Trade99 offers various financial products (“the Products”) which include forex, foreign currency exchange rates, indices, commodities, futures, cryptocurrencies and other financial assets (CFDs).
Trading any form of assets always carries a high level of risk and may not be suitable for all investors. The volatility of the markets has an equally proportional effect on your deposited funds. There might be situations when you make huge gains but at the same time, you might undergo huge losses. You should always be ready for either circumstance.
If you experience a loss on your initial funds, you would have to deposit additional funds to sustain your position. In situations where you fail to meet the minimum requirements of your funds, your position will be liquidated and you will be responsible for the losses incurred.
Therefore, it is advisable to consider and evaluate your investment objectives, level of experience and risk appetite before investing. Once you are self-assured about these criteria, you should immediately start trading with us.
This is a general risk warning and the information provided herein is of a general nature dealing with all the products offered by Trade99. The purpose of this notice is to describe the major risks of trading any kind of financial product.
Below are some of the risks involved in your trading with us:
- Leverage Risk: Trading in leveraged financial instruments can work in your favor, as well as against you, and may cause fast losses, of up to your entire investment amount.
- Counterparty Risk: The company operates as a counterparty for your transactions and therefore, is the seller when you are buying and the buyer when you sell. When trading with us, you are trading with the Company as the counterparty to each transaction. By using our services, you are exposed to the risk of us not being able to repay our obligations. Any debt or obligation to you may not be secured in the event the Company becomes insolvent.
- Volatility Risk: Digital Currencies are very volatile in nature, and the potential loss in trading or holding digital currencies can be substantial. We do not guarantee that any digital currency will currently or in the future maintain a certain value or market liquidity, and its value or price can drop as low as zero at any point.
- Liquidity Risk: Markets for digital currency have varying degrees of liquidity- some are quite liquid while others may be thinner or non-liquid. The Liquidity level of any digital currency may change due to various factors. There is no guarantee that you will be able to sell your digital currency to the Company, or to any third party, at any time. We may also choose to delist or otherwise cease trading in any digital currency or trading pair at any time, without notice.
- Security Risk: Digital Currencies held in your account on a trading platform may be subject to hacking, ransom or theft by malicious actors. Digital Currencies stolen may not be retrievable or traceable.
- Technological Risk: Digital Currency is based on blockchain technologies, a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity. Such a system, which has been the subject of scrutiny by various regulatory bodies around the world, maybe at risk of collapse at any time. Due to the nature of the digital currency, any technological difficulties could potentially prevent the access or use of your digital currency.
- Operational Risk: Malfunction of the platform, for example, resulting from scheduled or unscheduled downtimes may prevent you from opening or closing a transaction at any given time, thus causing you losses (or preventing you from materializing profit).
- Regulatory Risk: Most countries do not currently regulate digital currency and its trading, and at any time, regulations may be implemented or change in a way to have a negative and material impact that may result in the digital currency having little or no value whatsoever. Regulatory inquiries or actions, including, without limitation, the licensing of or restrictions on the use, sale, or possession of digital currency, could impede, limit or end the services or your ability to trade the digital currency at any point.
- Market Manipulation Risk: Due to the unregulated nature of the digital currency markets, they might be susceptible to market manipulation by interested parties, applying “pump and dumps” and other schemes which may have an influence on the price of digital currencies and the market’s integrity.
- Value Risk: Unlike “traditional” fiat currencies, which are backed by governments, digital currencies do not enjoy such backing, and their value is largely backed by technology and trust. There is no central bank that can take corrective measures to protect the value of digital currency in a crisis or issue more currency. There is no guarantee that any digital currency will hold its value over time, or be at any time accepted by any party as means of exchange.
- Encryption Risk: You maintain the responsibility to safeguard the private key unique to your digital wallet address to access your digital currency. The theft, loss or destruction of such a private key required to access your Digital Currency may be irreversible.
By using our services, you confirm and acknowledge that you are aware of the additional risks that exist in connection with your trading or holding of digital currency, not disclosed herein for any reason whatsoever (including such risks not foreseen by the Company at the time of writing). You understand that it is your responsibility to carefully assess all the risks and determine whether your financial standing and tolerance for risk are suitable for buying, selling or trading digital currency. You understand that the Company does not provide any investment, legal, or tax advice. At no point will the Company consider your financial situation, investment or trading objectives or other personal circumstances, and it is your responsibility to seek independent, professional advice prior to using the services and the website.
TRADING IN DIGITAL CURRENCY IS CONSIDERED A RISKY TRANSACTION WITH HIGHLY SPECULATIVE OUTCOMES. THE COMPANY DOES NOT GUARANTEE ANY PROFIT FROM TRADING OR ANY OTHER ACTIVITY ASSOCIATED WITH THE WEBSITE. IN LIGHT OF THE RISKS ABOVEMENTIONED, WHICH ARE NOT A COMPREHENSIVE LIST, YOU SHOULD CAREFULLY CONSIDER IF HOLDING OR TRADING DIGITAL CURRENCY IS SUITABLE FOR YOU DEPENDING ON YOUR FINANCIAL CIRCUMSTANCES. THE DECISION TO EITHER CHOOSE OR ABANDON THE USE OF THE COMPANY’S SERVICES LIES AT YOUR SOLE OPTION, DISCRETION, AND RISK.