Skip to main content
Understanding the risks involved in copy trading is essential for making informed decisions.

​
Security Measures

Non-Custodial

Owly never holds custody of your funds.

Permission-Based

Trading permissions only - no withdrawal access.

Open Source

Core contracts are open for public audit.

Monitoring

24/7 system monitoring for anomalies.

​
Risk Categories

​
Market Risk

Cryptocurrency markets are highly volatile. You can lose some or all of your invested capital.
  • Price volatility can lead to rapid losses
  • Leverage amplifies both gains and losses
  • Liquidation is possible in extreme market conditions

​
Smart Contract Risk

While Owly uses audited contracts, no smart contract is 100% risk-free:
  • Potential undiscovered vulnerabilities
  • Dependency on Hyperliquid’s infrastructure
  • Bridge and cross-chain risks

​
Copy Trading Specific Risks

RiskDescription
Trader PerformancePast performance does not guarantee future results
SlippageCopied trades may execute at different prices
Strategy MismatchTrader’s strategy may not suit your risk tolerance
ConcentrationFollowing one trader creates single-point-of-failure

​
Best Practices

1

Start Small

Begin with an amount you can afford to lose.
2

Diversify

Consider following multiple traders with different strategies.
3

Set Limits

Use stop-loss and position limits to cap potential losses.
4

Monitor Regularly

Check your portfolio at least weekly.
5

Stay Informed

Keep up with market conditions that might affect your positions.

​
Not Financial Advice

The information provided by Owly is for educational purposes only and should not be considered financial advice. Always do your own research and consider consulting a financial advisor before investing.

​
Reporting Issues

If you discover a security vulnerability: