Arizet Labs Risk Disclosure
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Risk Disclosure

Risk disclosure.

Effective May 12, 2026 · Last reviewed May 12, 2026
Our position

Arizet Labs is a technology company. We build and operate trading software, risk and analytics infrastructure, and skill-based contest platforms. We are not a broker, dealer, exchange, or investment adviser. We do not custody customer funds or execute trades on customers' behalf. Arizet | The Desk is a software platform combining proprietary trading tools, a simulated-trading environment, skill-based contests with cash prizes, and a rating-based competitive community. Real-money activities (funded-account allocations and the Pool Manager track) are operated by independent third-party firms under separate written agreements, not by Arizet Labs.

This disclosure is important. Read it. Trading financial instruments carries substantial risk of loss and is not suitable for everyone. The information below is not exhaustive, but it covers the most material risks for users of Arizet products. If you do not understand any part of this disclosure, contact us at connect@arizet.com or consult an independent financial advisor before engaging with the Services.

1. Trading is risky

Trading equities, futures, foreign exchange (FX), options, and other financial instruments carries a substantial risk of loss. Across the broader retail trading population, only a minority of active traders make money in any given year. Industry research suggests roughly 10-18% of active retail traders are profitable over a 12-month period. The majority of active retail traders lose money.

You should not engage in trading with money you cannot afford to lose. Past performance, simulated or real, is not indicative of future results. Even with skilled execution and disciplined risk management, you can still lose substantial amounts of money trading financial markets.

2. Simulated trading is not real trading

The Desk and many of our analytics products use simulated trading accounts ("demo accounts"). Performance in a simulated environment does not guarantee or even reliably predict performance in live trading. Key differences include:

  • No real psychological pressure. Trading simulated capital with no real consequences feels different from trading real money. The emotional discipline required is different.
  • Idealized execution. Simulated environments may not perfectly model real-world execution slippage, partial fills, requotes, or platform latency.
  • No real fees or financing costs in many simulated environments (live trading involves spreads, commissions, overnight financing for held positions, etc.).
  • No real counterparty risk. In live trading, your broker's solvency and execution practices are real factors.

Strong simulated performance is a useful indicator of trading discipline but does not guarantee real-money profitability.

3. Funded accounts and third-party prop firm relationships

Arizet Labs does not fund traders, allocate trading capital, or operate funded accounts. Where users access funded-account opportunities through Arizet products, those opportunities are operated entirely by independent third-party prop firms. The funded-account relationship is a separate agreement between the user and the third-party firm, governed by that firm's rules, that firm's regulatory standing, and that firm's profit-split arrangements. Arizet Labs receives no firm-capital share, makes no allocation decisions, and bears no counterparty obligation in those relationships.

Important points about funded trading models generally:

  • The trader typically pays an upfront evaluation fee to qualify for a funded account. Most paying traders fail the evaluation and lose the evaluation fee. Industry pass rates across major firms are typically 5-15%.
  • Funded accounts often remain simulated even after the evaluation is passed. The trader earns real money from profit splits on simulated trading, but the underlying positions may not be live in the open market.
  • Funded accounts can be lost at any time by violating rule constraints (drawdown breaches, prohibited trading, etc.).
  • The funded trader model is a structured arrangement, not a guaranteed path to income.
  • Because the relationship is with a third-party firm and not Arizet Labs, the firm's terms (including payout policies, rule changes, and account closure) are entirely within that firm's discretion.

4. Pool Manager and capital allocation

Where top-ranked Desk members qualify for the Pool Manager track, the Pool Manager activity is operated by independent third-party firms holding the appropriate registrations for the jurisdiction in question (which may include investment adviser, commodity trading adviser, or equivalent licensing). This activity:

  • Is regulated financial activity in most jurisdictions, requiring specific licensing held by the third-party operating firm
  • Carries enhanced fiduciary obligations toward pool participants, owed by the operating firm and the Pool Manager
  • Is structured as a separate written agreement between the Pool Manager, the pool participants, and the operating firm
  • Does not involve Arizet Labs as a principal, custodian, adviser, or guarantor
  • May result in losses for pool participants that are not reimbursable by Arizet Labs under any circumstance

If you are considering becoming a Pool Manager or participating in a pool, the third-party firm operating the pool will provide jurisdiction-specific disclosures, regulatory framework documentation, and the binding agreement. Carefully review those documents before participating. Arizet Labs is not a party to those agreements.

5. Strategy Lab and algorithmic trading

Strategy Lab and similar developer tools allow users to build, backtest, and deploy algorithmic trading strategies. Specific risks:

  • Backtest overfitting: Strategies that look profitable in historical simulation often fail in live trading because they were inadvertently fit to noise in historical data.
  • Look-ahead bias: Errors in backtest construction can use information that wasn't actually available at the historical decision moment.
  • Slippage and execution costs are often underestimated in backtests.
  • Regime shifts: A strategy that worked in 2020-2024 conditions may not work in 2026 conditions; markets change.
  • Code defects: Bugs in strategy code can cause unintended trades with real financial impact.

Algorithmic trading is not safer than discretionary trading. In many ways it is riskier, because the speed at which losses can compound exceeds human reaction time.

6. Educational and community content

The educational content, trading rooms, hosted analysis from third-party room hosts, and other community content available through Arizet products is for informational and educational purposes only. None of it constitutes:

  • Investment advice or financial advice tailored to your circumstances
  • A recommendation to buy or sell any specific security or to engage in any specific trading strategy
  • An offer to provide investment management services

Trading signals, analysis, and commentary shared by third-party hosts in community rooms represent those hosts' personal opinions and trading approaches, not the views of Arizet Labs. Arizet does not verify the accuracy of third-party content posted in community spaces.

7. Regulatory landscape

The retail trading and prop firm space is subject to evolving regulation in multiple jurisdictions. Specific products and features may not be available to users in certain countries due to local regulatory restrictions. Where regulatory requirements change, we may suspend or modify features for affected users.

You are responsible for understanding the regulations applicable to your trading activity in your jurisdiction, including tax obligations on trading profits and Pool Manager performance fees.

8. No guarantee of profitability

Nothing in Arizet's products, content, marketing, or community materials should be construed as a guarantee or representation of future trading profits. You can lose all of the money you put at risk in financial markets. You should plan your engagement with the Services accordingly.

9. Acknowledgment

By using Arizet products, you acknowledge that you have read and understood this Risk Disclosure, that you accept the risks of trading financial instruments, and that you assume full responsibility for the trading decisions you make.

10. Contact

Questions about specific risks of a specific product? Contact connect@arizet.com. We'd rather answer your questions before you engage than after.

This document is a template intended to describe our positioning and the material risks we want users to understand. Final operative risk disclosure language will be reviewed by counsel familiar with the regulatory framework applicable to retail trading platforms in the relevant jurisdictions before this page goes live in production.

Arizet Labs

Arizet Labs builds the platforms, risk systems, and execution infrastructure underneath modern trading. Founded 2016. Atlanta · NYC · Toronto · Yerevan.

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