# What is Risk disclosure?

> A risk disclosure is the statement a prop firm publishes explaining that trading is risky, that accounts are simulated where they are, and that results are not typical or assured.

- Source: https://pipvalley.com/glossary/risk-disclosure
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

In a prop firm, the risk disclosure appears in the footer of every page, at checkout and in the terms. It typically states that the firm provides simulated trading, that fees are paid for an evaluation service, that past performance does not indicate future results, and that the firm does not provide investment advice.

Futures prop firms often also carry the hypothetical performance legend set out in CFTC Rule 4.41 where simulated results are shown. Other jurisdictions have their own required or expected wording for financial promotions.

A disclosure only protects the firm if the rest of the site does not contradict it. A footer that says simulated next to a headline that says real capital is not a disclosure, it is evidence.

## Why it matters

Processors, regulators and courts read your disclosure alongside your marketing. Make it specific to your model, place it where decisions are made (pricing, checkout, payout proof), and keep every headline consistent with it. Have a lawyer review the wording for the jurisdictions you sell into.