Risk Disclosure

1. General Risk Warning

Trading in foreign exchange markets and CFDs carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange or any other financial instrument, you should carefully consider your investment objectives, level of experience, and risk appetite.

The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange and CFD trading and seek advice from an independent financial advisor if you have any doubts.

Past performance is not indicative of future results. The value of investments and the income derived from them can go down as well as up. You may not get back the amount you originally invested.

2. Leverage and Margin Risk

2.1 What is Leverage?

Leverage allows you to control a large position with a relatively small amount of capital. For example, with 1:100 leverage, you can control $100,000 worth of currency with just $1,000 in your account.

2.2 Risks of Leverage

While leverage can amplify profits, it also amplifies losses:

• Magnified Losses: Small adverse price movements can result in significant losses that exceed your initial deposit
• Margin Calls: If your account equity falls below required margin levels, we may close your positions without prior notice
• Rapid Losses: Market volatility can cause rapid losses, especially during news events or market gaps
• Negative Balance: In extreme market conditions, you may lose more than your initial deposit, resulting in a negative account balance

You should only use leverage if you fully understand the risks and can afford to lose the entire amount invested.

3. Market Risk

3.1 Price Volatility

Financial markets are inherently volatile. Prices can move rapidly and unpredictably due to:

• Economic news and data releases
• Political events and geopolitical tensions
• Central bank decisions and monetary policy changes
• Market sentiment and speculation
• Natural disasters and unexpected events
• Technical factors and market manipulation

3.2 Market Gaps

Market gaps occur when prices jump from one level to another without trading at intermediate prices. This can happen:

• Over weekends when markets are closed
• During major news announcements
• Due to low liquidity periods
• As a result of technical issues or system failures

Market gaps can result in orders being executed at prices significantly different from your intended entry or exit price, potentially causing substantial losses.

4. Liquidity Risk

Liquidity refers to the ability to buy or sell an asset quickly without significantly affecting its price. Liquidity risks include:

• Low Liquidity Periods: During certain times (e.g., market holidays, after-hours trading), liquidity may be reduced, leading to wider spreads and difficulty executing trades
• Exotic Instruments: Less commonly traded currency pairs or instruments may have lower liquidity, resulting in wider spreads and higher execution risk
• Market Stress: During periods of extreme market stress, liquidity can dry up completely, making it impossible to close positions
• Position Size: Large positions may be difficult to close without significant price impact

5. Execution and Slippage Risk

5.1 Slippage

Slippage occurs when your order is executed at a price different from the price you requested. This can happen due to:

• Market volatility and rapid price movements
• Low liquidity in the market
• Network latency or technical delays
• Market gaps or price jumps

5.2 Order Execution

While we strive to provide fast and accurate execution, we cannot guarantee:

• That orders will always be executed at the exact price displayed
• That all orders will be executed immediately
• That stop-loss and take-profit orders will be executed at the specified price
• Continuous availability of trading services without interruption

6. Counterparty and Credit Risk

When you trade CFDs, you enter into a contract with us as the counterparty. This creates counterparty risk:

• We may not be able to fulfill our obligations in extreme circumstances
• Your funds may be at risk if we become insolvent
• While we maintain segregated accounts, there is no guarantee of full protection
• Regulatory protections may vary by jurisdiction

You should understand that trading with us involves credit risk and that we are not a bank or deposit-taking institution.

7. Technical and Operational Risk

Trading online involves technical risks, including:

• System Failures: Trading platforms, servers, or networks may experience outages or failures
• Internet Connectivity: Your internet connection may be interrupted, preventing you from accessing your account or closing positions
• Software Errors: Trading software may contain bugs or errors that affect order execution
• Cyber Security: Systems may be vulnerable to hacking, malware, or other cyber threats
• Data Loss: Technical issues may result in loss of trading data or account information

We are not responsible for losses resulting from technical failures, internet connectivity issues, or other operational problems beyond our reasonable control.

8. Regulatory and Legal Risk

Trading activities are subject to regulatory oversight, and regulations may change:

• Regulatory changes may affect trading conditions, leverage limits, or available instruments
• Your jurisdiction may impose restrictions on CFD or forex trading
• Tax treatment of trading profits and losses may vary by jurisdiction
• Legal disputes may arise regarding trading activities or account terms
• Regulatory actions may affect our ability to provide services

You are responsible for understanding and complying with all applicable laws and regulations in your jurisdiction.

9. Currency Risk

If your account is denominated in a currency different from your base currency, you are exposed to currency risk:

• Exchange rate fluctuations can affect the value of your account balance
• Deposits and withdrawals may be subject to currency conversion fees
• Profits and losses may be affected by currency movements

10. Overnight Financing and Swap Charges

Positions held open overnight may be subject to swap or financing charges:

• Swap rates can be positive (you receive interest) or negative (you pay interest)
• Swap charges can accumulate over time, especially for long-term positions
• Swap rates are determined by interest rate differentials and market conditions
• Swap charges can significantly impact your trading profitability

You should understand swap charges before opening positions that you intend to hold overnight.

11. Recommendations for Risk Management

To manage trading risks, we recommend:

• Education: Learn about trading, market analysis, and risk management before trading with real money
• Start Small: Begin with small positions and gradually increase as you gain experience
• Use Stop-Loss Orders: Always use stop-loss orders to limit potential losses
• Diversify: Avoid concentrating all your capital in a single trade or instrument
• Risk Management: Never risk more than you can afford to lose
• Monitor Positions: Regularly monitor your open positions and account balance
• Keep Records: Maintain detailed records of your trading activities
• Seek Advice: Consult with independent financial advisors if needed

12. No Guarantee of Profit

We do not guarantee, represent, or warrant that you will achieve profits or avoid losses from trading. Trading results depend on many factors, including:

• Your trading skills and experience
• Market conditions and volatility
• Risk management practices
• Emotional discipline and psychological factors
• External factors beyond your or our control

Past performance, whether actual or indicated by historical tests of strategies, is not indicative of future results or performance.

13. Questions About Risks?

If you have questions about trading risks or need clarification, please contact us:

• Email: Support@pinakineliquidity.com
• Phone: +447454630174
• Address: Ground Floor, The Sotheby Building, Rodney Village, Rodney Bay, Gros-Islet, Saint Lucia