Risk Disclosure

Risk Disclosure Statement

Introduction

Royal Finex Market Limited (RFX Market) is authorized and regulated by the St. Vincent and the Grenadines Financial Services Authority (“FSA”). Pursuant to the mandates of the Financial Advisory and Intermediary Services Act, No. 37 of 2002 (“FAIS Act”), this document delineates the inherent risks associated with the trading of Contracts for Difference (“CFDs”) and other financial derivative products. While exhaustive efforts have been made to encapsulate the full spectrum of associated risks, this disclosure is not exhaustive and may not capture all potential risks and nuances intrinsic to such transactions.

Nature of Services

RFX Market functions strictly as a Straight-Through Processing (STP) broker, eschewing any participation in market-making activities or acting as a counterparty in CFD transactions. It facilitates clients’ access to products from esteemed third-party liquidity providers, thus enabling direct account opening and trading activities through RFX Market.

Risk Acknowledgment

Prospective and existing customers are implored to meticulously review this risk disclosure prior to undertaking any trading activities. This policy enumerates significant risks pertinent to financial instruments offered by RFX Market, a duly registered Financial Services Provider under the regulatory auspices of the St. Vincent and the Grenadines Financial Services Authority (“FSA”). Nonetheless, it is imperative to acknowledge that this document may not encapsulate all conceivable risks inherent to these transactions.

Risk Factors

1. Speculative and Financial Risk: Engaging in Forex and CFD trading carries substantial speculative and financial risks. Only individuals who have a profound understanding and acceptance of these risks, and are in a financial position to bear potential losses, should participate.
2. Leverage and Rapid Loss Potential: The leveraged nature of CFDs can precipitate rapid and extensive losses. It is noted that a significant proportion of retail investor accounts incur losses when trading CFDs. An assessment of risk tolerance and financial capacity is essential prior to engagement in trading activities.
3. Market Liquidity and Execution Risks: Trading in CFDs entails heightened risks, relative to on-exchange products, due to uncertain market liquidity and the potential for execution challenges.
4. Regulatory and Operational Risks: Positions may be forcibly closed in instances of policy or regulatory infractions.
5. Price Discrepancies: There may be variances between the trading and valuation prices provided by RFX Market and those available in other forums, which clients should consider when making trading decisions.
6. Absence of Rights to Underlying Assets: CFD and FX Contract clients do not acquire any rights or obligations with respect to the underlying assets.
7. Sociopolitical Influences: Changes in the sociopolitical environment of the host country may impact operations and client funds.
8. Non-Advisory Nature: RFX Market does not offer personalized investment advice or act in a fiduciary capacity. Clients assume full responsibility for their trading decisions.
9. Exchange Rate Risks: Trading in currencies other than the account’s base currency exposes clients to exchange rate risks, which may affect investment values.
10. No Profit Guarantees: There are no assurances of profit or protection against loss in Forex and CFD trading.
11. Cybersecurity and Internet Risks: Online trading is subject to risks associated with internet connectivity and cybersecurity. Protective measures for account information are advised.
12. Communication Delays: Delays in communication may impact the timely execution of orders and, consequently, trading outcomes.
13. System Vulnerabilities: Technical anomalies or malicious activities may compromise trading systems and client funds.
14. Market Volatility: External factors, including geopolitical events and acts of God, may induce market volatility, affecting asset prices.
15. Additional Risks: Clients should be cognizant of other potential risks not explicitly mentioned in this document, necessitating thorough consideration and assessment.

Acknowledgment

By utilizing RFX Market services, clients affirm their comprehension, understanding, and acceptance of all risks detailed herein. It is strongly recommended that clients consult with professional advisors prior to initiating any trading activities.