Risk Disclosure

Last updated: October 19, 2026

This page explains the main risks of trading on Vembit (“Vembit”, “we”, “us”). Please read it before you deposit or trade. It is part of our Terms of Service. It cannot list every possible risk.

Trading with leverage is high risk and is not suitable for everyone. You can lose all the money in your Vembit account, and you can lose it very quickly. Only trade with money you can afford to lose.

1. What you are trading

On Vembit you trade on the price of crypto, forex pairs and commodities such as gold, silver and oil. Every trade is a contract with Vembit based on the market price, similar to a contract for difference (CFD). You never own the coin, currency or commodity.
Vembit is the other side of every trade. When you lose money on a trade, Vembit keeps it; when you make money, Vembit pays it. Prices come from third-party market data.
These products are complex. If you do not fully understand leverage, margin and liquidation, do not trade with real money.

2. Leverage

You can use leverage from 1x up to 500x, or trade in lots at account leverage 1:500.
Leverage makes gains and losses bigger. At 500x, a price move of only 0.2% against you equals 100% of the margin behind that trade. At 100x, a 1% move does the same.
In crypto leverage mode the trading fee (0.05% when a trade opens and 0.05% when it closes) is charged on the full position size, not on your margin. At 500x, the opening fee alone is 25% of your margin, and the closing fee is about the same again. High leverage can make a trade lose money even when the price moves your way.
Higher leverage does not make a trade more likely to win. It only makes it bigger.

3. Cross margin and liquidation

Vembit uses cross margin: your whole cash balance backs every open position, not only the margin you put on each trade. A loss on one position uses up money that backs your other positions.
Your equity is your cash plus the margin and the open profit or loss of all your positions. Our system checks every account about once a second. If your equity reaches zero, all of your open positions are closed at the market price at once (liquidation), and your cash balance becomes zero.
The order panel shows an estimated liquidation price. With cross margin it changes whenever your balance or your other positions change, so treat it as an estimate, not a promise.
Your balance cannot go below zero: if a fast move closes your positions at a loss larger than your equity, Vembit absorbs the difference and you do not owe it. You can still lose everything in the account.

4. Fast markets, gaps and slippage

Prices can jump sharply, for example around economic news, central bank decisions, hacks or problems at exchanges, or when a market reopens.
A market order opens at the live price when our server executes it. That price can be different from the price you saw a moment earlier (slippage).
Stop loss and take profit are checked against our live price about once a second and close the position at the level you set. Liquidation is checked first: if a gap or a very fast move takes your equity to zero before your stop loss acts, all your positions are liquidated at the market price instead.
Stop losses, take profits and trailing stops only work while the market is open and our price feed is working. They are not guaranteed.
Forex, commodities and crypto lot trades pay a spread: you buy at the ask and sell at the bid, so every new position starts with a small loss equal to the spread. Spreads are listed in Vembit fees and spreads.

5. Weekends and closed markets

Crypto trades 24/7. Forex and commodities trade from Sunday 17:00 to Friday 17:00 New York time.
While a market is closed you cannot open new trades in it, and you cannot close your positions in it either. Forex and commodity positions you hold when the market closes on Friday stay open until it reopens.
Stop loss and take profit are not triggered while the market is closed. When the market reopens, the price can be far from where it closed on Friday. If your equity has fallen to zero by then, all your positions are liquidated at the new price.
Because of cross margin, a weekend loss on a crypto position can lead to the liquidation of your forex and commodity positions too, at their last price.
We may pause trading in a market or across Vembit, for example if a price feed fails or for maintenance. While trading is paused you may not be able to open new trades.

6. Pending orders

Limit and stop orders wait on our servers until the price reaches your trigger. For forex, commodities and crypto lot orders, a buy order watches the ask price and a sell order watches the bid, so the spread affects when an order triggers. Crypto orders in leverage mode watch the mid price.
A limit order never fills at a worse price than its limit. A stop order fills at the next market price, which can be worse than the trigger in a fast market.
A pending order does not reserve any money while it waits. When it triggers it must pass every rule of a normal trade at that moment, such as enough free cash and the size limits. If it cannot, it is rejected and the app shows why. If the market is closed or trading is paused, it waits until trading resumes.
Pending orders are not guaranteed to fill, even if the price touches your trigger for a moment.

7. Copy trading

Copy trading copies another Vembit account’s trades into your account, with your own real money, within the limits you choose.
Some accounts you can copy belong to creators or streamers who trade with a practice balance provided by Vembit (see section 10). When you copy one of them, you risk your real money while they risk none of their own.
The trader you copy is not your adviser. Vembit does not check or approve them, and they owe you no duty. Their past results do not predict their future results.
Copied trades open at the leader’s entry price and close when the leader closes, for any reason. They use the same cross-margin balance as your own trades, so copied losses can liquidate your whole account.
Simulated traders can never be copied with real money.

8. Trading bots, the AI Desk and Vembit AI

Vembit AI, the AI Desk and trading bots are automated tools. They can be wrong, they can misread news or markets, and they can lose money quickly, including all of the cash in your account.
We do not claim that any of these tools makes money. Backtests, practice-money results and past performance do not predict real results. Markets change, and a strategy that worked before can stop working.
The AI Desk and Vembit AI use answers from our AI providers. AI answers can be wrong, out of date or overconfident, even when they sound sure.
Vembit AI only places a trade after you confirm the trade ticket. A bot or the AI Desk trades real cash only after you start it with real cash and set a daily loss limit, and it keeps trading until you pause or stop it or the limit is reached. A fast move can take the loss past the limit before the tool pauses.
You are responsible for every trade these tools make in your account.

9. Practice money and real cash

Trades you place yourself always use real cash. Before your first real-money trade, the app asks you to confirm that you understand the risk.
Bots and the AI Desk can run on practice money first. Practice money is virtual: it is never real cash and can never be withdrawn. Practice results can look better than real trading, where fear and greed affect your decisions.

10. The leaderboard, feeds and other people

The leaderboard, the Feed and Alerts include simulated traders. They trade with virtual funds, they are not real customers, and their results are not real trading results. Simulated traders and their profiles, trades and results are not marked individually.
Some accounts belong to creators or streamers who trade with a practice balance provided by Vembit. That balance is not real money and can never be withdrawn. Their results appear on the leaderboard and on their profiles in the same way as real customers’ results, and they are not marked. Do not assume that any result you see on Vembit, or in a video or post, was made with real money.
Partners who refer people to Vembit earn a share of the trading fees and spreads those people pay. They benefit when you trade more, whether you win or lose.
Big returns over a short time usually come from very high risk or luck, not skill that will repeat.

11. Crypto deposits and withdrawals

Crypto transfers cannot be reversed. Coins sent on the wrong network, as the wrong coin or to an expired or old deposit address may be lost, and we may not be able to recover them.
A withdrawal sent to the address you entered cannot be reversed. Check the address and network carefully.
Blockchain networks can be slow or congested, and their fees change. Deposits are credited only after the payment is confirmed.
Stablecoins such as USDT and USDC are issued by private companies and can lose their $1 value.
If you buy crypto with a card or another method in the app, you buy it from a third-party provider under its own terms, prices and checks.
Read Deposits & Withdrawals for the details.

12. No protection scheme

Your Vembit balance is a US dollar amount that Vembit owes you, recorded on your account. It is not a bank deposit and does not earn interest.
Your money is not kept in a separate (segregated) account in your name. Deposits are paid into Vembit’s own account with our crypto payment processor and held there, mostly as a stablecoin, together with other customers’ money. Withdrawals are paid from that account. Vembit is also the other side of your trades (section 1), so your trading losses are Vembit’s income.
It is not covered by any deposit protection, investor compensation or ombudsman scheme. If Vembit, one of our payment providers or a crypto network failed, was hacked or stopped working, you could lose money or be unable to withdraw it for some time.
We may delay or refuse a withdrawal while we complete checks; see our AML & KYC Policy.
Laws on leveraged and crypto trading differ between countries and can change. You are responsible for making sure you are allowed to use Vembit where you live.

13. Technology and your account

Vembit depends on the internet, your device, our servers, market data providers, payment processors and blockchains. Any of them can fail, be slow or show a wrong price. When that happens you may not be able to open, change or close a trade when you want.
If a trade is opened or closed at a price that is clearly wrong, we may correct or cancel it (see section 8 of the Terms of Service).
Anyone who gets into your account or your API keys can trade and lose your money. Use a strong, unique password and keep your API keys secret.

14. Not advice

Vembit does not give investment, financial, legal or tax advice. Market data, articles, answers, AI replies, other traders’ posts and anything else on Vembit are information only. You make every trading decision yourself, and you are responsible for it.

15. Taxes

Profits from trading may be taxable where you live, and losses may or may not count. You are responsible for reporting and paying any tax. Your trade history and cash statement in the app can help with your records. Vembit does not give tax advice and does not report or pay tax for you.

16. Questions

If anything on this page is unclear, ask us before you trade: support@vembit.com. If trading is starting to worry you, read Responsible Trading.

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