Risk Warning

RISK DISCLOSURE

JFD is a leading Group of Companies offering financial and investment services and activities through its regulated entities. CI Europe is a trading name owned and used by JFD Group Ltd, a company with registration number HE 282265, authorized and regulated by the Cyprus Securities and Exchange Commission - CySEC (Licence number: 150/11).

This Notice cannot and does not disclose or explain all the risks associated with the Company’s services and products. It explains, in general terms, the nature of the risks particular to entering into transactions with financial instruments provided by the Company but it cannot explain all of the risks and how these risks relate to your personal circumstances. You should seek professional independent advice, if you consider this necessary.

Before deciding to trade and/or invest, you should carefully consider your objectives, level of experience, and risk appetite. You should not commence trading with the Company unless you declare that you have read, understood and accepted the following generic and instrument specific risks:

General Risks of Trading:

The Company does not warrant the initial capital of your portfolio or its value at any time or any money invested in any financial instrument. You should completely acknowledge and accept that you run a great risk of incurring losses and damages as a result of the purchase and/or sale of any financial instrument and accept and confirm that you are prepared to take on this risk.

You should completely acknowledge and accept that, regardless of any information which may be offered by the Company, the value of any investment in financial instruments may fluctuate downwards or upwards and it is even likely that the investment may become of no value. The fluctuations may result to whole or partial loss of your initial investment capital.

The Client recognizes and accepts that there may be other risks which are not covered in this section.Specific Risks of Trading

Regulatory and Legal Risk

Potential changes in laws and regulations affecting the investment sector and/or a specific financial instrument, can have unforeseeable and material effects to your investment. Risk involved with regulatory or legal amendments and/or changes are unpredictable and may vary depending on the market.

Past Performance

Information of previous performance of a financial instrument does not guarantee its current and/or future performance. The use of historical data does not establish a binding or reliable prediction as to the corresponding future performance of the financial instruments to which the said information mentions and should only be considered as a historical overview of the financial instrument.

Volatility

Movements in the price of underlying markets can be volatile and out of the Company’s control and sphere of influence. Such volatile moves can have a direct impact on your profits and losses. Knowing the volatility of an underlying market will help guide you as to where any stops should be placed. It should be noted that volatility can be unexpected and unpredictable regardless of the instrument you are trading on. JFD shall not be liable to any person for any losses, damages, costs or expenses (including, but not limited to, loss of profits, loss of use, direct, indirect, incidental or consequential damages) occurring because trades cannot be executed due to market conditions.

Need to Monitor Positions

Because of the effect of leverage and the speed at which profits or losses can be incurred, it is important that you monitor your positions closely. It is always your responsibility to monitor your trades and transactions.

No Guarantee of Profit

Trading with JFD does not guarantee profit nor loss avoidance. You willingly acknowledge that no such guarantees were made by the Company or from any of its representatives, agents, affiliates, employees and you are aware of the risks involved.

Liquidity of Instruments

Some financial instruments may not become instantly liquid as a result of reduced demand, for example, where you may not be able to sell them or easily obtain data on the price of these financial instruments or the degree of the related risks.

Foreign Market Risks

A financial instrument on foreign markets may involve risks unlike the usual risks of the markets in your country of residence. In some circumstances, these risks may be larger. The outlook of profit or loss from transactions on foreign markets is also influenced by exchange rate fluctuations.

Internet Trading Risks

There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since JFD does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, the Company cannot be responsible for communication failures, distortions or delays when trading via the Internet.

Tax

You should take the risk that your trades in financial instruments may be or become conditional on tax and/or any other duty, for example, due to alterations in legislation or your personal conditions. The Company does not guarantee that there will be no outstanding tax and/or any other stamp duty incurred. You should be accountable for any taxes and/or any other duty which may accumulate in respect of your trades. JFD does not provide tax advice, and if you are in doubt as to your tax obligations, you should seek independent advice before trading.

Insolvency

You should consider the risk of the insolvency or default of any other brokers involved with your transaction which may lead to your positions being liquidated or closed out without your consent. In certain circumstances, you may not get back the actual assets that you have invested and you may have to accept any available payments in cash.

Fees and Costs

The Company’s fees and charges are set out in the Company’s website here for Spreads and here for Swaps and Financing . Please check the Company’s website at all times of all costs and charges that apply to you, because such costs and charges will affect your profitability.

Information

Any opinions, news, research, analyses, prices, or other information contained on this website or produced by JFD are provided as general market commentary, and do not constitute investment advice or investment recommendation. JFD shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information.

Risks associated with CFDs and FX

What is a Derivative Financial Instrument?

A derivative financial instrument (i.e. option, future, forward, swap, contract for difference) price is dependent upon or derived from the price fluctuations of another underlying asset. A derivative financial instrument may be a non-delivery spot transaction giving an opportunity to make profit on changes in currency rates, commodity, stock market indices or share prices called the fundamental instrument.

You must not purchase a derivative financial instrument unless you prepared to accept the risks of completely losing all the money which you have invested and similarly of any extra commissions and other charges incurred.

What does CFD stand for? How is traded?

A CFD stands for Contract for Difference which is traded over-the-counter(“OTC”) and falls under the derivative asset class and enables you to settle for the difference between the initial and ending price of an asset by without the underlying asset. When trading CFDs, you generally trade on margin, which means you only have to deposit a small percentage of the overall value of your position. The difference between the deposited value and the overall value of your position is know as “Leverage”. Any CFD positions with “Leverage” can greatly be impacted negatively or positively even by small movements in the market.

If there is market movement against you, there is a great possibility that you may sustain a loss greater than the funds deposited in the specific position. You are responsible for all losses on your account up to the total amount deposited.

How can Leverage affect your investment capital?

Leverage is a widely used feature of CFD and FX contracts and it can affect you either negatively or positively. Any investments traded with Leverage can be significantly riskier than investing in the underlying asset and you should consider whether you can tolerate the such risks. The potential risk or benefit stems from the margining system associated with Leverage which involves a small deposit in comparison to the actual size of the transaction. The margining system can have disproportionate and unpredictable effects to your investment capital as it can abruptly affect you either positively.

Suitability of Contracts of Difference for investors

CFDs are considered to be a short-term investment and are not suited for long term investments. If you want to hold a position for too long you should consider investing in the underlying asset. If you hold a CFD open over a long period of time, there is an increased possibility of sudden market movements causing a dramatic shift in the price of an underlying asset. At all times during which you have open positions, you must ensure that your account meets the Company’s margin requirements in order to sustain your positions. You should be informed that in cases that the price moves against you or if the Company’s margin requirements have changed, you may be requested to provide us with significant additional funds to meet your margin requirement, at short notice, to maintain your open positions or close your positions.

Appropriateness

During the account opening form, the Company makes an assessment of whether the financial instruments and/or products and/or services you chose to trade are appropriate for you. The Company shall be entitled to rely on the information provided by you when assessing the products and services you choose to trade with the Company. If you decide to continue and open an account with us, you are confirming that you are aware of and understand the risks.

As such, the Company shall be entitled to assume that a Professional Client has the necessary experience and knowledge in order to understand the risks involved in relation to those particular investment services or transactions, or types of transaction or product, for which the Client is classified as a Professional Client.

Fluctuations in the Market

It is important that you comprehend the risks associated with trading, as fluctuations in the price of the underlying market will influence the profitability of the trade. Slippage occurs when the market moves suddenly in any direction and is the difference between the expected price of a trade, and the price at which the trade was actually executed. The price is then said to have ‘slipped’ when the market has ‘gapped’ from one level to another. This applies in the event of either advantageous or disadvantageous price movements and can result in either losses (negative slippage) or gains (positive slippage).

Regional Restrictions

CI Europe Ltd is allowed to serve only clients whose residence is in the EEA, except for residents of Belgium, Bosnia and Herzegovina and countries whose domestic regulations classify such investment offering as prohibited.