulations
  • Be aware of currency exchange risks if trading in foreign markets
  • Understand that we do not provide advice on international tax implications
  • Verify that the securities you trade are legally available in your jurisdiction

9. System Reliability

While we strive for 99.9% uptime, our Service may experience:

  • Unexpected downtime or maintenance windows
  • Delayed alerts due to network congestion or system load
  • WebSocket disconnections requiring manual reconnection
  • Bugs or errors in alert rules or automated trading logic

Never rely solely on StockGenie for critical trading decisions. Always have backup systems and manual oversight, especially for automated trading.

10. Tax Implications

Trading stocks and other securities has tax consequences. Short-term capital gains, wash sale rules, and other tax regulations apply. We do not provide tax advice.

Consult with a qualified tax professional to understand the tax implications of your trading activity. You are solely responsible for reporting and paying all applicable taxes.

11. Educational Purpose

StockGenie is designed as an educational tool to help you:

  • Learn about technical analysis and market indicators
  • Understand how professional traders use VWAP, moving averages, and other tools
  • Research stocks using AI-powered fundamental and technical analysis
  • Practice risk management with paper trading before risking real capital

Education alone does not guarantee trading success. Apply what you learn cautiously, start small, and never trade with money you cannot afford to lose.

12. Your Responsibility

By using StockGenie, you acknowledge and agree that:

  • You are solely responsible for evaluating the risks and merits of any investment decision
  • You will not hold Xlabs7 LLC liable for any trading losses or missed opportunities
  • You understand that StockGenie is a tool, not a guarantee of success
  • You will perform your own due diligence before making investment decisions
  • You accept full responsibility for all trades executed based on alerts or analysis from our Service

13. Contact Information

If you have questions about this disclaimer or need clarification on our Service's limitations, please contact us:

Xlabs7 LLC

Email: info@xlabs7.com

Final Reminder: Investing involves risk. Only invest money you can afford to lose. Diversify your portfolio. Do not make investment decisions based solely on alerts from StockGenie or any single source. Seek professional financial advice tailored to your specific situation, goals, and risk tolerance.