RISK DISCLOSURE

It is extremely difficult to succeed long term in trading. In fact, according to a 2014 University of California study (Do Day Traders Rationally Learn About Their Ability?), the majority of traders will fail. Michael Patak, founder and CEO of Topstep Trading, is well aware of the high rate of failure in the industry—early in his career he lost three separate $30,000 trading accounts.

Topstep was created to fund and educate traders through a “learn by doing” approach in a simulated futures trading environment. Because it is a simulated environment, a substantial portion of the risk of live markets is mitigated.

While the simulated environment of Topstep removes a substantial portion of risk, we still want you to be aware of the risk that comes with trading.

Once you leave simulated trading and get into a live trading environment (whether through a Topstep funded account or otherwise), always bear in mind the following:

• Never risk more than you are willing to lose. Remember that losses are rarely limited to the funds in your accounts – it is possible to lose more than in is in your account and then be legally responsible for any deficiency.
• Short term trading can be extremely risky. Losses can happen fast, so you should not risk money that you can’t afford to lose. No matter how confident you are in your trading strategy or system, losses can and will happen. You should always be prepared for this possibility.
• For that reason, never fund short term or leveraged trading activities with retirement accounts, student loans proceeds, second mortgages, emergency funds, or funds set aside for education, home ownership, living expenses etc.

Please never place a trade in a live trading environment unless you fully understand and accept all the risks that come with it.

All content published and distributed by Topstep LLC and its affiliates (collectively, the “Company”) is to be treated as general information only. None of the information provided by the Company or contained herein is intended as (a) investment advice, (b) an offer or solicitation of an offer to buy or sell, or (c) a recommendation, endorsement, or sponsorship of any security, company, or fund. Testimonials appearing on the Company’s websites may not be representative of other clients or customers and is not a guarantee of future performance or success. Use of the information contained on the Company’s websites is at your own risk and the Company and its partners, representatives, agents, employees, and contractors assume no responsibility or liability for any use or misuse of such information.

Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the investor’s initial investment. Only risk capital—money that can be lost without jeopardizing one’s financial security or lifestyle—should be used for trading and only those individuals with sufficient risk capital should consider trading. Nothing contained herein is a solicitation or an offer to buy or sell futures, options, or forex. Past performance is not necessarily indicative of future results.

CFTC Rule 4.41 – Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

**Topstep deeply cares about traders becoming the best they can be. We understand trading has highs and lows and that the majority of traders will fail. We started Topstep to give traders a place to learn about trading without the high risk of a live trading environment. Let’s all help the trading community be the best they can be and support each other to help each other know when to say stop.