General Risk Warning
This Risk Disclosure Statement informs you of the significant risks associated with automated cryptocurrency trading. This document is not exhaustive — additional risks may apply to your specific circumstances.
You should not use Lumira unless you fully understand the risks involved and have independently determined that automated cryptocurrency trading is appropriate for your financial situation, risk tolerance, and investment objectives.
Lumira is a technology platform that automates trade execution on your personal Kraken exchange account. We are not a financial institution, broker, registered investment advisor, or custodian. We do not manage your funds and cannot protect you from market losses.
Cryptocurrency Risks
The following risks are specific to cryptocurrency markets and apply to all activity conducted through Lumira:
Prices can move 20%, 50%, or even 90% in a single day in either direction with little warning. Nexus AI has risk controls but cannot prevent losses in extreme conditions.
It is possible to lose all funds allocated to trading through Lumira. A cryptocurrency can lose all or nearly all of its value. Never invest money you cannot afford to lose entirely.
Crypto markets are less regulated than traditional markets and are susceptible to manipulation, pump-and-dump schemes, and wash trading causing rapid, unpredictable price movements.
Cryptocurrency markets never close. Significant moves can occur overnight, on weekends, or during holidays. While Nexus AI monitors continuously, rapid moves can cause losses.
Many cryptocurrencies tend to move together during downturns. Multiple positions may not provide diversification benefits during market-wide selloffs.
During extreme market stress, spreads can widen significantly, causing trades to execute at substantially worse prices than expected — known as slippage.
Automated Trading Risks
- Algorithm risk: No algorithm is perfect. Market conditions can change in ways the algorithm has never encountered, leading to unexpected losses.
- Overfitting risk: AI systems can perform well on historical data but underperform in live markets due to patterns that don't repeat in the future.
- Flash crash risk: Automated systems across all market participants can amplify moves during flash crashes. Stop-loss mechanisms may be exceeded by extreme moves.
- Signal failure: The 17 analytical systems Nexus AI uses can generate incorrect signals. Multiple systems agreeing does not guarantee a profitable trade.
- Over-trading risk: Each trade incurs exchange fees that reduce overall returns.
Past performance disclaimer: Any historical performance data for Nexus AI reflects past results under past market conditions. This data has no predictive value and should not be relied upon as an indication of future performance.
Technology & System Risks
- Software bugs: Despite rigorous testing, software can contain bugs causing unexpected behavior including incorrect trade execution.
- Server downtime: Our infrastructure may experience downtime. During downtime, your bot cannot trade and may be unable to close open positions.
- Internet connectivity: Network disruptions can interrupt trade execution at critical moments.
- API failures: Kraken's API may experience downtime or rate limiting that temporarily prevents trade execution.
- Latency: There is an inherent delay between when Nexus AI identifies an opportunity and when a trade executes. In fast-moving markets, this latency can mean worse execution prices.
- Cybersecurity: While we employ strong security measures, no system is completely immune to cyberattacks.
Exchange & Counterparty Risk
- Exchange insolvency: If Kraken were to become insolvent, your funds held on the exchange could be at risk. Kraken is NOT FDIC insured. Despite receiving a Federal Reserve master account in March 2026, cryptocurrency balances are not insured by the FDIC or any government deposit insurance program.
- Exchange outages: Kraken periodically experiences technical outages. During an outage, your bot cannot trade and open positions cannot be closed.
- Kraken policy changes: Kraken may change its trading fees, supported pairs, or API terms at any time.
- Account restrictions: Kraken may freeze or terminate your account for reasons outside of Lumira's control.
- Not our funds: Lumira is not responsible for the security or availability of funds held in your Kraken account.
Regulatory Risk
- Changing regulations: New laws could restrict or ban cryptocurrency trading in your jurisdiction.
- Tax obligations: Cryptocurrency trading may generate taxable events. You are solely responsible for all applicable tax compliance. Lumira does not provide tax advice — consult a qualified tax professional.
- Jurisdiction-specific restrictions: You are responsible for ensuring your use of Lumira complies with the laws of your jurisdiction.
Liquidity Risk
During low-liquidity periods, insufficient buyers or sellers at a given price may cause trades to execute at worse prices than expected. Large orders relative to market depth can move prices against you. During market crises, liquidity can evaporate rapidly. The plan-based maximum trade sizes in Lumira are designed to minimize liquidity impact, but cannot eliminate slippage entirely.
No Guaranteed Returns
Lumira makes absolutely no guarantee, representation, or warranty of any kind regarding returns, profits, or performance. Any figures, statistics, win rates, or performance data presented anywhere are historical in nature and do not predict future results.
The Nexus AI engine may perform well in certain market conditions and poorly in others. There will be periods of drawdown. Statements like "aims to grow faster than traditional investments" represent our goals — not promises. Actual results will vary significantly.
- You may lose money using Lumira, including all of your invested capital.
- There are no guaranteed minimum returns of any kind.
- Good past performance does not predict or guarantee future performance.
Not Financial Advice
Nothing provided by Lumira — website, dashboard, Telegram bot, AI chat, support communications, or any other channel — constitutes financial advice, investment advice, trading recommendations, or professional financial guidance of any kind. Before using Lumira, we strongly recommend consulting a qualified financial advisor and a qualified tax professional.
Suitability Assessment
Lumira may NOT be suitable if any of the following apply to you:
Risk Mitigation Measures
- Plan-level position limits: Maximum simultaneous positions (3, 7, or 10) to prevent over-concentration.
- Per-trade risk limits: Maximum risk percentage per trade (25%, 40%, or 50%) enforced at process level.
- Stop-loss mechanisms: Automatically closes losing positions before losses exceed defined thresholds.
- Drawdown memory: Per-symbol loss tracking automatically reduces position sizing after consecutive losses.
- Regime detection: AI classifies market conditions and adjusts strategy — becoming more conservative during adverse conditions.
- Adaptive thresholds: Entry confidence requirements automatically increase during volatile or low-quality market conditions.
- Trade-only API keys: In any security scenario, your funds cannot be withdrawn from Kraken by anyone using Lumira.
Important: These measures reduce but do not eliminate risk. They cannot prevent all losses, especially during extreme or unprecedented market events.
Your Acknowledgment
By creating a Lumira account and using our platform, you acknowledge that: you have read this document in full; cryptocurrency trading involves substantial risk including total loss; you are only investing what you can afford to lose entirely; past performance does not guarantee future results; Lumira is not a financial advisor; and you accept full responsibility for all trading activity and financial outcomes on your Kraken account via Lumira.
If you do not understand or accept any part of this Risk Disclosure, do not use Lumira. Contact us at support@lumirainvest.co with any questions before proceeding.
Questions About Risk?
Email: support@lumirainvest.co
Support page: lumirainvest.co/support.html
Terms: lumirainvest.co/terms.html