Risk Disclosure

Scope of the Risk Disclosure

The Risk Disclosure and Warning Notice (hereinafter "Risk Disclosure document") outlines on a fair and non-misleading basis the general nature of the risks involved when dealing with CFDs. Clients should not commence trading in CFDs unless they understand the risks involved.

It should be noted that it is impossible for the Risk Disclosure document to contain all the risks and aspects involved in trading CFDs, nor how such risks relate to each client's personal circumstances. Clients need to ensure that their decision is made on an informed basis. Clients may seek professional independent advice before commencing trading.

Main Risks Associated with Transactions in CFDs

! Leverage Risk

Leverage in CFD transactions allows clients to gain exposure to the underlying asset with a smaller upfront investment, known as margin.

While leverage is a powerful tool, it can be seen as a double-edged sword. This is because both profits and losses can be magnified by even small market movements; and clients could incur large losses if their position moves against them. However, retail clients cannot lose more than the balance on their trading account(s) as the Company provides "negative balance protection".

! Market Risk

CFDs are exposed to market events, such as the implementation of governmental, agricultural, commercial and trade programs and policies, national and international socioeconomic and political events, natural disasters etc., which may substantially affect the price or availability of a given underlying asset.

Based on the underlying of each contract, clients are exposed to different types of market risk such as interest rate risk, commodity risk, equity risk, foreign exchange risk, and others.

! Volatility Risk

Volatility risk can significantly impact a CFD position, as higher volatility may lead to larger price swings, increasing both the potential profits and losses.

Clients should understand and agree that if market conditions become abnormal and/or too volatile, the time required to process their orders and instructions may increase.

Additional Trading Risks

Liquidity Risk

Some CFDs may have low liquidity, which can result in difficulty opening or closing positions at desired prices, especially during periods of market stress.

Counterparty Risk

When trading CFDs, you are entering into an agreement with the broker as the counterparty to your trades. There is a risk that the counterparty may not fulfill its obligations.

Technical Risk

Electronic trading carries risks including system failures, network connectivity issues, and platform malfunctions that may prevent order execution or account access.

Regulatory Risk

Changes in financial regulations or tax laws may affect the profitability of your trading activities and the availability of certain products.

Risk Management Recommendations

• Educate Yourself: Thoroughly understand CFD trading before committing real funds
• Start Small: Begin with amounts you can afford to lose completely
• Use Stop-Loss Orders: Implement risk management tools to limit potential losses
• Diversify: Avoid concentrating all your capital in a single trade or asset
• Monitor Positions: Regularly review your open positions and market conditions
• Keep Updated: Stay informed about market news and events that may affect your positions
• Seek Advice: Consider consulting with financial advisors if unsure about any aspect of trading

Important Notice

Policy Updates

This Risk Disclosure may be updated periodically to reflect changes in market conditions, regulations, or our products and services. Clients are responsible for regularly reviewing this document.

Last Updated: January 2025