Risk Disclosure

General risk warning

Participating in currency exchange on margin carries a high level of risk, and may not be suitable for all individuals. Before deciding to participate, you should carefully consider your objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your commitment and therefore you should not commit funds that you cannot afford to lose. You should be aware of all the risks associated with currency exchange activities, and seek advice from an independent advisor if you have any doubts.

Risks of participating in CFDs

CFDs, especially when highly leveraged (the higher the leverage of the CFD, the more risky it becomes), carry a very high level of risk. They are not standardized products. Different CFD providers have their own terms, conditions and costs. Therefore, generally, they are not suitable for most individuals.

Liquidity risk

Liquidity risk affects your ability to act. It is the risk that your CFD or holding cannot be moved at the time you want to act (to prevent a loss, or to make a profit).

Execution risk

Execution risk is associated with the fact that orders may not take place immediately. For example, there might be a time lag between the moment you place your order and the moment it is executed.

Internet-based risks

There are risks associated with utilizing an Internet-based deal execution system including, but not limited to, the failure of hardware, software, and Internet connection. Since VersalTrades does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when operating via the Internet.

Acknowledgement

The client acknowledges and declares that he has read, understood and thus accepts without any reservation the following:

• The value of instruments (including currency pairs, CFDs, or any other derivative product) may decrease and the client may receive less money than originally committed or the value of the instruments may present high fluctuations.
• Information on past performance of an instrument does not guarantee the present and/or future performance; the use of historic data does not constitute a binding or safe forecast as to the corresponding future return of the instruments to which such data refers.
• Some instruments may not become immediately liquid due to various reasons such as reduced demand, and the Company may not be in a position to sell them or easily obtain information on the value of such instruments or the extent of any related or inherent risk concerning such instruments.
• When an instrument is negotiated in a currency other than the currency of the client's country of residence, any changes in an exchange rate may have a negative effect on the instrument's value, price and performance.
• An instrument in foreign markets may entail risks different than the usual risks in the markets at the client's country of residence. The prospect of gain or loss from activity in foreign markets is also influenced by the exchange rate fluctuations.