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1.1. This Risk Disclosure Statement is provided by Finco Group (the "Company"), licensed and regulated by the Kuna de Wargandi International Services Authority (KUNAISA), Licence No. FX0042026. It forms part of the Terms of Business and should be read together with the Client Agreement.
1.2. It cannot disclose every risk of trading. Its purpose is to explain, in general terms, the principal risks of trading cash-settled Contracts for Difference (CFDs), Futures Contracts, and DeFi-referenced derivatives. The Client should not trade these products unless they understand their nature and the extent of their exposure to risk.
1.3. The Company does not offer binary options. It offers cash-settled CFDs, futures and DeFi-referenced derivatives.
2.1. CFDs, futures and other leveraged derivatives are complex instruments and carry a high risk of losing money rapidly due to leverage.
2.2. The Client should trade only with money they can afford to lose. Trading may not be suitable for everyone. If in doubt, the Client should seek independent advice.
2.3. Past performance is not a reliable indicator of future results. Market commentary, education, analysis and "signals" provided by the Company are general information only and are not advice or a recommendation.
3.1. Leverage means a small deposit (margin) can control a much larger position. Both profits and losses are magnified relative to the amount deposited.
3.2. Adverse market movements can lead to margin calls and the automatic closure ("stop-out") of positions, potentially at a loss, and potentially quickly. The Client is responsible for monitoring their positions and maintaining sufficient margin.
3.3. Retail Clients benefit from negative balance protection (Client Agreement clause 9.7), meaning they cannot lose more than the funds in their trading account. Professional Clients may, unless otherwise agreed, be liable for losses exceeding their deposited funds.
4.1. Prices can move rapidly and unpredictably in response to economic, political, or market events, and outside normal trading hours in some instruments. Gaps between prices (including over weekends) can cause orders to be executed at prices materially different from those expected.
4.2. Stop-loss orders are not guaranteed to execute at the requested price under volatile or illiquid conditions unless expressly offered as "guaranteed" [CONFIRM: are guaranteed stop-loss orders (GSLOs) offered?].
5.1. CFDs. The Client never owns the underlying asset. Positions may incur overnight financing (swap) charges that accumulate and can exceed initial expectations. Corporate actions and dividends may result in adjustments.
5.2. Futures (traditional and perpetual). Futures carry expiry, roll-over, and funding considerations. Perpetual contracts may apply periodic funding payments between long and short holders, which can be significant.
5.3. DeFi / crypto-referenced derivatives. These reference crypto-asset prices, which are highly volatile, may trade 24/7, and can be affected by technology, protocol, liquidity, and regulatory risks specific to digital assets. The Company offers these only as cash-settled derivatives — the Client does not buy, hold, or take custody of any crypto-asset, and the Company does not provide any virtual-asset, custody, or wallet service.
6.1. Trading is conducted electronically and depends on hardware, software, and internet connectivity. Disruptions, latency or failures may prevent orders from being placed, executed, or modified.
6.2. Under certain conditions (including a Manifest Error or Force Majeure Event as defined in the Client Agreement) it may be difficult or impossible to execute orders, and prices may be affected.
7.1. Where an instrument or account is denominated in a currency other than the Client's home currency, exchange-rate movements affect value.
7.2. The Client is solely responsible for determining and meeting any tax obligations arising from trading. The Company is not a tax adviser.
7.3. Funds are transmitted through banks and payment providers whose actions, fees and timing are outside the Company's control.
8.1. Depending on the execution model, the Company may act as principal (counterparty) to the Client's trades [CONFIRM: execution model]. This may give rise to conflicts of interest, which the Company manages under its conflicts framework (Client Agreement clause 6.3).
9.1. The Company gives no assurance that any Client will profit, or that losses will be limited except as expressly provided (for example, negative balance protection for Retail Clients). Every trading decision is the Client's own and made at the Client's own risk.
By opening an account and trading, the Client confirms they have read and understood this Risk Disclosure Statement.