Quantara Capital LLC
Effective Date: 01/01/2025
Last Updated: 11/24/2025
Important Notice
PLEASE READ THIS ENTIRE DOCUMENT CAREFULLY BEFORE USING OUR SERVICES.
This Risk Disclosure Statement (“Disclosure”) is provided by Quantara Capital LLC , doing business as Quantara Capital (“Quantara Capital,” “Company,” “we,” “us,” or “our”), to ensure you understand the significant risks associated with using our automated trading platform.
By using our Services, you acknowledge that you have read, understood, and accepted all risks described herein.
YOU SHOULD NOT USE OUR SERVICES UNLESS YOU FULLY UNDERSTAND AND ARE WILLING TO ASSUME THESE RISKS.
1. General Trading Risks
1.1 Risk of Loss
Trading in securities and options involves substantial risk of loss and is not suitable for all investors. You should trade only with capital you can afford to lose. There is no guarantee of profit, and you may lose some or all of your invested capital.
1.2 Past Performance
Past performance of any trading strategy is not indicative of future results. Historical returns, whether actual or hypothetical, do not guarantee future performance. Market conditions change, and strategies that performed well in the past may perform poorly in the future.
1.3 No Guaranteed Returns
No trading strategy, system, or methodology guarantees profits or protection from losses. Any statements regarding potential returns are estimates only and should not be relied upon.
2. Equities Trading Risks
2.1 Market Risk
Stock prices fluctuate based on market conditions, economic factors, company performance, investor sentiment, and other variables. The value of positions may decline rapidly and without warning.
2.2 Liquidity Risk
Some securities may have limited trading volume, making it difficult to execute trades at desired prices. Illiquid markets may result in significant slippage.
2.3 Volatility Risk
Markets may experience extreme volatility, during which prices move dramatically in short periods. Automated trading systems may execute trades during volatile conditions that result in losses.
2.4 Gap Risk
Securities may open at prices significantly different from prior closes due to overnight news, earnings, or events. Stop-loss orders may not protect against gap risk.
2.5 Concentration Risk
Certain strategies may concentrate exposure in specific securities, sectors, or industries, increasing overall risk.
3. Options Trading Risks
3.1 Complexity of Options
Options trading is highly speculative and involves a high degree of risk. Options are complex instruments requiring significant knowledge and experience.
3.2 Total Loss of Premium
Purchased options may expire worthless, resulting in a 100% loss of the premium paid.
3.3 Unlimited Loss Potential
Certain options strategies, including uncovered options writing, involve theoretically unlimited loss potential.
3.4 Time Decay
Options lose value as expiration approaches, which can erode position value even if the underlying asset moves favorably.
3.5 Implied Volatility Risk
Changes in implied volatility can significantly impact option pricing independent of price movement.
3.6 Assignment Risk
Written options may be assigned at any time, potentially resulting in unexpected positions or margin requirements.
3.7 Settlement Risk
Failure to understand exercise and settlement procedures may result in losses.
3.8 Multi-Leg Strategy Risks
Complex strategies involve multiple legs, higher costs, and may be difficult to adjust or exit during fast-moving markets.
4. Margin Trading Risks
4.1 Amplified Losses
Margin trading magnifies both gains and losses. Losses may exceed your initial investment.
4.2 Margin Calls
If account equity falls below maintenance requirements, your broker may liquidate positions without prior notice at unfavorable prices.
4.3 Broker Discretion
Your broker controls liquidation decisions during margin calls, including which positions are closed.
4.4 Interest Charges
Margin borrowing incurs interest charges that reduce returns regardless of profitability.
4.5 Pattern Day Trader Rules
Accounts under $25,000 are subject to trading restrictions. We recommend a minimum account size of $25,000.
4.6 Margin Requirement Changes
Brokerage firms may change margin requirements without notice.
5. Automated Trading Risks
5.1 Technology Risks
Automated trading relies on complex systems and is subject to risks including:
Software failures
Connectivity disruptions
Hardware outages
Cybersecurity threats
5.2 Execution Delays
There is a delay between signal generation and trade execution. Delays may be longer during volatile markets.
5.3 Slippage
Execution prices may differ from signal prices due to market movement or liquidity.
5.4 No Pre-Execution Review
Trades are executed automatically without prior approval once a strategy is enabled.
5.5 Performance Divergence
Actual results may differ from reported strategy performance due to execution timing, fees, slippage, and system issues.
5.6 Reliance on Automation
Automated systems may fail or behave unpredictably. You are responsible for monitoring your account.
5.7 Position Sizing Limitations
Maximum position settings do not limit overall portfolio risk.
6. Third-Party Risks
6.1 Dependency on Third Parties
Our Services rely on third-party providers including Interactive Brokers and Collective2. We are not responsible for their failures or actions.
6.2 Execution Quality
Execution quality depends on broker systems and market conditions beyond our control.
6.3 System Outages
Third-party outages may prevent execution or access to positions.
7. Strategy-Specific Risks
7.1 Strategy Selection
You are responsible for selecting strategies appropriate for your financial situation.
7.2 Strategy Changes
Strategy managers may modify trading behavior without notice.
7.3 Drawdowns
All strategies experience drawdowns, which may be significant and prolonged.
7.4 Correlation Risk
Multiple strategies may be correlated and experience losses simultaneously.
8. Regulatory and Market Structure Risks
8.1 Regulatory Changes
Changes in laws or regulations may impact availability of services or trading activity.
8.2 Trading Halts
Market halts may prevent entry or exit of positions.
8.3 Corporate Actions
Corporate actions may impact positions in ways automated systems may not handle properly.
9. Financial Suitability
9.1 User Responsibility
You are solely responsible for determining whether automated trading is suitable for you.
9.2 Minimum Account Recommendation
We recommend a minimum account size of $25,000 to mitigate margin, volatility, and regulatory risks.
9.3 Professional Advice
Consult qualified financial, tax, and legal professionals before using our Services.
10. Acknowledgment and Acceptance
By using Quantara Capital’s Services, you acknowledge that:
You have read and understand this Risk Disclosure.
You accept the risk of substantial losses, including losses exceeding initial investment.
Past performance is not indicative of future results.
Trades are executed automatically without pre-approval.
You are trading with risk capital only.
You are solely responsible for strategy selection and account monitoring.
Quantara Capital is a technology provider, not an investment adviser.
You have had the opportunity to seek independent professional advice.