Trading crypto-assets and other financial instruments, with or without automation, involves a high level of risk and is not suitable for everyone. You can lose some or all of the money you put in.
Please read this page in full before you register or deposit, and speak to an independent licensed adviser if you are unsure whether this suits you. If you do not understand a risk described here, ask us before you go any further.
General warning
Valorstead provides technology and information. It does not give personal financial advice, and nothing on this website takes into account your objectives, financial situation or needs. Decisions to deposit, to allocate and to withdraw are yours.
Prices of crypto-assets, shares and currencies can move sharply and without warning, and they move in both directions. A position can lose a large part of its value within minutes, and a loss can exceed what you expected when you started. Past results, including those shown in customer reviews, say nothing certain about what will happen next.
For example, an asset that has risen steadily for a week can fall back to where it started within a single afternoon after an unexpected announcement.
What you can do: Only allocate money you could afford to lose entirely, and set the allocation before you look at any returns.
Liquidity risk
Liquidity is how easily an asset can be bought or sold without moving its price. In fast or thin markets, an order may be filled slowly, in parts or at a worse price than the one you saw, which is known as slippage. At times it may not be possible to exit a position at all until trading resumes.
For example, a market order placed during a news event may be filled at several different prices, and the average can be noticeably worse than the last price you saw.
What you can do: Expect execution prices to differ from quoted prices, particularly during announcements and out-of-hours trading.
API and integrations
When you connect an exchange, the platform acts through an API key. Connection errors, wrong settings or an exchange change can interrupt orders or cause them to be placed with unintended parameters. A stolen or over-permissioned key can also be used by someone else.
For example, if an exchange changes how its interface works and the platform has not yet been updated, a connection can fail and orders can be rejected until it is fixed.
What you can do: Create keys with trading permission only, never with withdrawal permission, and revoke any key you no longer use.
Counterparty risk and where funds are held
Third-party exchanges, payment providers and custodians sit between you and the market. If one of them fails, is hacked, freezes withdrawals or becomes subject to legal action, you may be unable to access or recover what is held there. Assets held with such parties are generally not protected by the Australian bank deposit guarantee.
For example, an exchange that suspends withdrawals while it investigates a security incident can leave customers unable to move funds for weeks.
What you can do: Do not leave more than you need on any single exchange, and prefer providers with a clear public track record.
Operational risk
Software has bugs, servers fail and internet connections drop. A data feed can be delayed, a scheduled job can stall, or a deployment can introduce an error. Any of these can lead to missed, duplicated or late actions, and to inaccurate figures being displayed for a time.
For example, a delayed price feed can cause a decision to be based on a price that is already out of date by the time the order reaches the market.
What you can do: Check your reports regularly and tell support quickly if something does not look right.
Cybersecurity and phishing
Attackers target people who hold financial accounts. They send fake emails, create copies of real websites and phone customers pretending to be support staff. If someone obtains your password or one-time codes, they may be able to access your account and the services connected to it.
For example, a message that looks like it comes from support and asks you to confirm a code to fix a problem is a typical attempt to take over an account.
What you can do: Use a unique password and two-factor authentication, and never share a code. We will never ask for it.
Models and automation
Algorithms and automated strategies learn from the past, and the past does not repeat reliably. A model can misread unusual conditions, act on a pattern that has stopped working or amplify a mistake at speed. Automation does not guarantee any outcome, and a strategy that has done well may do poorly next.
For example, a strategy tuned to calm, trending markets can perform poorly when prices begin to move sideways in a choppy range.
What you can do: Review each strategy against your own goals, start with a smaller allocation and increase only if you are comfortable.
Service availability
The platform may be unavailable from time to time because of scheduled maintenance, unplanned faults or problems with a third-party service. While it is unavailable you may be unable to see your account, change settings or withdraw, and strategies may not run as normal.
For example, a maintenance window that falls on the same day as a sharp market move can leave you unable to change settings at the moment you would most like to.
What you can do: Do not depend on the platform being reachable at a precise moment, and keep access to funds you may need urgently elsewhere.
Before you start
Take a few minutes to work through the questions below. If the honest answer to any of them is no, it is wise to wait.
Do you understand the strategy? Know how the strategy you have chosen is meant to behave, including when it pauses and how losses are handled, before you fund it.
Have you decided what loss you can accept? Choose an amount in advance, write it down and keep to it. Do not top up in an attempt to recover a loss.
Is your account protected? Turn on two-factor authentication, use a unique password, and read the security page.
Will you keep an eye on it? Automation reduces how much you have to do. It does not remove the need to review results and limits regularly.
Three further points are worth keeping in mind. Tax treatment of gains and losses depends on your circumstances, so ask a registered tax agent. Rules for digital assets in Australia are still developing and may change how a service can be offered. And putting most of your savings in one asset class or one strategy concentrates your risk, however sensible it looks at the time.