Risk Disclosure
Last updated: January 2026
Important Notice
Trading in financial markets carries a high level of risk and may not be suitable for all participants. The risk of loss in trading can be substantial. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances. This Risk Disclosure is provided to help you understand the nature and extent of the risks associated with our proprietary trading programs.
1. Nature of Proprietary Trading Programs
BareProp Limited offers evaluation programs and direct funding opportunities for traders. These programs involve trading company-owned capital on financial markets. It is essential to understand that participation in these programs is not an investment, security, or financial product. You are not investing your capital into a fund or portfolio managed by BareProp. The fees you pay grant access to an evaluation or direct funding program only. All trading is conducted using company capital, and you do not have ownership interest in the trading account or its balance except as provided under our profit split arrangements.
2. Market Risk
Financial markets, including foreign exchange (forex), metals, and indices, are inherently volatile and subject to rapid and unpredictable price movements. Market conditions can change dramatically in a short period due to economic reports, central bank decisions, geopolitical events, natural disasters, or other factors. This volatility means that trading positions can incur significant losses, sometimes exceeding the amount initially committed to a trade. Past market behavior is not indicative of future results. No trading strategy, regardless of its historical performance, can guarantee profits or prevent losses.
3. Leverage Risk
Our trading programs utilize leverage, which allows you to control a position that is substantially larger than the account balance. While leverage can magnify profits, it equally magnifies losses. A small adverse price movement can result in the total loss of the account balance used to support a leveraged position. Our programs offer leverage of up to 1:20, meaning a 5% adverse move in the market could theoretically eliminate the entire account balance. You must fully understand the mechanics and risks of leveraged trading before participating in any program. Even with our drawdown limits in place, leveraged positions can move quickly against you before risk management measures take effect.
4. Risk of Account Loss
Under our trading rules, accounts that exceed the maximum drawdown limits (10% for evaluation Phase 1, 6% for evaluation Phase 2 and funded accounts, and as specified for Direct Funding accounts) will be suspended or terminated. This means that violating risk parameters can result in the loss of your funded account and any accumulated profits. Additionally, breaching the 2% daily drawdown limit can also result in account suspension. It is your responsibility to actively manage your positions and ensure compliance with all risk parameters at all times.
5. No Guarantee of Profits or Funded Status
BareProp Limited does not guarantee that you will pass the evaluation challenge, achieve funded status, or earn any profits from trading. The evaluation program is designed to identify traders who demonstrate consistent profitability and disciplined risk management. The majority of traders may not successfully complete the evaluation. Similarly, achieving funded status does not guarantee future profitability. Market conditions, personal trading decisions, and risk management practices all affect trading outcomes. Any representations of potential earnings are hypothetical and should not be interpreted as promises or guarantees of actual results.
6. Fees and Financial Risk
Participation in our programs requires payment of program fees. These fees are non-refundable except as stated in our Refund Policy. You should only pay program fees with money you can afford to lose without affecting your standard of living or financial obligations. Program fees should not be paid with borrowed funds, retirement savings, or money set aside for essential expenses. The payment of a fee does not create an entitlement to a funded account or profits. You bear the risk that you may not pass the evaluation or generate sufficient profits to justify the cost of participation.
7. Technology and Operational Risk
Trading through electronic platforms involves risks related to technology and system performance, including but not limited to: internet connectivity failures or delays; platform outages, downtime, or maintenance periods; software bugs, errors, or glitches; server failures or data center disruptions; delays in order execution or order routing; and discrepancies between displayed prices and actual execution prices (slippage). BareProp and its technology partners make reasonable efforts to maintain platform stability, but we cannot guarantee uninterrupted or error-free operation. These technical risks can result in missed trading opportunities, unintended positions, or losses that exceed your intended risk exposure.
8. Liquidity Risk
Certain financial instruments, particularly during off-market hours or around major news events, may experience reduced liquidity. Low liquidity can result in wider spreads, increased slippage, and difficulty entering or exiting positions at desired prices. In extreme cases, you may be unable to close a position at any price. This risk is particularly relevant for trading during economic news releases, holiday periods, or in less commonly traded instruments. Reduced liquidity can cause losses that exceed your intended risk parameters.
9. News and Event Risk
Major economic events, central bank announcements, political developments, and unexpected news can cause sudden and extreme market movements. These events can trigger significant gaps in pricing, where the market opens at a substantially different level from its previous close. Such gaps can bypass stop-loss orders and other risk management measures, resulting in losses greater than anticipated. Trading around high-impact news events carries elevated risk and requires additional caution.
10. Psychological and Emotional Risk
Trading can involve significant psychological pressure, stress, and emotional strain. The fear of losing capital, the excitement of potential gains, and the stress of monitoring positions can impair judgment and lead to impulsive or irrational trading decisions. Emotional trading often results in deviation from established trading plans, overtrading, failure to cut losses, or excessive risk-taking. You should be aware of these psychological factors and develop strategies to manage them effectively.
11. Regulatory and Legal Risk
The regulatory landscape for proprietary trading firms is evolving and varies by jurisdiction. Changes in laws, regulations, or regulatory interpretations could affect the availability of our programs, the terms under which we operate, or the markets and instruments available for trading. BareProp Limited is incorporated in the British Virgin Islands and operates under its laws. You are responsible for understanding and complying with any laws or regulations that apply to you in your jurisdiction. We make no representation that our services are suitable or available for use in all jurisdictions.
12. Third-Party Risk
Our services rely on third-party technology providers, liquidity providers, and brokers for trade execution and platform functionality. The failure, insolvency, or misconduct of any third-party provider could affect our ability to deliver services, process payouts, or maintain platform operations. While we select our partners carefully and maintain contractual safeguards, we cannot eliminate the risks associated with third-party dependencies.
13. Risk of Rule Changes
BareProp reserves the right to modify trading rules, program parameters, profit splits, and other terms with reasonable notice. Changes to rules may affect your trading strategy or the viability of your account. While we strive to provide advance notice of material changes, certain modifications may be implemented without prior notice to address urgent compliance or operational needs.
14. Acknowledgment of Risks
By participating in any BareProp Limited program, you acknowledge that you have read and understood this Risk Disclosure, you are aware of the risks involved in proprietary trading, you understand that you may lose your program fee and any accumulated profits, you are trading with company capital and not your own investment funds, and you accept full responsibility for your trading decisions and their outcomes.
15. Seek Independent Advice
We strongly recommend that you seek independent financial, legal, and tax advice before participating in our programs. This Risk Disclosure does not constitute financial advice and should not be relied upon as such. Each individual's financial situation and risk tolerance is unique, and only you can determine whether our programs are suitable for your circumstances.
16. Contact Information
If you have questions about the risks associated with our programs, please contact us at: