Introduction
This Risk Disclosure Policy (hereinafter the "Policy") provides clients of the Company with information in general terms regarding the nature of risks associated when investing in the Company's financial derivative instruments on a fair and non-misleading basis. It must be noted that this Policy cannot and does not disclose or explain all of the risks and other significant aspects associated with the Company's offered financial derivative instruments (hereinafter "products", "financial derivative instruments", "CFDs", "Forex/CFDs", "financial instrument (s)") and services. This is a General Risk Warning which the Client agrees to when opening an account with the Company during the registration process. By ticking the relevant box when opening a trading account with Tattvam Markets, You confirm that You have read, understood, and agree to our Risk Disclosure Policy.
Clients acknowledge, understand, and accept that any investment in financial instruments entails substantial risks, the degree of which depends on the nature of each investment and may not be suitable for all investors. The value of any investment may increase or decrease in value and investors may lose their invested capital. By establishing a business relationship with the Company, clients accept and are willing to undertake such risk. Information on the previous/past performance of a financial instrument it is not a guarantee for 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 financial instruments to which the said information refers.
When financial instruments are traded in a currency other than the currency of the client's country of residence, any changes in the exchange rates may have a negative effect on its value, price, and performance. Clients acknowledge, understand, and accept that the provision of services is subject to charges, either in monetary terms or as a percentage of a contract value. Tattvam Markets may change its charges, in accordance with the process stated in its Terms and Conditions. All clients and prospective Clients (the "client", "your", "You", "he", "she") should carefully read the following risk disclosure and warnings contained herein, before registering to the Company for opening a trading account and before commencing any trading activities via the Company's website or/and platform(s).
The risks associated with the Company's products and services are not exhaustively provided below. This document cannot and does not disclose or explain all of the risks or other significant aspects involved in dealing with our offered products and services. Each offered product and service has its own distinct risks. The Company executes the client's orders in relation to the financial product of Contracts For Differences ("CFDs") in stocks, commodities, indices, currency pairs (FX), etc. Prior to applying for an account, you should consider carefully whether trading in Forex/CFDs provided by the Company is suitable for you in light of your needs, personal circumstances, and financial situation. Trading in Forex/CFDs entails the use of leverage. If you are in any doubt about the risks involved with your account, you should seek professional advice.
1. General Risk Warning
By consenting to the Company's Terms and Conditions and Risk Disclosure Policy Clients acknowledge that they should not engage in any dealings directly or indirectly in the Company's products (financial derivative instruments) unless they know and have a clear understanding of the risks involved. You should consider your investment objectives, risk tolerance, financial resources and level of knowledge and experience before to proceed with any financial instruments offered by the Company. If Clients do not understand the risks involved when dealing in financial instruments and/or are not familiar with dealing in financial instruments they should not seek to establish a business relationship with the Company and/or refrain from trading if a business relationship has already been attained with the Company. Trading in Forex/CFDs is highly speculative, involves an outstanding risk of loss and is not suitable for everyone but only for those investors who understand and are willing to assume the economic, legal and other risks involved and are financially able to bear the loss of their invested capital by also having the knowledge to understand Forex/CFD trading and the underlying assets.
The client represents, warrants, and agrees that understands the risks associated with Forex/CFDs trading and can bear financially any risks involved.
The Client should be aware of all the risks associated with trading in CFDs and seek independent professional expert advice if he has any doubts. The Company does not provide such advice. If the Client does not understand the risks involved in trading in CFDs, he should not trade at all.
2. Technical Risk
The Client and not the Company shall be responsible for the risks of financial losses caused by failure, malfunction, interruption, disconnection, or malicious actions of information, communication, electricity, electronic or other systems. If the Client undertakes transactions on the Company's trading platform, he will be exposed to risks associated with the system including the failure of hardware, software, servers, communication lines and internet failure. The result of any such failure may be that his order is either not executed according to his instructions or it is not executed at all. The Company does not accept any liability in the case of such a failure. Further, the Client acknowledges that the unencrypted information transmitted by e-mail is not protected from any unauthorized access. At times of excessive deal flow the Client may have some difficulties connecting over the phone or the Company's trading platform(s)/system(s).
The Client acknowledges that the internet may be subject to events that may affect his access to the Company's Website and/or the Company's trading platform(s)/system(s), including but not limited to interruptions or transmission blackouts, software and hardware failure, internet disconnection, public electricity network failures or hacker attacks. The Company is not responsible for any damages or losses resulting from such events which are beyond its control or for any other losses, costs, liabilities, or expenses (including, without limitation, loss of profit) which may result from the Client's inability to access the Company's Website and/or trading system/platform or delay or failure in sending orders or Transactions. The Client is warned that when trading in the Company's trading platform (which can be provided by a third party (ies) he assumes the risk of financial loss which may be a result of:
- Failure of Client's devices, software and poor quality of connection;
- The Company's or Client's hardware or software failure, malfunction, or misuse.
In connection with the use of computer equipment and data and voice communication networks, the Client bears the following risks amongst other risks in which cases the Company has no liability for any resulting loss:
- Power cut of the equipment on the side of the Client or the provider, or communication operator (including voice communication) that serves the Client;
- Physical damage (or destruction) of the communication channels used to link the Client and provider (communication operator), provider, and the trading or information server of the Client;
- Outage (unacceptably low quality) of communication via the channels used by Client or Company.
- Wrong or inconsistent with requirements settings of the Client Terminal;
- Untimely update of the Client Terminal;
- When carrying out transactions via the telephone (land or cell phone lines) voice communication, the Client runs the risk of problematic dialing, when trying to reach an employee of the broker service department of the Company due to communication quality issues and communication channel loads;
- The use of communication channels, hardware, and software, generates the risk of non-reception of a message (including text messages) by the Client from the Company;
- Trading over the phone might be impeded by the overload of connection;
- Malfunction or non-operability of the Platform, which also includes the Client Terminal.
The Client may suffer financial losses caused by the materialization of the above risks, the Company accepts no responsibility or liability in the case of such a risk materializing and the Client shall be responsible for all the related losses he may suffer.
3. Trading Platform
The Client is warned that when trading in the trading platform he assumes the risk of financial loss which may be a consequence of amongst other things:
- Failure of Client's devices, software, and poor quality of connection.
- The Company's or Client's hardware or software failure, malfunction or misuse.
- Improper work of Client's equipment.
- Wrong setting of Client's Terminal.
- Untimely update of the Client Terminal.
The Client acknowledges that only one instruction is allowed to be in the queue at one time. Once the Client has sent an instruction, a new instruction can be given to the Company. The Client acknowledges that the only reliable source of quote flow information is that of the live server's quotes base. Quotes base in the client terminal is not a reliable source of quotes flow information because the connection between the client terminal and the server may be disrupted at some point and some of the quotes may not reach the client terminal. The Client acknowledges that when he/she closes the order placing/ deleting window or the position opening/closing window, the instruction, which has been sent to the server, shall not be canceled. Orders may be executed one at a time while being in the queue. Multiple orders from the same client account in the same time may not be executed.
The Client acknowledges that when the Client closes the Order, it shall not be cancelled. In case the Client has not received the result of the execution of the previously sent order but decides to repeat the order, the Client shall accept the risk of making two transactions instead of one. The Client acknowledges that if the pending order has already been executed but the Client sends an instruction to modify its level, the only instruction, that will be executed, is the instruction to modify Stop Loss and/or Take Profit levels on the position opened when the pending order triggered.
4. Contract For Differences (CFDs) Risks
CFDs involve different levels of exposure to risk and in deciding whether to trade in such instruments the Client should be aware of the risks and factors contained in this document. However, it is noted that this document cannot disclose all the risks and other important aspects of derivative financial instruments such as Contracts for Differences (CFDs).
Trading in CFDs is VERY SPECULATIVE AND HIGHLY RISKY and is not suitable for all members of the general public.
CFDs are high-risk and complex financial instruments that involve a variety of risks. Trading CFDs can put capital invested at risk and clients may lose more than the capital/margin used to open one position, such losses may extend to the loss of the client's entire deposited amount. The Client should also be satisfied that the product is suitable for him in the light of his personal financial circumstances, financial resources, lifestyle and obligations and is financially able to assume the loss of their entire investment. The Client acknowledges and without any reservation accepts that, notwithstanding any general information which may have been given by the Company, the value of any investment in the Company's offered products may fluctuate either upwards or downwards. The Client should have the knowledge to understand CFDs trading and the underlying assets and markets. CFDs are derivative financial instruments deriving their value from the prices of the underlying assets/markets which they refer (for example currency, equity indices, stocks, metals, indices. It is important therefore that the Client understands the risks associated with trading in the relevant underlying asset/ market because fluctuations in the price of the underlying asset/ market will affect the profitability of his trade. The client acknowledges and without any reservation accepts the existence of a substantial risk of incurring losses and damages as a result of opening or closing "Buy" or "Sell" positions in any of the products offered and acknowledges his willingness to take such risk. The Company will not provide the Client with any advice relating to CFDs, the underlying assets and markets or make investment recommendations of any kind. So, if the Client does not understand the risks involved, he should seek advice and consultation from an independent financial advisor. If the Client still does not understand the risks involved in trading in CFDs, he should not trade at all.
5. Advice and Recommendation
The Company will not advise the Client about the merits of a particular Transaction or give him any form of investment advice and the Client acknowledges that the services do not include the provision of investment advice in CFDs or the underlying markets.
The Client alone will enter into transactions and take relevant decisions based on his own judgment. In asking the Company to enter into any transaction, the Client represents that he has been solely responsible for making his own independent appraisal and investigation for the risks of the transaction. The Client represents that has sufficient knowledge, market sophistication, professional advice and experience to make his own evaluation of the merits and risks of any transaction. The Company gives no warranty as to the suitability of the products traded under the Terms and Conditions/Client Agreement and assumes no fiduciary duty in its relations with the Client.
6. Force Majeure Event
In the event of a Force Majeure Event, the Company may not be in a position to arrange for the execution of client orders or fulfill its obligations under the applicable Terms and Conditions with the client or fail or delay in performing its obligations. As a result, the client may suffer financial loss. The Company will not be held liable or have any responsibility for any type of loss or damage arising, directly or indirectly, due to a Force Majeure event.
7. Abnormal Market Conditions
Abnormal Market Conditions include but are not limited to times of rapid price fluctuations of the price, rises, or falls in one trading session to such an extent that, under the rules of the relevant exchange, trading is suspended or restricted, or there is a lack of liquidity, or this may occur at the opening of trading sessions. The client acknowledges that under abnormal market conditions, the period during which the Orders are executed may be extended or it may be impossible for orders to be executed at declared prices or may not be executed at all.
8. Third-party Risks
The Company may transfer deposited money received from clients to a third party e.g. OTC counterparty, clearing house, bank, liquidity provider, or intermediate broker in the course of facilitating the transactions of the client or to effect a transaction through or with that party. The Company bears no responsibility for the insolvency, acts, or omissions of any such third party.
The third party to whom the Company will transfer the money may hold it in an omnibus account and it may not be possible to separate it from the client's money or the third party's money. In the event of insolvency or withdrawal or winding up proceedings against the third party, this may lead to the client's positions being liquidated or closed against the client's wishes or non-execution of client orders/transactions. In addition, the Company may only have an unsecured claim against the third party on behalf of the client and the client understands that there is a risk that his/her claim will not be satisfied. The Company does not accept any liability or responsibility for any resulting losses. The Company may deposit Customer money with a depository who may have a security interest, lien, or right of set-off in relation to that money. A third party through whom the Company deals with could have interests contrary to the Customer's interests.
9. No Guarantees for Profits
The Client acknowledges and accepts that has received no guarantees for profits from the Company or from any of its representatives. The Client acknowledges that is aware of the risks inherent in trading and is financially able to bear such risks and withstand any losses incurred. The Company provides no guarantee of profit or of avoiding losses when trading.
10. Reimbursement of Investment
In case the company disengages with an investor whose status (e.g., he/she becomes a PEP) or fitness and propriety changes (e.g., there are hits or adverse media reports or sanctions in the investor) during the business relationship, investments made will then be reimbursed. Investments are made via credit card / wire transfers / Virtual Cards. The withdrawals are made on source-to-source basis. For example, if a deposit is made via wire transfer, the funds will be reimbursed by wire transfer itself.
