Risk Disclosure Statement

1. General Risk Warning

Trading in rolling CDFs (Contracts for Difference) involves substantial risk and may not be appropriate for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.

2. Leverage Risk

Rolling CDFs are leveraged products, which means you can gain exposure to large positions with a relatively small initial deposit. While this can magnify profits, it also magnifies losses:

• Losses can exceed your initial investment
• You may be required to make additional payments to cover losses
• Small market movements can result in large gains or losses
• Higher leverage ratios increase both potential profits and losses

3. Market Risk

Financial markets are subject to various risks that can affect the value of your investments:

• Volatility: Market prices can change rapidly and unpredictably
• Liquidity: You may not be able to close positions at your preferred price
• Gap Risk: Markets may open at prices significantly different from closing prices
• Economic Events: News and economic data can cause sudden price movements

4. Operational Risk

Technical and operational issues may affect your ability to trade:

• Platform downtime or connectivity issues
• Execution delays or failures
• System errors or malfunctions
• Internet or power outages affecting your access

5. Currency Risk

If you trade instruments denominated in a currency different from your account currency, you are exposed to currency exchange rate fluctuations that may increase your losses or reduce your profits.

6. Overnight and Weekend Risk

Positions held overnight or over weekends are subject to additional risks:

• Financing costs for leveraged positions
• Gap risk when markets reopen
• Inability to monitor positions during market closures
• Potential for significant price movements during closed periods

7. Regulatory Risk

Changes in regulations or government policies may affect your investments:

• New trading restrictions or requirements
• Changes to tax treatment
• Regulatory actions affecting market access
• Changes to investor protection measures

8. Counterparty Risk

When trading rolling CDFs, you are entering into a contract with Ledgrity. This exposes you to the risk that we may not be able to fulfill our obligations under the contract due to financial difficulties or other circumstances.

9. Margin Requirements and Calls

Trading on margin involves additional risks:

• Margin requirements may change at any time
• You may receive margin calls requiring immediate additional funds
• Failure to meet margin calls may result in position closures
• Forced liquidation may occur at unfavorable prices

10. Tax Implications

Trading activities may have tax implications that vary by jurisdiction:

• Profits may be subject to capital gains tax
• Tax treatment may change based on trading frequency
• You are responsible for understanding and complying with tax obligations
• We recommend consulting with a tax professional

11. Suitability Assessment

Before trading, consider whether rolling CDF trading is suitable for you based on:

• Your financial situation and investment goals
• Your knowledge and experience with leveraged products
• Your ability to bear losses
• Your risk tolerance and investment time horizon

12. Professional Advice

We strongly recommend that you:

• Seek independent financial advice before trading
• Only trade with money you can afford to lose
• Start with small positions to gain experience
• Use risk management tools such as stop-loss orders
• Continuously educate yourself about market risks