DipGrid Automated Trading Risk Disclosure

Last updated: October 16, 2026 · Effective: October 16, 2026 · Provider: DipGrid LLC. Read together with the Terms of Service and your broker's own disclosures.

1. You can lose money

A stock can fall sharply, stop trading, be delisted or become worthless. A bot cannot make a stock recover. Putting a lot of money into one stock or one sector makes losses bigger. You can lose all the money a bot uses. A bot's money limit is not a limit on your loss.

Margin. By default bots buy only with your cash. If you turn on "Allow buying on credit" for an account, bots can also use the credit your broker offers: then losses can exceed your cash, you pay interest, and your broker can sell your shares in a margin call without asking you.

2. How a bot can lose

Grid bot. A grid bot buys at set price levels as the price falls and sells each share a step higher. In a long decline it keeps buying: it can end up holding many shares worth much less than it paid, and use up its money limit. Profit from finished buy-and-sell rounds does not mean the bot is profitable overall — shares still held can be worth less than their cost, and fees, interest and taxes add up. In a strong rise the bot sells early and misses further gains. A narrow step means more trades and costs; a wide step means fewer trades. Moving the grid or adding money to "catch up" can add risk. The grid's lowest level is not a limit on your loss.

DCA bot. A DCA bot buys more as the price falls: each add-buy is placed lower than the one before and can be larger. It sells only when the price rises above the round's average price by your profit target. It has no stop-loss: once its add-buys are used up, it holds the shares and waits, however far the price falls and however long that takes, and the money stays tied up. A round that ended with a profit says nothing about the next one. Shares you chose to keep are not sold by the bot and carry the full risk of the stock.

3. Prices and orders

Prices can be delayed or missing, and a displayed price is not a promised fill. A limit order may not fill, may fill in part, or may fill later than you expect. A market order can fill far from the last price. A cancellation is a request: an order can fill before your broker confirms the cancellation. Fast markets, gaps, trading halts and low volume make all of this worse.

Extended hours and overnight trading. Before 9:30 a.m. and after 4:00 p.m. ET, and overnight, there are fewer buyers and sellers, spreads are wider, prices move more and orders fill less often. Prices then can differ from the regular-session close and the next open, and news released outside regular hours can move them sharply. Some brokers accept only day orders overnight; at those brokers a bot set to trade overnight cancels and re-places its orders around 8:00 p.m. and 4:00 a.m. ET, and an order can be missing or fill between those moments.

4. Limits and controls are not insurance

A bot's money limit is a limit inside our software: your broker does not set the money aside. Your own trades, other bots and other apps on the same account use the same cash and can create orders or positions the bot does not expect. Stock limits such as "stop buying above/below", pauses after sharp price moves, loss limits and other controls reduce some risks but can fail because of gaps, partial fills or delayed account data. Lowering a bot's money limit does not cancel buy orders already placed.

5. Technology can fail

Bugs, wrong settings, lost connections, an expired broker sign-in, broker changes, rate limits and outages can cause missed, late, repeated, rejected or unintended orders. When we detect certain problems — errors reading your account, a broker problem affecting many accounts, a stock we no longer support — we stop new buys, and in some cases cancel open buys. Detection is not guaranteed, and emails can be late or not arrive.

If we lose access to your broker — a broker outage, an expired broker sign-in or our own outage — we cannot place or cancel anything, including when you press Pause. Orders already placed stay at your broker and can fill; good-till-cancelled orders can stay open for weeks under your broker's rules. Sell orders for shares bought during that time are placed only when access returns. Keep your own access to your broker so you can act if DipGrid is unavailable.

6. Pausing is not closing

Pausing a bot asks your broker to cancel its buy orders; a buy can still fill before the cancellation is confirmed, and the bot keeps its sell orders working. Stopping a bot sells its shares only if you choose a sell option, and a sale is an order that may fill in part, late or not at all. When your access to the Service ends or you disconnect your broker, we ask your broker to cancel the bots' orders, but we do not sell your shares; an order whose cancellation is not confirmed can still fill, and after that we can no longer cancel or sell anything for you. If you trade the bot's stock yourself in the same account, the bot cannot tell your shares from its own. Always check open orders and positions in your broker account.

7. Practice and backtests are hypothetical

Practice accounts and backtests use simulated money and simulated fills. They can leave out real spreads, delays, partial fills, fees, taxes and corporate actions, and their results can differ substantially from real trading and may overstate what you could achieve. Choosing settings that looked good in the past can overstate results. Past results do not predict future results.

8. Costs, taxes and broker rules

DipGrid fees are separate from broker fees, market-data fees, interest and taxes. Frequent trading can create many taxable events; we do not prepare tax reports or give tax advice. Whether money from a sale can be used for a new buy right away depends on your account type and your broker's rules on settled funds. Pattern-day-trader and margin rules, splits, symbol changes and mergers can block orders or make old price levels meaningless.

9. Your decision

You decide whether to trade, which stock, how much money and which settings. DipGrid does not assess whether a strategy suits you; if you need that, ask an independent professional. This disclosure lists the main risks but cannot list every possible event.

By ticking the box I confirm that I have read this disclosure, understand that trading can cause substantial loss, and understand the difference between pausing a bot and cancelling orders or selling shares. This does not waive rights that cannot lawfully be waived.