Risk Disclosure Statement
Seraphim Quant LLC
Effective date: 06/09/2026
READ THIS BEFORE PURCHASING OR USING S-23
Trading futures, options on futures, and other derivative financial instruments involves substantial risk of loss and is not suitable for all investors. Before acquiring or using S-23 ("the Software"), you must read and fully understand the risk warnings contained in this document.
By clicking "I Accept" during the purchase process, or by installing and using the Software, you acknowledge that you have read, understood, and accepted the risks described below.
1. General Risk of Futures Trading
1.1 Risk of substantial loss
Trading futures contracts involves the use of leverage, which means that small price movements in the market can result in proportionally much larger losses or gains relative to initial capital. You may lose more than your initial investment.
1.2 Trade only with risk capital
You should trade only with risk capital — that is, money whose total loss would not affect your lifestyle, your ability to meet essential financial obligations, or your personal and family wellbeing.
DO NOT trade with: - Money intended for essential expenses (rent, food, health). - Money borrowed from any source. - Retirement funds, pension funds, or emergency savings. - Capital whose loss would cause you significant financial or emotional hardship.
1.3 Personal suitability
Before trading futures, carefully consider:
Your prior experience in trading and financial markets.
Your short, medium, and long-term investment objectives.
Your current and projected financial situation.
Your psychological tolerance to risk and volatility.
Your capacity to absorb potential losses.
If you have doubts about the suitability of futures trading for your profile, consult with a registered and independent financial advisor before trading.
2. Hypothetical and Backtest Results
2.1 Hypothetical nature of results
Any historical performance, backtest, or simulation results shown on seraphimquant.com, in marketing material, on social media, in the user manual, or in any communication related to S-23, represent HYPOTHETICAL or SIMULATED results, not real trading results with real money.
2.2 Inherent limitations of hypothetical results
Hypothetical or simulated results have inherent limitations that the user must understand:
a) They do not represent real trading. Since the operations were not executed with real capital, the results may have under- or over-compensated for the impact of certain market factors.
b) They may not reflect real liquidity. In markets with low liquidity, significant slippage, or extreme events, actual execution prices may differ substantially from the prices used in the simulation.
c) They may not reflect actual costs. Simulations may not include all commissions, fees, financing costs, real slippage, data feed costs, or platform costs that affect actual results.
d) Benefit of hindsight ("hindsight bias"). Simulated trading systems are designed with knowledge of past events. This may create an optimistic perception that will not be replicated under unknown future market conditions.
e) Over-optimization ("curve fitting"). A system's parameters may be optimized specifically for the historical period evaluated, without such optimization reflecting robustness under different conditions.
2.3 Not a guarantee of future performance
PAST PERFORMANCE, INCLUDING BACKTEST RESULTS, IS NOT INDICATIVE OF NOR DOES IT GUARANTEE FUTURE PERFORMANCE. No representation or warranty is made that any account using S-23 will achieve or is likely to achieve gains or losses similar to those shown in any historical material. For the full treatment of hypothetical/backtested results and their limitations, see the Hypothetical Performance Disclosure.
3. Specific Risk of Automated Trading Systems
3.1 Technical failures
Automated trading systems such as S-23 may fail due to, among other things:
a) Hardware problems (computer failure, hard disk, memory). b) Software problems (bugs, conflicts with other applications, operating system updates). c) Loss of internet connection or elevated latency. d) Service interruptions at your broker or at NinjaTrader. e) Problems with your market data provider. f) Electrical power outages. g) Errors in order transmission to the broker. h) Slippage and execution delay — orders may be filled at prices worse than expected, or later than expected, especially in fast or illiquid markets. i) VPS (virtual private server) failures or downtime if you run the Software on a VPS. j) NinjaTrader, broker, exchange, or API outages, errors, or rejected orders.
Such failures may result in orders not being executed, executed with delay, executed at prices different from those expected, or duplicated, which may generate additional losses, potentially larger than anticipated.
3.2 Extreme market conditions
Algorithmic systems may underperform, or fail, during:
a) Extreme market events (flash crashes, significant price gaps). b) High-impact economic announcements (FOMC, NFP, CPI). c) Unforeseen geopolitical events. d) Periods of extremely low liquidity. e) Temporary market errors (frozen quotes, mispriced contracts).
3.3 Changes in market conditions
Market conditions evolve continuously. A strategy that worked in the past may not work in the future due to:
a) Changes in market microstructure. b) Changes in the composition of market participants. c) Regulatory changes. d) Changes in underlying volatility or liquidity. e) Macroeconomic events that alter market regimes.
3.4 Need for monitoring
Despite being automated, S-23 requires periodic monitoring by the user to verify:
a) That it is operating correctly. b) That open positions are consistent with the desired configuration. c) That there are no errors reported in the NinjaTrader log. d) That the broker is accepting orders correctly.
Completely unattended use of the Software is not recommended.
4. S-23 Is Not Financial Advice
4.1 The Software is a tool
S-23 is a software tool that automates the execution of a trading strategy based on predefined rules. It does NOT constitute:
a) Financial advice. b) Investment recommendation. c) Personalized advice for your specific situation. d) Promise or prediction of future results. e) Guarantee of any specific outcome or financial return.
4.2 Seraphim Quant LLC is not a registered advisor
Seraphim Quant LLC and its representatives are NOT:
a) Investment advisers registered with the SEC or with state regulators. b) Commodity trading advisors (CTAs) registered with the CFTC/NFA. c) Registered commodity pool operators (CPOs). d) Registered brokers/dealers. e) Financial advisors under any specific legal definition.
S-23 is sold as a software product, not as an advisory service.
4.3 User responsibility
The user is solely responsible for:
a) Determining whether S-23 is suitable for their particular situation. b) Understanding the parameters and operation of the Software. c) Configuring the Software according to their risk tolerance and objectives. d) Monitoring the operation of the Software. e) Making all final decisions about its use, including the decision to continue or suspend its operation. f) Complying with applicable laws and regulations in their jurisdiction. g) Complying with the rules of their broker, prop firm, or trading platform.
5. Specific Risks of Funded Accounts (Prop Firms)
If you use S-23 on a funded account provided by a prop firm, you must understand the following additional risks:
5.1 Prop firm rules are your responsibility
Each prop firm has its own rules regarding:
a) Maximum allowed drawdown. b) Daily loss limit. c) Trailing drawdown. d) Scaling and consistency rules. e) Permissions on automated strategies. f) Allowed trading hours. g) News events during which trading is not allowed.
S-23 includes configurable parameters (such as Daily Loss Limit) to help you respect those rules. However, the ultimate responsibility for complying with your prop firm's rules is solely yours. Incorrect Software configuration may result in loss of your funded account.
5.2 Changes in rules
Prop firms may modify their rules at any time. Software configurations that complied with previous rules may not comply with updated rules. It is your responsibility to keep your configuration updated with the current rules of your prop firm.
5.3 Compatibility with the prop firm
Some prop firms restrict or prohibit the use of automated strategies, or require prior approval. It is your responsibility to confirm that the use of S-23 is permitted under the terms of your funded account.
6. Limitation of Liability of Seraphim Quant LLC
To the maximum extent permitted by applicable law, Seraphim Quant LLC is NOT responsible for:
a) Financial losses incurred in any account where S-23 is used. b) Loss of funded accounts due to violation of prop firm rules. c) Technical failures of the Software, NinjaTrader, brokers, data providers, or connectivity. d) Decisions made by the user based on the operation of the Software. e) Results that differ from backtest or marketing results. f) Changes in regulations, market conditions, or third-party rules that affect the Software.
For complete limitation of liability terms, refer to the End User License Agreement (EULA) at seraphimquant.com/eula.
7. Consult with Advisors
Before using S-23, we strongly recommend that you consult with:
a) An independent and registered financial advisor to evaluate whether futures trading and the use of automated systems is suitable for your financial situation.
b) A tax advisor to understand the tax implications of futures trading in your jurisdiction.
c) An attorney if you have legal questions about the use of the Software or about your regulatory obligations.
Seraphim Quant LLC does not provide and cannot provide this type of advice.
8. Regulatory Compliance
Futures trading in the United States is regulated primarily by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). If you operate outside the United States, the regulations of your jurisdiction additionally apply.
S-23 is distributed in compliance with the regulations applicable to the developer and seller of trading software. However, it is the user's responsibility to:
a) Comply with all laws and regulations applicable in their jurisdiction. b) Correctly report their trading gains and losses to tax authorities. c) Comply with the requirements of their broker and applicable regulators.
9. Acceptance
By clicking "I Accept" during the purchase process, or by installing and using S-23, you acknowledge that:
✅ You have read this complete Risk Disclosure Statement. ✅ You understand the risks described. ✅ You agree to operate S-23 under your sole responsibility. ✅ You acknowledge that losses are possible and that you may lose all of your invested capital. ✅ You acknowledge that Seraphim Quant LLC is not a financial advisor and does not guarantee any specific outcome. ✅ You confirm that you operate only with risk capital. ✅ You confirm that you are of legal age and have legal capacity to contract in your jurisdiction.
If you do NOT accept these terms, DO NOT purchase or use the Software.
10. Language
This Risk Disclosure Statement has been provided in English and Spanish for the convenience of the reader. In case of any inconsistency, discrepancy, or conflict between the English and Spanish versions, the English version shall prevail and govern for all interpretive and enforcement purposes.