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Last updated: August 28, 2026
This Risk Disclosure ("Disclosure") forms part of, and is incorporated by reference into, the GreeksLab Terms of Service. GreeksLab.com is a service provided by OptionMighty LTD, a company registered in the Republic of Cyprus with registration number HE464575. By accessing or using the Service, you acknowledge that you have read, understood, and accepted the risks described below. If you do not understand or accept these risks, do not use the Service.
GreeksLab is backtesting software. It is not investment advice, it does not place orders, and it does not trade on your behalf. OptionMighty LTD is not a registered investment advisor or broker/dealer, holds no custody of your funds or securities, and is not a party to any trade you make. Every trading decision you take, and every gain or loss that follows, is yours alone.
Trading securities, options, and other financial instruments carries a high degree of risk and is not suitable for every investor. The risk of loss in trading can be substantial. You should carefully consider whether such trading is appropriate for you in light of your financial condition, experience, and risk tolerance. You may lose some or all of the money you commit, and certain strategies can produce losses that exceed your initial outlay in a short period of time. Only risk capital, meaning money you can afford to lose, should ever be used for trading.
Options are a volatile asset class carrying a high degree of financial risk. The value of an option can move rapidly and can expire worthless. Selling (writing) options can create substantial and, for some structures, theoretically unlimited risk. You could sustain a loss of the entire premium paid and, for certain positions, materially more than that.
Short-dated options, including options that expire on the day they are traded (zero days to expiration, or 0DTE), carry risks beyond those described above. They are acutely sensitive to time decay, gaps, and rapid intraday price moves. A position can move from profit to total loss within minutes, leaving little opportunity to react or adjust. Available size and bid/ask spreads can deteriorate under stress, particularly around the close and during volatile markets. Pin and settlement risk near expiration can produce outcomes very different from the ones you expected. These characteristics magnify every other risk described in this Disclosure.
Settlement and exercise mechanics differ between instruments, and those differences change the risk you carry. Cash-settled European-style options, which include most index options, cannot be exercised before expiration and settle to a cash debit or credit rather than a delivery of shares; settlement is determined against a calculated settlement value that may differ from the level you observed at any point during the session. Physically-settled American-style options, which include most equity and ETF options, can be assigned at any time before expiration, which may leave you holding or short an unexpected position in the underlying, with the financing, dividend, and margin consequences that follow.
Options trading involves leverage. Leverage works in both directions and amplifies gains and losses alike. A relatively small movement in the underlying may produce a proportionately much larger impact on your account. Margin requirements are set by your broker and by the clearing house. Your broker may issue margin calls or liquidate positions to satisfy them, potentially at a loss, and potentially at prices no backtest anticipated.
Every backtest, chart, statistic, equity curve, performance metric, portfolio combination, and comparison produced by the Service is hypothetical. It describes what a set of rules would have done against historical data under a set of modelling assumptions. It is not a record of actual trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND DO NOT INVOLVE FINANCIAL RISK. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
Backtesting is backward-looking and is not indicative of future performance. Simulated results cannot account for the effect of financial risk on real decision-making, and they are constructed with the benefit of hindsight over a period whose outcome is already known. Repeatedly adjusting a strategy until it performs well on historical data produces results that describe that specific past rather than any future. Live results will differ, and may differ materially, from any hypothetical or backtested result. Past results of any trader, strategy, or template are not indicative of future returns and should never be the sole basis for a trading decision.
You should understand what the engine simplifies before relying on any figure it produces. The simplifications include, but are not limited to, the following:
The points above are examples rather than a complete inventory of the differences between a simulation and live trading. A backtest may diverge from live results for reasons not identified here, including reasons not yet anticipated.
A backtest that produces attractive numbers has not demonstrated that the strategy is tradable, only that the rules, applied to the recorded data under these assumptions, would have produced those numbers.
Historical market data is licensed from third-party providers and is stored at minute resolution. Data may contain gaps, errors, revisions, or values that differ from what any individual participant saw at the time. Greeks and implied volatility are model-derived values, supplied by our data provider or calculated by us where the provider's data is incomplete, and depend on model assumptions that other market participants may not share. Minute resolution hides intra-minute movement, and for short-dated positions that movement can be significant. Data presented in the Service is not guaranteed to be real-time, complete, or accurate, and should not replace independent market research.
There is no assurance that you will generate any return, or that any return will be commensurate with the risks you take. OptionMighty LTD makes no representation, warranty, or guarantee of any kind regarding profitability, performance, or results, whether in the Service, in marketing materials, in documentation, or in educational content.
The Service permits users to share backtest results. Any strategy, template, backtest, or result created or shared by another user is that user's own work. It is hypothetical on the same terms as your own backtests, it has not been reviewed, validated, or endorsed by OptionMighty LTD, and its appearance in the Service is not a recommendation. The same applies to any result of the Service you encounter on a forum, social platform, or other third-party site.
Articles, guides, documentation, example strategies, blog posts, and other content published by GreeksLab are general market information offered for educational purposes. They do not constitute investment, financial, legal, tax, or accounting advice, a recommendation, or a solicitation to buy or sell anything. An example strategy is an illustration of how the software works and is not a suggestion that you trade it.
Your use of the Service, and of any strategy, rule, template, or result derived from it, is strictly at your own risk. You are solely responsible for every order, position, gain, and loss in your brokerage account. You should consult your own licensed financial, legal, and tax professionals before trading and before relying on any output of the Service.
This Disclosure supplements, and does not limit, the disclaimers and limitation of liability in the Terms of Service. Where this Disclosure and the Terms of Service address the same subject, both apply to the fullest extent permitted by law. We may update this Disclosure from time to time; the date at the top of this page reflects the most recent revision, and your continued use of the Service after a revision signifies your acceptance of it.
By accessing or using the Service, you acknowledge that you have read and understood this Risk Disclosure, that you accept the risks described here as well as risks not specifically described, and that you are solely responsible for your trading decisions and their results.
If you have any questions about this Disclosure, please contact us at support@greekslab.com.