Risk Disclosure

General Information

This document does NOT outline all the risks or significant aspects related to CFDs, and it should NOT be interpreted as investment advice or a recommendation for any service or financial instrument.

Clients should NOT engage in transactions involving CFDs or any other financial instruments unless they fully understand their nature, the associated risks, and the extent of their exposure to those risks. If there is any uncertainty regarding the warnings provided below, clients are advised to seek independent legal or financial counsel before making any investment decisions.

Clients should also be aware that:

1. The value of investments in financial instruments can fluctuate both upward and downward, and there is a possibility that the investment may lose its entire value.
2. Past performance does not guarantee future results.
3. Trading in financial instruments may incur tax and/or other obligations.
4. Fluctuations in exchange rates can adversely affect the value, price, and/or performance of financial instruments traded in a currency different from the client's base currency.

1. Risks Associated with CFDs

1. Risk Associated with Leverage

   Leverage is a unique characteristic of CFDs. This feature makes investing in CFDs riskier than investing directly in the underlying asset. Due to the margin system used in CFDs, clients typically only need to make a small deposit compared to the total transaction size. Consequently, even a minor price movement can have a disproportionate effect. A small adverse movement can lead to significant losses.

2. Risk of Price Gapping

   Financial markets can experience rapid fluctuations, and CFD prices will reflect these changes. Gapping occurs when prices jump from one level to another without passing through intermediate levels, limiting order placement opportunities.

3. Limitations of Stop Loss Orders

   While Stop Loss Orders are available to limit potential losses, they may not be effective in volatile markets or when the market is closed.

4. Risk of Margin Call and Position Liquidation

   Clients must maintain sufficient funds to meet margin requirements. Failure to do so can result in automatic position liquidation, possibly at an unfavorable time.

5. Risk of Losing Invested Capital

   Adverse market movements can result in the complete loss of your account balance. Losses will not exceed the existing account balance.

6. No Assurance of Profit

   There are no guarantees of profit or assurances against loss when trading CFDs. Clients must accept the inherent risks.

7. No Rights to Underlying Assets

   Clients have no rights (such as voting rights) to the underlying instruments linked to CFDs.

2. Other Risks

1. Market Risk

   Market fluctuations can cause the loss of part or all of your invested capital.

2. Systemic Risk

   Collapse of the entire financial system due to interconnectivity may affect investments.

3. Technical Risk

   Failures in trading systems, hardware, or software can cause losses.

4. Operational Risk

   Human error in business operations can affect investment outcomes.

5. Country Risk

   Political changes or instability can negatively impact investment returns.

6. Interest Rate Risk

   Changes in interest rates can affect investment values.

7. Foreign Exchange Risk

   Currency fluctuations can impact investment values when trading assets in different currencies.

8. Legal and Regulatory Exposure

   Changes in laws or regulations can affect investment profitability and market competitiveness.

3. Risks Not Within the Company’s Control

The client, not the Company, is fully responsible for the following risks:

1. Insufficient knowledge of trading terminal settings.
2. Technical issues with the client’s software.
3. Sharing registration credentials with third parties.
4. Unauthorized access to the client’s email account.
5. Delayed reading of important information sent by the Company.
6. Any other force majeure circumstances affecting the client.