Risk Disclosure

1. INTRODUCTORY PROVISIONS

In accordance with the Financial Advisory & Intermediary Services Act 2002, we furnish you with this notice, which outlines essential details concerning the risks related to trading Contracts for Difference (“CFDs”), Spread Bets, and other financial derivative products. It is crucial to recognize that this notice does not encompass all potential risks and significant aspects associated with engaging in CFDs, spread bets, or any other financial derivative products. Therefore, we advise you to exercise due diligence, seek professional advice, and carefully consider the risks before proceeding with such trading activities.

2. PURPOSE

The purpose of this Risk Disclosure Policy (“the Policy”) is to provide clear and comprehensive information to clients and potential clients of Traze regarding the risks associated with trading Contracts for Difference (CFDs), Spread Bets, and other financial derivative products. This Policy aims to:

(a) Ensure that all clients and potential clients are fully informed about the inherent risks in the products and services provided by Traze .

(b) Promote a deeper understanding of the nature and complexities of the financial instruments offered by the institution.

(c) Foster informed decision-making by clients based on their understanding of the risks, their personal financial situation, investment objectives, and experience.

(d) Ensure compliance with regulatory requirements and industry best practices relating to the provision of information on investment risks.

(e) Uphold the commitment of Traze to act in the best interests of its clients by offering transparent and relevant information.

By understanding the potential risks and rewards, clients are better positioned to make educated decisions about their investment strategies and choices, ensuring alignment with their individual risk tolerance and financial objectives. This Policy is an integral part of our commitment to maintaining the highest standards of transparency, trust, and ethical behavior in all our dealings.

3. APPLICATION

The provisions and guidelines outlined in this Risk Disclosure Policy apply to:

(a) All clients and potential clients of Traze who engage in, or intend to engage in, trading Contracts for Difference (CFDs), Spread Bets, and other financial derivative products offered by the institution.

(b) All transactions, agreements, and contracts entered into by Traze pertaining to CFDs, Spread Bets, and financial derivative products, irrespective of the transaction size or nature.

(c) All digital, online, and offline platforms operated by or associated with Traze used for trading or information dissemination relating to CFDs, Spread Bets, and other financial derivative products.

(d) All Traze personnel, including but not limited to, brokers, advisors, managers, and support staff, who are involved in offering, advising, or managing CFDs, Spread Bets, and other derivative products for clients.

The Risk Disclosure Policy shall remain effective and binding unless revised, amended, or superseded by a subsequent policy or by regulatory changes. Clients are encouraged to familiarize themselves with this Policy and consult it periodically to stay informed about the risks associated with their trading activities.

Any exceptions or deviations from this Policy must be approved in writing by the senior management of Traze and should be justifiable based on exceptional circumstances or regulatory requirements.

4. GENERALADVICEWARNING

Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances including financial position, investment experience and objective. Past performance does not guarantee future performance. Investors should carefully consider the details and risks involved before making any investment decision and should seek independent professional advice when necessary. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.

5. WARNING: RISKS OF TRADING CONTRACTS FOR DIFFERENCE (CFDS)

Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. You may be required to make further deposits to meet your margin requirements. You should consider whether you understand how CFDs work and whether you can afford to take the risk.

The prices of CFDs may fluctuate, and the price of any CFD may go up and down, and in some cases may even become valueless. Risks are inherent in CFD trading, and sometimes losses will occur instead of making profit. Traze staff are unable to guarantee the accuracy of any market predictions (should they offer such predictions) and cannot guarantee a maximum loss that you may suffer.

Different types of products also have different risks according to their structure and characteristics; therefore, customers are advised to have a detailed understanding of product features before investment, and to seek professional advice when necessary.

6. WARNING: INTERNET TRADING RISKS

(a) Because of the characteristics of internet trading and its inherent risks, when using the Internet to carry out transactions or communications, interruptions may occur and transmission may be cancelled or delayed due to various factors, or errors may occur in data transmission due to the public nature of the Internet or otherwise.

(b) When dealing through the electronic trading system, customers will take the risks associated with the electronic system, including the risk of hardware and software failures, and as the consequence of any system failure, customers’ instructions may not able to be executed as instructed or may not be executed at all.

(c) Customers should ensure that their computers have been equipped with adequate software and hardware to prevent their online transaction information from being stolen or leaked as a result of malicious or computer virus intrusions into their computers.

(d) Customers have a duty to safeguard their own passwords. Traze is not responsible for unauthorized access to your Internet trading account due to your failure in safeguarding the password.

7. LEVERAGE AND MARGIN REQUIREMENTS

(a) Before initiating a trade involving CFDs or other financial derivative products, clients are obligated to deposit funds with the Company as a margin. This margin typically represents a small fraction of the total contract value, allowing the client to trade using “leverage.” As a result, even minor market fluctuations can lead to significantly larger changes in the value of the client’s position, which can either benefit or adversely affect the client.

(b)It’s imperative that clients always maintain the necessary equity in their accounts, factoring in all accumulated profits and losses, to meet margin requirements. Should market prices move against the client’s position, they must promptly deposit additional funds to prevent margin calls. If the client fails to do so, the Company reserves the right to close any, or all, of the client’s trades (including those currently in profit) irrespective of the client’s consent or disagreement with such actions.

8. TAX CONSIDERATIONS

It’s essential to be aware of the tax implications related to profits, gains, or losses resulting from trading CFDs or other financial derivative instruments. We strongly encourage consulting with a qualified tax advisor to obtain accurate and tailored tax guidance.

9. CLIENT’SACKNOWLEDGEMENT

The client hereby acknowledges and declares the following:

(a) They have read and comprehended all the information provided in this Risk Disclosure Policy.

(b) They accept, without reservation, the details and risks outlined in this policy, including but not limited to:

• The potential decrease in the value of the financial instrument (be it CFD or any other derivative product), which might result in receiving less money than what was initially invested. There’s also a possibility that the invested capital could become valueless.
• Past performance of a financial instrument does not indicate or guarantee its present and/or future performance. Historic data should not be regarded as a binding or secure forecast for future returns of the associated financial instruments.
• Certain financial instruments may not be immediately liquid due to various reasons such as reduced demand. Consequently, Traze might not be able to promptly sell them or readily obtain information concerning their value or the associated risks.
• Engaging in a financial instrument that’s denominated in a currency different from the client’s home currency can expose the client to exchange rate risks. Variations in exchange rates might adversely impact the instrument’s value, price, and overall performance.
• Transactions involving foreign market financial instruments might carry risks different from or greater than those in the client’s home country. Profits or losses from these transactions can also be affected by foreign exchange rate fluctuations.

By acknowledging this section, the client confirms their understanding of the inherent risks associated with trading in CFDs, Spread Bets, and other financial derivative products as described in this policy.