Before you (our client and / or potential client) request an account in iFXOPTION (the “Company”) and start trading in the financial markets, please carefully review the following list of risks in conjunction with the terms and conditions.
The financial products offered by the Company, including Contracts for Difference (CFDs), are complex financial products, most of which do not have an established expiration 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, since the multiplier tool (leverage) can work both towards your advantage and towards your disadvantage. Therefore, it may not be suitable for all investors, because 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.
This Risk Disclosure has been drafted in accordance with the provision of investment services, the exercise of investment activities, the operation of regulated markets, as well as other related legal matters (L. 87 (I) / 2017) , with it, it is intended to report the general risks that exist in the investment activities on our website and in the commercialization of the financial instruments offered by the Company. You must recognize that these risks involve the possibility of losing money during operations. This disclosure is informative and can not be considered as a list of all possible risks.
Trading in financial instruments is ENOUGH SPECULATIVE and HIGHLY RISKED and may involve the risk of loss of all your investments. The products offered by the Company are classified as a complex of high risk financial instruments and are not suitable for the general public, but only for investors who:
- They are willing to take on financial, legal risks, 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.
- They are able to financially assume the total loss of their investment, taking into account their personal finances, which includes their resources and obligations.
- Possess the appropriate level of experience and / or knowledge of the specific Financial Instruments offered by the Company. During the verification process of your account, the Company will apply a test of suitability of the information you have provided. If, based on this information, the Company finds that you do not have the appropriate level of knowledge or experience, you will be informed of that fact and you must understand and accept all the risks if you decide to continue with the opening of your account. It is important that you make sure that any decision related to the negotiation of the CFDs, as well as other products offered by the Company, is made in an informed manner, and that you understand the nature of the CFDs / products offered, as well as the extent of all risks associated with CFDs and other products.
- Please note that Contracts for Differences (CFDs) are leveraged financial products and therefore, as such, investing in CFDs using the “multiplier” (leverage) tool, offered by the company, implies a high risk of loss, since the changes in prices are influenced by the amount used in the multiplier (leverage). For more information see our Order Execution Policy .
- Risks related to the trading of financial instruments.
The Financial Instruments offered by the Company derive their value from the performance of the underlying assets / markets. Therefore, it is important that you understand the risks associated with trading in the market and underlying assets, because the fluctuations in the performance of the underlying assets / markets will affect the profitability of your operations.
The information about the previous performance of the Financial Instruments does not guarantee the same results in the current or future performance. The use of historical data does not lead to a safe forecast.
The trading of Financial Instruments offered by the Company may put your capital at risk. These financial instruments are classified as complex of high risk products and you can lose all or part of your investments. The trading of Financial Instruments offered by the Company is not suitable for all categories of investors. Their investment decisions are subject to various markets, currencies, economic, political, business risks, etc. and they will not necessarily be profitable. You acknowledge and accept without reservation that the value of any investment in financial instruments may vary in terms of increases or decreases.
The Company will not provide you with any type of investment recommendation or any advice that is directly or indirectly connected with the trading of financial instruments and you acknowledge that the services provided by us do not include investment advice. It only includes guidance in relation to underlying assets, the market or specific trading strategies.
You must take into account that the Company may offer you from time to time useful information related to topics created by third parties BUT the Company does not approve or ratify this information and / or these instruments. Such information may indicate trading trends or trading opportunities and it must be understood that, when making any action as a result of this information or instrument, you accept and understand that this may cause 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.
The Company may also provide, at its own discretion, information, news, market comments or any other information through its website, agents or platform, but when this occurs, it is understood that the information is provided only for you to take your own investment decisions and should not be considered investment advice. You agree to be solely responsible for the operations you do and that any transaction you make is in fact based on your own judgment.
Market risk : Due to the high volatility of the market, the prices of most commercialized financial instruments can vary considerably throughout the day, which can bring both benefits and losses. These financial instruments with unstable price fluctuations should be considered with great attention as there is a greater risk of loss. Prices may fluctuate due to changes in market conditions that are beyond the control of the customer and the Company and may not be possible for operations executed at stated prices that result in losses. Market volatility can be affected by changes in supply and demand, national and international politics, geopolitical instability and economic-political events or announcements.
Liquidity risk : It is the financial risk that for some time an underlying asset can not be traded quickly enough in the market without affecting the market price. You must recognize that some products offered by the Company may suffer liquidity stress due to adverse market conditions, and therefore, the assets may be volatile and have a higher degree of risk. Volatility can be reflected in a long spread between the ASK and IDB prices, resulting in a change in the price of the product.
OTC / Counterparty risk : The Financial Instruments offered by the Company are OTC (Off-trade trades) or traded off-exchange. This means that the trade is done directly between two parties, without any supervision of the stock market. The Company establishes the conditions for trading, in accordance with its obligations to provide our clients with the best level of execution. The OTC or Counterparty Risk is the risk that, because there is no stock market, the transaction derived from an open position may not close. The quoted prices are established by the agents, and therefore, it is difficult to ensure a fair price to assess the exposure to risk.
Exchange rate risk : If a financial instrument is traded in a currency other than the currency of your account, changes in exchange rates can adversely affect the value of the transaction and result in financial losses.
- Risks associated with investments with cryptocurrencies
There is no specific regulatory framework of the European Union (EU) that governs investments with virtual currencies and, therefore, the investments made with these products is beyond the scope of our activities regulated by the Directive on Markets in Financial Instruments.
Virtual currencies are complex and high risk products so, as such, they could make you lose all your invested capital
Virtual currencies can fluctuate widely, which can lead to significant losses in a short period of time. You should not invest in virtual currencies in case you do not have the necessary knowledge and experience with these products.
When you invest with virtual currencies, you will not have the right to inform the Financial Ombudsman of Cyprus in case of a dispute with the Company.
- Technical risks
We assume no responsibility for financial losses resulting from failure, malfunction, interruption, disconnection or malicious actions of information, communication, electricity, electronic systems or others, that are not the result of negligence or intentional noncompliance by the Company. .
When working with the client terminal, you assume the risks resulting from:
- Faults in your computer, software, and connection equipment;
- Errors in the configuration of your client terminal;
- Failures during the timely update of your version of the client terminal;
- Non-compliance on your part, in relation to the instructions for using the client terminal.
We do not assume responsibility for any errors that may occur in the operation of the client terminal and we will not compensate for the losses resulting from errors in the operation of the client terminal.
You must understand that any third-party attack on the company’s systems that leads to service interruption or loss of funds is not the responsibility of the company and any liability for the resulting losses will not be compensated by the company.
The company guarantees to take all reasonable measures possible to divert the attacks and provide a secure and trouble-free trading experience.
- You should understand that when you conduct transactions over the phone, you may encounter difficulties when trying to get an operator, especially during peak hours. It should be noted that currently, the Company does not accept orders over the phone.
You must understand that the unencrypted information transmitted by email is not protected against any unauthorized access.
You may suffer financial losses caused by the materialization of the aforementioned risks, and you must understand that you will be responsible for all related losses you may suffer, assuming that these are not due to intentional or gross negligence of the Company.
- Unusual market risks
- You agree that if market conditions become unusual, you may increase the amount of time necessary for the processing of your orders and / or instructions. In addition, you accept that the orders may not be executed at the declared prices and that there is a possibility that they may not be executed at all.
- Unusual market conditions include but are not limited to: hours of rapid price fluctuations, price rises or drops in the same trading session to such an extent that, under the rules of the relevant exchange, trading is suspended or restricted, or lack of liquidity is observed, or this may occur at the opening of trading sessions.
- Risks associated with the laws of certain countries
- You also assume responsibility for commercial and non-commercial operations conducted in countries where these activities are restricted or prohibited by law.
- The laws on contracts and financial transactions may vary in different parts of the world. It is your obligation to ensure that the use of our services fully conforms to any applicable law, regulation or directive in your country of residence.
- The possibility of accessing our website or any related website that can be reached from a link on our website does not mean that our services or related activities are legal under the laws of your country of residence. These services should not be used by any person in any jurisdiction in which these services are not authorized or are illegal. Each user must and will be responsible for consulting the commercial regulations related directly or indirectly with the financial instruments offered by the Company in their respective countries before registering on our platform.
- Risks associated with the trading platform
- All instructions are sent to our server and executed in order of arrival. Therefore, you can not send a second order until the previous order has been executed. If a second order is received before the first, the second order will be rejected. You assume responsibility for any unplanned business transaction that may be carried out if you re-submit an order before being notified of the results of the first order.
- You should understand that if you close the order window or the position window, this will not cancel the order sent.
- You acknowledge that only the quotes received from our server are authorized. If there is a problem in the connection between the client terminal and our server, you will be able to recover the data of the quotation not delivered from the quotation database of the client terminal.
- Communication risk
- You should be aware that there is a risk of access by unauthorized third parties to information sent by unencrypted email.
- We do not assume any responsibility for financial losses resulting from delayed or failed receipt of company messages.
- You are responsible for protecting the credentials of your Personal Area and the trading accounts, as well as the confidential information that we send you. We are not responsible for financial losses resulting from the disclosure of this information to third parties.
- Circumstances of force major
We assume no responsibility for financial losses resulting from circumstances of force major. These extreme and uncontainable circumstances are independent of the will and actions of the participants of the agreement, which can not be foreseen, avoided or eliminated, including but not limited to natural disasters, fires, man-made accidents or natural disasters, emergencies in public works and public service lines, DDOS attacks, riots, military actions, terrorist attacks, riots, civil disturbances, strikes and regulatory acts of the state and local government authorities.
- Third party risks
- This implies that we will quickly place all funds received from clients in one or more separate accounts (called “client accounts”) in reliable financial institutions, located in Cyprus or in the EEA, such as regulated credit institutions or banks. It should be noted that although we act with due skill, care and diligence (in accordance with applicable laws) in choosing the financial institution in which your funds will be deposited, the company can not assume responsibility for circumstances beyond our control and therefore, we assume no responsibility for any resulting loss as a result of the insolvency or any similar process or bankruptcy of the financial institution where your money will be deposited.
- The financial institution where the funds of the separate clients will be kept can be found within Cyprus or the EEA. It should be noted that the applicable legislation for these financial institutions outside of Cyprus (but within the EEA) may not coincide with the applicable legislation in Cyprus. In the event of insolvency, your funds may be treated differently from the treatment applicable to funds held in separate accounts in Cyprus.
- The financial institution to which we will send your money may keep it in a global account. Therefore, in case of insolvency or any other similar procedure related to said financial institution, we can only have an unsecured claim against the financial institution on your behalf, and you will be exposed to the risk that the money received by us from the institution is insufficient to satisfy your claims.
- It is understood that we execute your orders on your own, that is, between main operators and towards you; we are the counterpart of all your transactions. For more information see our Order Execution Policy .
- Conflicts of interest
- When we deal with you as a client, our associates, relevant persons or other persons related to us may have interests, relationships or agreements that are in conflict with your interests as our client.
- Continuing with the previous point, the following cases may give rise to a conflict of interests that involve risks of material damage to the interests of one or more clients, as a result of the provision of investment services:
- We execute your orders as principal, so that our revenues are generated largely with respect to your investment losses;
- we can pay incentives to third parties for the recommendation of new clients or for the investments of the clients.
- For more information, see our Conflict of Interest Policy .
- «Investor Compensation Fund»
- The company participates and is a member of the Investor Compensation Fund that covers the clients of the investment companies, and which is governed by the laws of the Republic of Cyprus. The claims of the clients covered against the Company maybe compensated by the Investor Compensation Fund, when the Company is not able to meet its financial obligations. The compensation must not exceed 20,000 Euros (€ 20,000) for each directly authorized client. For more information, consult our Investor Compensation Fund .
- Customers who invest in virtual currencies are not entitled to any investor protection under the Investor Compensation Fund.
- Without guarantees of benefits
We can not:
- provide benefit guarantees or avoid losses when operating with the Financial Instruments offered by the Company.
- guarantee the future performance of your investment account.
- Guarantee any specific level of performance or ensure that your investment decisions and strategies will produce profits or financial benefits.
- You will not receive such guarantees from us or from any of our affiliates or representatives.
- Additional information
For more information, please see the ‘Investment Guide’ issued by the European Securities and Markets Authority (ESMA), as well as the ‘Investor Warning on Contracts for Difference (CFD)’ issued jointly by the ESMA and the European Banking Authority (ABE).