RISK DISCLOSURE

Not a Deposit | Not FDIC Insured | May Lose Value

Commodity trading involves substantial risk of loss. All investments involve risk, and not all risks are suitable for every investor. The value of investments may fluctuate and as a result, clients may lose more than their original investment. The past performance of a financial product does not guarantee future results or returns. Please carefully consider whether it is appropriate for you to engage in futures trading in light of your personal financial circumstances. You should only use funds that you can afford to lose without affecting your financial security or lifestyle, and only a portion of those funds should be used to support a single trade because you cannot expect to profit on every trade. 

It is extremely difficult to succeed long term in trading. In fact, according to a 2017 University of California study (Do Day Traders Rationally Learn About Their Ability?), the majority of traders will fail. Michael Patak, founder and CEO of Topstep LLC (“Topstep”), is well aware of the high rate of failure in the industry—early in his career he lost three separate $30,000 trading accounts (i.e., $90,000).

Topstep LLC and its affiliates (collectively, “Topstep”) was created to fund and educate traders through a “learn by doing” approach in a simulated futures trading environment, where a substantial portion of the risk of live markets is mitigated by virtue of not using one’s funds to participate in this environment. Despite this risk mitigation, you should be aware of the risk that comes with trading.

Once you leave simulated trading and enter a live trading environment (whether through a Topstep funded account or otherwise), always bear in mind the following:

• Never risk more than you are willing to lose. Remember that losses are rarely limited to the funds in your accounts – it is possible to lose more than in is in your account and then be legally responsible for any deficiency.
• Short-term or “day trading” can be extremely risky. Losses can happen fast, so you should not risk money that you cannot afford to lose. No matter how confident you are in your trading strategy or system, losses can, and do, happen. You should always be prepared for the possibility of losing money.
• For that reason, never fund short-term or leveraged trading activities with retirement accounts, student loans proceeds, second mortgages, emergency funds, or funds set aside for education, home ownership, living expenses, or other non-discretionary or non-essential purposes.

Never place a trade in a live trading environment unless you fully understand and accept all the risks that come with doing so.

Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. Simulated trading does not involve financial risk, and no simulated trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Testimonials on Topstep’s websites may not be representative of other clients or customers and are not a guarantee of future performance or success. Use of the information on Topstep’s websites is at your own risk and Topstep and its partners, representatives, agents, employees, and contractors assume no responsibility or liability for any use or misuse of such information. Topstep does not provide tax, legal, investment, or accounting advice. 

NOTHING CONTAINED IN THIS WEBSITE CONSTITUTES INVESTMENT ADVICE, NOR DOES IT CONSTITUTE THE SOLICITATION, ENDORSEMENT, OR RECOMMENDATION OF THE PURCHASE OR SALE OF ANY FUTURES OR OTHER FINANCIAL PRODUCT. THE WEBSITE CONTENT IS FOR GENERAL INFORMATION ONLY AND SHOULD NOT BE REGARDED AS CONSTITUTING AN OFFER, SOLICITATION, ENDORSEMENT, OR RECOMMENDATION TO BUY OR SELL ANY FUTURES OR OTHER FINANCIAL PRODUCT AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE.

YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.

**Topstep deeply cares about traders becoming the best they can be. We understand trading has highs and lows and that the majority of traders will fail. Topstep was founded to give traders a place to learn about trading without the high risk of a live trading environment. Let’s all help the trading community be the best it can be and support each other to know when trading is no longer appropriate for a person.

Topstep Brokerage Disclaimer: Topstep Brokerage LLC (“Topstep Brokerage”), an affiliate of Topstep LLC, is registered with the U.S. Commodity Futures Trading Commission as an introducing broker and a member of the National Futures Association (NFA ID 0567079). Please review Topstep Brokerage’s Risk Disclosures Statement. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).