Risk Disclosure

1. Introduction

This Risk Disclosure is provided by Fluxglobalmarkets in accordance with applicable regulatory requirements. Trading financial instruments involves significant risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, risk appetite, and financial resources.

This document outlines the main risks associated with trading the financial instruments offered on our platform. It is not intended to be exhaustive and does not disclose all risks or other relevant considerations.

2. General Investment Risks

All forms of financial investment involve risk. The value of your investment may fluctuate, and you may receive back less than your original investment or lose your entire investment in some circumstances.

Past performance is not a reliable indicator of future results. The value of investments and the income derived from them can go down as well as up, and investors may not get back the amount originally invested.

You should only invest if you are prepared to sustain a total loss of the money you have invested plus any commissions or other transaction charges.

3. Market Risks

Market risk refers to the possibility that an investment will lose value due to market fluctuations. These fluctuations can be caused by various factors, including:

• Economic factors such as changes in interest rates, inflation, or economic growth
• Political events and changes in government policy
• Natural disasters and other external events
• Market sentiment and investor behavior
• Industry-specific developments

Market conditions can change rapidly and may lead to significant price volatility. Market gaps (sudden price movements) can occur when markets open or close or during news announcements, which may result in prices significantly different from those displayed at the time of order placement.

4. Leverage and Margin Risks

Trading on margin or using leverage involves a high level of risk as it allows you to open positions larger than your invested capital. While leverage can magnify profits, it can equally magnify losses.

Key risks associated with leveraged trading include:

• You may lose more than your initial investment
• You may be required to deposit additional funds at short notice (margin calls)
• Your positions may be automatically closed if you do not maintain sufficient margin
• Small market movements can have a proportionally larger impact on your positions

You should closely monitor all open positions and maintain sufficient margin levels at all times. We strongly recommend using risk management tools such as stop-loss orders, although these are not guaranteed and may be subject to market gaps and slippage.

5. Liquidity Risk

Liquidity risk refers to the possibility that you may not be able to buy or sell an investment quickly enough to prevent or minimize a loss. Some financial instruments may become illiquid due to:

• Market conditions and volatility
• Reduced trading activity in specific instruments
• Market disruptions or exchange closures
• Trading halts or suspensions

During periods of reduced liquidity, you may experience wider spreads, slippage, or difficulty executing orders at desired prices. In extreme cases, it may not be possible to execute orders at all.

6. Technical and Operational Risks

Trading platforms rely on computer, internet, and mobile technology to operate. Technical issues and disruptions may occur, including:

• Hardware or software failures
• Internet connectivity issues
• System capacity constraints
• Cyber attacks and security breaches
• Power outages

These risks can affect your ability to access the platform, execute trades, or manage positions. They may also result in delays, failures, or errors in order execution.

While we maintain robust systems and backup procedures, technical disruptions can occur, and you should have alternative methods for managing your positions and contacting our support team in case of technical issues.

7. Currency Risk

When trading instruments denominated in a currency other than your base currency, you face currency exchange risk. Fluctuations in exchange rates may positively or negatively affect the value of your investment.

This risk applies to:

• Trading foreign currency pairs (Forex)
• Trading instruments priced in foreign currencies
• Depositing or withdrawing funds in a different currency than your account currency

Currency exchange rates can be highly volatile and are affected by numerous economic, political, and social factors. Even if the price of the financial instrument you're trading remains stable, you may experience gains or losses due to currency fluctuations.

8. Regulatory and Legal Risks

Financial markets are subject to regulatory oversight and legal frameworks that may change over time. These changes can affect:

• The instruments available for trading
• Trading conditions and requirements
• Tax treatment of trading activities
• Margin requirements and leverage limits
• The regulatory status of service providers

Additionally, the legal and regulatory status of certain financial instruments (particularly cryptocurrencies and digital assets) may be uncertain and subject to change. This could impact the validity or enforceability of trades or introduce new requirements and restrictions.

9. Specific Instrument Risks

Different financial instruments carry specific risks:

• Forex: High volatility, leverage risk, interest rate risk, and country risk.
• Cryptocurrencies: Extreme volatility, regulatory uncertainty, technological risks, and potential for market manipulation.
• Commodities: Supply and demand fluctuations, weather impacts, geopolitical risks, and storage costs.
• Stocks and Indices: Company-specific risks, sector risks, dividend risks, and corporate actions impact.
• Derivatives: Counterparty risk, complex valuation, and expiration risks.

You should ensure you understand the specific risks associated with the instruments you trade and consider consulting with a financial advisor before investing.