Zoosh Risk Disclosure

Effective date: October 13, 2026

This explains the main risks of trading with Zoosh. It does not cover every risk. Your broker's own disclosures and agreements also apply; read them. Zoosh gives no advice, and nothing here tells you whether any trade suits you.

Trading in general

Every trade can lose money, and you can lose all of it. Prices can move fast and without warning. Only trade money you can afford to lose. Easy mode makes the ticket simpler; it does not make the trade safer.

Order types

• A market order fills at the next available price, which can be far from the last price you saw.
• A limit order may fill partly or not at all.
• A stop order becomes a market order when triggered. It does not guarantee your stop price.
• A stop limit order may not fill at all if the price moves past your limit.
• A trailing stop follows the price and has the same risks as a stop.
• Bracket and OCO orders link a take-profit and a stop. In a fast market both sides can fill, which can leave you with an unwanted position.
• Day orders end at the close. GTC orders stay open until they fill or you, or your broker, cancel them.

Gaps and fast markets

Prices can jump between trades, overnight, after news or after a trading halt. A gap can skip right past your stop or your outer stop, and the order then fills at a much worse price. A halt can stop you from trading at all.

Outside regular hours

Where your broker allows trading before or after the regular session, there are usually fewer buyers and sellers, wider spreads and sharper moves. Some order types may not be accepted, and prices may not match the regular session.

Margin

Margin is money borrowed from your broker. It increases both gains and losses, and you can lose more than you deposited. Your broker charges interest, can raise its requirements at any time, and can sell your positions without telling you first to cover a shortfall.

FINRA replaced the "pattern day trader" rule and its $25,000 minimum with intraday margin standards on June 4, 2026. Brokers may keep the old rule until October 20, 2027. If you repeatedly fail to cover an intraday margin deficit, your broker may restrict your account for up to 90 days. Ask your broker which rules it applies to you.

Short selling (Bounce and any short sale)

When you sell short, you sell borrowed shares and must buy them back later.

• Losses have no ceiling. A price can rise without limit, so a short can lose far more than you put in.
• You need a margin account and your broker's approval.
• Your broker may charge borrow fees, which can rise sharply for hard-to-borrow stocks.
• The lender can recall the shares at any time. Your broker may then buy them back for you, at any price and at any moment.
• You owe any dividend paid while you are short.
• A short squeeze can drive the price up fast. A gap can jump past Bounce's outer stop range.
• Bounce trades a range in both directions. If the price breaks out of the range, the position you hold loses until the outer stop fills.

Options (Multiplier and Expert mode)

Options are complex and risky. Before trading options, read Characteristics and Risks of Standardized Options (the Options Disclosure Document) from The Options Clearing Corporation; your broker must also provide it.

• You can lose everything you pay for an option. Many options expire worthless.
• An option loses value as expiration nears, even if the stock does not move.
• Small moves in the stock can cause large moves in the option.
• Spreads can be wide and some options trade rarely, so you may not get a fair price, or any price.
• Selling options can lose more than you collect. An uncovered call has no limit on loss. You can be assigned at any time.
• Expiry sale: Zoosh's sale of an option on its last trading day is a market order. It can fill at a poor price, or not at all if there is no buyer or Zoosh is not running. An unsold option may then be exercised, which can require cash or margin you do not have, or expire worthless. Your broker may also apply its own expiration rules.

Automation and connectivity

Exits that Zoosh holds itself, the expiry sale, and the repeating logic of Jump and Bounce run on your Mac. They stop working if your Mac sleeps, Zoosh quits or crashes, the internet drops, or your broker's API fails or rejects an order. Missed orders are not sent later at your price.

A bot you connect trades on its own logic, not ours. It can be wrong, fast and repetitive: a bad rule or a misread price can send order after order until it reaches its limits, and an AI agent can misunderstand what you asked. Its limits cap what it puts in each trade and each day, not what it can lose over time. Start a new bot on Ask first, give it small limits, and watch its Activity.

Jump and Bounce trade the same range again and again. In a strong trend, they can keep buying into a fall or selling into a rise until the outer stop is reached, and each trade adds fees. Software can have bugs. Watch your account and keep your broker's own tools ready.

Market data

• Free feeds such as IEX cover only part of all trading, so prices may differ from the full market.
• Data can be delayed, incomplete or wrong. Some option quotes are estimates rather than live exchange quotes.
• News headlines come from third-party feeds and can be late or wrong.
• Market hours and holidays come from a calendar built into Zoosh and may be wrong.
• Charts, studies, "trend" and "activity" describe past prices. They are not advice.

Crypto

If your broker offers crypto and you trade it, prices can swing to extremes at any hour, and you can lose everything. Crypto is not a stock. It is not protected by SIPC or the FDIC, and your broker may offer it through a separate company with different protections.

Account protection

SIPC protection, where your broker is a member, applies if a brokerage firm fails. It does not cover losses from trading.

Past results and Practice

Past prices and past results do not predict future results. The Practice account uses simulated money and simulated prices, with no real fills, slippage or fees, so real trading can turn out very differently.

Taxes

Frequent trading can create taxable gains and losses, and rules such as wash sales can apply. Ask a tax professional.