Risk Disclosure Policy
1. Overview
The following statements are intended to inform the Client of the potential risks involved in trading on financial markets. Clients should be aware of the potential losses associated with such risks. This document forms an integral part of the Agreement between the Company and the Client. Should there be no clear definition of a term set out in this document, the interpretation of that term shall be governed firstly by the definition given in the Client Agreement. This document cannot disclose all risks involved in trading due to the wide range of feasible situations.
Every Client should deal with the Company at their own risks and shall not be protected by any statutory compensation arrangements in any event whatsoever.
Every person intending to trade on the products offered by the Company is recommended to seek independent advice on the investment viability and risk associated with such products and services proposed by the Company. The Company does not provide any investment advice, and trading decisions are made at the investor’s own risk.
2. Investment Risk Statements
Online trading involves substantial risks, as indicated hereunder. Prospective Clients should be aware that they can benefit as well as lose all or part of their funds when engaging in trading activities.
In making a decision to trade in the Company’s products, Clients must rely on their own examination of the products, including the merits and risks involved. The Company does not provide advice of any kind, including tax, investment, or legal advice other than general consultations to Clients. The Client should not risk more than what he is prepared to lose. The Client must ensure that he understands the risks involved and take into account his level of experience before deciding to trade independent advice and consultation must be sought if the Client deems it necessary.
Online trading involves a high degree of risk. Clients may not receive the amount that they initially invested due to any of these risks and may lose all or part of their funds.
3. Effect of Leverage
When executing trading operations under margin trading conditions, even small market movements may have a great impact on a Client’s Trading Account due to the effect of leverage. The Client must take into consideration that if the trend on the market is against them, the Client may sustain a total loss of their Initial Margin and any additional funds deposited to maintain Open Positions. The Client shall be held fully responsible for all risks, financial resources used and the chosen trading strategy.
Initial Margin is the amount of funds that a trader must deposit in the trading account when opening a trading position.
Open positions refer to trades that a trader has entered into but has not yet closed or settled. These positions reflect the current exposure the trader has in the trading account. An open position represents a commitment to either buy or sell a financial instrument, and the position remains open until the trader decides to close it.
Many instruments are traded within wide ranges of intraday price movements. Consequently, Clients must carefully consider the fact that there is not only a high probability of profit, but also one of loss.
4. Technical Risks
Clients shall assume the risk of financial loss caused by the failure of information, communication, electronic and other systems.
Client Terminal refers to the software application that traders use to monitor their trading activities and execute trades. When executing trading operations through the Client Terminal, the Client shall assume the risk of financial loss, which can be caused by:
- the failure of the Client’s hardware, software, and internet connection;
- the improper operation of the Client’s equipment;
- the wrong settings in the Client Terminal;
- delayed Client Terminal updates; and
- the Client’s ignorance of the applicable rules described in the user guide for the Client Terminal and in the help section.
The Company shall not be held liable for any damages, losses, or disruptions caused by computer viruses, malware, or other harmful software that may affect the systems, devices, or networks used by the Client. The Client is responsible for ensuring that appropriate security measures, such as firewalls, anti-virus software, and encryption tools, are in place to protect their systems and data.
The Client acknowledges that despite the Company’s best efforts to maintain secure systems, cyber-attacks, including hacking, data breaches, denial-of-service attacks, or other malicious activities, may occur. The Company does not guarantee complete protection of data or systems from such attacks. The Client is advised to take their own precautions and regularly back up critical information.
The Client acknowledges that at the moment of peak load there may be some difficulties in getting telephone communication with a company representative, especially on the fast market (for example, when key economic indicators are released).
The Client acknowledges that under abnormal market conditions, the execution time for Client Instructions may increase. Clients’ instructions may fail, be delayed, lack security, or fail to reach the intended destination.
5. Trading Platform
The Client acknowledges that only one Request or Instruction is allowed in the queue. Once the Client has sent a Request or Instruction, any other Request or Instruction sent by the Client will be ignored. In the “Order” window, the “Order is locked” message will appear.
A Request or Instruction refers to any directive provided by the Client to initiate a specific action on the trading position. This could include, but is not limited to placing an order.
The Client acknowledges that the only reliable source of quoting information is the server for Clients with live accounts. The quote base in the Client terminal shall not be considered a reliable source of quoting information given that in the case of a bad connection between the Client Terminal and the server, some of the quotes simply may not reach the Client Terminal.
The Client acknowledges that when the Client closes the window to place/modify/delete an Order, as well as the window to open/close a position, the Instruction or Request which has been sent to the server will not be cancelled.
The Client assumes the risk of executing unplanned Transactions in the event that the Client sends another Instruction before receiving the result from the Instruction sent previously.
The Client acknowledges that if an Order has already been executed but the Client sends an Instruction to modify the level of a pending Order and the levels of Stop Loss and/or Take Profit orders at the same time, the only Instruction that will be executed is the Instruction to modify the Stop Loss and/or Take Profit levels on the position opened on that Order.
The Client acknowledges that the execution of multiple instructions or modifications to orders may incur additional costs, including commissions, fees, or other charges that could affect the overall profitability of the trade. These charges may vary depending on the type of modification and the service provider’s fee structure.
The Client must actively monitor open positions, as market conditions can change rapidly. Failure to do so may result in unforeseen losses, especially if modifications to orders are not reflected in real time or if the Client is unaware of the status of Stop Loss and Take Profit levels.
In a social trading environment, where the Client may follow or copy other traders’ strategies, there is a risk of relying too heavily on the actions or positions of others. Modifications to Stop Loss and Take Profit levels may affect the performance of strategies being copied, and social trading can lead to exposure to larger risks without adequate personal oversight.
The Client should be aware that the products or services provided may have certain limitations or conditions attached. For instance, some services may only allow specific types of order modifications, and there may be restrictions on the timing or amount of orders that can be adjusted. The Client may face difficulties or risks if they attempt to modify orders in ways that are not supported by the trading platform or product.
Changes in market volatility, liquidity, or trading hours could influence the execution of modified orders, including Stop Loss and Take Profit adjustments. The Client should understand the trading conditions and how they can impact the effectiveness of these modifications. In some cases, market slippage or gaps in pricing could result in a different execution price than expected.
6. Communications
The Client shall assume the risk of any financial loss caused by the Client either not receiving a notification from the Company or it being delayed.
The Client acknowledges that unencrypted information transmitted by email is not protected from unauthorized access. The Client also agrees that the Company shall have the right to delete messages sent to the Client through internal mail 5 (Five) days after they have been sent, despite the fact that the Client may not have received them yet.
The Client assumes full responsibility for the safekeeping of information received from the Company and shall bear the risk of any financial loss caused by unauthorized access to the Client’s trading account by any person.
The Client shall bear all risks of financial loss caused by a Force Majeure Event.
A Force Majeure Event refers to an extraordinary, unforeseen, and uncontrollable event that disrupts the dealer’s ability to perform critical functions, such as executing trades, managing client accounts, or accessing financial markets. These events can include natural disasters like earthquakes or floods, technological failures such as widespread power outages or cyberattacks, or socio-political disruptions like terrorism or regulatory interventions.
When such an event occurs, it activates the DRP, which ensures business continuity by outlining procedures to restore critical operations. This includes assessing the impact on trading systems and client communications, activating alternate trading platforms, and leveraging backup data centers to resume services with minimal disruption. It also involves notifying stakeholders, including clients, regulators, and counterparties, about the event and recovery measures in place.
The Client shall bear all financial and other risks when completing operations (or actions connected with these operations) on financial markets that are statutorily prohibited or restricted by the legislation of the jurisdiction in which the Client is resident.
The Client must be aware of commissions and other charges before trading. Charges may be expressed in monetary terms, percentage terms or in other unit of measurement and it is therefore the responsibility of the Client to understand what such charges amount to.
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