GrandMarkets / en-US

Risk Disclosure

I. Introduction

1. This Risk Disclosure and Acknowledgement Notice (the “Notice”) is provided by GrandMarkets Limited, a licensed securities trader regulated by the Comoros Financial Services Authority (Regulatory Number: L 15998/GML).

2. This Notice is intended to inform the Client of the general risks associated with trading via our Services, including the use of any third-party trading systems. The Notice is nonexhaustive and does not disclose every risk related to our Services. The Client acknowledges that any loss or damage arising from the Client’s failure to fully understand these risks or from risks not disclosed herein shall be solely the Client’s responsibility.

3. The Client is required to read this Notice carefully prior to opening an account. By proceeding to trade our Services, the Client confirms that they fully understand and accept all associated risks and agree that any investment strategies, transactions, or investments entered into are solely at the Client’s risk. Should the Client be uncertain about any risks described herein, independent professional advice should be obtained before proceeding.

4. GrandMarkets Limited reserves the right to amend or update this Notice at any time without prior notice to the Client. Any amendments will become effective immediately upon posting on our website and will be binding on the Client. It is the Client’s responsibility to review the Notice regularly.

5. The official language of this Notice is English. Translations provided for reference are not binding; in the event of any discrepancies, the English version shall prevail.

II. Definitions and Interpretation

Unless the context requires otherwise, the following terms shall have the meanings set forth below:

Client Agreement: The agreement entered into between the Client and GrandMarkets Limited.
Client Asset: All cash, cash equivalents, and digital currencies, including but not limited to cash, cheques, bonds, securities, real estate, collateral, insurance money/policies, electronic money, and other financial instruments transferred to GrandMarkets Limited by the Client.
Corporate Event: Any occurrence where a company in which the Client has invested undergoes insolvency, trading suspension, or major restructuring (including share buybacks, takeovers, mergers, or acquisitions).
GrandMarkets Limited: A licensed securities trader based in Comoros, regulated by the Comoros Financial Services Authority (Regulatory Number: L 15998/GML).
Equity: The cash balance within the Client’s account plus the value of all open positions, including their cumulative profit or loss.
Fees: All applicable commissions, charges, and costs as provided on the Trading Platform, including but not limited to settlement fees, exchange fees, regulatory levies, legal fees, and swap fees.
Free Margin: The available margin not tied up as security for open positions, calculated as:Free Margin = Equity ‒ Margin.
Force Majeure Event: Any event listed under the applicable Force Majeure provisions in the Client Agreement.
Initial Margin: The minimum amount required in the Client’s account to execute a Transaction, as specified on the Trading Platform.
Manifest Error: Any error or misquote attributable to GrandMarkets Limited, any exchange, bank, information source, or any third party reasonably relied upon by GrandMarkets Limited.
Margin: The total of the Initial Margin and any additional Margin Requirement.
Margin Level: Calculated as (Equity / Margin × 100%).
Margin Call: The level of Margin Level, as provided on the Trading Platform, at which additional funds are required.
Margin Requirement: The minimum funds that must be maintained in the Client’s account to keep a Transaction open, as specified on the Trading Platform.
Material: Any information or documentation provided by third parties or by GrandMarkets Limited.
Party: Either the Client or GrandMarkets Limited (collectively, the “Parties”).
Relevant Regulatory Authorities: Refers exclusively to the Comoros Financial Services Authority.
Services: The dealing services provided by GrandMarkets Limited via its electronic Trading Platform.
Specified Default Event: Any event outlined in the Client Agreement that constitutes a default.
Stop Loss: An order designed to close an open position automatically at a predetermined price level to limit losses.
Stop Out: The automatic closing of open positions when the Margin Level reaches the prescribed limit, without prior notice to the Client.
Trading Platform: The electronic trading system provided by GrandMarkets Limited.
Transaction(s): The opening, closing, or modification of trades, orders, or positions; as well as deposits, withdrawals, internal fund transfers, and all other related fund movement activities.

Any terms not defined herein shall have the meanings provided in the Client Agreement.

III. Third Party Risks

1. Delegation and Collaboration

To fulfill its contractual obligations, GrandMarkets Limited may delegate certain functions to third-party service providers. The Client acknowledges and agrees to such delegation.
Electronic trading systems are subject to the terms and regulations imposed by the system providers. It is the Client’s responsibility to review and understand these terms prior to use.

2. System Reliability

Due to potential technical failures, data transmission delays, or third-party system outages, transactions may not be executed as intended. GrandMarkets Limited shall not be held liable for any losses incurred due to such issues.

3. Custody of Client Assets

Client Assets are held in trust by GrandMarkets Limited. However, these assets may be commingled with funds from other Clients. In the event of third-party or financial institution insolvency, misappropriation, or other risks, the Client shall bear any resulting loss.

4. Third Party Conflicts

Any conflicts of interest arising from third-party financial institutions or service providers shall not impose any liability on GrandMarkets Limited.

1. Leverage Risk

The Client acknowledges that margin trading carries an extremely high risk, and losses may exceed the funds deposited in the account.

2. Margin Requirements

Prior to executing any Transaction, the Client must provide the required Initial Margin as specified on the Trading Platform. Should the Free Margin fall below the required level, GrandMarkets Limited reserves the right to reject new orders or force the closure of existing positions without prior notice.

3. Additional Margin and Fund Transfers

In the event that a Margin Call is triggered, the Client must deposit additional funds within the stipulated period. Failure to do so may result in the forced liquidation of positions at market prices, with any shortfall being recovered from the Client’s other funds. GrandMarkets Limited shall not be liable for any resulting losses.

4. Reservation of Rights

GrandMarkets Limited reserves the right to adjust the Initial Margin, Margin Level, and Margin Requirement at any time, effective immediately upon publication on the Trading Platform, without constituting a breach.

V. General Risk Acknowledgement

1. Assumption of Risk

The Client confirms that they have fully understood the high-risk nature of the trading products offered, including the possibility of rapid and significant losses, and acknowledges that all trading decisions are made solely based on their own evaluation of market conditions, financial circumstances, and investment objectives.

2. No Investment Advice

The information provided via our Services, website, or by any representative of GrandMarkets Limited does not constitute investment, tax, legal, or financial advice. The Client must not rely on such information when making trading decisions.

3. Incomplete Information

Historical market data or performance records do not guarantee future results. All transactions involve inherent uncertainty, and GrandMarkets Limited shall not be liable for any losses arising from inaccurate or incomplete information.

4. Limitation of Liability

Except in cases of gross negligence or willful misconduct, GrandMarkets Limited shall not be liable for any direct or indirect losses, including lost profits or trading opportunities, incurred by the Client.

VI. Specific Trading Risks

6A. Risks in Trading Foreign Currencies and Metals

1. Trading in foreign currencies and precious metals is subject to extreme volatility due to fluctuations in exchange rates and market conditions. The Client must be aware of and accept these specific risks.
2. Unforeseeable market conditions may result in significant losses, reduced liquidity, or execution delays, and any such losses shall be borne solely by the Client.

6B. Futures Trading Risks

1. Futures are standardized contracts requiring delivery at a future date. Due to leverage, even minor price fluctuations can lead to substantial gains or losses.
2. Failure to meet margin calls may result in the forced liquidation of positions, with all losses arising therefrom being solely the Client’s responsibility.

6C. Equity Trading Risks

1. Although equities are generally less volatile compared to other instruments, factors such as market supply and demand, company performance, and liquidity may cause significant price fluctuations, potentially leading to considerable losses within a short period.
2. The Client accepts that any losses incurred from equity trading, including those due to liquidity issues or market fluctuations, shall be solely borne by the Client.

6D. CFD Trading Risks

1. Trading Contracts for Difference (CFDs) allows the Client to speculate on price movements with a relatively low margin deposit, but it carries high leverage risk. Even minor price movements can result in disproportionate gains or losses.
2. The Client acknowledges that:
- CFDs are not suited for long-term investments, and holding positions may incur additional financing or swap fees, along with risks of slippage during volatile market conditions;
- CFD trading involves only the price differential of the underlying asset, with no ownership rights or voting rights conferred;
- All relevant costs, including swap fees, are charged separately to the Client’s account;
- In conditions of low market liquidity or abnormal price fluctuations, transactions may not be executed at the anticipated price, and any resulting loss shall be solely the Client’s responsibility.

VII. Other Supplementary Provisions

1. Force Majeure and Other Disclaimers

The Client agrees that GrandMarkets Limited shall not be liable for any delays, errors, or losses arising from events beyond its reasonable control, including but not limited to force majeure events, network failures, system outages, or third-party errors.

2. Reservation of Rights and Unilateral Adjustments

The Client acknowledges that GrandMarkets Limited reserves the right to unilaterally modify trading conditions, margin standards, risk management measures, or any provisions of this Notice at any time, without such modifications constituting a breach of any agreement.

3. Client Responsibility

The Client confirms that they possess adequate financial resources, risk tolerance, and expertise to independently evaluate and assume all risks associated with the use of our Services. All trading activities are conducted at the Client’s own risk, and GrandMarkets Limited shall not be liable for any losses incurred.

By using the Services of GrandMarkets Limited, the Client confirms that they have read, understood, and accepted the risks and terms outlined in this Notice. Should the Client have any questions or require further clarification, it is their responsibility to seek independent professional advice. GrandMarkets Limited shall not be responsible for any losses or damages incurred by the Client.

Disclaimer

This Notice does not constitute investment advice, nor does it guarantee future market performance. The Client is advised to carefully consider their own financial circumstances before making any trading decisions.GrandMarkets retains the final right of interpretation.