Risk disclosure
All investing involves risk, including losing money. The main risks, why past results do not predict future ones, and why crypto carries extra risk.
You can lose money investing. Read this first.
Can you lose money investing?
Yes. The value of stocks, bonds, funds and crypto assets can fall as well as rise, and you can get back less than you put in — in some cases nothing. Investments that are not bank deposits are generally not protected by deposit insurance. Higher potential returns usually come with a higher chance of loss.
Do past results predict future results?
No. Historical returns, averages and the illustrative rates used in our worked examples show how the arithmetic works. They are not forecasts, and actual results will differ, sometimes by a lot.
Why are crypto assets riskier?
Crypto assets can be extremely volatile, are often traded on platforms with fewer investor protections than regulated securities markets, and are frequent targets of fraud and hacking. Lost private keys usually mean lost funds, with no way to recover them. Treat any money placed in crypto assets as money you can afford to lose entirely.
What other risks should you know?
- Inflation risk — cash and low-yield investments can lose buying power.
- Interest-rate risk — bond prices fall when rates rise.
- Credit risk — a borrower may not pay interest or principal.
- Liquidity risk — you may not be able to sell quickly at a fair price.
- Fraud — promises of high, guaranteed or risk-free returns are a warning sign.
Where can you get advice for your situation?
This site cannot give personal advice. Consider a licensed professional, and check their record with your regulator — in the U.S., FINRA BrokerCheck and the SEC's Investment Adviser Public Disclosure site, both listed in our library.