GENERAL RISK DISCLOSURE

Transcription

1 GENERAL RISK DISCLOSURE This ntice prvides yu with infrmatin abut the risks assciated with investment prducts, which yu may invest in thrugh services prvided t yu by etr Grup entities. etr prvides a wide range f investment services in relatin t a number f prducts thrugh its regulated entities etr (Eurpe) Ltd. authrised and regulated by the Cyprus Securities and Exchange Cmmissin (CySEC) and etr (UK) Ltd. authrised and regulated by the Financial Cnduct Authrity (FCA). Investment prducts ffered by etr include cntracts fr differences (CFDs) whse underlying assets are currencies, stcks, cmmdities, indices, exchange traded funds (ETFs) and cryptcurrencies. Any transactins relating t cryptcurrencies where etr ffers yu leverage (which is nt available currently) r allw yu t enter int shrt transactins and/r all cpy trading transactins (including CpyPrtfli) relating t Cryptcurrencies shall be CFD transactins. etr als ffers investrs the pprtunity t buy the underlying cryptcurrencies (i.e. buy transactin fr cryptcurrencies in leverage 1), hld such cryptcurrencies and subsequently sell such cryptcurrencies all subject t the Cryptcurrencies Trading Addendum ( Cryptcurrencies Trading Addendum ). Since Cryptcurrencies markets are decentralized and nn-regulated ur Cryptcurrencies Trading Services as such term is defined in the Cryptcurrencies Trading Addendum are unregulated services which are nt gverned by any specific Eurpean regulatry framewrk (including MIFID). Therefre, when etr (Eurpe) Ltd. custmers are using ur Cryptcurrencies Trading Service as well as Cryptcurrencies CFDs trading services they will nt benefit frm the prtectins available t clients receiving regulated investment services such as the access t the Investr Cmpensatin Fund fr Custmers f Cyprit Investment Firms and the Financial Ombudsman Service fr dispute reslutin. etr (Eurpe) Ltd. custmers will cntinue t benefit frm the rules relating t best executin and client mney and safekeeping f client assets. etr (UK) Ltd. custmers using the Cryptcurrencies Trading Service nly (and nt Cryptcurrencies CFDs Trading) will nt benefit frm the prtectins available t clients receiving regulated investment services such as the access t the Financial Services Cmpensatin Scheme (FSCS) and the Financial Ombudsman Service fr dispute reslutin. We will endeavr t enable yu t benefit frm rules relating t best executin and safekeeping f client assets. All these prducts carry a high degree f risk and are nt suitable fr many investrs. This ntice prvides yu with infrmatin abut the risks assciated with these prducts but it cannt explain all f the risks nr hw such risks relate t yur persnal circumstances. If yu are in dubt yu shuld seek prfessinal advice. It is imprtant that yu fully understand the risks invlved befre deciding t trade with etr and that yu have adequate financial resurces t bear such risks and that yu mnitr yur psitins carefully. Trading invlves risk t yur capital. Yu shuld nt invest mney that yu cannt affrd t lse, hwever yu cannt lse mre than the equity in yur accunt. 1

2 NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE TERMS AND CONDITIONS AND/OR THIS GENERAL RISK DISCLOSURE, FRENCH RESIDENTS SHALL BE ELIGIBLE TO AN INTRINSIC PROTECTION. ACCORDINGLY AND INDEPENDENTLY OF THE MARKET VOLATILITY, THEIR MAXIMUM LOSS WITH RESPECT TO EACH TRANSACTION SHALL BE THE TOTAL AMOUNT INVESTED IN SUCH TRANSACTION, AS UPDATED BY SUCH USER FROM TIME TO TIME. CFDs CFD stands fr Cntract Fr Difference, meaning yu are nt buying the underlying asset, but rather purchasing a cntract t settle the difference in the initial and ending price f the asset. When trading CFDs, yu generally trade n margin, which means yu nly have t depsit a small percentage f the verall value f yur psitin. This is knwn as Leverage, and even small market mvements may have great impact, negative r psitive n yur trading accunt. If the market mves against yu, yu may sustain a ttal lss greater than the funds invested in a specific psitin. Yu are respnsible fr all lsses n yur accunt up t the equity in yur accunt. Befre deciding t trade n margin yu shuld carefully cnsider yur investment bjectives, level f experience, and risk appetite Our CFDs are nt listed n any exchange. CFDs invlve greater risk than investing in n-exchange prducts, as market liquidity cannt be guaranteed and it may be mre difficult t liquidate an existing psitin. The prices and ther cnditins are set by us in accrdance with ur bligatin t prvide best executin as set ut in ur rder executin plicy, t act reasnably and in accrdance with the applicable Terms and Cnditins. The characteristics f ur CFDs can vary substantially frm the actual underlying market r instrument. Full details f all f ur CFDs are set ut n ur website. In respect f crprate events with respect t the underlying assets, We d nt aim t make a prfit frm ur clients frm the utcme f crprate events such as rights issues, takevers, mergers, share distributins r cnslidatins and pen ffers. We aim t reflect the treatment we receive, r, wuld receive if we were hedging ur expsure t yu in the underlying market. Ultimately hwever, yu are nt dealing in the underlying market and therefre in relatin t ur CFDs the treatment yu receive may be less advantageus than if yu wned the underlying instrument. CFDs are nt suited t the lng term investr. If yu hld a CFD pen ver a lng perid f time the assciated csts increase (such as vernight fees), and it may be mre beneficial t buy the underlying asset instead. Sudden market mvements, knwn as gapping may ccur, causing a dramatic shift in the price f an underlying asset. Gapping may ccur when the underlying market is clsed, meaning the price n the underlying market may pen at a significantly different level, and at a less advantageus price fr yu. At all times during which yu have pen psitins, yu must ensure that yur accunt meets Our margin requirements, which may change frm time t time. Therefre, if ur price mves against yu r if ur margin requirements have changed, yu may need t prvide us with significant additinal funds t meet yur margin requirement, at shrt ntice, t maintain yur pen psitins. If yu d nt d this, we will be entitled t clse ne r mre r all f yur psitins and Yu alne will be respnsible fr any lsses incurred as a result. 2

3 Apprpriateness Befre we pen an accunt fr yu, we are required t make an assessment f whether the prduct(s) and/r services yu have chsen are apprpriate fr yu, and t warn yu if, n the basis f the infrmatin yu prvide t us, any prduct r service is nt apprpriate. If yu decide t cntinue and pen an accunt with us, yu are cnfirming that yu are aware f and understand the risks. Psitin Mnitring Yu shuld further ensure yu are able t mnitr psitins n yur accunt at all times, as yu are slely respnsible fr this. We are nt respnsible fr mnitring psitins n yur accunt. Executin Althugh the etr trading platfrm is autmated and we are giving yu the best executin available, it is pssible that the market price culd have changed between rder placement and executin time, and therefre we cannt guarantee that the price requested will be the same as the price that the rder is executed, the price yu receive can be in yur favur r against yu. T limit lsses, we require yu t chse stp lss limits. These set limits t autmatically clse yur psitin when it reaches a price limit f yur chice. There are hwever circumstances in which a stp lss limit is nt fully effective fr example, where there are rapid price mvements, r market clsure. In additin, there are risks assciated with use f nline deal executin and trading systems including, but nt limited t, sftware and hardware failure and internet discnnectin. Cpy Trading etr ffers Scial Trading Features. In making a decisin t Cpy a specific trader r traders and/r fllw a particular strategy, Yu must cnsider yur entire financial situatin including financial cmmitments and yu understand that using Scial Trading Features is highly speculative and that yu culd sustain significant lsses exceeding the amunt used t cpy a trader r traders. The risks assciated with Scial Trading Features, include but are nt limited t, autmated trading executin whereby the pening and clsing f trades will happen in yur accunt withut yur manual interventin. Yu can read mre abut the cpy trading risks here. Cryptcurrencies Trading risks Since Cryptcurrencies markets are decentralized and nn-regulated ur Cryptcurrencies Trading Services are unregulated services which are nt gverned by any specific Eurpean regulatry framewrk (including MIFID). This means that there is n central bank that can take crrective measure t prtect the value f Cryptcurrencies in a crisis r issue mre currency. Therefre, when etr (Eurpe) Ltd. custmers are using ur Cryptcurrencies Trading Service as well as Cryptcurrencies CFDs trading services they will nt benefit frm the prtectins available t clients receiving regulated investment services such as the access t the Investr Cmpensatin Fund fr Custmers f Cyprit Investment Firms and the Financial Ombudsman Service fr dispute reslutin. etr (Eurpe) Ltd. custmers will cntinue t benefit frm the rules relating t best executin and client mney and safekeeping f client assets. 3

4 etr (UK) Ltd. custmers using the Cryptcurrencies Service nly (and nt Cryptcurrencies CFDs Trading) will nt benefit frm the prtectins available t clients receiving regulated investment services such as the access t the Financial Services Cmpensatin Scheme (FSCS) and the Financial Ombudsman Service fr dispute reslutin. We will endeavr t enable yu t benefit frm rules relating t best executin and safekeeping f client assets. CRYPTOCURRENCIES MARKETS ARE DETERMINED BY DEMAND AND SUPPLY ONLY. The Cryptcurrencies market is a dynamic arena and their respective prices are ften highly unpredictable and vlatile. The prices f Cryptcurrency is usually nt transparent and highly speculative and susceptible t market manipulatin. In the wrst case scenari the prduct culd be rendered wrthless. It is imprtant t make a distinctin between indicative prices which are displayed n charts and dealable prices which are displayed n ur trading platfrm. Indicative qutes nly give an indicatin f where the market is. Because the Cryptcurrencies markets are decentralized, meaning it lacks a single central exchange where all transactins are cnducted, each market maker may qute slightly different prices. Therefre, any prices displayed n any chart made available by us r by a third party will nly reflect "indicative" prices and nt necessarily actual "dealing" prices where trades can be executed. Cryptcurrency trading is prne t being misused fr illegal activities due t the annymity f transactins and investrs wuld be adversely affected if law enfrcement agencies investigate ay alleged illicit activities. ACCORDINGLY, CRYPTOCURRENCIES SHOULD BE SEEN LIKE AS AN EXTREMELY HIGH RISK ASSET AND YOU SHOULD NEVER INVEST FUNDS THAT YOU CANNOT AFFORD TO LOSE. Given the freging, Cryptcurrencies are nt apprpriate fr all investrs. Yu shuld nt deal in these prducts unless yu have the necessary knwledge and expertise, yu understand these prducts characteristics and yur expsure t risk. Yu shuld als be satisfied that the prduct is suitable fr yu in light f yur circumstances and financial psitin. In additin, use f ur Services can never be cnsidered a safe investment rather nly an investment with a high risk f lss inherently assciated with it. Furthermre, ur wn spread is added t nline qutes which makes a trade n ur websites even mre vlatile. The risk f lss in trading Cryptcurrencies can be substantial. Yu shuld, therefre, carefully cnsider whether such trading is suitable fr yu in light f yur circumstances and financial resurces. Yu shuld be aware that Yu may sustain a ttal lss f the funds in yur Accunt. If the market mves against yur psitin, yu may be called upn by us t prvide a substantial amunt f additinal margin funds, n shrt ntice, in rder t maintain yur psitin. If yu d nt prvide the required funds within the time required by us, yur psitin may be liquidated at a lss, and yu will be liable fr any resulting deficit in yur accunt. etr currently allws trading in cryptcurrencies ver the weekend and it reserves the right nt t d s. Shuld etr s elects, trading in cryptcurrencies shall be allwed nly frm Mnday thrugh Friday. Given that the cryptcurrencies exchanges may perate ver weekends, there may be a significant difference between Friday's clse and Sunday's pen. All such factrs may result in yu either nt cmpleting an rder n a specific trading day r cmpleting an rder n a substantially less favrable price. Under certain market cnditins, yu may find it difficult r impssible t liquidate a psitin. This can ccur, fr example, when the market reaches a daily price fluctuatin limit ("limit mve"), 4

5 if there is insufficient liquidity in the market. Blckchain Risks. Since blckchain is an independent public peer-t peer netwrk and is nt cntrlled in any way r manner by the etr, etr shall nt be respnsible fr any failure and/r mistake and/r errr and/r breach which shall ccur in blckchain r in any ther netwrks in which the Cryptcurrencies are being issued and/r traded. Yu will be bund and subject t any change and/r amendments in the blckchain system and subject t any applicable law which may apply t the blckchain. We make n representatin r warranty f any kind, express r implied, statutry r therwise, regarding the Blckchain functinality nr fr any breach f security in the Blckchain. Operatin f Cryptcurrency Prtcls. etr des nt wn r cntrl the underlying sftware prtcls which gvern the peratin f Cryptcurrencies available fr trading n ur platfrm. In general, the underlying prtcls are pen surce and anyne can use, cpy, mdify, and distribute them. etr is nt respnsible fr peratin f the underlying prtcls and etr makes n guarantee f their functinality, security, r availability. The underlying prtcls are subject t sudden changes in perating rules ( Frks ), and such Frks may materially affect the value, functin, and/r even the name f the Cryptcurrency etr hlds fr yur benefit. In the event f a Frk, etr may temprarily suspend etr peratins (with r withut advance ntice t yu) and that etr may (a) cnfigure r recnfigure its systems r (b) decide nt t supprt (r cease supprting) the Frked prtcl entirely. etr may, but is nt bligated t d s, adjust yur accunt in respect f a Frk depending n the circumstances f each event attributable t any specific Cryptcurrency held by Yu. Third Parties Risks. We may elect t execute any rder and/r hld any fiat mney and Cryptcurrencies via Third Parties. Such Third Parties are nt banks that hld their fiat mney/virtual currency as a depsit. If any such Third Party lses any mney, fails r ges ut f business, there is n specific legal prtectin that cvers yu fr lsses arising frm any funds yu may have held with such Third Party, even when such party is registered with a natinal authrity. Depending n the structure and security f the digital wallet, sme may be vulnerable t hacks, resulting in the theft f virtual currency r lss f custmer assets. etr will nt be respnsible in the event f lsses caused by thse Third Parties. Delisting and/r unsupprted Cryptcurrencies: If at any time any f the Cryptcurrencies that frms the subject f yur rder is delisted and/r we n lnger supprt the trading in such Cryptcurrencies fr any reasn, then the applicable rder will be immediately clsed. If etr is ntified that a Cryptcurrency yu hld in yur Accunt is likely t be delisted and/r remved and/r canceled frm any f the exchanges (sme f them r all) and etr believes that it shall nt be able t trade in such Cryptcurrencies, etr shall make an effrt t sell the Cryptcurrencies n yur behalf at such time and price, and in such manner, as it determines. Autmated Trading & Internet Risks While trading n ur website and/r applicatins, system errrs might ccur. Yu shuld be aware f the risks that may result frm any system failure which culd mean that yur rder may be delayed r fail. Yu acknwledge that there are risks assciated with utilizing an Internet-based trading system including, but nt limited t, the failure f hardware, sftware, and Internet cnnectins, the risk f malicius sftware intrductin, the risk that third parties may btain unauthrized access t infrmatin and/r assets (including yur Cryptcurrencies) stred n yur behalf, cyber-attack, the Cryptcurrency netwrk failure (such as blckchain), cmputer viruses, cmmunicatin failures, disruptins, errrs, distrtins r 5

6 delays yu may experience when trading via the Services, hwsever caused, spyware, scareware, Trjan hrses, wrms r ther malware that may affect yur cmputer r ther equipment, r any phishing, spfing r ther attack. Yu shuld als be aware that SMS and services are vulnerable t spfing and phishing attacks and shuld use care in reviewing messages purprting t riginate frm etr. Fees and Csts Our fees and charges are set ut n ur website etr.cm under the Fees sectin. Please be aware f all csts and charges that apply t yu, because such csts and charges will affect yur prfitability. Infrmatin Any pinins, news, research, analyses, prices, r ther infrmatin cntained n this website are prvided as general market cmmentary, and d nt cnstitute investment advice. etr shall nt be respnsible fr any lss arising frm any investment based n any recmmendatin, frecast r ther infrmatin prvided. Past Perfrmance Past perfrmance is nt an indicatin f future perfrmance. The value f investments can g dwn as well as up. Currency Risk Yur accunt with etr will be held in USD which may be different frm the currency yu used t depsit, accrdingly yu shuld be aware f currency fluctuatins. 6