Risk Warning
Before you (our client and/or potential client) apply for an account with Capital Market and start trading in the financial markets, please carefully review the following list of risks together with the terms and conditions.
The financial products offered by Capital Market, including Contracts for Difference (CFDs), are complex financial products, most of which do not have a set expiry date. Therefore, the position of a CFD expires on the date you choose to close an existing open position. Investments with CFDs carry a high level of risk, as the multiplier tool (leverage) can work both in your favor and against you. Therefore, it may not be suitable for all investors, as they could lose all the capital invested. You should not risk more capital than you are willing to lose. Before investing, you must understand the existing risks and take into account your level of experience. If necessary, you should seek independent advice.
Introduction
This Risk Disclosure aims to inform you about the general risks associated with the investment activities available on the Capital Market website. It also aims to inform you about trading with the Financial Instruments offered by the Company. You must acknowledge that these risks involve the possibility of losing money during trades. This disclosure is informative and cannot be considered an exhaustive list of all possible risks.
Trading in financial instruments is HIGHLY SPECULATIVE and HIGHLY RISKY and may involve the risk of losing all your investments. The products offered by Capital Market are classified as complex high-risk financial instruments and are not suitable for the general public, but only for investors who:
Are willing to take financial, legal, as well as other associated risks. You should be aware of the risks inherent in trading with these financial instruments and be able to assume such risks.
Are financially capable of bearing the total loss of their investment, taking into account their personal finances, including their resources and obligations.
Possess the appropriate level of experience and/or knowledge about the specific Financial Instruments offered by Capital Market. It is important to ensure that any decision related to trading CFDs, as well as other products offered by Capital Market, is made in an informed manner and that you understand the nature of the CFDs/products offered, as well as the extent of all associated risks with CFDs and other products.
Please note that Contracts for Differences (CFDs) are leveraged financial products and, as such, investing in CFDs using the "multiplier" tool (leverage) offered by Capital Market involves a high risk of loss, as price changes are influenced by the amount used in the multiplier (leverage). For more information, please refer to our order execution policy.
Risks Related to Trading Financial Instruments
The Financial Instruments offered by Capital Market derive their value from the performance of underlying assets/markets. Therefore, it is important that you understand the risks associated with trading in the market and underlying assets, as fluctuations in the performance of underlying assets/markets will affect the profitability of your trades.
Information about the past performance of Financial Instruments does not guarantee the same results in current or future performance. The use of historical data does not lead to secure forecasts.
Trading Financial Instruments offered by Capital Market may put your capital at risk. These financial instruments are classified as complex high-risk products, and you may lose all or part of your investments. Trading Financial Instruments offered by the Company is not suitable for all categories of investors. Your investment decisions are subject to various markets, currencies, economic, political, business risks, etc., and may not necessarily be profitable. You acknowledge and accept without reservation that the value of any investment in financial instruments may fluctuate upwards or downwards. You acknowledge and accept without reservation the substantial risk of incurring damages as a result of buying or selling any financial instrument offered by Capital Market and acknowledge your intention to assume such risk.
Capital Market will not provide you with any investment recommendation or any advice connected directly or indirectly with the trading of financial instruments, and you acknowledge that the services provided by us do not include investment advice. It only includes guidance regarding underlying assets, the market, or specific trading strategies.
You should be aware that Capital Market may occasionally offer you useful information related to topics created by third parties, BUT Capital Market does not endorse or ratify this information and/or these instruments. Such information may indicate trading trends or trading opportunities, and it should be understood that by taking any action as a result of this information or instrument, you agree and understand that this may result in the total loss of your capital. We assume no responsibility for such losses resulting from actions based on information or instruments produced by third parties.
Capital Market may also provide, at its own discretion, information, news, market commentary, or any other information through its website, agents, or platform, but when this occurs, it is understood that the information is provided solely for you to make your own investment decisions and should not be considered investment advice.
Investment-Associated Risks
You agree to be solely responsible for the trades you make and that any transaction you carry out is based on your own judgment.
Market Risk
Due to the high market volatility, the prices of most financial instruments can vary considerably throughout the day, resulting in both profits and losses. These financially unstable price-fluctuating instruments should be considered with utmost caution as there is a higher risk of loss. Prices may fluctuate due to changes in market conditions that are beyond the control of the client and the Company, and it is not possible to predict trades executed at stated prices that result in losses. Market volatility can be influenced by changes in supply and demand, national and international policy, as well as geopolitical instability and economic-political events or announcements.
Liquidity Risk
It is the financial risk that an underlying asset may not be traded quickly enough in the market without affecting the market price. Some products offered by the Company may experience liquidity strains due to adverse market conditions, resulting in volatile assets and a higher degree of risk. Volatility can manifest itself in a wide gap between bid and ask prices, resulting in changes in the product's price.
OTC/Counterparty Risk
The Financial Instruments offered by the Company are OTC (Over-The-Counter) or traded off the exchange. This means that the trade takes place directly between two parties, without exchange supervision. The Company sets the trading conditions, ensuring the best execution level for our clients. Counterparty risk arises because there is no centralized market and the transaction derived from an open position may not be closed. Quoted prices are set by brokers, making it difficult to ensure a fair price to assess risk exposure.
Exchange Rate Risk
If a financial instrument is traded in a currency different from the currency of your account, changes in exchange rates may negatively affect the value of the transaction and result in financial losses.
Risks Associated with Investments in Cryptocurrency CFDs
Contracts for Differences (CFDs) related to Cryptocurrency Services are not suitable for all investors. They are complex financial products that require a complete understanding of their characteristics and specific risks. Clients must have extensive knowledge and/or experience in Cryptocurrency CFDs and the underlying assets.
Investing in financial instruments offered in Cryptocurrency CFDs carries a high risk of losing all the capital invested in the investment account and/or in a specific trade.
Prices of financial instruments and underlying assets in Cryptocurrency CFDs are highly volatile and may fluctuate widely or may not be available temporarily or permanently. Clients should invest cautiously and only with funds they can afford to lose.
The nature of Cryptocurrencies increases the risk of fraud or cyber attacks, and technological difficulties may hinder access or use of Cryptocurrency CFDs.
Cryptocurrency CFDs have specific risks different from other financial instruments. Unlike currencies backed by governments or commodities like gold or silver, Cryptocurrencies depend on technology and trust, without the backing of a central bank to protect their value during crises.
Technical Risks
The Company is not responsible for financial losses arising from failures, malfunctions, interruptions, disconnections, or malicious actions of computer or electronic systems, unless due to negligence or intentional breach.
By using the client terminal, risks are assumed such as equipment failures, software errors, failures during updates and incorrect configurations, and the Company will not compensate for losses due to terminal errors.
The Company is not responsible for third-party attacks that disrupt services or cause financial losses, although it is committed to taking reasonable measures to protect systems and provide a secure trading experience.
Lack of availability of phone operators and lack of security of unencrypted information in emails may cause financial losses.
Clients are responsible for losses related to the mentioned risks, except in cases of gross negligence or intentional breach by the Company.
Unusual Market Risks
If market conditions become unusual, the processing of your orders and/or instructions may take longer than usual. Additionally, orders may not be executed at the indicated price or may not be executed at all.
Unusual market conditions include, but are not limited to: rapid price fluctuations, drastic increases or decreases that may lead to suspension or restriction of trading according to the rules of the relevant exchange, or lack of liquidity, especially at the opening of trading sessions.
Risks Associated with Laws of Certain Countries
You assume responsibility for trades made in countries where these activities are restricted or prohibited by law.
Laws on contracts and financial transactions vary in different parts of the world. It is your responsibility to ensure that the use of our services complies with all applicable laws, regulations, and directives in your country of residence.
Access to our website, or any website linked from ours, does not necessarily imply that our services are legal according to the laws of your country of residence. Each user is responsible for verifying the trading regulations related to the financial instruments offered by our Company before registering.
Risks Associated with the Investment Platform
All instructions are sent and executed on a first-come, first-served basis to our server. Additional orders cannot be sent until the previous order has been executed. Sending a second order before the execution of the first will be rejected, and you are responsible for any unplanned operation resulting.
Closing the order or position window will not cancel the order previously sent.
Only quotes received from our server are authorized. In case of connection problems, you can retrieve missing quote data from the client terminal database.
Communication Risks
There is a risk of unauthorized access to unencrypted email information sent.
We are not responsible for financial losses due to late or failed receipt of company messages.
You are responsible for protecting your Personal Area credentials and trading accounts, as well as confidential information sent. We are not responsible for financial losses derived from the disclosure of this information to third parties.
Force Majeure Circumstances
We are not responsible for financial losses derived from force majeure circumstances. These extreme and unpredictable situations are independent of the will and actions of the participants and cannot be anticipated, prevented, or eliminated. This includes natural disasters, fires, accidents caused by humans, emergencies in public works and public services, DDOS attacks, riots, military actions, terrorism, civil unrest, strikes, and government regulatory actions.
Third-Party Risks
All funds received from clients will be promptly placed in one or more separate accounts (called "client accounts") at reliable financial institutions, such as banks. Although we carefully choose the financial institution (according to applicable laws), we cannot be held responsible for circumstances beyond our control. Therefore, we assume no liability for losses due to insolvency or bankruptcy of the financial institution.
The financial institution may hold your money in a global account. In case of insolvency, we can only claim on your behalf in an unsecured manner, exposing you to the risk that the received money may be insufficient to meet your claims.
We execute your orders as a counterparty to all your transactions. Please refer to our "Best Execution Policy" for more information.
Conflicts of Interest
When dealing with you as a client, our related parties may have conflicting interests with yours. This may include partnerships, relationships, or agreements that could generate conflicts of interest.
Conflicts of interest may arise, for example, when executing your orders as principal, which means that our income is related to your losses, or when paying incentives to third parties for recommending new clients.
No Profit Guarantees
We cannot guarantee profits or prevent losses when trading the Financial Instruments we offer. We also do not guarantee the future performance of your investment account or a specific level of performance. You will not receive such guarantees from us, our affiliates, or representatives.