Liability notification in emails
A speculative approach to CFD transactions may result in risks to the user's capital. CFDs are categorised as high risk instruments by a number of supervisory authorities as they do not offer capital protection and guaranteed returns and clients may lose their investment. On the Fusion Trade Mark trading platform, it is impossible to lose more than the amount invested and clients cannot be indebted to Fusion Trade Mark. CFD trading is not suitable for all investors; make sure you fully understand the risks involved. This Risk Disclosure Statement is part of the Client Agreements as defined in this User Agreement.
1.1 You are considering using the Company's Fusion Trade Mark trading platform (the "Company", "we", etc.) to transact in CFDs ("CFDs"). CFDs are high-risk investments that are not suitable for many investors.
1.2 This statement provides information about the risks associated with CFD transactions, but it cannot explain all risks, nor can it explain how such risks relate to your personal circumstances. If in doubt, you should seek professional advice.
1.3 It is important that you have a good understanding of the risks involved before trading with the Company. If you decide to trade with the Company, it is important that you are aware of the risks involved, that you have adequate financial resources to take such risks and that you monitor your positions carefully.
POSSIBILITY OF LARGE LOSSES
2.1 The essence of leveraged trading is that both profit and loss can be maximised, and, unless,
when a user places a Close with Loss Order or a Restricted Order, the user may incur very large losses if the price of their open position changes unfavourably.
However, your losses cannot exceed the amount available in your Trading Account.
CFD CONTRACTS ARE NOT SUITABLE FOR LONG-TERM INVESTMENTS
3.1 CFDs are not suitable for long-term investors. If a CFD position is held open for too long, the costs associated with the position increase and it may be more profitable to purchase the underlying asset rather than the CFD.
NO ENTITLEMENT TO THE UNDERLYING INSTRUMENT
4.1 CFDs do not confer any rights to the underlying instruments or, in the case of share-based CFDs, any voting rights in such shares.
EXPEDIENCY
5.1 Subject to our terms and conditions, you determine for yourself whether a Trading Platform is suitable for your circumstances, you decide for yourself whether to register an account on that Trading Platform and you bear all risks.
5.2 We may also ask you for information about your financial assets and earnings. We do not monitor on your behalf whether the information you provide matches the amounts of money transferred to the Trading Account or your profits and losses. It is your own judgement as to whether you have sufficient financial resources and what degree of risk you accept.
POSSIBLE RISKS
6.1 You cannot lose more funds than you have in your Trading Account.
6.2 Before you start trading CFDs on the Trading Platform, you must transfer the Initial Margin to the Company, and in order for the Transaction to be open for some time, the amount in your Trading Account must be greater than the Minimum Margin. Different Initial Margin is set for different Instruments; such amounts are indicated on the Trading Platform. This means that you will be trading with "leverage", which may or may not be favourable to you. A slight change in price in a way that is favourable to you may bring you a high profitability of the Initial Margin listed for trading operations, but a slight change in price may bring you a high profitability of the Initial Margin listed for trading operations, but a slight
a change in price in a negative direction for you can cause serious losses.
6.3 We also require that a user's Trading Account must have an amount in excess of the Minimum Margin in order for a Transaction to be open for some time. Therefore, if the price changes in a way that is unfavourable to you, you may need to promptly transfer a significant amount of additional Margin to enable you to continue trading. If you fail to do so, the Company will be entitled to close one, several or all of your trades. You will be liable for all losses incurred.
6.4 You should also be aware that under our User Agreement, the Company may, at its sole discretion, send you a Request for Additional Funds. In accordance with the User Agreement, you must immediately honour any Request for Additional Funds by transferring the funds by transfer within the timeframe set by us.
If you fail to do so, the Company will have the right to close one, several or all of your trades.
6.5. You can take action and set an absolute limit on your losses (e.g. by placing closing orders on your account with a
loss or closing with a profit); otherwise, if market conditions change in a way that is unfavourable to you, you may lose the
all funds in your Trading Account. The Company offers a number of risk management tools that you can take advantage of.
NON-INCOME SOURCE
7.1 Due to the inherent characteristics of CFDs, they are not suitable for investors who expect returns on such investments, as the cash returns on such investments are subject to extreme fluctuations. The realisation and/or sale of investments in OTC products that are not highly liquid can be quite difficult, as can obtaining reliable information about their value or the degree of risk to which they are exposed.
MARKET FLUCTUATIONS
8.1. It is important that you understand the risks associated with trading in the market, as fluctuations in the price of the underlying instruments have an impact on the profitability of trading operations. For example: the value of an investment in a foreign currency may increase or decrease due to changes in the exchange rate.
8.2 CFDs are therefore suitable for clients who fully understand the risks involved and have previous trading experience. If you are unsure, seek advice from an independent professional.
DERIVATIVES.
9.1 Trading operations on positions opened with the Company are not carried out on the Exchange. The Company sets prices and other terms and conditions, subject to the Company's obligation to provide execution on the best terms and conditions, to act reasonably and in accordance with the User Agreement and Order Execution Policy. Each time you execute a CFD trade on the Company's Trading Platform, you are entering into a contract with the Company; these contracts may only be entered into with the Company and may not be assigned to any other person.
NEED TO TRACK POSITIONS
10.1 Due to the use of leverage and the speed at which profits or losses may occur, it is important to monitor your positions closely. It is your responsibility to monitor your own trading operations.
OPERATIONAL RISKS
11.1 Operational risks that may occur on our company website that you use from your computer are inherent in every CFD transaction. For example, interruptions in business processes such as communications, computer or mobile networks, or external events may cause delays in the execution and completion of a transaction. Fusion Trade Mark does not assume or accept responsibility for its workflows unless the interruptions are caused by fraud or bad faith on the part of Fusion Trade Mark.
CURRENCY RISK
Clients should realise that if the price of a CFD contract is not in the currency of their country, such a contract is subject to additional risk
exchange rate fluctuations.