Risk Disclosure Notice

Publication Date: 1 January 2026 Last Reviewed: 12 February 2026 Scope: Algorithmic Systems & Financial Derivatives

CRITICAL WARNING: HIGH CAPITAL RISK Engaging in trading digital currencies, Contracts for Difference (CFDs), leverage instruments, and algorithmic derivatives carries a very high level of risk. You could suffer a rapid and complete loss of your deposited capital. Do not trade with capital you cannot afford to lose.

1. Purpose of this Disclosure

This Risk Disclosure Notice is provided by Rung Tailac to inform prospective and current users of the substantial risks inherent in trading financial instruments, cryptocurrencies, and derivative contracts through automated algorithmic software. This notice cannot disclose all possible risks associated with volatile global markets; rather, it details the core operational, systemic, and financial dangers you must carefully evaluate before participating.

2. Extreme Market Volatility

Cryptocurrency and derivative markets are subject to sudden, extreme fluctuations influenced by unpredictable macro-economic developments, global regulatory interventions, shifting market sentiment, and institutional capital flows. Unlike traditional equity or sovereign bond markets, digital currency valuations are not underpinned by central bank guarantees or statutory compensation schemes. Overnight price drops exceeding 20% to 50% are historical realities within the asset class.

3. Risks of Leveraged and Derivative Instruments

When trading CFDs or leveraged token contracts, slight market movements produce exponentially amplified financial effects:

Magnified Losses: Leverage allows exposure with a fractional initial deposit margin. While potential gains are multiplied, losses are similarly magnified. An unfavorable fractional price move can liquidate an entire margin balance in fractions of a second.
Margin Calls and Forced Liquidation: If market pricing approaches maintenance margin limits, positions may be automatically liquidated without prior notification. In highly turbulent conditions, positions may close at prices below the anticipated stop-loss barrier due to market gaps.
Holding Costs and Overnight Financing: Extended holding of leveraged derivative contracts may accumulate rollover and overnight financing fees, eroding nominal returns.

4. Algorithmic and Machine Learning Model Limitations

Rung Tailac develops high-throughput automated execution software governed by quantitative parameters and predictive neural models. You must evaluate the technical constraints of such software:

No Guaranteed Outcomes: Algorithmic software executes based on statistical probabilities and historical datasets. No mathematical model, artificial intelligence architecture, or optimization routine can forecast erratic black-swan market events with infallible certainty.
Past Performance Caveat: Historical metrics, simulated yields, backtested results, and performance calculators showcased on the site are illustrative indicators only and do not constitute a promise or guarantee of future capital returns.
Algorithmic Overfitting: Quantitative models that perform exceptionally on historical backtests may suffer unexpected performance decay when deployed into evolving, unprecedented liquidity regimes.

5. Technological, Connectivity, and Execution Risks

Algorithmic trade execution relies upon telecommunications infrastructure, digital cloud hosting, low-latency API connections, and decentralized liquidity nodes. You acknowledge the following technical risks:

Execution Slippage: Rapid market transitions, network latency, or thin order books can result in trade fills at prices substantially different from the price at which the algorithmic order was triggered.
Network and Hardware Outages: Disruptions in third-party exchange APIs, internet service provider outages, cloud hosting maintenance, or distributed denial-of-service (DDoS) events may interrupt trading cycles or delay stop-loss executions.
Smart Contract and Blockchain Congestion: Blockchain transfers and on-chain settlements may experience severe latency or prohibitive gas fees during periods of heightened market volume.

6. Regulatory and Counterparty Exposures

The regulatory framework governing cryptocurrency assets and derivative services continues to evolve dynamically within the United Kingdom and internationally. Changes in statutory treatment, tax mandates, or exchange licensing by supervisory authorities (including the Financial Conduct Authority - FCA) could adversely impact market access, asset liquidity, or instrument availability without advance warning.

7. No Investment Advice or Fiduciary Duty

Rung Tailac acts exclusively as an algorithmic technology developer and software platform. We do not operate as an investment manager, portfolio advisor, discretionary broker, or fiduciary custodian. All operational strategies, leverage selections, stop-loss thresholds, and balance allocations remain your exclusive responsibility. If you do not completely understand the financial mechanics of automated digital trading, you should consult an independent, certified financial advisor before deploying capital.