Disclosures & Risk Warnings

Regulatory Status

AlphaTrak is not a registered broker-dealer, investment advisor, or financial planner. We are a software company that provides tools for research and analysis.

• We are not registered with the Securities and Exchange Commission (SEC)
• We are not a member of the Financial Industry Regulatory Authority (FINRA)
• We are not registered as an investment advisor with any state or federal regulatory body
• We do not hold client funds or securities

When you place trades through our platform, orders are executed by your connected broker (e.g., Tradier). Your broker is the regulated entity responsible for custody, execution, and regulatory compliance. AlphaTrak merely provides the interface.

Trading Risks

General Risks

• Market Risk: Securities prices can fluctuate significantly due to market conditions, economic factors, company performance, and other variables beyond your control.
• Liquidity Risk: Some securities may be difficult to sell quickly at a fair price, especially during volatile market conditions.
• Timing Risk: Even correct analysis can result in losses if your timing is wrong. Markets can remain irrational longer than you can remain solvent.
• Technology Risk: System outages, connectivity issues, or software bugs can prevent timely order execution or cause errors.

Options Trading Risks

Options trading involves unique and significant risks:

• Total Loss: Options can expire worthless, resulting in 100% loss of your investment.
• Leverage Risk: Options provide leverage that can amplify both gains and losses beyond your initial investment.
• Time Decay: Options lose value as expiration approaches (theta decay), even if the underlying doesn't move against you.
• Complexity: Options strategies can be complex. Make sure you fully understand any strategy before implementing it.
• Assignment Risk: Short options positions may be assigned at any time, potentially resulting in unexpected positions.

Options are not suitable for all investors. Before trading options, read the Characteristics and Risks of Standardized Options document from the Options Clearing Corporation.

Paper Trading vs. Live Trading

AlphaTrak offers paper trading (simulated trading) to practice strategies without risking real money. Paper trading results do not reflect actual trading performance.

Key differences:

• Execution: Paper trades always fill at the requested price. Real trades may experience slippage, partial fills, or rejections.
• Psychology: Trading with real money involves emotional factors that paper trading cannot simulate.
• Market Impact: Large real orders can move prices; paper trades have no market impact.
• Fees: Paper trading may not account for commissions, margin interest, or other fees that affect real returns.

Successful paper trading does not guarantee success with real money. Always start small when transitioning to live trading.

AI and Algorithmic Analysis Limitations

AlphaTrak uses artificial intelligence and algorithmic analysis to provide insights. AI-generated analysis has significant limitations:

• No Guarantee of Accuracy: AI analysis can be wrong. Models are trained on historical data and may not predict future market conditions.
• Pattern Recognition ≠ Prediction: Identifying patterns does not mean those patterns will repeat.
• Data Limitations: Analysis is only as good as the data. Delays, errors, or gaps in data can affect results.
• Black Swan Events: AI cannot predict unprecedented events (pandemics, wars, regulatory changes) that can dramatically move markets.
• Not a Substitute for Research: AI insights should complement, not replace, your own due diligence.

Educational Purpose

AlphaTrak is designed to help you learn about trading and make more informed decisions. Our tools help you:

• Research and analyze securities
• Track your portfolio and performance
• Journal your trades and learn from patterns
• Set alerts for price and technical conditions
• Practice strategies with paper trading

We encourage users to:

• Continue learning about markets and investing
• Paper trade extensively before using real money
• Start with small positions when transitioning to live trading
• Never invest more than you can afford to lose
• Consider consulting a licensed financial advisor for personalized advice

Brokerage Relationships

AlphaTrak integrates with third-party brokerages (currently Tradier) to enable order execution. Important disclosures about these relationships:

• No Compensation: We do not receive payment for order flow. We do not receive commissions or rebates from brokers for trades placed through our platform.
• Your Broker Relationship: When you connect a broker account, you maintain a direct relationship with that broker. Your account is subject to their terms, fees, and regulatory oversight.
• SIPC Protection: Funds held with your broker may be protected by SIPC (Securities Investor Protection Corporation). AlphaTrak does not provide any such protection as we do not hold customer funds.

Data and Pricing

• Real-Time Data: Pro and Premium plans receive real-time market data. Free plans have a 15-minute delay.
• Data Accuracy: While we strive for accuracy, market data may contain errors or delays. Do not rely solely on AlphaTrak data for trading decisions.
• Historical Data: Historical prices are adjusted for splits and dividends where applicable but may not reflect actual trading prices at the time.

Tax Considerations

Trading securities has tax implications. AlphaTrak does not provide tax advice. Key points:

• Capital gains and losses must be reported to tax authorities
• Short-term and long-term gains are taxed differently
• Wash sale rules may affect loss deductions
• Options have complex tax treatment

Consult a qualified tax professional for advice specific to your situation.

Contact Information

If you have questions about these disclosures:

• Email: compliance@alphatrak.com
• Via our Contact Page

For questions about brokerage services, contact your broker directly.