Risk Disclosure

1. Introduction

This Risk Disclosure is provided for information purposes and forms part of your agreement with EtheraFX, together with our Terms and Conditions, Privacy Policy, and other applicable policies.

This document does not describe every risk that may arise. It is not exhaustive and cannot disclose all risks or other significant aspects of trading, investing, holding, or transferring financial instruments and crypto-assets.

The services available to you may depend on your country of residence, client classification, verification status, applicable law, product eligibility, and our internal risk and compliance controls.

2. General Risk Warning

Trading and investing involve significant risk. The value of financial instruments, currencies, crypto-assets, derivatives, and leveraged products can rise or fall rapidly and unpredictably.

You may lose some or all of your invested capital. In certain products, and where permitted by applicable law and product rules, losses may exceed the amount you initially deposited.

You should not trade or invest money that you cannot afford to lose. You are solely responsible for your trading and investment decisions and their outcomes.

• prices can move against your position quickly;
• losses can accumulate rapidly, especially with leverage;
• you may be required to deposit additional funds at short notice;
• past results do not guarantee future performance.

3. No Investment Advice

Unless we expressly agree otherwise in a separate written advisory agreement, EtheraFX provides execution-only, platform, account, market-access, and informational services. We do not provide personal investment, legal, tax, accounting, or financial advice.

Any market commentary, educational material, analysis, indicators, signals, tools, news, or dashboards made available through the Platform are general information only and do not take account of your personal circumstances, objectives, financial situation, or needs.

You should obtain independent professional advice before making any financial, legal, or tax decision.

4. Suitability and Appropriateness

Certain products and services may not be suitable or appropriate for all users. Depending on your client classification and applicable law, we may or may not assess the appropriateness of a product for you.

Where we do not carry out a suitability or appropriateness assessment, you will not benefit from the corresponding investor protections, and you are responsible for determining whether a product is suitable for you.

You are responsible for ensuring that you understand the nature, mechanics, costs, and risks of any product before trading it.

5. Market Risk

Market risk is the risk that the value of your positions changes due to movements in market prices, interest rates, exchange rates, supply and demand, economic conditions, or other factors.

Markets can move sharply in response to news, events, sentiment, macroeconomic data, regulatory developments, or other influences that are outside your control and ours.

There is no assurance that any market will perform in a particular way, and you may suffer losses regardless of the strategy you adopt.

6. Volatility Risk

Financial instruments and crypto-assets can be highly volatile. Prices may experience large and rapid movements over very short periods, including outside normal trading hours.

High volatility can increase the likelihood of losses, slippage, gapping, margin calls, and liquidations, and may make it difficult to enter or exit positions at desired prices.

7. Liquidity Risk

Liquidity risk is the risk that you may not be able to buy, sell, or close a position quickly, at a fair price, or at all.

During periods of low liquidity or market stress, spreads may widen, order execution may be delayed, and you may be unable to close positions, which can increase losses.

• certain assets or markets may have limited liquidity;
• liquidity can disappear suddenly during volatile conditions;
• large orders may move the market against you;
• some positions may be difficult or impossible to close in a timely manner.

8. Leverage and Margin Risk

Leverage allows you to gain exposure that is larger than the funds you deposit. While leverage can increase potential gains, it equally increases potential losses, which can exceed your initial margin where permitted by applicable law and product rules.

If the market moves against a leveraged position, you may be required to provide additional margin at short notice. If you fail to do so, your positions may be partially or fully closed (liquidated), potentially at a loss.

Even small market movements can have a large impact on leveraged positions. You should fully understand how leverage and margin work before using leveraged products.

9. Futures, Derivatives, and CFD-Style Product Risk

Futures, derivatives, and CFD-style products are complex instruments and carry a high risk of rapid loss due to leverage, funding costs, and price movements.

These products may not be suitable for all users. You may lose money rapidly, and in some products and jurisdictions you may lose more than your initial deposit.

• leverage magnifies both gains and losses;
• positions may be liquidated automatically;
• funding rates, financing charges, and other costs can erode returns;
• product mechanics may be complex and difficult to understand.

10. Forex Trading Risk

Foreign exchange (forex) trading involves the simultaneous buying of one currency and selling of another and is affected by interest rates, economic data, geopolitical events, central bank actions, and market sentiment.

Currency markets can be highly volatile and are frequently traded with leverage, which increases risk. Exchange rates can move rapidly and may result in significant losses.

11. Crypto-Asset and Digital Asset Risk

Crypto-assets and digital assets are high-risk and can be extremely volatile. Their value may fall significantly or to zero, and markets may operate continuously, including outside traditional market hours.

Crypto-asset markets may be less regulated, less liquid, and more susceptible to manipulation, fraud, operational failures, and sudden price movements than traditional markets.

• values can change dramatically within short periods;
• some crypto-assets may become illiquid or worthless;
• regulatory treatment of crypto-assets may change and may affect their value or availability;
• crypto-assets may not be covered by investor compensation or deposit protection schemes.

12. Custody and Wallet Risk

Where EtheraFX or a third party holds your funds or digital assets, custody and safeguarding arrangements may vary by asset type, service, jurisdiction, and regulatory classification.

Digital assets may be held in hot wallets, cold wallets, omnibus wallets, segregated wallets, or third-party custody arrangements. Assets may be pooled with those of other clients where permitted.

The level of protection, segregation, and compensation available to you may differ between products and may be limited. You should not assume that your assets are protected in the same way as bank deposits.

13. Blockchain Network Risk

Digital asset transactions rely on blockchain networks that are outside the control of EtheraFX. Blockchain transactions may be irreversible once broadcast or confirmed.

Network congestion, forks, protocol changes, validator or miner behaviour, software bugs, and other events may cause delays, failed transactions, increased fees, or loss of assets.

• transactions sent to an incorrect address may be unrecoverable;
• you must verify wallet addresses carefully before sending;
• network fees can be high and variable;
• confirmations may be delayed or, in rare cases, reversed.

14. Stablecoin Risk

Stablecoins are digital assets that aim to maintain a stable value relative to a reference asset, such as a fiat currency. There is no guarantee that a stablecoin will maintain its peg.

A stablecoin may lose its peg, become illiquid, or lose value due to reserve quality, redemption restrictions, operational failures, market conditions, regulatory action, or loss of confidence.

15. Execution Risk

Orders may be rejected, delayed, partially filled, executed at a price different from the one you expected, or not executed at all.

Execution depends on market conditions, available liquidity, system performance, third-party infrastructure, and other factors. The price you see when placing an order may not be the price at which it is executed.

16. Slippage and Price Gap Risk

Slippage occurs when an order is executed at a price different from the requested or expected price, typically during fast-moving or illiquid markets.

Price gaps can occur when markets reopen or react to news, causing prices to jump without trading at intermediate levels. This can result in orders being filled at significantly worse prices, including stop orders.

17. Order Type Risk

Different order types carry different risks. Market orders may be executed at unfavourable prices during volatility; limit orders may not be executed if the market does not reach the specified price.

You are responsible for understanding how each order type works before using it. The availability and behaviour of order types may vary by market and product.

18. Stop-Loss and Take-Profit Risk

Stop-loss and take-profit (TP/SL) orders are not guaranteed. They may not limit your losses or secure your profits as intended.

During volatile or illiquid conditions, including price gaps, a stop-loss order may be executed at a price significantly worse than the specified level, or a take-profit order may not be filled.

19. Liquidation Risk

If you trade leveraged or margined products and your account does not maintain the required margin, some or all of your positions may be liquidated automatically, often without prior notice.

Liquidations may occur very quickly during volatile markets and may be executed at unfavourable prices. You may lose a substantial portion or all of your margin, and any liquidation fees will apply.

20. Funding, Fees, and Costs Risk

Trading and holding positions involve costs, including spreads, commissions, funding or financing charges, overnight fees, conversion fees, network fees, and other charges.

These costs reduce your returns and can turn a profitable position into a loss, particularly for positions held over time or traded frequently. You should review the applicable fees before trading.

21. Deposit and Withdrawal Risk

Deposits and withdrawals may be delayed, rejected, returned, frozen, or limited due to compliance, KYC/AML, sanctions, fraud prevention, banking, payment provider, blockchain, or security checks, or as required by applicable law.

Processing times are estimates only. EtheraFX is not responsible for delays caused by banks, payment processors, custodians, blockchain networks, or other third parties.

• you must deposit and withdraw only using methods and accounts that belong to you or that you are authorised to use;
• incorrect withdrawal details may result in loss of funds;
• withdrawals may be subject to limits, holds, or additional verification.

22. Payment Provider and Banking Risk

Deposits and withdrawals rely on banks, card networks, payment processors, and other financial intermediaries that are independent of EtheraFX and have their own rules, fees, and processing times.

These providers may decline, reverse, delay, or restrict transactions, impose charges, or apply currency conversions. EtheraFX does not control and is not responsible for the actions of these providers.

23. Technology and Platform Risk

The Platform depends on hardware, software, networks, data feeds, and third-party infrastructure. Technical failures, outages, latency, maintenance, bugs, or errors may affect your ability to access the Platform or place, modify, or close orders.

During such events, you may be unable to trade or manage your positions, which may result in losses. EtheraFX does not guarantee uninterrupted, timely, secure, or error-free access to the Platform.

24. Internet, Device, and Account Security Risk

Access to the Platform over the internet and through your devices carries risks, including connectivity failures, transmission delays, and unauthorised access.

You are responsible for keeping your login credentials, devices, email account, and authentication tools secure. Unauthorised use of your account may result in losses for which you may be responsible.

25. Cybersecurity and Fraud Risk

Financial and digital asset platforms are targets for cyberattacks, phishing, social engineering, malware, and fraud. These threats may compromise accounts, funds, or data.

EtheraFX will never ask you to share your password or transfer assets to a third party on its behalf. You should remain alert to scams and report suspicious activity to us immediately.

• verify that you are using official EtheraFX channels;
• be cautious of offers that appear too good to be true;
• never share authentication codes with anyone;
• report suspected fraud or account compromise without delay.

26. Third-Party Provider Risk

EtheraFX relies on third-party providers, including banks, payment processors, custodians, liquidity providers, market data providers, identity verification providers, and cloud and infrastructure providers.

These providers may fail, delay, suspend, restrict, or discontinue their services, or may experience outages, insolvency, or breaches. Such events may affect your ability to trade, deposit, withdraw, or access services, and may result in losses.

27. Regulatory and Legal Risk

Laws, regulations, and regulatory interpretations applicable to financial instruments, crypto-assets, and the services we provide may change, sometimes with little or no notice.

Regulatory changes, enforcement actions, licensing requirements, or restrictions may affect the availability of products and services, the value of assets, your access to the Platform, or the way your account is operated.

28. Tax Risk

The tax treatment of trading, investing, holding, and transferring financial instruments and crypto-assets depends on your individual circumstances and may change.

You are solely responsible for determining, reporting, and paying any taxes that apply to you. EtheraFX does not provide tax advice. You should consult a qualified tax adviser.

29. Jurisdiction and Restricted Services Risk

The availability of products and services depends on your jurisdiction and applicable law. Some products and services may not be available to you, and certain jurisdictions may be restricted.

You are responsible for ensuring that your use of the Platform is lawful in your jurisdiction. We may restrict, suspend, or close accounts where required for legal, regulatory, or compliance reasons.

30. Data, Market Information, and Pricing Risk

Market data, prices, charts, and other information provided through the Platform may be delayed, inaccurate, incomplete, interrupted, or unavailable, and may be sourced from third parties.

You should not rely solely on information provided through the Platform when making trading decisions. Pricing and valuations may differ between venues and providers and may not reflect executable prices.

31. Past Performance and Educational Material

Past performance is not a reliable indicator of future results. Any historical data, simulated scenarios, examples, or educational material are provided for illustration only and do not guarantee future outcomes.

Nothing in such material constitutes a recommendation or assurance that any strategy, product, or asset will achieve a particular result.

32. Conflicts of Interest

EtheraFX, its affiliates, partners, and service providers may have interests, relationships, or arrangements that could give rise to conflicts of interest in connection with the services provided to you.

We maintain arrangements designed to identify and manage conflicts of interest. However, the existence of such interests may affect the services provided, and you should be aware of this possibility.

33. Force Majeure and Extraordinary Events

Events beyond our reasonable control may affect the Platform and our ability to provide services. These may include natural disasters, pandemics, wars, terrorism, civil unrest, strikes, power or network failures, cyberattacks, government actions, or extreme market conditions.

During such events, trading may be suspended, restricted, or disrupted; orders may not be executed; and access to funds or positions may be delayed. EtheraFX is not responsible for losses arising from force majeure or extraordinary events.

34. User Responsibility

You are responsible for understanding the risks before trading, for the decisions you make, and for the consequences of those decisions.

• read this Risk Disclosure, the Terms and Conditions, and related policies;
• ensure you understand each product and order type before using it;
• only trade with funds you can afford to lose;
• monitor your positions, margin, and account activity;
• keep your account and security credentials safe;
• seek independent professional advice where appropriate.

By continuing to use the Platform, you confirm that you have read and understood this Risk Disclosure and accept the risks involved.

35. Contact

If you have questions about this Risk Disclosure, you can contact us using the details below: