Risk Disclosure Notice

Introduction

Captrust Markets Ltd. (UK) is authorized and regulated in accordance with financial regulations

The Client (hereinafter referred to as “you”) should carefully read this Risk Disclosure Notice in conjunction with the Terms and Conditions of Business, the Order Execution Policy, and any other legal documentation/information available on our website.

Contracts for Difference (CFDs) are agreements between two parties, typically referred to as “buyer” and “seller.” The contract stipulates that the seller will pay the buyer the difference between the current value of an asset and its value at the contract’s inception. If the difference is negative, the buyer pays the seller instead. CFDs allow investors to take advantage of price movements in financial markets, whether increasing (going long) or decreasing (going short), without needing to own the underlying asset.

1. General Information

This document does not disclose all risks associated with CFDs and should not be considered investment advice or a recommendation to trade financial instruments.

You should not enter into CFD transactions unless you fully understand their nature, the risks involved, and your exposure. If you have any doubts, you should seek independent legal or financial advice before making an investment decision.

You should be aware that:

• The value of investments in financial instruments may fluctuate upwards or downwards, and your investment may become worthless.
• Past performance is not indicative of future results.
• Trading financial instruments may have tax implications or other financial obligations
• Changes in exchange rates may negatively affect the value of your investments if they are traded in a currency other than your base currency.

2. Risks Associated with CFDs

a. Leverage Risk

Leverage is a unique feature of CFDs that increases both potential profits and losses. Due to the margining system, small price movements in the underlying asset can have a disproportionate impact on your trade. While small price movements in your favor can yield high returns, small movements against you may quickly result in significant losses, potentially exceeding your initial deposit

b. Gapping Risk

Financial markets can fluctuate rapidly, leading to gaps in price movements where an asset’s price suddenly shifts from one level to another without passing through the levels in between. This means that orders may be executed at a significantly different price than expected, increasing the risk of loss.

c. Stop-Loss Orders May Not Always Protect You

You have the option to use Stop-Loss Orders to limit your losses. However, in volatile market conditions, stop-loss limits may not be effective if the price moves rapidly or the market closes, leading to greater losses than anticipated

d. Margin Calls and Liquidation Risk

To keep CFD positions open, you must maintain sufficient funds in your account to meet your margin requirements. If your margin balance falls below the required level, you must immediately deposit additional funds or close some positions. Failure to do so may result in automatic liquidation of your trades, potentially at unfavorable prices

e. Risk of Losing Your Invested Funds

Adverse market movements can result in the total loss of your invested capital. In extreme cases, you may lose more than your account balance.

f. No Guarantee of Profit

There are no guarantees of making profits or avoiding losses when trading CFDs. Captrust Markets Ltd. (UK) and its representatives do not provide any guarantees, and you must be financially prepared to bear such risks.

g. No Rights to Underlying Assets

When trading CFDs, you do not own the underlying assets (e.g., stocks, indices, or commodities). For example, holding an equity CFD does not grant you voting rights in the company.

3. Other Risks

a. Market Risk

Market fluctuations can significantly impact the value of your portfolio. Negative price movements can lead to partial or total loss of your capital

b. Systemic Risk

The collapse of the financial system or a market-wide failure can negatively affect your investments. Such events can cause widespread market instability beyond your control.

c. Technical Risk

Electronic trading systems can experience technical failures, including software glitches, internet disruptions, or power outages, which may affect your ability to execute trades.

d. Operational Risk

Errors or failures in business operations—whether due to human mistakes, system malfunctions, or other disruptions—can lead to financial losses.

e. Country Risk

Political changes, regulatory shifts, or economic instability in a country can impact your investments, leading to unexpected losses.

f. Interest Rate Risk

Fluctuations in interest rates can impact the value of investments, particularly those linked to bonds, currencies, or other interest-sensitive instruments.

g. Foreign Exchange Risk

Changes in exchange rates can affect the value of your investments, particularly if trading in currencies other than your base currency.

h. Legal and Regulatory Risk

Changes in financial regulations, tax policies, or other legal factors may increase costs or reduce investment profitability.

4. Risks Beyond the Control of the Company

4. Risks Beyond the Control of the Company

The following risks are entirely the Client’s responsibility, and Captrust Markets Ltd. (UK) bears no liability for:

• Lack of knowledge of trading platform settings.
• Technical faults in your software or hardware.
• Unauthorized disclosure of login credentials to third parties.
• Unauthorized access to your email or trading account
• Delayed reading of important emails from the Company.
• Any other force majeure events affecting your trading activity.

Contact Us

For any inquiries regarding this Risk Disclosure Notice, please contact:

Email: enquiries@captrustmarkets.com

Website: www.captrustmarkets.com

We strongly recommend that you carefully assess your risk tolerance before trading CFDs. If you are uncertain about any aspect of CFD trading, seek independent financial advice before proceeding.