Risk Disclosure and Risk Warning

1. Risk Warning

Before entering the foreign exchange or stock (CFD) market, you should be fully aware that risk is a natural event in trading and investing and must take into account risks and other factors affecting financial volatility. Trading on margin carries a high level of risk to your capital. Not only do you increase your capital, but it may also cause you to lose all your capital. You should be aware that margin trading is not suitable for all investors.

Therefore, the clients of IUX MARKETS LIMITED (hereinafter “IUX”) need to understand the possibility of all risks. Clients need to acknowledge the terms and conditions of products, including corporate activities that will affect the change in ownership assets. Clients must understand that there are risks and factors affecting prices, exchange rates, and investment products. 

IUX requests that you carefully read through this Risk Warning Policy as outlined below before opening a trading account with IUX. This Risk Warning Policy should be read in conjunction with the Client Agreement, Terms & Conditions, and IUX’s other legal documents, which are available on our website.

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2. General Risk Factor

• Leverage

Margin trading carries a high level of risk to your invested capital; the change in rate may have an effect on the value, price, or income of the financial product you are holding. In Contract for Differences (CFDs) transactions, leverage enables clients to gain exposure to the underlying asset with a smaller initial investment, known as margin. However, this small deposit can result in significant losses or gains, as profits and losses can be amplified by even minor market movements. Clients may face substantial losses if their position moves against them. Transactions with high leverage are particularly vulnerable to changes in value due to slight fluctuations in the value or level of an underlying or related market factor. Prior to engaging in margin trading instruments, clients should only invest funds that they can afford to lose.

• No Advice

IUX offers an execution-only service. We do not provide investment advice relating to investments or trading positions. However, we may provide our clients with factual market information about the transaction procedures and potential risk exposure and how risks may be minimized.

• Costs and Charges

Our costs and charges are set out on our website. Before you begin to trade, you should obtain details of all our market information held on our website, which contains all of our market information, commissions, and other charges for which you will be liable.

• Must Monitor Positions

It is your responsibility to closely monitor your positions during the period you have applied any orders or positions to your account, and you should always ensure you have accessibility to access your accounts during the period you have open contracts running. 

• Electronic Communications

We provide you with the opportunity to contact us through electronic means, such as email and live chat, as available and/or applicable. This is usually a reliable means of communication; however, there may be instances where you may experience technical issues that arise, including but not limited to the failure of your computer/mobile/digital device, weak internet connection, computer viruses, spyware, scareware, Trojan horses, worms, or other malware that may affect the Client’s computer or other equipment, any cyberattack, or any phishing, spoofing, or other attack, and therefore it should not be entirely relied upon as a means of communication. If you choose to trade with us through electronic means, you should be aware that those electronic communications can fail, can be delayed, may not be secure and/or may not reach the intended destination.

• Our Products and Services

We offer execution-only services in relation to contracts across a wide range of underlying markets. Although the prices at which you open contracts are derived from the underlying market, the characteristics of our contracts can vary substantially from the actual underlying market or instrument. Full details of all of the contracts we offer are set out in the Client Agreement on our website.

• Social Trading

IUX offers Social Trading Features. A system allows you to copy Strategy Provider with investment experience. You must consider your entire financial situation, including financial commitments. You must understand that using Social Trading Features is highly speculative and that you could sustain significant losses exceeding the amount used to copy a Strategy Provider. The risks associated with Social Trading Features include, but are not limited to, automated trading execution whereby the opening and closing of trades will happen in your account without your manual intervention. If you manually modify or close an order generated by the CopyTrade service, you may achieve a materially different result than the copied Strategy Provider who you chose to copy from.

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3. Investment-Specific Risks

• Investing in Stock (CFD)

When you invest in stocks (CFD) on IUX, you gain ownership of the underlying asset. This also entails exposure to the risks involved in stock (CFD) investment.

• Cryptocurrency Investment (CFD)

The digital asset (CFD) market is a decentralized market and is not regulated by any specific central authority. This means that no financial institution or central bank can take measures to stabilize prices during volatile times. Therefore, IUX’s digital asset (CFD) contracts for difference (CFDs) are not covered by the protection framework of traditional financial service providers. This means that customers who continue to use IUX’s services will not be entitled to the protections typically available to customers in regulated markets, such as third-party protection of customer funds or assets, or the presence of a central authority for monitoring and control. However, IUX is committed to operating in accordance with international guidelines for responsible service, including the use of ‘Best Execution’ standards, secure client fund handling, and transparent risk disclosure.

Therefore, clients should carefully consider the nature of this product and should only invest if they understand and can adequately accept the risk of price volatility and uncertainty.

The digital asset (CFD) market referred to in the Cryptocurrency (CFD) is a decentralized market that is not operated through a single central authority and relies mainly on the mechanism of supply and demand to determine prices. This type of market is rapidly changing, has high price volatility, and generally lacks structural transparency. Prices displayed on charts or from third-party sources may not reflect the actual price that can be traded on the platform at that time. Since there is no official central market, each market maker may offer different prices, which may result in prices displayed on charts or analytical reports deviating from the actual trading price. In certain situations with high volatility, Cryptocurrency (CFD) products referencing digital assets (CFD) may lose value to the point that they cannot be converted into economic value effectively.

Trading in this type of Contract for Differences (CFD) may also be used in illegal activities if there is no clear supervision or inspection mechanism, especially in cases where the transaction is anonymous. Investors may therefore face risks if there is a subsequent investigation by the relevant authorities.

Therefore, this type of asset is classified as a very high risk group. Investors should avoid using funds necessary for living. Or money that cannot be lost

These CFD digital assets are not suitable for general investors who do not have knowledge, understanding or experience in managing risks in highly volatile markets. Investors should ensure that they have knowledge of the nature of the product, are able to assess the risks and are able to fully absorb the possible financial damage.

In addition, investors should be aware that trading through the IUX platform involves a spread, which is the difference between the buy and sell prices. This spread is reflected in the price displayed on the platform and may result in higher overall transaction costs during volatile markets.

In some situations, the market may suddenly move against the investor’s position, causing the account balance to fall below the specified margin value. If the investor is unable to provide additional margin in time, IUX reserves the right to automatically close the position to reduce risk, and the investor will be responsible for any resulting deficit.

In particular, newly issued digital assets (CFD) tend to have low liquidity and are difficult to trade, may have a wide price range, be highly volatile and are highly sensitive to market demand. IUX has no control over such external factors.

• Third-party Risks.

In some cases, IUX may need to execute trading orders or store client funds, either in fiat currency or digital assets (CFD), through third parties that provide custody or transaction services on IUX’s behalf, such as digital wallet providers, custodians, or settlement providers.

These third parties are not banks and are not legally liable in the same way as traditional financial service providers. If such third parties become insolvent, cease providing services, or lose client assets, whether due to cyberattacks, administrative failures, or other force majeure events, investors may not be able to recover all of their lost assets.

Even if a third party is registered or authorized by an authority in a particular country, the protections provided do not completely guarantee the safety of your funds.

In some cases, the structure of a digital asset (CFD) custody system may rely on a shared wallet or centralized control system, which may increase the risk of cyber attacks or unauthorized access, resulting in the loss or theft of digital assets (CFD) under the custody of that third party. IUX is not responsible for any loss or damage that may occur as a result of the actions of any third party, whether directly or indirectly.

• Delisting / Non-Support of Certain Digital Assets (CFD)

Digital assets (CFD) traded through the IUX platform may be delisted or discontinued in the future, whether for technical reasons, non-compliance with service standards, market uncertainty, or other commercial reasons.

If any asset is delisted or discontinued without being able to continue trading, the relevant trading order will be automatically closed out and the customer may no longer be able to perform any operations on that asset.

Closing out of positions may be carried out without prior notice, and in some cases, the value of the supported or delisted asset may decrease significantly.

• Investing in Currencies (CFD) and Commodities (CFD)

Certain strategies, such as a ‘spread’ position or a ‘straddle,’ may be as risky as a simple ‘long’ or ‘short’ position. Although derivative instruments can be utilized for the management of investment risk, some of these products are unsuitable for many investors. Different instruments involve different levels of exposure to risk and in deciding whether to trade in such instruments, you should be aware of the following points: 

Although derivative instruments can be used for the management of investment risk, some of these products are unsuitable for many investors. Different instruments involve different levels of exposure to risk and in deciding whether to trade in such instruments, you should be aware of the following points:

Certain situations, movements, and/or conditions may arise during weekends, at the beginning of the week, or intraday after the release of significant macroeconomic figures or economic or political news. These occurrences may cause currency markets to open with price levels that significantly differ from previous prices. 

• Off-Exchange Transactions in Derivatives

Our products are traded exclusively off-exchange, a type of trading that is also called dealing “over-the-counter” or “OTC.”. In dealing with us off-exchange, you deal directly with us and we are the counterparty to all of your transactions. Depending on the market, our prices will usually be based on an exchange price but can fluctuate away from the underlying prices due to a variety of reasons. When dealing in markets that are not centrally cleared markets, there is no exchange or a central clearinghouse to guarantee the settlement of such transactions. All open trades can only be closed and settled with us

While some off-exchange markets are highly liquid, transactions in off-exchange or ‘non-transferable’ derivatives may involve greater risk than investing in on-exchange derivatives because there is no exchange market on which to close out an open position. It may be impossible to liquidate an existing position (which may be particularly the case where there are abnormal market conditions, to assess the value of the position arising from an off-exchange transaction or to assess the exposure to risk. Bid and offer prices need not be quoted, and, even where they are, they will be established by dealers in these instruments.

• Contracts for Difference (CFDs)

Contracts for Difference (CFDs) are a type of transaction the purpose of which is to secure a profit or avoid a loss by reference to the price value fluctuations of an underlying instrument. Types of CFDs offered by us may include Foreign Exchange Contracts for Difference (CFDs) and Index (CFD). We do not offer Equity Share dealing in Contracts for Difference (CFDs). Contracts for Difference (CFDs) can only be settled in cash.

However, trading Contracts for Difference (CFDs) involves a high risk of losing significant capital instantly due to leverage, regardless of the financial instrument. Trading with leverage magnifies your gains and losses, making the nuance in the financial instrument’s price result in large losses or gains. It is therefore possible that you may incur losses exceeding your initial deposit in a trade.

• Risks

Currency (CFD), Contracts for Difference (CFDs), and commodities are all margin-traded products. Investing in a Contracts for Difference (CFDs) carries a high degree of risk because these are margin products, which refer to the ‘gearing’ or ‘leverage, which means that you can place a large trade by only putting up a small amount of money as margin. This is often a relatively small price movement that can lead to a proportionally much larger movement in the value of your investment. They settle based on the difference between the opening price and the closing price of the trade. They can settle in a currency other than your base currency and therefore your profit or loss could be liable to foreign exchange fluctuations.

• Contracts for Difference (CFDs) — General

Our currecy (CFD), Contracts for Difference (CFDs), and commodities are our own products and are not listed on any exchange. The prices and other conditions are set by us in accordance with our obligation to provide the best execution as set out in our policies and other legal documents. Each Contracts for Difference (CFDs) you open with us results in you entering into a contract with us. These contracts can be closed only with us and are not transferable with any other person. All contracts do not provide any right to the underlying instruments or to voting rights. All contracts you enter into with IUX are legally enforceable by both parties.

You should not trade any margined product unless you fully understand all the risks involved with doing so and that you have sufficient resources available to you that, in the event, however unlikely you may deem it to be, there is an adverse movement in the price of that product that you can meet the financial obligations required by you with respect to margin payments and losses.

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4. Trading Conditions Risks

• Volatility

You should be aware that prices can move quickly, particularly at times of high market volatility. These risks could arise in or outside normal business hours and can result in the balance of your account changing rapidly. If you do not have sufficient funds in your account to cover these situations, there is a risk that your positions will be automatically closed if the balance of your account falls below the close-out level. You should note that the value of investment in Financial Instruments may fluctuate downwards or upwards regardless of any information that may be provided by IUX, and the result of the fluctuation may become of no value. The provided historical data, graph, and past performance do not constitute a binding or safe forecast as to the corresponding future performance of the Financial Instruments to which the said information refers.

• Slippage

In certain circumstances, when you open a position, there may be a difference between the expected price of the order and the price at which the order is executed; this event shall be referred to as slippage. This variance may occur at any time, especially during periods of high market volatility, rapid price movements, or low liquidity. Slippage does not denote a negative or positive movement. Execution of the order may result in favor of the Client or may be at your disadvantage compared to the originally intended price. You acknowledge that slippage is a natural part of trading, and the Company is not liable for any unfavorable slippage experienced during order execution.

• Currency (CFD)

If you trade in a market other than your base currency (CFD) market, currency (CFD) exchange fluctuations will impact your profits and losses. 

• Prices and Commissions

The prices quoted may not necessarily reflect the broader market. We will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Although we expect that these prices will be reasonably related to those available on what is known as the interbank market, prices we use may vary from those available to banks and other participants in the interbank market. Consequently, we may exercise considerable discretion in setting margin requirements and collecting margin funds.

Before you begin to trade, you should obtain details of all our market information held on our website, which contains all of our market information, commissions, and other charges for which you will be liable.

• Market Liquidity

The price made by IUX, similar to the underlying market, is usually good, up to a certain size. In order to maintain additional liquidity in the market, we may apply a different spread to the price. In these situations, while every effort is made to keep prices and spreads consistent, this may not always be possible during particularly volatile periods or during periods of illiquidity in corresponding markets.

• Suspensions of Trading

Under specific trading circumstances, the execution or liquidation of a position may be difficult or impossible, or the duration for order execution by Clients may be prolonged. This may occur, for example, at times of rapid price movements if the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange, trading is suspended or restricted. Placing a stop-loss order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an order at the stipulated price.

• Non-guaranteed Stops

Where you have added a non-guaranteed stop as part of your trading, when such a stop is triggered, it effectively issues an order from you to us to close your contract. Your contract may not necessarily be closed immediately when the stop is triggered. We aim to deal with such orders fairly and promptly, but the time taken to fill the order and the level at which the order is filled depends upon the underlying market. In fast-moving markets, a price for the level of your order might not be available on the market and might move quickly and significantly away from the stop level before we are able to fill it.

• Gapping

Gapping is a sudden shift in the price of an underlying market from one level to another, where there are no prices between those levels. Various factors can lead to gapping (for example, economic events or market announcements) and gapping can occur either when the underlying market is open or when it is closed. When these factors occur when the underlying market is closed, the price of the underlying market when it reopens (and therefore our derived price) can be markedly different from the closing price, with no opportunity to sell your instruments before the market opens.

• Limit/Stop Orders

Limit orders are contingent orders by clients looking to open a trading position at a specific price, and until such time, they remain unfilled. Upon the market moving to a requested price (or better), we will open a trading position in accordance with your limit order price. 

A Stop order is a request to automatically close out an open position upon the market moving to a requested price (or worse). Such order types may be used to limit downside risks of moving markets and are recommended to be used for those purposes. However, they do not guarantee that the fill price will be available at the requested price (which is dependent on available liquidity), especially in market gaps or fast-moving markets.

• Margin Calls & Closeouts

In the case that the Margin Level in your trading account is below 100%, you will see a margin call on your trading platform and you will not be able to increase your overall exposure. If your Margin Level falls below 30%, the trading system will automatically start closing out your open positions. This is to reduce (but not eliminate) the risk of you being liable for more than you have invested. It is strongly advised that clients maintain sufficient margin in the client account to avoid being closed out as well as using limit/stop orders.

• Quoted prices

You should note that all prices quoted on the platform or the website are indicative only and constitute an invitation to treat. Upon agreeing to enter into a transaction, an executable price may or may not differ from the quoted price. Although the quoted prices are in normal market conditions very similar to the executed prices, the executed prices may vary if the market has moved (even in a split second) since you have requested a quote.

• Client money

IUX holds all retail clients’ money in trust in segregated bank accounts. Segregated Client Money is held entirely separate from IUX’s own money, ensuring that in the unlikely event of default by IUX, client funds will be returned to the clients rather than being treated as a recoverable asset by general creditors of IUX. However, this may not provide complete protection (for example, in the insolvency of our bank).

Funds transferred from an individual client to IUX will usually be received directly into a segregated client bank account. If money from an individual client is received into a general IUX account, it is still considered to be Client Money from the time it reaches IUX’ accounts (rather than only being considered Client Money once it has been placed into a segregated client account).

IUX uses only its own funds for hedging and does not pass client money to hedging counterparties or to any part of the business as working capital. IUX does not initiate speculative positions in the market.

• Can Lose More than Initially Invested

Your investment value can work against you as well as also work in your favor. Even a small movement in price against you can lead to substantial losses, including potentially losing more than the money placed on deposit. You should be aware that prices can move quickly, particularly at times of high market volatility.

• Insufficient Funds

If you do not have sufficient funds in your account to satisfy your margin requirements, we may require you to deposit additional margin with us immediately to keep these trades open or even close any or all of your open positions (in some circumstances without warning) in accordance with the Client Agreement.

• Contingent Liability Investment Transactions

Contingent liability investment transactions, which are margin, require you to make a series of payments against the purchase price instead of paying the whole purchase price immediately. If you trade in futures (CFD), you may sustain a total loss of the margin you deposit with the firm to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss, and you will be responsible for the resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract.

• Liable for Losses

You are liable for any losses that may occur if your positions are closed. The potential losses, or profits, for margin-traded products are unlimited and this should always be considered by you when making any trading decisions and you should be satisfied that the product is suitable for you in light of your circumstances and financial position. You should also be aware that it is possible for you to lose more money than your initial invested deposit.

• Weekend and holiday risk

Not all trades can be opened or closed 24 hours a day. Many are subject to strict opening and closing times, which can fluctuate. IUX will notify its client regarding events that may affect the opening and closing time of the market through your registered email. We will endeavor to keep up to date, without any obligation or liability on us to do so, or for its accuracy. For example, national holidays and daylight savings changes will affect the times when you can trade. Also, a market may be suspended for a variety of reasons and during this time you will not usually be able to trade.

• Electronic trading

The use of electronic trading systems and communication networks to facilitate trades. Clients that trade expose you to internet-based risks associated with the system including, but not limited to, the failure of hardware and software systems, network down-timed access or connection failure, the risk of malicious software introduction, the risk that third parties may obtain unauthorized access to information and/or assets (including your CFD of Cryptocurrencies) stored on your behalf, cyber attack, Cryptocurrency (CFD) network failure (such as blockchain), computer viruses, communication failures, disruptions, errors, distortions or delays you may experience when trading via the Services, howsoever caused, spyware, scareware, Trojan horses, worms or other malware that may affect your computer or other equipment, or any phishing, spoofing or other attack. You should also be aware that SMS and email services are vulnerable to spoofing and phishing attacks and should use care in reviewing messages purporting to originate from IUX.

• Insolvency

The insolvency or default of any other brokers involved with your transaction may lead to positions being liquidated or closed out without your knowledge or consent.

• Corporate Action Events

We do not make profits from our clients from the outcome of corporate action events such as rights issues, takeovers, mergers, share distributions, or consolidations and open offers. We aim to reflect the treatment we receive or would receive if we were hedging our exposure to you in the underlying market. Ultimately, however, you are not dealing in the underlying market and therefore, in relation to our contracts:

• The treatment you receive may be less advantageous than if you owned the underlying instrument;
• We may have to ask you to make a decision on a corporate action event earlier than if you owned the underlying instrument; 
• The options we make available to you might be more restricted and less advantageous to you then if you owned the underlying instrument; and/or 
• Where you have a stop attached to your open OTC derivative share position, the treatment that you will receive from us will, to the maximum extent possible, aim to preserve the economic equivalent of the rights and obligations attached to your contract with us immediately prior to the corporate event taking place.

• Tax

In certain circumstances, you may be or become subject to tax and/or any other stamp duty. In such circumstances, you acknowledge that IUX does not provide tax advice and if you are in any doubt as to your tax obligations, you should seek independent advice.

• Regulatory and Legal Risk

This is the risk that a change in laws or regulations will materially impact a security and investments in a sector or market. A change in laws or regulations made by the government or a regulatory body can increase the costs of operating a business, reduce the attractiveness of investment, and/or change the competitive landscape and, as such, alter the profit potential of an investment. This risk is unpredictable and may vary from market to market.

• FORCE MAJEURE

IUX SHALL NOT BE LIABLE OR HAVE ANY RESPONSIBILITY FOR ANY TYPE OF LOSS OR DAMAGE ARISING OUT OF ANY FAILURE, INTERRUPTION, OR DELAY IN PERFORMING ITS OBLIGATIONS IF SUCH DELAY OR FAILURE RESULT FROM EVENTS, CIRCUMSTANCES OR CAUSES BEYOND ITS REASONABLE CONTROL WHICH INCLUDES, WITHOUT LIMITATION, THE ACTS OF GOD, FLOOD, DROUGHT, EARTHQUAKE OR OTHER NATURAL DISASTER; EPIDEMIC OR PANDEMIC; TERRORIST ATTACK, CIVIL WAR, CIVIL COMMOTION OR RIOTS, WAR, THREAT OF OR PREPARATION FOR WAR, ARMED CONFLICT, IMPOSITION OF SANCTIONS, EMBARGO, OR BREAKING OFF OF DIPLOMATIC RELATIONS; NUCLEAR, CHEMICAL OR BIOLOGICAL CONTAMINATION OR SONIC BOOM; MARKET TRADING STOPS, CURRENCY INTERVENTIONS, ANY LAW OR ANY ACTION TAKEN BY A GOVERNMENT OR PUBLIC AUTHORITY, INCLUDING WITHOUT LIMITATION; FINANCIAL INSTABILITY ON FINANCIAL MARKETS WITH RAPID DROPS OF LIQUIDITY; COLLAPSE OF BUILDINGS, FIRE, EXPLOSION OR ACCIDENT; INTERRUPTION OR FAILURE OF UTILITY SERVICE, AND OTHER SIGNIFICANT CHANGES OF COUNTERAGENTS WORKING PROCESS.

IN THE EVENT THAT CLIENTS PROFIT FROM SYSTEM ERRORS THAT MAY OR MAY NOT BE CAUSED BY THE COMPANY, AND WE ARE ABLE TO CHECK. PROFITS OR TRADES WILL BE CONSIDERED INVALID DUE TO FORCE MAJEURE. CLIENTS MAY IMMEDIATELY TERMINATE THEIR RELATIONSHIP WITH US IF THEY ARE DISSATISFIED.

• Impersonation

There might be cases of fraudulent impersonation of the Company’s officers and representatives. Clients are advised against sharing their personal data, including details about their trading accounts, with individuals purporting to represent the Company unless they have verified that such individuals communicate from the official contact details and domains of the Company.

The risks mentioned above also include decrease in liquidity, price change, high volatility, and out-of-control situations. Before opening a real account, make sure to completely understand all Terms of Use for details as well as the basic principles and rules of the financial markets.

IUX will not take responsibility for government regulations, rules of foreign exchange or the stock (CFD) market, military movement, suspension of trading, and other events beyond our control.