RISK DISCLOSURE STATEMENT
This brief statement does not disclose exhaustive risks involved in transactions of foreign exchange contracts and other major issues. In view of such risks, Clients shall only conduct transactions based on their understanding of the contractual nature, the contractual relationship to be established by Clients and the degrees of risk to be confronted by Clients. Some Clients may not be suitable for getting involved in foreign exchange contracts. Clients shall deliberate on whether the transaction would be suitable for them based on their experience, purpose, financial resources and other related situations, etc.
● Leverage effect. In leverage transactions, foreign exchange contracts are of high risk. Compared with the value of foreign exchange contracts, the value of initial margin is relatively low. The relatively less market fluctuation may lead to greater proportional impact on the funds deposited or to be deposited by clients, which may develop adversely or beneficially to Clients. Clients might loss all initial margin and any other deposits in order to maintain Clients’ position.
● Risk reduction orders and strategies. Issuing "stop-loss" or "price-limited" orders and other conditional orders, especially under very volatile market conditions, would not necessarily limit Clients’ losses within the expected amount because market conditions may lead to the impossible execution of such orders. The use of combined positions strategies such as “arbitrage” and “straddle trading” may be as dangerous as simply maintaining “long position” or “short position”.
● Charge of fees. Prior to any transaction, Clients should have a clear understanding of all the fees which might be charged. These charge of fees will affect Clients' net profits (if any) or increase losses of Clients.
● Electronic transactions. Transactions carried out by electronic trading systems are not only different from those of open outcry markets, but also different from other electronic trading systems. If Clients made transactions through electronic trading systems, Clients would face the risks associated with electronic trading systems, including any hardware and software breakdowns. The result of any system breakdowns may cause Clients’ orders not to be followed by Clients’ instructions or not to be executed at all. Since MetaFX cannot control the signal power, its reaction path, or the Internet path, the configuration of clients’ equipment or reliability of its connection, MetaFX cannot be liable for any communication breakdown, disorder or delay, in online transaction (via the Internet). In no event shall MetaFX be liable for speculative or anticipated damages for future potential profit losses.
● Limitation of liability. When clients accept any "original" trading system provided by MetaFX, MetaFX does not provide any express or implied warranty, including but not limited to the merchantability or any implied warranty of conforming to the specific purpose or application; any warranty for undisturbed timeliness; or any implied warranty caused during the transactions, the process or performance of transactions. In any case, MetaFX shall not be liable for any consequential, indirect, incidental, special or consequential loss or damage, including but not limited to any loss of business, earning or goodwill, etc. MetaFX is not liable for any service or transmission delay or interruption caused by any reason (including but not limited to hardware or software faults; regulatory measures; natural disasters; war, terrorism or intentional behavior, etc.). Clients accept that there may be delays or interruptions in the use of systems,including but not limited to any delay or disruption caused by MetaFX for the purpose of maintaining the system. MetaFX cannot guarantee to provide alternative trading arrangements in a specific time. MetaFX shall not be liable for any delay in placing any order.
● Margin. The margin policy of MetaFX requires that there shall be a reasonable margin in Client's account. Failure to meet margin requirements might result in termination and loss of any existing position. If the margin of an account is less than the minimum margin required by the margin policy of MetaFX, MetaFX reserves the right to terminate all positions without any prior notice.
● Quotation error. If the quotation errors occur (including but not limited to MetaFX input errors not representing the fair market price quotations, MetaFX quotation errors reported by MetaFX employees, including but not limited to large numbers of wrong quotations or wrong quotations caused by hardware, software or communication lines or systems and / or quotation error due to inaccurate external data sources provided by third party suppliers), MetaFX shall not be liable for any fault of the account balance. The above list is not exhaustive when quotation errors occur. MetaFX reserves the right to make necessary corrections or adjustments to the accounts involved. If there is a system error that interests or interest payments in accordance with the plan are not charged, MetaFX reserves the right to withdraw or distribute the interest at any time.
● The third party authorization. If Clients grant third party trading advisors (including but not limited to fund managers) the trading authority or rights of controlling accounts whether full authorization or non-full authority, in no case shall MetaFX be liable for or make any suggestion for Clients’ choices of any third party trading advisor. MetaFX does not make any statement or guarantee to any trading advisor; MetaFX is not responsible for any loss, which Clients may suffer and is caused by any trading adviser's conduct. MetaFX does not acknowledge any third party trading advisor’s trading methods either in explicit or implied way. If a Client authorized a fund manager to exercise any right to the Client’s account, the Client shall be at his/her own risks and the Client shall periodically check the activities of the account to ensure that any transaction operated by the fund manager has been approved by the Client.
● Risk disclosure in bankruptcy protection. Transactions conducted by Clients through MetaFX are different from other transactions conducted on the Exchange. The protection of Client's funds may be different from that of the funds with a priority in bankruptcy or the protection of futures and options contracts secured by the Exchange. The funds invested in OTC Forex trading and online derivatives contracts or other online trading products cannot obtain the same priority. For example, if MetaFX were insolvent while Clients lodged claim for deposits or profits from MetaFX, the claims of Clients as general creditors would not obtain the priority and thus Clients would be paid the remaining amount until after the payment of the claims with priority even if MetaFX separated its Clients’ funds from its own operating funds.
● Volatile market conditions. Transactions are sometimes subject to the volatile market. For example, the release of critical news may make Clients face additional risks, including but not limited to the risk that Clients may not be able to get the price they ask for. MetaFX cannot guarantee any price for any Clients in the volatile market.
● Transactions in demo accounts. Trading in demo accounts might be different from real transactions. Therefore, it should not be assumed that Clients trading in demo accounts would come across the same results in real transactions.
—— Meta Forex Markets LTD