Risk Disclosure — Algohive
Last updated: October 30, 2026 Effective date: October 30, 2026
This Risk Disclosure explains the risks involved in using the Algohive software ("the Service") and in trading digital assets through bots connected to your account on third-party platforms. This document is part of the Algohive Terms of Use and is incorporated by reference.
By creating an account and using the Service, you acknowledge that you have read, understood, and accepted the risks described below. If you do not understand or accept these risks, you must not use the Service.
1. General Warning
Trading in digital assets (cryptocurrencies, tokens, derivatives) involves a substantial and unacceptable level of risk for most individuals. You may lose some or all of your invested capital. Past results — whether from backtests, simulated trading, or live trading — do not guarantee future performance.
Algohive is software that automates trading on your behalf on third-party platforms. The software cannot eliminate risk. A bot that performed well in the past may perform poorly in the future due to changing market conditions, technology failures, or other factors.
2. Risks Inherent to Digital Assets
2.1 Extreme volatility
The value of digital assets can experience extreme fluctuations over very short periods of time. A position that is profitable at one moment can become a total loss minutes later. Stop-loss orders may not execute at the expected price during fast market moves (slippage).
2.2 Lack of intrinsic backing
Most digital assets are not issued or backed by any government, central bank, or financial institution. Their value is determined entirely by market supply and demand, which is volatile and unpredictable.
2.3 Liquidity risk
There is no guarantee of a liquid market for any given digital asset. In illiquid markets, your positions may be difficult or impossible to close at a fair price. Low-liquidity pairs may suffer from wide spreads, partial fills, or rejected orders.
2.4 Irreversibility of transactions
Transactions on blockchain networks are irreversible. If you send funds to the wrong address, lose access to your private keys, or have your wallet compromised, the funds cannot be recovered. Algohive does not initiate withdrawals from your account (we only use trade-only API keys), but if you grant withdrawal rights to your API key by mistake, you do so at your own risk.
2.5 Regulatory risk
The legal and regulatory status of digital assets varies by jurisdiction and may change without notice. Regulatory actions (bans, restrictions, licensing requirements) may affect the value, usability, or liquidity of digital assets, or may prevent you from accessing certain exchanges or services.
2.6 Cyberattack risk
Digital assets and the platforms that hold them are frequent targets of cyberattacks. Hacks of exchanges, wallet providers, oracles, and bridges have resulted in billions of dollars in losses historically. Algohive itself may also be the target of attacks aimed at stealing API keys or disrupting the Service.
2.7 Smart contract risk
Some digital assets and trading platforms rely on smart contracts. Smart contracts may contain bugs, vulnerabilities, or exploits that can result in the loss of funds. We are not responsible for losses caused by smart contract failures on third-party platforms.
3. Risks Specific to Automated Trading
3.1 Software errors
Algohive is software, and software contains bugs. A bug in the bot logic, the API client, the data parser, or the order router may cause the bot to:
- open a trade at the wrong price or size;
- fail to close a position when expected;
- open a position when none should have been opened;
- send duplicate orders to the exchange;
- miscalculate stop-loss or take-profit levels.
While we test the Service before each release, we cannot guarantee that the software is error-free.
3.2 API failures
The Service relies on APIs provided by third-party platforms (Upscale, Binance, Bybit, OKX) and on market-data providers (such as Gate.io for candlestick data). If an API is unavailable, rate-limited, or returns incorrect data, the bot may:
- fail to open or close a position;
- use stale or incorrect prices;
- generate false signals;
- exceed intended position sizes.
3.3 Slippage
When the bot sends a market order to the exchange, the order may execute at a price worse than the price quoted at the moment the order was sent. This is called slippage. Slippage is more pronounced in volatile markets, in low-liquidity pairs, and during news events. Algohive includes a slippage-protection mechanism that may close a position or adjust take-profit/stop-loss levels when slippage exceeds a threshold, but this mechanism cannot eliminate slippage entirely.
3.4 Liquidation risk
When you trade with leverage (which the bot may use on your behalf, depending on the configuration), small adverse price moves can lead to liquidation of your position by the exchange. Liquidation typically results in the loss of the entire margin allocated to the position, plus potential fees. We are not responsible for liquidations that occur on your account.
3.5 Bot configuration risk
You are responsible for configuring the bot's parameters (risk per trade, take-profit multiplier, stop-loss multiplier, maximum open positions, daily stop) in a way that matches your risk tolerance and account size. A bot configured with too high a risk per trade may rapidly deplete your account in a losing streak. Never configure a bot to risk more than you can afford to lose.
3.6 Over-optimization (backtest bias)
Backtest results shown on the Platform are produced by running the bot's logic over historical price data. Historical performance is subject to several biases, including:
- Look-ahead bias — using information that would not have been available at the time of the trade (we mitigate this, but cannot fully eliminate it);
- Survivorship bias — only currently-existing assets are tested, ignoring those that have been delisted;
- Curve-fitting — parameters that work well on historical data may not work on future data;
- Slippage and fee underestimation — backtests may not fully reflect real-world trading costs.
A bot with a profit factor of 2.0 in a backtest may perform far worse in live trading. Do not rely on backtest results as a predictor of future returns.
4. Risks Specific to Algohive
4.1 Third-party platforms
The Service connects to third-party platforms (Upscale, Binance, Bybit, OKX). Each of these platforms has its own Terms of Service, fee schedule, API limits, and risk controls. You must read and accept the terms of each platform you connect. We are not responsible for any losses caused by the actions or inactions of these platforms.
4.2 API key security
Your API key is encrypted with AES-256-GCM at rest. However, no encryption is unbreakable. If a breach of our database occurs, an attacker may attempt to decrypt your API key. You should periodically rotate your API keys on the underlying platform and revoke any keys you no longer use.
4.3 No withdrawal protection
We strongly recommend that you create your API keys with trade-only permissions and no withdrawal rights on the underlying platform. If you grant withdrawal rights to your API key, an attacker who obtains your key (whether through our breach or through your own account compromise) may withdraw your funds. We are not responsible for such losses.
4.4 Demo vs live
Some bots support a demo mode on Upscale or other platforms. Performance in demo mode is not a reliable indicator of live performance. Demo environments may have different liquidity, spreads, and execution quality than live markets.
4.5 Payment processing risk
Subscription payments are processed by a certified third-party payment processor that we integrate with.
Card and bank transfer payments. When you pay by card or via СБП, the transaction is handled by the payment processor and your card or bank credentials are not shared with Algohive. However, the processor itself may decline, delay, or reverse a transaction due to fraud checks, anti-money-laundering (AML) rules, sanctions screening, or other risk controls that the processor applies on its side. We are not responsible for delays or rejections originating from the processor.
USDT (TRC-20) payments. If you send funds from a sanctioned address, a wallet flagged by TRM (transaction risk monitoring) tools, or an address associated with illicit activity, your payment may be flagged, frozen, or rejected by exchanges, and your subscription may not be activated. Always send payments from a wallet you control and that has a clean transaction history.
Refunds. All subscription payments are non-refundable, regardless of the payment method used. Disputes or chargebacks initiated through your bank or card issuer may result in immediate account suspension without a refund.
5. Risks Related to Your Account
5.1 Account security
You are responsible for protecting your Algohive account credentials. If your password is weak, reused across services, or compromised in a third-party breach, an attacker may gain access to your account and modify your bots or settings. Use a strong, unique password and enable two-factor authentication (2FA) where available.
5.2 Phishing
Malicious actors may create websites that mimic Algohive or send messages pretending to be from our support team. Always verify that you are on algohive.io and that any Telegram bot you interact with is our official bot (linked from the Platform). We will never ask you for your password, your API secret in plain text, your seed phrase, or your private keys.
5.3 Network and device risk
If your device is infected with malware, or if you are using an insecure Wi-Fi network, an attacker may intercept your traffic and steal your credentials. We recommend using a trusted device, an up-to-date operating system, and a VPN on untrusted networks.
6. Tax Risks
Profits from trading digital assets may be subject to income tax, capital gains tax, or other taxes in your country of residence. You are solely responsible for reporting and paying any taxes due on your trading activity. We do not provide tax advice and do not report your trading activity to any tax authority.
7. No Liability
To the fullest extent permitted by applicable law:
- Algohive, its team, contractors, and affiliates are not liable for any losses arising from your use of the Service;
- We are not liable for losses caused by software bugs, API failures, slippage, liquidations, exchange outages, hacks, or any other event described in this Risk Disclosure;
- We are not liable for your failure to properly configure your bots, secure your account, or rotate your API keys;
- We are not liable for losses caused by third-party platforms you have connected.
8. Acknowledgement
By using the Service, you confirm that:
- You have read and understood this Risk Disclosure.
- You understand that trading digital assets carries a substantial risk of loss, including the loss of your entire capital.
- You are using the Service voluntarily and at your own risk.
- You are not relying on any representation, promise, or guarantee from Algohive that is not explicitly stated in the Terms of Use.
- You accept full responsibility for your trading decisions, your account security, and the consequences of using the Service.
9. Final Note
Trading digital assets is not suitable for most individuals. Only risk capital that you can afford to lose entirely. If you are uncertain about any aspect of the risks described above, do not use the Service and consult a qualified financial adviser.
For any questions about this Risk Disclosure, contact us via the official Telegram support channel indicated on the Platform.
By creating an account and using Algohive, you confirm that you have read, understood, and accepted the risks described in this Risk Disclosure.