Understand what
can go wrong.
Investment outcomes are uncertain. Before using a provider, consider these nine sources of loss alongside your income, commitments, time horizon and ability to absorb a decline.
A positive illustration
is not a loss limit.
The calculator on Wexmoraine displays a supplied mathematical model. It does not establish a likely outcome or simulate every way an investment can fail.
You may lose all the money committed to a product. Borrowing, leverage and certain contractual obligations can create further exposure; review the actual provider documents before agreeing to them.
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Market risk
Prices can change sharply because of economic news, sentiment, company events or changes in regulation. Diversification may reduce concentration but cannot prevent a broad market decline. A price seen on a public ticker may differ from the price available when an order executes.
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Liquidity risk
A market may have too few buyers or sellers to fill an order at the expected price. Spreads can widen and a large order can move the market. Withdrawal access may also be limited while positions remain unsettled or assets are locked by product terms.
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API and integration risk
Connections can fail, deliver delayed information or submit duplicate instructions. A revoked key may not cancel orders already accepted by an exchange. Review rate limits, permission scope and the provider’s method for stopping an integration independently.
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Counterparty and custody risk
A provider, exchange or custodian can become insolvent or fail to return assets. Your legal rights depend on account structure, segregation and the contract governing ownership. A statement of holdings does not by itself prove that assets are held separately for you.
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Execution and process risk
Incorrect order size, a mistaken market selection or a misunderstanding of an order type can create an unintended position. A stop order may fill at a worse price during a gap. Check confirmations and understand whether an instruction remains active until cancelled.
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Cyber threats and phishing
Impersonators may copy a brand, intercept credentials or persuade you to install remote-access software. Blockchain transfers can be difficult or impossible to reverse. Verify recipient details independently and never disclose a seed phrase, one-time code or API secret to a caller.
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Model and automation risk
A strategy fitted to historical data can fail when conditions change. Automated rules may continue to execute more quickly than you can review them, multiplying an error. Backtests, AI summaries and the website calculator are not evidence of future profitability.
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Service availability risk
Internet outages, maintenance, exchange interruptions and software defects can prevent timely action. A platform may be unavailable during the period when you most want to close a position. Keep an independent support route and understand whether alternative order channels exist.
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Funding, records and operational risk
Incorrect bank details, currency conversions, delayed reconciliation or lost transaction records can affect access to funds. Fees and Australian tax obligations can reduce the amount you retain even after a profitable trade. Retain source records and obtain advice appropriate to your circumstances when needed.
Write down your limits.
Set a maximum allocation, identify money needed for near-term commitments and decide what would make you pause. If you cannot explain the custody arrangement or the largest plausible loss, seek clarification before proceeding.
Nothing on this page assesses your personal suitability. A licensed adviser can consider circumstances that a general website cannot, including debt, dependants and the rest of your investments.