Risks Disclosure Notice

1. Disclosure

1.1. This Risk Disclosure Notice (“Notice”) forms part of the Terms and Conditions entered into between Luramic Ltd (the “Company”) and the Client.

1.2. The purpose of this Notice is to provide the Client with information regarding the nature of the Services, Financial Products and Transactions offered by the Company and to highlight certain risks associated with entering into Transactions with the Company.

1.3. This Notice does not disclose or explain all risks associated with the Services, Financial Products or Transactions offered by the Company and should not be considered exhaustive. The Client should carefully consider whether the Services, Financial Products and Transactions offered by the Company are appropriate in light of the Client’s investment objectives, financial circumstances, business requirements, experience, knowledge and risk tolerance.

1.4. The Client should not enter into any Transaction unless it fully understands the nature of the Transaction, the contractual arrangements governing the Transaction and the extent of its potential exposure to loss.

1.5. The Client acknowledges that trading in Financial Products involves significant risk and that losses may be substantial.

2. No Investment Advice

2.1. The Company provides its Services on an execution-only basis unless expressly agreed otherwise in writing.

2.2. The Company does not provide investment advice, legal advice, tax advice, accounting advice, portfolio management services or personal recommendations.

2.3. Any market commentary, research, analysis, pricing information, market data, opinions or other information provided by the Company is provided solely for informational purposes and shall not constitute investment advice, a recommendation, an offer, solicitation or invitation to enter into any Transaction.

2.4. The Client remains solely responsible for all investment, trading and risk management decisions.

3. Suitability of Transactions

3.1. The Client is responsible for independently assessing the suitability, appropriateness and risks of any Transaction.

3.2. The Company does not guarantee that any Transaction, Financial Product, trading strategy or risk management approach is suitable for the Client.

3.3. The Client should obtain independent professional advice where necessary.

4. General Market Risk

4.1. Financial markets are subject to rapid and unpredictable fluctuations.

4.2. The value of Financial Products may rise or fall due to numerous factors, including economic conditions, interest rates, inflation, political developments, regulatory changes, market sentiment, geopolitical events, natural disasters, public health emergencies, technological failures and force majeure events.

4.3. Past performance is not indicative of future results.

4.4. The Client may sustain substantial losses, including the loss of all capital committed to a Transaction.

5. Leverage Risk

5.1. Certain Financial Products may be traded on a leveraged basis.

5.2. Leverage can magnify both profits and losses.

5.3. A relatively small movement in market prices may have a disproportionately large effect on the value of a Transaction and on the Client’s account balance.

5.4. The Client may lose substantially more than would be the case if the Transaction were not leveraged.

6. Margin Risk

6.1. The Client may be required to maintain Margin and collateral at all times.

6.2. Failure to satisfy Margin Requirements may result in:

6.3. The Company may amend Margin Requirements, collateral requirements and risk limits at any time where considered necessary for risk management purposes. The Company reserves the right to adjust margin requirements for any product that we may offer. This may result in your margin requirement increasing and you may therefore be required to deposit additional funds to maintain existing positions.

7. Position Monitoring

7.1. It is your responsibility to monitor your account at all times. Should the net value of the account (cash plus running profits minus running losses) fall below the margin required, we may close some or all of your trades at the current market price. This should not however be taken as a guarantee, and it is your responsibility to ensure that sufficient funds are on your account at all times.

8. Liquidity Risk

8.1. Certain markets and Financial Products may become illiquid or experience reduced liquidity.

8.2. During periods of market stress, volatility or disruption, the Client may be unable to:

8.3. Liquidity conditions may change rapidly and without notice.

8.4. The Company does not guarantee the continuous availability of liquidity.

9. Price Volatility And Market Gap Risk

9.1. Prices may move rapidly and substantially.

9.2. Market gaps may occur where prices move from one level directly to another without trading at intermediate levels.

9.3. Such movements may occur during periods of market stress, outside normal trading hours, following significant announcements or due to geopolitical events.

9.4. Stop Loss Orders, Limit Orders and other risk management tools may not operate at the requested price and may not limit losses to anticipated amounts.

10. Execution Risk

10.1. The execution of Orders is subject to market conditions and liquidity availability.

10.2. The Client acknowledges that:

  1. orders may be rejected, delayed, partially executed or cancelled;
  2. execution prices may differ from quoted or requested prices;
  3. slippage may occur in both favourable and unfavourable directions;
  4. market conditions may prevent execution at the requested price;
  5. delays in communication systems may affect execution quality;
  6. execution may be unavailable during periods of exceptional market activity.

10.3. The Company does not guarantee execution at any particular price or within any specified timeframe.

11. Counterparty Risk

11.1. Transactions entered into with the Company or through the Company expose the Client to the creditworthiness, financial standing and operational reliability of counterparties.

11.2. The insolvency, default, suspension, restructuring, operational failure or financial deterioration of any counterparty, liquidity provider, prime broker, clearing institution, exchange, custodian, settlement institution, payment service provider, correspondent bank or other third party may result in losses.

11.3. The Company shall not be responsible for the insolvency or default of third parties beyond its reasonable control.

12. Liquidity Provider And Prime-Of-Prime Risks

12.1. The Client acknowledges that the Company may source pricing, liquidity, market access, execution services and hedging arrangements from one or more liquidity providers, prime brokers, market makers, exchanges, electronic communication networks or other counterparties.

12.2. The availability and quality of the Company’s Services may depend upon such third parties.

12.3. The Client acknowledges and accepts that:

  1. liquidity providers may suspend, restrict, amend or withdraw liquidity at any time;
  2. liquidity providers may reject, re-price, partially fill or cancel Orders;
  3. market depth may reduce significantly during periods of volatility;
  4. spreads may widen substantially and unexpectedly;
  5. quotations may become unavailable, delayed or withdrawn;
  6. aggregated pricing may differ from underlying market prices;
  7. liquidity providers may experience operational, technological or financial difficulties;
  8. bridge failures, aggregation engine failures, routing failures, connectivity disruptions or pricing feed interruptions may affect execution and pricing;
  9. the Company may be unable to provide continuous access to liquidity under certain market conditions; and
  10. the insolvency, default or suspension of a liquidity provider or prime broker may adversely affect the Company's ability to provide Services.

12.4. The Company does not guarantee uninterrupted access to liquidity, execution venues or pricing sources.

13. Foreign Exchange Risk

13.1. Transactions involving foreign currencies are subject to exchange rate fluctuations.

13.2. Currency movements may materially affect:

13.3. Currency conversions may result in additional costs and losses.

14. Technology And System Risk

14.1. Trading Platforms, APIs, FIX connections, software applications, communication systems, telecommunications networks, cloud services, internet connections and hardware infrastructure may fail, become unavailable, experience delays or operate incorrectly.

14.2. Such failures may result in:

14.3. The Company does not guarantee uninterrupted access to any Trading Platform or system.

15. Algorithmic And Automated Trading Risk

15.1. The use of APIs, FIX connections, Expert Advisors, automated trading systems, algorithmic trading strategies, quantitative models, artificial intelligence systems or other automated tools involves significant risk.

15.2. Programming errors, configuration failures, software defects, connectivity interruptions, data feed errors or flawed trading logic may result in substantial losses.

15.3. The Client remains fully responsible for all Orders generated through automated systems.

16. Operational Risk

16.1. Operational failures, human error, process failures, fraud, misconduct, cyber incidents, security breaches, settlement failures, reconciliation errors, internal control failures or third-party service disruptions may adversely affect Transactions and Services.

16.2. Such events may result in delays, losses or inability to perform contractual obligations.

17.1. Changes in applicable laws, regulations, sanctions regimes, regulatory interpretations, exchange rules, tax laws or governmental actions may adversely affect Transactions and Services.

17.2. The Company may be required to suspend, reject, amend, restrict or terminate Transactions or Services in order to comply with applicable legal or regulatory obligations.

17.3. The Client may incur losses as a result of such actions.

18. Segregated Accounts

18.1. The Company is required to hold client funds in segregated trust accounts in accordance with the requirements set forth by the FSC, but this may not afford complete protection. While we monitor the creditworthiness of our banks closely and select them on the basis of robustness and solidity, this does not mean that they are risk-free. The Company does not offer collateral depositing services and does not accept clients’ assets.

19. Force Majeure

19.1. The Company may be unable to perform its obligations due to events beyond its reasonable control.

19.2. Such events may include:

19.3. Such events may result in delayed execution, inability to execute Orders, suspension of Services or financial loss.

20. Taxation

20.1. The tax treatment of Transactions depends upon the Client’s individual circumstances and applicable laws.

20.2. Tax laws may change without notice.

20.3. The Company does not provide tax advice and accepts no responsibility for the Client’s tax obligations.

20.4. The Client should seek independent professional advice regarding taxation.

21. No Guarantee Of Profits

21.1. The Company does not guarantee:

21.2. Past performance is not indicative of future results.

22. Financial Services Compensation Scheme

22.1. As an FSC regulated firm, your trading with the Company is not covered under any client compensation scheme under the laws of Mauritius.

23. Charges And Spreads

23.1. You should obtain details of all fees and other charges for which you will be liable, prior to trading with the Company. Where charges are not expressed in money terms (such as a bid offer spread), you should obtain a clear explanation of what such charges are likely to mean in specific money terms.

23.2. Some type of trades you make may require you to pay overnight financing costs. Trades in currencies different than your base currency may require you to convert those foreign currencies to your base currency. The combination of overnight financing and foreign exchange costs may exceed any profits on your trades or increase the losses that you may incur on your trade.

23.3. Please note that, in case if any inconsistency between the policy and applicable legislations, rules and regulations, the latter shall prevail

24. Client Acknowledgement

24.1. By entering into the Client Agreement and continuing to use the Services, the Client acknowledges and agrees that:

  1. it has carefully read and understood this Risk Warning Notice;
  2. it understands the nature and risks of the Services, Financial Products and Transactions offered by the Company;
  3. it possesses sufficient knowledge, expertise and experience to assess the merits and risks of the Transactions contemplated under the Client Agreement or has obtained independent professional advice;
  4. it is capable of evaluating and bearing the financial, operational, legal and commercial risks associated with such Transactions; and
  5. it enters into Transactions entirely at its own risk.