Government Required Risk Disclaimer and Disclosure Statement - CFTC Rule 4.41 - Hypothetical or Simulated Performance Results

Sep 18, 2026

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Government Required Risk Disclaimer and Disclosure Statement for trading and investment activity, emphasizing that any presented trading performance is hypothetical or simulated and includes inherent limitations. It explains that simulated results are prepared with hindsight, do not involve actual financial risk, and may under- or over-compensate for market factors such as liquidity. It includes U.S. CFTC-required risk warnings: trading futures and options involves substantial risk, may lead to total loss of initial margin and additional deposits, and can result in liquidation and account deficits. Readers accept sole responsibility for trading decisions and are advised to seek licensed professional guidance.

LanguageEnglish

CategoryTechnology

FormatPDF

Pages19

Reading Time48 min

AccessFree to download

Government Required Risk Disclaimer and Disclosure Statement

Hypothetical or Simulated Performance Limitations

U.S. Government Required Disclaimer (CFTC)

Margin Calls, Liquidation, and Loss Risk

Acknowledgement of Sole Responsibility

An Educational Resource OfTheInnerCircleTrader.com All Rights Reserved t.me @ICTistheway # Government Required Risk Disclaimer and Disclosure Statement CFTC RULE4.41-HYPOTHETICAL ORSIMULATED PERFORMANCE RESULTS HAVE CERTAINLIMITATIONS.UNLIKE ANACTUAL PERFORMANCE RECORD,SIMULATED RESULTS DONOT REPRESENTACTUAL TRADING.ALSO,SINCE THE TRADES HAVENOT BEENEXECUTED,THE RESULTS MAYHAVE UNDER-OR-OVER COMPENSATED FOR THEIMPACT,IF ANY,OF CERTAINMARKET FACTORS,SUCHASLACK OFLIQUIDITY.SIMULATED TRADING PROGRAMS INGENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT.NO REPRESENTATIONIS BENG MADE THAT ANY ACCOUNT WLL ORIS LIKELY TOACHIEVE PROFT ORLOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical Hypothetical performance results have many inherent limitations,some of which are described below.No representation is being made thatany account will or is likely to achieve profits or losses similar to those shown.In fact,there are frequently sharp differences between hypothetical performance results and the actual resultssubsequenty achieved by any particular trading program.One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight.Inaddition,hypothetical trading does not involve financial risk,and no hypothetical trading record can completely account for the impact of financial risk in actual trading.For example,the ability towithstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results.There are mumerous other factorsrelated to the markets in general or to the implementation of any specific trading program which cannot be fuly accounted for in the preparation of hypothetical performance results and all of whichcan adversely affect actual trading results. U.S.Government Required Disclaimer-Commodity Futures Trading Commission Futures and Options trading has large potential rewards,but also large potential risk.You must be aware of therisks and be wiling to accept them in order to invest in the futures and options markets.Don't trade with money you can't afford to lose.This is neither a solicitation nor an offer to Buy/Sell futuresor options.No representation is being made that any account wil or is likely to achieve profits or losses similar to those discussed on this web site.The past performance of any trading system ormethodology is not necessarily indicative of future resuits.Trade at your own risk.The information providedhere is of the nature of a general omment only and neither purports nor intends to be,specific trading advice.It has been prepared without regard to any particular person's investment objectives,financial situation and particular needs.Information should not be considered as anoffer or enticement to buy,sell or trade. You should seek appropriate advice from your broker,or licensed investment advisor,before taking any action.Past performance does not guarantee future results.Simulated performance resultscontain inherent limitations.Unlike actual performance records the results may under or over compensate for such factors such as lack of liquuidity.No representation is being made that anyaccount willor is likely to achieve profits or losses to those shown.The risk of loss in trading can be substantial You should therefore carefully consider whether such trading is suitable for you inlight of your financial condition. Ifyou purchase or sell Equities,Futures,Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish ormaintain your position.If the market moves against your position,you may be called upon by your broker to deposit a substantial amount of aditional margin funds,on short notice in order tomaintain your position.Ifyou do not provide the requred funds within the prescri

FAQs

Does the document claim simulated performance will match real trading results?

No. It states that simulated or hypothetical results do not represent actual trading and may differ sharply from real results due to inherent limitations and hindsight preparation.

What risk does the disclaimer highlight for futures and options trading?

It emphasizes that trading has large potential rewards but also large potential risk. It advises not to trade with money that cannot be afforded to lose and warns to consider whether such trading is suitable given one’s financial condition.

What can happen to an account if the market moves against a position?

The document warns that additional margin may be required on short notice. If required funds are not provided in time, the position may be liquidated at a loss, and the account may be liable for any resulting deficit.

Sep 18, 2026

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