Risk Disclosure
Effective date: 2026-05-20
Last updated: 2026-05-20
This Risk Disclosure is part of the Lumin Service. By using the App or any feature of the Service, you confirm that you have read and understood this disclosure, and that you accept the risks described below.
1. You may lose all funds you deploy
Cryptocurrency futures trading is high risk. You can lose some or all of the funds you allocate to trading. Crypto-asset prices are highly volatile and can move sharply against you in seconds. Markets can gap (jump past your stop-loss without filling at your specified price), spreads can widen, and exchanges can experience outages — any of which may amplify your losses beyond what you expected when entering a trade.
Do not trade with funds you cannot afford to lose.
2. Leverage amplifies both gains AND losses
Binance Futures positions can be opened with leverage up to 125× depending on the pair. Leverage is set by you, on Binance, on Binance’s side. Lumin does not change your leverage; we respect whatever you have configured.
- A 10× leveraged position loses 10× as fast as a 1× position when the market moves against you.
- A single stop-loss hit at 10× leverage can erase a meaningful portion of your trading capital. A full SL on a 0.80% adverse move costs ≈ 7.9% on the margin you allocated (after fees + funding).
- Liquidation can occur if your collateral drops to maintenance-margin levels. Liquidations close your position at the worst possible price and incur a liquidation fee charged by Binance.
- Cross-margin amplifies risk further by pooling collateral across positions — one losing trade can liquidate other open positions.
You should not use leverage you do not fully understand.
Signals are generated by an algorithmic strategy operating on historical and live market data. The fact that the strategy has produced winning trades in the past does not mean it will continue to do so.
- Signal win-rate, average return, and maximum drawdown vary materially between market regimes (trending, ranging, choppy, volatile).
- Periods of consecutive losses are normal and expected. The strategy is designed to be net-positive over a large sample of trades; individual trades and short sequences can absolutely be net-negative.
- Crypto markets evolve. Strategies that worked in one regime can become unprofitable in another. No backtest, paper trade record, or live track record can predict future outcomes with certainty.
4. We are not a regulated financial services firm
Lumin is operated by an individual developer, not by a registered investment advisor, broker-dealer, or licensed financial services firm. As a result:
- You do not enjoy investor compensation protection that would apply if you were a customer of a regulated firm.
- We are not subject to financial-regulator supervision (SEC, FCA, SEBI, MAS, etc.).
- We do not carry professional indemnity or errors-and-omissions insurance.
- If we make a mistake or our Service produces a loss, your sole remedy is what these Terms of Service describe — which is substantially limited.
This Service is built for users who can independently evaluate trading risk and who accept that the product is provided as a personal-developer utility, not a regulated financial product.
5. Signals are NOT personalised investment advice
Lumin signals are informational outputs of a generalised algorithm. They are:
- The same for every user (subject to per-user configuration of position notional, leverage cap, symbol allowlist).
- NOT tailored to your individual financial situation, risk tolerance, tax position, or investment objectives.
- NOT a recommendation from a human advisor who has reviewed your circumstances.
You alone decide whether and how to act on any signal. If you need personalised investment advice, consult a regulated, licensed financial advisor in your jurisdiction.
6. The auto-execution feature
When you enable server-side auto-execution by providing a Binance API key:
- Orders are placed automatically, without per-signal user confirmation. The whole point of the feature is to react faster than a human can.
- An incorrect signal, an incorrect strategy parameter, or a software bug on our side can produce real-money losses on your account. While we operate per-user blast-radius caps (symbol allowlist, per-position notional, rate limit, global kill switch) to bound damage, these caps reduce — they do not eliminate — risk.
- You are responsible for monitoring your account. We strongly recommend that you:
- Use a separate Binance sub-account dedicated to Lumin trading, not your main account.
- Fund it with only the capital you have allocated for this strategy.
- Set a Binance-side daily-loss limit if available.
- Review your account periodically.
If you do not understand auto-execution risk, leave the feature off and use the signals-viewer mode only.
7. Technical risks specific to crypto + automation
- Exchange outages. Binance has experienced API outages, scheduled maintenance, and degraded performance. During these periods orders may fail, fills may be delayed, or position state may be inconsistent.
- Network issues. Our execution VPS may experience temporary network problems that prevent timely order placement.
- API key issues. Binance occasionally revises API permissions, rate limits, or required parameters. If your API key is mis-configured, has its IP whitelist drift, or is rotated without updating us, orders will fail.
- Software bugs. We do not guarantee bug-free software. If a bug causes a wrong order to fire, the loss is yours.
- Liquidation cascades. During severe market events (“black swan” days), liquidations can chain across the market faster than any stop-loss order can fill.
8. Tax and regulatory risk
- Crypto trading profits and losses may be subject to taxation in your jurisdiction. You are responsible for tracking and reporting your trades. We do not provide tax reporting and the Recent Activity log we surface is for informational use only — it is not a tax statement.
- Crypto-asset regulation is evolving in every jurisdiction we serve. Future regulatory changes may force us to suspend or modify the Service in your region with little notice.
- For Indian residents: the Income Tax Department classifies crypto as a Virtual Digital Asset (VDA). Profits are taxed at a flat 30% with no offset of losses against other heads, plus a 1% TDS on transfer above threshold. You are responsible for compliance with the latest CBDT guidance.
9. No internet, no service
The Service requires an internet connection for both the App and our server infrastructure. Outages on your device, your ISP, our VPS, or Binance’s API can prevent the Service from working when you expect it to. Plan your trading accordingly — do not assume the Service is always available.
10. Forward-looking statements
Nothing in the App, our marketing material, the Telegram channel, or any communication from us should be treated as a promise, prediction, or guarantee of future results. Forward-looking phrasing (e.g. “expected to”, “projected”, “should”) reflects an opinion or a possibility, never a commitment.
11. You accept these risks
By using the Service, you acknowledge that:
- You have read and understood this Risk Disclosure.
- You accept that you may lose some or all of the funds you deploy.
- You will not deploy more than you can afford to lose.
- You will not hold the Operator personally liable beyond the limits set out in the Terms of Service.
If you do not accept these risks, do not use the Service.
Where to learn more
- Binance Futures product overview: https://www.binance.com/en/futures
- Crypto-asset risks (IOSCO investor alert): https://www.iosco.org/v2/library/pubdocs/pdf/IOSCOPD706.pdf
- For UK users: FCA cryptoasset investing risks: https://www.fca.org.uk/consumers/cryptoassets
- For Indian users: SEBI investor education on virtual digital assets: https://investor.sebi.gov.in/
For questions about this Risk Disclosure:
mulakapati446@gmail.com