Risk disclosure

Last updated: 6 May 2026

filo.bot runs an automated Smart Grid on Hyperliquid spot markets. Trading crypto is high-risk and you can lose a large part — up to 100% — of the capital you deploy. This page explains the specific risks you take on when you use this service. Read it before you fund your account.

If you cannot afford to lose 100% of the capital you put on Hyperliquid, do not use this service. Past performance, including any grid's on-chain track record, does not guarantee future results.

1. Drawdown and averaging-down risk

The Smart Grid trades Hyperliquid spot — there is no leverage and no liquidation, so you can never lose more than the capital you allocate to a grid. That capital is still fully at risk. The grid buys more of an asset as its price falls, averaging your entry deeper. If the market keeps falling, your position can sit at an unrealised loss for a long time, and the asset can keep dropping toward zero.

The grid has no downside stop-loss. It is designed to accumulate on the way down and sell into strength, so in a sustained decline you can hold a large unrealised loss — up to the full capital allocated to that grid — for an indefinite period. filo.bot does not protect against a falling market.

2. Market risk

Crypto markets are volatile and trade 24/7 across thin order books. Prices can gap during news events, exchange outages, or low-liquidity periods. An asset with a strong long-term history can still drop sharply in any given week.

Past price action cannot predict the future. A coin that has trended up for months can reverse hard. Always start a grid with capital you can afford to leave deployed, and size new grids conservatively until you have observed the bot's behaviour on your account.

3. Smart Grid-specific risk

Slippage and timing. Grid triggers fire on the observed price; your fills can differ from the trigger price, especially on volatile or thin pairs.
Capital lock-up. Capital assigned to open grid steps stays deployed in the asset until those steps sell. In a prolonged downtrend it can remain tied up indefinitely.
No downside protection. The grid has no stop-loss. It accumulates as price falls and sells into rallies; it will not cut losses if an asset keeps dropping.
Parameter risk. Aggressive settings — wide step spacing, large capital, many steps — increase how large a position the grid can build. You are responsible for the parameters you choose.

4. Smart contract and exchange risk

Hyperliquid is a decentralised exchange operating its own L1. Bugs, exploits, governance failures, validator outages, or bridge issues could result in loss of funds — independent of anything we do. Your funds are held by Hyperliquid, not by us, but Hyperliquid itself is exposed to these risks.

5. Builder fee charged on trades

filo earns its operating revenue by attaching a builder fee to each spot trade the Smart Grid routes on your behalf. This fee is collected on-chain by Hyperliquid as part of the standard fee logic and paid to filo's builder address. It is in addition to Hyperliquid's own taker/maker fee. (On spot, Hyperliquid charges fees in the asset received, so the builder fee only applies to the SELL side of grid trades.)

The current builder fee is 0.01% per trade side (1 basis point), well below Hyperliquid's protocol cap of 0.10%. You can see and adjust the maximum fee you authorise from your dashboard Settings page; the fee is only collected when a trade actually executes on your account.

Authorising a builder is a one-time on-chain signature using your main wallet. You can revoke it at any time directly on Hyperliquid. If you do not authorise filo as your builder, your grid trades still execute — filo simply earns no fee from your trades.

6. API key and key-handling risk

To execute trades on your behalf we use an API key with trading permission. The key is encrypted with AES-256-GCM and only loaded into memory at execution time. Even so, by giving us a key you authorise our infrastructure to place trades on your account. Risks include:

Bugs in our execution logic could place wrong-sized or wrong-direction trades.
A compromise of our infrastructure could allow an attacker to place trades using stored keys.
You can revoke the API key from Hyperliquid at any time, but trades placed before revocation cannot be unwound.

We do not accept API keys with withdrawal permission. You should not grant such permission to any trading bot or third-party service.

7. Third-party service risk

Our service depends on third parties whose failures we cannot control:

Hyperliquid — for order execution and on-chain settlement.
Telegram — for trade notifications.
Internet, cloud, and DNS providers needed to keep our infrastructure online.

Outages or breaches at any of these providers may delay signals, prevent execution, or expose metadata about your activity. We mitigate where we can but cannot guarantee uptime or vendor security.

8. No investment advice

Nothing on filo.bot is investment, financial, tax, or legal advice. We are not a broker, fund manager, or investment adviser. Performance figures, grid statistics, and any educational content are descriptive — they describe past results, not a recommendation to trade any specific asset.

9. Tax

Trading crypto can have significant tax consequences. You are responsible for tracking and reporting your trades, gains, and losses to the relevant tax authority in your jurisdiction. filo.bot does not provide tax forms.

10. Eligibility

You must be of legal age to trade crypto in your country and not located in a jurisdiction where automated crypto trading services are restricted (including, where applicable, the United States and other restricted regions). You are responsible for confirming you are permitted to use this service.

By using filo.bot you confirm you have read this Risk disclosure and accept the risks listed above. If anything is unclear, contact us at [email protected] before funding your account.