This notice is provided to you in accordance with "Markets in Financial Instruments Legislation", because you are conside ring dealing with the Company investing in high-risk derivative financial instruments with which the Company conducts its business (hereinafter the "Financial Instruments").
This notice cannot and does not disclose or explain all of the risks and other significant aspects of the Company's activities related to dealing in Financial Instruments and is solely designed to explain in general terms the nature of the risks particular to dealing in Financial Instruments and to help you to take investment decisions on an informed basis.
The Client should not use the services of the Company's Trust Management of Funds unless he knows and understands the risks involved for each one of the Financial Instruments with which the Company conducts its business. So, prior to registering an account and making a deposit with the Company, the Client should consider carefully whether the Company’s investing in Financial Instruments is suitable for him in the light of his circumstances and financial resources.
The Client is warned of the following risks:
1. The Company does not and cannot guarantee the initial capital of the Clients' portfolio or its value at any time or any money invested in the Company's Trust Management.
2. The Client should acknowledge that, regardless of any information which may be offered by the Company, the value of any investment in Financial Instruments may fluctuate downwards or upwards and it is even probable that the investment may become of no value.
3. The Client should acknowledge that he runs a great risk of incurring losses and damages as a result of the Company's purchase and/or sale of any Financial Instrument and accepts that he is willing to undertake this risk.
4. Information of the previous performance of return on investment does not guarantee its current and/or future performance. The use of historical data does not constitute a binding or safe forecast as to the corresponding future performance of the return on investment to which the said information refers.
5. The Client is hereby advised that the transactions undertaken through the dealing services of the Company may be of a speculative nature. Large losses may occur in a short period of time, equaling the total of the Client's funds deposited with the Company.
6. Some Financial Instruments may not become immediately liquid as a result e.g. of reduced demand, and the Company may not be in a position to sell them or easily obtain information on the value of these Financial Instruments or the extent of the associated risks, therefore the Client may incur losses, up to the total loss of the capital invested.
7. A Derivative Financial Instrument (i.e. option, future, forward, swap, contract for difference), which the Company deals with, may be a non-delivery spot transaction giving an opportunity to make profit on changes in currency rates, commodity, stock market indices or share prices called the underlying instrument. The va lue of the Derivative Financial Instrument may be directly affected by the price of the security or any other underlying asset which is the object of the acquisition. The Client should not invest in the Company dealing with the Derivative Financial Instrument unless he is willing to undertake the risks of losing entirely all the money which he has invested and also any additional commissions and other expenses incurred.
8. Under certain market conditions it may be difficult or impossible for the Company to execute an order, therefore the Client can incur significant losses, up to the total depreciation of investments.
9. Placing Stop Loss Orders serves to limit losses of the Company on behalf of the Client. However, under certain market conditions the execution of a Stop Loss Order may be worse than its stipulated price and the realized losses can be larger than expected.
10. A Bank or Broker through whom the Company deals may act in the same market as the Company, its own account involvement could be contrary to the Company's interests, and therefore the Client may incur losses, up to the total loss of the capital invested.
11. The insolvency of the Company or of a Bank or Broker used by the Company to effect its transactions may lead to the loss of the total of the Client's invested funds against his wishes.
12. Trading by using hedging strategies without leverage, no matter how convenient or efficient, does not necessarily reduce the risks associated with trading in currency and/or securities.
13. There is a risk that the Company's trades in Financial Instruments may be or become subject to tax and/or any other duty for example because of changes in legislation or its personal circumstances. The Company does not warrant that no tax and/or any other stamp duty will be payable. The Client should be responsible for any taxes and/or any other duty which may accrue in respect of the Company's trades on behalf of the Client.
14. Investing in some Financial Instruments entails the use of "gearing" or "leverage". In considering whether to engage in this form of investment, the Client should be aware that the high degree of "gearing" or "leverage" is a particular feature of Derivative Financial Instruments. This stems from the margining system applicable to such trades, which generally involves a comparatively modest deposit or margin in terms of the overall contract value, so that a relatively small movement in the underlying market can have a disproportionately dramatic effect on the Company's trade. If the underlying market movement is in the Company's favor, the Company may achieve a good profit on behalf of the Client, but an equally small adverse market movement can quickly result in the loss of the Clients' entire deposit. In regard to the Company's trades in derivative Financial Instruments, a Derivative Financial Instrument is a non-delivery spot transaction giving an opportunity to make profit on changes in currency rates, commodity, stock Market indices or share prices called the underlying instrument. The Client should not invest in the Company's Trust Management of Funds unless he is willing to undertake the risks of losing entirely all the money which he has invested and also any additional commissions and other expenses incurred.
15. Transactions may not be undertaken on a recognized or designated investment exchange and, accordingly, they may expose the Company to greater risks than exchange transactions. The terms and conditions and trading rules may be established solely by the counterparty. The Company may only be able to close an open position of any given contract during the opening hours of the exchange. The Company may also have to close any position with the same counterparty with whom it was originally entered into.
16. The Company will not provide the Client with investment advice relating to investments or possible transactions in investments or make investment recommendations of any kind.
17. The Company may be required to hold the Client's money in an account that is segregated from other clients and the Company's money in accordance with current regulations, but this does not guarantee the full protection of the Client's funds in the event of force majeure circumstances.
This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in all Financial Instrument and investment services provided by the Company.
The Company reserves the right to review and/or amend its Risk Disclosure statements, at its sole discretion, whenever it deems fit or appropriate.
Our Risk Disclosure statements are not part of our Terms and Conditions of Business and are not intended to be contractually binding or impose or seek to impose any obligations on us which we would not otherwise have.