All our existing and prospective clients are provided with a risk disclosure and warning notice in accordance with the requirements of the Operation of Regulated Markets, the Exercise of Investment Activities, the Provision of Investment services and Other Related Matters Law 14(1)/2007, which has subsequently been amended occasionally.
All prospective and existing clients should carefully read all the warnings and disclosure in this document before applying to open any trading account with our company, and before they commence any trading. Note that the contents of this document don’t explain or disclose all significant aspects and risks involved in the financial instruments.
2. Charges and taxes
2.1. The services provide by the company are subject to fees, with all details concerning the fees available on the website of the company. A client is required to obtain all the details of the fees and commissions that he/she will be liable to.
2.2. The services provide by the company are subject to charges. Detailed information about the charges can be obtained from the website of the company. Charges might be expressed in other terms such as contract value and percentages. It is up to the client to what the charges from such terms will amount to.
2.3. Charges of the company are subject to change at any time.
2.4. Trades of the client in any of the financial instruments face a risk in that they may be subjected to tax and/or duty. There is no warrant by the company in regards to tax and stamp duty. The client cannot get advice on taxation from the company.
2.5. Any taxes or duty that may accrue in relation to the trades of a client are the responsibility of the client.
2.6. Note that taxes might be subjected to change without any prior notice to the client.
2.7. Note that prices of the company with regards to binary options are set by either one or more providers of liquidity, meaning that they may be different from other reported prices because of the proprietary developed algorithms of the Liquidity provider or provider of the trading platform.
3. Third party risks
3.1. The money that is received from any of the company’s clients may be passed to a third party. The third party will hold and control the money so as to effect a transaction with or through that person. Any omissions or acts of any of the third party shall not be the responsibility of the company.
3.2. Third party persons hold a different legal and regulatory regime, independent from that of the company. The omissions, acts, and solvency of the third party shall not be the responsibility of the company.
3.3. An omnibus account may be used by the third party that will receive money from the company and it may be impossible to separate it from the money of the client.
3.4. Outside the EEA, the company holds the right to hold money for the client on behalf of the client.
3.5. The client’s money may be deposited by the company to a depository for the security of the money or for other reasons.
3.6. The interests of the broker or bank with whom the company deals with might not be similar to the interests of the client.
4.1. The default or insolvency of the company may lead to the liquidation of positions or closing out without the consent of the client.
5. Investor compensation fund
5.1. The client’s Investor Compensation Fund participates in the company. Some clients may be entitled to compensation through from the Investor Compensation Fund in case of failure of the company.
6. Technical risks
6.1. The risks of financial losses are the responsibility of the client and not the company. The financial losses are those caused by failure, interruption, malfunction, disconnection, electricity, communication and other systems.
6.2. Transactions undertaken by the client on any electronic system will expose the client to risks such as failure of servers, software, hardware, internet or communication. Such failures may result in the client’s order not being executed accordingly. The liability in such failures shall not be accepted by the company.
6.3. The client should acknowledge that any e-mail transmitted without encryption might be accessed by unauthorized persons.
6.4. Some difficulties in connection might be encountered by the client, especially during periods of excessive deal flow.
6.5. The client should be aware of and accept the fact that internet connection may be subjected to events affecting access of the client to the website of the company and/or the trading platforms of the company.
6.6. The client faces the following risks in relation to the use of communication networks and computer equipment. The company hold no liability for any resulting loss.
a. Equipment power cut on either the provider’s or the client’s side.
b. Physical destruction or damage of the channels of communication used to link the provider and the client, provider and information server of the client.
c. Communication outage through the channels used by provider or client, or client’s communication operator.
d. Inconsistent or wrong setting requirements on the terminal of the client.
e. Client’s terminal update that is untimely.
f. Transactions carried out over the telephone voice communication runs the risk of problematic dialing to the client, when trying to get in contact with the broker. Loads of the communication channels and issues in communication quality might be some of the causes.
g. The risk of no reception of a message is generated by use of software, hardware and communication channels.
h. Connection overload might impede trading via phone.
i. Non-operability or malfunction of platform, including terminal of the client.
Materialization of the risks above might cause financial losses to the client and no liability or responsibility is accepted by the company in such cases. All the related losses suffered are the responsibility of the client.
7. Trading platform
7.1. A warning is issued to the client that using an electronic platform to trade exposes the client to risks of financial losses which might result from among other things:
a. Failure of the devices of the client, software, and connection of poor quality
b. Failure of hardware or software of the client or the company, misuse or malfunction.
c. Equipment of the client not working properly
d. Terminal of the client having wrong settings
e. Terminal of client having delayed updates
7.2. The client understands and accepts that only a single instruction can be queued at a time. Once an instruction is sent by the client, all other subsequent instructions sent by the client will be ignored.
7.3. The Quotes Base from the live server is the only source of Quotes Flow Information and the client should acknowledge that.
7.4. The client should acknowledge the fact when he/she closes placing the order, cancellation of the sent instruction shall not be possible.
7.5. Orders that are on the same queue may be executed at the same time. Multiple orders by the same client in his/her account sent at the same time will not be executed.
7.6. It is acknowledged by the client that when the order is closed by the client, it cannot be cancelled.
7.7. If the results of a previous order have not been received and the clients decides to send the order again, the risk of making two identical transactions instead of just one shall be on the client.
7.8. It is acknowledged by the client that a pending order already executed followed by a request by the client for modification of its level results in the only instruction to be executed being the modify Stop Loss and/or levels of Take Profit on the opened position when the pending order is triggered.
8. Force Majeure Events
8.1. In the case of a Force Majeure Event, it may be impossible for the company to arrange for the client orders execution or fulfill all obligations as required. This might result in the financial loss of the client.
8.2. The company will not have any responsibility or be liable for any damage or loss resulting from interruption, failure or delay in fulfilling obligations if the interruption, failure or delay is due to a Force Majeure Event
9. Communication between the company and the client
9.1. Risk of financial losses caused by failure or delay in receiving a notice from the company shall be accepted by the client.
9.2. Any transmitted e-mail that is unencrypted must be acknowledged by the client to be unprotected from access by unauthorized persons.
9.3. Third persons gaining access to information when they are being transmitted between the client and the company shall not be the responsibility of the company.
9.4. The client bears full responsibility for any internal mail messages from the company not delivered. The messages usually get deleted within three calendar days.
10. Abnormal market conditions
10.1. Under normal market conditions, the client acknowledges that the duration within which orders are executed may be extended, or the orders may not be executed at the prices declared, or may not be executed.
11. Foreign currency
11.1. Trading of a financial instrument in a foreign currency results in a negative effect on price, value, and performance for any change in the exchange rates
12. General Risk Warning For Complex Financial Instruments
12.1. Trading is speculative and very risky, making it unsuitable for some members of the general public except:
a. Investors who have good understanding and will to assume the legal, economic and other involved risks.
b. Investors whose financial circumstances and resources as well as obligations and
c. Lifestyles allow loss of their entire investments.
12.2. No advice shall be offered to the client by the company in relation to trades, including investment recommendations.
12.3. The client should understand all the involved risks of trading the underlying market/ asset because of fluctuation in prices.
12.4. Current or future performance cannot be determined by the previous performance of any financial instrument.
12.5. Leverage and gearing
12.5.1. Foreign exchange transactions and derivative Financial Instruments carry high risks.
12.5.2. A small market movement will proportionately have a larger impact on the deposited funds by the client.
12.6. Risk-reducing orders or strategies
12.6.1. The placing of some orders intended to limit losses may be impossible given the conditions of the market.
12.6.2. The limit of a loss cannot be guaranteed by expert advisor or trailing stop
12.7.1. Some DFI have wide intraday ranges for trade having volatile movements in price. Client must carefully the high risks of losses or profit associated with it
12.8.1. Client acknowledges the fact that value of Derivative Financial Instruments may fluctuate in either way, to an extent that the initial investment may become of no value.
12.9.1. Some assets may not be liquefied immediately due to reduced demand for the assets. The client might be unable to get information on the value or associated risks.
12.10. Contracts for differences
12.10.1. A Differences contract investment has similar risks to investing in an option or a future, a fact that the client should be aware of.
12.11.1. Buying options has lower risks as compared to selling options. That is because if the underlying asset’s price moves against the client, he/she can just allow the option to lapse. On the other hand, if the client buys a call option, he might acquire the future if he later exercise the option.
12.11.2. If an option is written by a client, the involved risk is relatively greater than that of buying options. The client will be liable for the required margin to maintain the client’s position and may sustain a loss in excess of the received premium.
12.12. Off-exchange transactions in Derivative financial instruments
12.12.1. Some off-exchange markets may be very highly liquid, but transactions in off-exchange may involve risks greater than investing in on-exchange derivatives. Liquidating an existing option may be possible, for assessment purposes of the arising position from an off-exchange transaction.
12.13.1. If collateral is deposited with the company by the client as security, it will be treated in any of a number of ways depending on the client’s trades. As soon as dealings on behalf of the client begin, the deposited collateral my no longer be referred to as the property of the client.
12.14. Suspensions of trading
12.14.1. Certain conditions of trading may make it very difficult to liquidate a position. A Stop Loss may not really limit the losses of a client to the amounts intended due to the market conditions making the order impossible to execute at the price stipulated.
12.15. No delivery
12.15.1. The client reserves no obligations or rights in regards to the underlying assets relating to CFDs or Binary options that the client is trading. Delivery of the underlying asset is not there.
12.16.1. Slippage refers to the difference between the actual transaction price at execution and the expected transaction price of a transaction in Financial Instruments. It occurs mostly during periods of high volatility, making the execution of an order at a specified price impossible when market orders are used.
13. Advice and recommendations
13.1. No advice shall be offered by the company to a client about merits of any particular transaction. The client should acknowledge that investment advice is not included in the services offered. It is the sole decision of the client to enter into any transaction and make all the relevant decisions as per the judgment of the client.
13.2. The company is not bound by any duty to provide any tax, legal or other related advice to the client. The client may seek advice independently from experts if in doubt. A warning to the client is hereby issued that tax laws may be subjected to change at any time.
13.3. The company may offer clients, at its own discretion, recommendations, information, market commentary, news or any other information through newsletters and website, but not as a service. If and when the company does so:
a. It shall not take liability for the information offered
b. It doesn’t give any guarantee, warranty or representation as to the completeness, accuracy and correctness of the offered information, or the legal or tax consequences of related transactions.
c. The provided information is solely meant to enable decision making by the client on his/her own and doesn’t count as unsolicited financial promotion or advice.
d. If the document is restricted to a person or a certain persons category, the client agree to not pass it on to any of the restricted persons.
e. Before dispatch, it is accepted by the client that making use of information on which it was based may have been an action by the company upon itself. Representations are not made by the company in regards to the receiving time of the client and offers no guaranties of all clients receiving the information at the same time.
13.4. The client understands that news, market commentary and other provided information may change or withdrawn at any time without prior notice
14. No guarantees of profit
14.1. The company does not provide any guarantees of profit or avoiding a loss on any trade. The client is aware of all the risks involved in trading using Financial Instruments and have the financial capabilities of bearing the risks.