Lucid Trading Group, LLC (“Lucid”) 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 Lucid removes a substantial portion of risk, we still want you to be aware of the risk that comes with trading.

For purposes of this notice, a “day-trading strategy” means an overall trading strategy characterized by the regular transmission by a customer of intra-day orders to effect both purchase and sale transactions in the same security or securities. Whether or not you work in a simulated environment or move into a live trading environment (whether through Lucid or otherwise), you should always keep in mind the following:

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.

No Sponsorship

All content published and distributed by Lucid 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 website may not be representative of other clients or customers and are 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.

Emotional and Psychological Factors

Simulated trading does not fully capture the emotional and psychological aspects of live trading. The absence of real financial risk can lead to different decision-making behaviors. You may experience overconfidence, excessive risk-taking, or lack of discipline in a simulated environment, which can significantly differ from behavior in live trading where real money is at stake.

Software and Technology

Lucid’s simulated trading platform relies on sophisticated technology, including software, hardware, and internet connections. You may encounter technical issues such as system failures, connectivity problems, or data inaccuracies that can affect the trading experience. While we strive to maintain a reliable platform, these technological risks are inherent and may impact simulated trading performance.

Market Access and Conditions

Lucid provides access to a variety of simulated markets and instruments. However, the availability, conditions, and behavior of these markets may differ from live markets. Factors such as trading hours, liquidity, and market dynamics can vary, affecting the comparability of simulated trading results to live trading outcomes.

No Guarantee of Future Performance

Past performance in the simulated trading environment is not indicative of future results in live trading. Success in simulated trading does not guarantee success in live trading due to the differences outlined in this disclosure.

Engaging in simulated trading with Lucid involves significant risks that you must carefully consider. Use the simulated trading environment as a learning tool, not a predictor of future success. Conduct thorough research, develop sound strategies, and understand your risk tolerance before transitioning to live trading.

Day Trading can be Extremely Risky

Day trading is generally not appropriate for someone with limited resources or experience. You should be prepared to lose all funds you use for day trading. Avoid using retirement savings, student loans, emergency funds, or money set aside for essential living expenses. Some evidence suggests that trading with less than $50,000 may impair profitability potential, though higher capital also does not guarantee success.

Be Cautious of Claims of Large Profits

Be skeptical of advertisements or statements promising large profits from day trading. It can also lead to substantial and immediate losses.

Day Trading Requires Knowledge of Markets

It demands in-depth understanding of securities markets and strategies. You’ll be competing with professional, licensed traders. Appropriate experience is essential before participating in day trading.

Know the Firm’s Operations

Understand the firm’s systems and procedures. Under certain conditions, it may be hard or impossible to liquidate positions quickly. Market volatility, halts, or technological issues may prevent timely executions.

Substantial Commissions

Day trading involves frequent transactions, leading to significant commissions. Even with low per-trade fees, these costs can add up quickly and impact profitability. For example, 29 trades per day at $16 per trade could result in needing $111,360 in profit annually just to break even on commissions.

Margin and Short Selling Risks

Using borrowed funds or short selling may result in losses that exceed your initial investment. You may be required to add funds to avoid forced liquidation of your holdings.

Potential Registration Requirements

If you provide investment advice or manage accounts for others, you may need to register as an “Investment Adviser” under the Investment Advisers Act of 1940 or a “Broker” or “Dealer” under the Securities Exchange Act of 1934. State-level registration may also be required.

BY USING LUCID’S SERVICES, YOU ACKNOWLEDGE THAT YOU HAVE READ AND UNDERSTOOD THIS RISK DISCLOSURE STATEMENT AND THAT YOU ACCEPT THE RISKS ASSOCIATED WITH SIMULATED TRADING.