1. Introduction
This Risk Disclosure Notice is provided to inform you (the “Client”) of the potential risks associated with trading financial instruments, including Forex (foreign exchange) and cryptocurrencies. It is crucial that the Client understands these risks before engaging in any trading activities with Arbitrage28 (“the Company”).
2. Acknowledgement of Risks
Trading Forex and cryptocurrencies involves a high degree of risk and may not be suitable for all investors. The Client acknowledges the possibility of sustaining a total loss of the initial capital and understands that additional funds may be required to cover losses. The Client should only trade if they fully understand the risks and have the financial capability to bear such risks.
3. Market Risk
The prices of Forex and cryptocurrencies are highly volatile and can change rapidly due to various factors such as economic news, market sentiment, and geopolitical events. These price fluctuations can lead to significant gains or losses.
4. Leverage Risk
Leverage allows the Client to open positions larger than their account balance. While leverage can amplify profits, it can also magnify losses. A small market movement can have a large impact on the value of the Client’s position.
5. Liquidity Risk
The liquidity of Forex and cryptocurrency markets can vary. In less liquid markets, the Client may face difficulties in executing trades at desired prices, leading to delays or the inability to close positions.
6. Counterparty Risk
Trading with the Company exposes the Client to counterparty risk, meaning that the Company might fail to fulfill its obligations. This includes risks associated with the Company’s financial stability and operational reliability.
7. Regulatory and Legal Risk
Changes in laws, regulations, or tax policies can significantly impact financial markets and trading activities. The Client must stay informed about the regulatory environment and legal implications of trading in different jurisdictions.
8. Technology Risk
Trading relies on technology, which can be prone to failures such as system downtime, software errors, and connectivity issues. The Company is not responsible for any losses resulting from technological failures.
9. Fees and Costs
The Client should be aware of all fees and costs associated with trading, which can affect overall profitability. These may include spreads, commissions, overnight financing charges, and other related fees.
10. Past Performance
Past performance of financial instruments or trading strategies does not guarantee future results. The Client should not rely on historical performance as an indicator of future returns.
11. Investment Advice
The Company does not provide investment advice. Any information provided is for informational purposes only and should not be construed as a recommendation to trade. The Client should seek independent financial advice if necessary.
12. No Guarantees
The Company does not guarantee the profitability of trading activities. The Client acknowledges that trading is speculative and that there are no assurances of profit.
13. Risk Management
The Client is responsible for managing their own risk exposure, including setting appropriate stop-loss levels, limiting position sizes, and monitoring their trading activities. The Company may offer risk management tools, but the ultimate responsibility lies with the Client.
14. Trading Hours and Market Conditions
Forex and cryptocurrency markets operate 24/7, but certain market conditions and events can lead to significant volatility and price gaps. The Client should be aware of the potential for increased risk during these times.
15. Conclusion
By engaging in trading activities with Arbitrage28, the Client acknowledges that they have read, understood, and accepted this Risk Disclosure Notice. The Client confirms their awareness of the risks involved and affirms their ability to bear these risks financially.
