Risk Disclosure
Effective as of 10 May 2023
All Clients and potential Clients must carefully study this risk
disclosure before completing registration on the Website or on the trading
terminal and before they start making trades. The purpose of this Risk
Disclosure (hereinafter Disclosure) is to disclose to the Client
information about the risks associated with transactions on financial
markets in general and with derivative financial instruments in particular
and to warn the Client about possible financial losses and related risks.
The list of risks given in this Disclosure is not exhaustive because of
the variety of possible situations that arise during transactions. This
disclosure is for information purposes. It is meant to provide a general
explanation of the risks associated with derivative financial instruments.
1. The Client acknowledges that transactions with derivative financial
instruments are speculative and extremely risky investments and are suitable
only for those investors who:
• Understand and are prepared to assume economic, legal, and other
risks.
• Take into account their financial position, financial resources,
and obligations, can afford the risk of losing what they invest.
• Have sufficient knowledge to understand what trades with derivative
financial instruments are.
The Company does not provide a Client with any recommendations or advice
regarding derivative financial instruments and does not give investment
recommendations of any kind. The Client himself/ herself makes the
decision on a trading strategy and on specific actions based either on
his/her understanding of the market or on consultations with independent
financial advisers not affiliated with the Company. Products provided on
the platform are derivative financial instruments, the price of which is
derived from the prices of the underlying assets/ markets to which they
are linked (e.g., currency, stock indices, stocks, metals, futures, etc.).
For this reason, it is extremely important that the client understand the
risks associated with trading in the appropriate underlying asset/market.
Some of these risks are:
• Volatility – movements in the underlying asset/market price can
be unstable and unpredictable. This fact has a direct impact on the Client's
financial results. Understanding market volatility allows the Client to analyze
potential profits and work out a trading strategy.
• Market fluctuations – a sudden change in the price of the underlying
asset from one level to another. Various factors may cause abrupt changes (e.g.,
economic events or market announcements). These factors may occur both when
the market is open or when it is closed. When these factors exist at the market
close, the price for the underlying asset affected by that factor at the market
opening may considerably differ from the price for the underlying asset at
the market close. It may be impossible to close an open position at a beneficial
price. This may result both in considerable losses and in considerable profit.
• Liquidity: the value of derivative financial instruments may depend
on a number of factors, including, but not limited to, a change in the ratio
of supply-and-demand; government, agricultural, commercial, and trading programs
and strategies; national and international political and economic events; and
the prevailing psychological mood in the relevant market.
Market conditions may change considerably within a very short period of
time and, consequently, in some markets, it may be impossible for the
Client to make the anticipated profit.
2. The Client assumes the risks of financial losses related to failures,
interruptions, disconnection, or malicious attacks of third persons with respect
to information, communication, electric, electronic, and other systems used
to perform transactions. Among other risks, the Client assumes the following
risks of losses caused by:
• Power and/or equipment failure on the part of the Client or the
Client’s communication service provider (in particular voice communication).
• Physical damage (or destruction) of communication channels used
for communication of the Client’s provider and supplier (communication service
provider) and the Client’s server.
• Failure (extremely low quality) of the transfer via channels used
by the Client or channels used by the supplier or communication service provider
(in particular voice communication) used by the Client.
• Use of communication channels, equipment, and software that does
not ensure receipt or timely receipt of messages (in particular text messages)
from the Company by the Client.
• Failure (extremely low quality) of communication via channels used
by the Company, in particular physical damage (destruction) of communication
channels by third persons.
3. The Client realizes that his/her trading activities may be exposed
to risks associated with networks, including failures of hardware, software,
servers, communication lines, and the internet. Any such failure may result
in non-fulfillment of the Client’s order in accordance with his/her orders.
The Company will not be liable in case of such failure.
4. The Client understands that the internet may be subject to events
affecting his/ her access to the Company’s website and the trading terminal,
including, but not limited to, interruptions or failures of software and hardware,
internet outage, power outage, or hacker attacks. The Company assumes no liability
for any damages or losses resulting from events that are beyond its control
or for any other damages, expenses, liabilities (including, but not limited
to, lost profit) that may result from Client’s inability to access the Company’s
website or a delay in or failure to send orders.
5. When trading via the trading terminal, the Client assumes the risks
of financial losses that may arise as a result of:
• Hardware and software failures, device failures, and poor quality
of telecommunication services on the part of the Client.
• Malfunctioning of the Client’s equipment.
6. The Client acknowledges that in abnormal market conditions the
processing time for clients’ orders may increase.
7. The Client acknowledges that only one request or order may be in
the queue of requests/orders on the server. Any attempt to send a new request
or order will be rejected.
8. The Client acknowledges that the only reliable source of information
about asset prices is the Company Server. Asset prices on the Client's trading
terminal cannot be used as a reliable source of price information because,
if the connection between the Client's trading terminal and the Company Server
becomes unstable, some asset quotes may not reach the Client's trading terminal.
9. The Client acknowledges that closing a web browser window will
not cancel an order or a request that has already been received by the Company
for processing.
10. The Client assumes the risk of making unplanned trades if he/she
re-sends an order before receiving information about the result of processing
of the previous order.
11. The Client assumes the risk of any financial losses caused by
his/her failure to receive or delayed receipt of any message from the
Company.
12. The Client acknowledges that information sent via unencrypted
e-mail is not protected against unauthorized access.
13. The Client assumes full responsibility for maintaining the confidentiality
of information received by him/her from the Company and assumes the risk of
any financial losses caused by unauthorized third party access to his/her trading
account. The Company assumes no liability for unauthorized third party access
to information, including e-mails, electronic communications, personal data,
and access data that occurred at the time of transmission between the Company
or any other party via the Internet or other communication networks, telephone,
or any other electronic means.
14. The Client assumes the risk of financial losses (damages) caused
by force majeure events, which are defined as any action, event or phenomenon,
including, but not limited to: - strikes, mass rioting or civil unrest, terrorist
attacks, wars, natural disasters, accidents, fires, floods, storms, hurricanes,
blackouts, communication, software or electronic equipment failures that, in
the reasonable opinion of the Company, resulted in destabilization of the market
or markets of one or several instruments; -suspension, liquidation or closure
of any market or absence of any event on which price quotations were based
by the Company, or imposition of restrictions or special or non-standard trade
conditions, as well as performing transactions in any market or with respect
to any such event.
15. The Client assumes financial and other risks in cases where transactions
(and related actions) on financial markets are forbidden or restricted by the
legislation of the country of the Client’s permanent residence.
16. The Company does not guarantee that the Client's activities related
to trading with derivative financial instruments are not or will not become
subject to taxation in the future. The Client assumes responsibility for payment
of any taxes and/or any other charges that may accrue with respect to his/her
trades. The Company will not give the Client any legal, tax, or other recommendations
with respect to any trade. If the Client has any doubts as to whether he/she
can assume any tax obligations, he/she must consult an independent expert.
17. The Company assumes no liability for any actions or omissions
by any third party through which money is sent by the Client to replenish
the current Client's Account or withdrawn by the Client from the Website.
18. From time to time, at its sole discretion, the Company may provide
the Client with information, recommendations, news, commentary, or other information
about the market for information purposes. If this happens:
• The Company will not be responsible for this information.
• The Company gives no guarantees regarding the accuracy, correctness,
and completeness of such information.
• This information is provided only to enable the Client to make his/her
own investment decisions and is not investment advice.
• If a document contains a restriction in relation to the person or
the category of persons for whom it is intended or concerns, the Client agrees
not to pass this information to such person or category of persons.
• The Company does not guarantee that the Client will receive information
before it becomes outdated. The Client decides on the use of this information
in decision-making on his/her own. The information posted by the Company may
be changed or deleted at any time without additional prior notification to
the Client.
19. The Company will not advise the Client on the profitability of
a transaction or provide investment advice in any form other than providing
information on the current state of the financial market. The Trading Signals
that the Company provides the Client under the Agreement are not an offer and
are not an explicit recommendation that the Client engages in trading transactions
and/or make trades are not objective and reliable information for which the
Company is liable to the Client and third parties, and are not professional
consulting. The Client himself, at his own risk, will make trades and make
appropriate decisions based on his own judgment. By sending an order to the
Company to make a trade, the Client acknowledges that he is fully responsible
for his own independent assessment and research on the risks of the trade.
The Client confirms that he has enough market knowledge, has received, if necessary,
professional advice, and has the necessary experience to make his own assessment
of the merits and risks of any transaction. Taking into account the aforesaid,
the Company recommends that the Client carefully consider whether the risks
that arise when making transactions are acceptable, taking into consideration
the Client’s purposes and financial capabilities. This Disclosure is not intended
to dissuade the Client from carrying out transactions (trades with derivative
financial instruments) but is intended to help the Client assess the risks
associated with carrying out those transactions and responsibly approach the
selection of a strategy within the context of performing the Agreement with
the Company.