Effective Date: March 3, 2026
This document constitutes the official Brokerage Account Risk Disclosure and Release of Liability for Atlas Trade AI LLC ("Company," "we," "us," or "Atlas Trade AI"). By accessing our software, website, signals, or services, or by connecting them to any brokerage account (cash or margin), you acknowledge that you have read, understood, and agree to all terms and warnings below. This disclosure is incorporated into our Terms of Service and User Agreement; continued use constitutes acceptance.
The Company provides non-discretionary, informational algorithmic trading signal software tools only, as defined under the Investment Advisers Act of 1940 (15 U.S.C. §80b-2(a)(11)) and the Commodity Exchange Act (7 U.S.C. §1a(12)). We are not registered as an Investment Adviser, Commodity Trading Advisor, broker-dealer, or fiduciary. We do not provide personalized advice, execute trades, manage accounts, or custody funds. All trading decisions remain solely yours.
1. Software Design and Brokerage Account Types
THE SOFTWARE IS DESIGNED EXCLUSIVELY FOR CASH ACCOUNTS AND IS NOT INTENDED, TESTED, OR OPTIMIZED FOR MARGIN TRADING. It generates uniform signals for assets such as ETFs, futures, stocks, and indices, intended for cash-based trading where users retain full control (e.g., via start/stop buttons and broker limits). Our algorithms can generate same-day entry and exit signals when risk conditions are met.
If you choose to use a margin account or engage in day trading, you do so at your sole risk and discretion. The Company disclaims any endorsement, warranty, or suitability of the software for margin use or day trading, and such use may void any implied warranties, limit support availability, or violate your broker's terms, potentially amplifying risks beyond the software's design. We strongly recommend against margin trading or day trading with the software.
2. Pattern Day Trading (PDT) Risks
Because our algorithms can generate same-day entry/exit signals, use of the software in a margin account may cause you to execute four or more day trades within five business days. Under current FINRA Rule 4210 (still in full effect as of March 2026), this activity can designate you as a Pattern Day Trader if the day trades exceed 6% of your total trades in that period.
Consequences of PDT Designation
You must maintain a minimum equity of $25,000 in the margin account at all times while day trading.
If equity falls below $25,000, your broker will restrict you to closing transactions only (no new day trades) until the account is restored to $25,000. Many brokers impose a 90-day restriction.
Your broker may also limit day-trading buying power or liquidate positions.
Minimum Account Size for Our Algorithms
The Company does not set or require any minimum account balance. However, to use the software’s same-day exit functionality in a margin account without triggering PDT restrictions, you will need at least $25,000 in account equity (as required by your broker under current FINRA/SEC rules). Cash accounts have no PDT rule but are subject to separate settlement restrictions (see Section 3). Always confirm exact requirements and any higher minimums with your specific broker before using our signals.
3. Key Risks of Margin Trading
MARGIN TRADING INVOLVES SIGNIFICANT RISKS THAT CAN LEAD TO SUBSTANTIAL LOSSES EXCEEDING YOUR INITIAL INVESTMENT AND IS NOT SUITABLE FOR ALL USERS. Margin trading involves borrowing funds from your broker, which can magnify both gains and losses. Specific risks include:
Amplified losses, where losses can exceed your initial investment, leading to total account depletion or negative balances—for example, a small market move against your position could result in losses far greater than in a cash account.
Margin calls and liquidation, where if account equity falls below required levels (e.g., under SEC Regulation T, 12 CFR §220), your broker may issue a margin call requiring immediate deposits, and failure to meet it could lead to forced liquidation of positions at unfavorable prices, potentially incurring further losses.
Interest and fees on borrowed funds, which increase costs regardless of trading outcomes.
Market volatility, particularly for commodities and futures traded via the software (e.g., gold), as noted in CFTC Rule 4.41 (17 CFR §4.41), which requires disclosures of hypothetical performance limitations—past or simulated results do not guarantee future outcomes, and margin use amplifies this volatility.
Any misrepresentation of risks or performance in margin use could implicate SEC Rule 10b-5 (17 CFR §240.10b-5), prohibiting deceptive practices in securities trading.
You must independently assess these risks and consult licensed professionals before proceeding. Day trading and margin trading are not suitable for all investors.
4. Regulatory References
The following regulations are relevant to margin trading, day trading, and the use of our software:
SEC Rule 10b-5 (17 CFR §240.10b-5), which prohibits fraud or deceit in connection with securities purchases or sales—users must not rely on software signals as guaranteed or risk-free in margin contexts.
CFTC Rule 4.41 (17 CFR §4.41), which requires clear disclaimers for hypothetical or simulated performance—software signals are informational only, and margin use or day trading does not alter this, with no performance guarantees made.
SEC Regulation T (12 CFR §220), which governs margin requirements—consult your broker for compliance.
FINRA Rule 4210 (Margin Requirements) – current Pattern Day Trader provisions and $25,000 minimum equity rule. Users are solely responsible for compliance.
FINRA Rule 2264, which requires detailed margin disclosures for securities accounts—ensure your broker provides these.
CFTC Regulation AT (17 CFR §1.80 et seq.), which mandates risk controls for algorithmic trading—users must implement their own pre-trade risk limits, especially on margin or with day trading, to mitigate volatility in commodities.
NFA Rule 2-29, which prohibits unsubstantiated claims in futures promotions—no earnings promises are made here.
FTC Truth-in-Advertising rules (15 U.S.C. §45), which ensure non-deceptive disclosures—this document reinforces that margin risks, day-trading risks, and PDT compliance are the user's responsibility.
5. Release of Liability & Indemnification
You agree to hold the Company, its affiliates, and representatives harmless for any losses, damages, or claims arising from margin use or day trading, except for gross negligence, willful misconduct, or where prohibited by law.
To the maximum extent permitted by law, you agree to release, indemnify, and hold harmless Atlas Trade AI LLC, its officers, directors, employees, affiliates, and agents from any and all claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising from:
Your use of the software with any brokerage account;
Any day-trading activity, PDT designation, broker-imposed restrictions, or liquidations;
Margin calls, interest charges, or settlement violations;
Any losses exceeding your account balance; or
Your failure to comply with broker, FINRA, SEC, CFTC, or other regulatory requirements.
This release covers claims under the Securities Exchange Act, Commodity Exchange Act, and state laws, except for gross negligence or willful misconduct proven in a court of competent jurisdiction. By accessing this disclosure (e.g., via download, review, or checkbox acknowledgment in the client portal), you acknowledge understanding these risks and agree that we are not liable for any financial losses, margin calls, regulatory violations, or other outcomes. This includes waiver of claims under the Securities Exchange Act of 1934 and Commodity Exchange Act, to the extent permitted by law.
You represent and warrant that you have consulted (or will consult) your own licensed broker, tax advisor, and attorney, and that you are solely responsible for all compliance, suitability, and risk-management decisions. You are solely responsible for consulting registered professionals (e.g., a Commodity Trading Advisor for commodities or an Investment Adviser for securities) and ensuring broker compliance with anti-money laundering and know-your-customer rules (e.g., FinCEN requirements under 31 U.S.C. §5311 et seq.). We strongly recommend not using margin or day trading with the software. If proceeding, maintain detailed trading logs and implement independent risk controls. Any disputes must follow our Internal Dispute & Refund Policy before external actions, without waiving your rights under FCBA, EFTA, ROSCA, or NRS 598.
6. User Acknowledgment & Acceptance
By continuing to use our services you confirm:
You understand the risks of day trading and the $25,000 PDT equity requirement.
You will not hold the Company liable for any broker actions or trading losses.
You will implement your own risk controls and maintain detailed trade records.
Important: Brokerage and regulatory rules can change. This disclosure reflects rules in effect as of March 2026. You are responsible for monitoring updates from FINRA, SEC, and your broker.
This document does not constitute legal, tax, or financial advice. Questions regarding your specific situation should be directed to qualified professionals.
Atlas Trade AI LLC