This notice provides you with information about the risks associated with investment products, which you may invest in through services provided to you by Tradelax.

1. GENERALITIES
1.1. This Risk Disclosure Notice forms part of the Terms & Conditions published on our website.
1.2. You are considering dealing using the Tradelax (hereafter the “Company”, “we”, “our”, “us”) trading platform (“Trading Platform”) to trade in foreign exchange (‘Forex’). These instruments are high risk investments, which are not suitable for many investors.
1.3. This notice provides you with information about the risks associated with Forex, but it cannot explain all of the risks nor how such risks relate to your personal circumstances. If you are in doubt you should seek professional advice.
1.4. It is important that you fully understand the risks involved before deciding to enter into a trading relationship with us. If you choose to enter into a trading relationship with us, it is important that you remain aware of the risks involved, that you have adequate financial resources to bear such risks and that you monitor your positions carefully.

2. GLOSSARY
2.1. FOREX – When trading in foreign exchange, the investor speculates in the development of the price of one currency relative to another, where one is sold and the other is purchased. By way of example, an investor may sell British pounds (GBP) against the US dollar (USD) if he expects that the USD will increase relative to the GBP.
Foreign exchange is traded as a margin product, which means that you can invest more money than is available in your account by borrowing money from The Company.

3. RISK DISCLOSURE NOTICE
3.1. Forex transaction are margin traded, allowing you to take a larger position than you would otherwise be able to based on your funds with The Company, a relatively small negative or positive movement in the underlying instrument can have a significant effect on your investment. Forex trading therefore involves a relatively high level of risk. This makes the potential gain quite high, even if the deposit is relatively small. If your total exposure on margin trades exceeds your deposit, you risk losing more than your deposit.
3.2. While Forex Transactions sometimes offer opportunities for high profits, they at the same time bear a high risk of losses since small variations in the prices can lead to a considerable loss. In other words, the greater the leverage effect, the greater the chance of gain and the risk of loss. The Client should use the leverage effect that is suitable to him. The Company does not examine whether the leverage effect used by the Client is suitable or recommended in view of the Client’s situation.
3.3. The Client may wish to increase the Forex Margin very quickly in order to maintain his Open Position and avoid it being automatically liquidated. However, fluctuations in prices are often so rapid that the Client’s Open Position will be liquidated automatically without the Client having time to increase the Forex Margin. The Client also understands that a reduction in the leverage effect may lead to the automatic liquidation of his Open Positions.

4. POTENTIAL RISKS
4.1. You cannot lose more than your trading account balance.
4.2. Before you open a trade with us, we require you to lodge money with us as Initial Margin and, in order to keep a transaction open, you must ensure that the amount in your Trading Account exceeds the Maintenance Margin. The Initial Margin will differ between Instruments and the amounts will be indicated on the trading platform. This means that you will be trading using ‘leverage’ or ‘gearing’ and this can work for or against you; a small price movement in your favor can result in a high return on the Initial Margin placed for the trade, but a small price movement against you may result in substantial losses.
4.3. We will further require you to ensure that the amount in your Trading Account exceeds the Maintenance Margin in order to keep a Transaction open. Therefore, if our price moves against you, you may need to provide us with substantial additional Margin, at short notice, to maintain your open trades. If you do not do this, we will be entitled to close one or more or all of your trades. You will be responsible for any losses incurred.
4.4. You should also be aware that under our User Agreement we are entitled, at our sole discretion, to make a Margin Call. Under the User Agreement, you are required to satisfy any Margin Calls immediately, by wire transfer in the time prescribed by us. If you do not do this, we will be entitled to close one, or more, or all of your trades.
4.5. Unless you have taken steps to place an absolute limit on your losses (for example, by placing a Close at Loss or Close at Profit order on your account) it is possible for adverse market movements to result in the loss of the entire balance of your Trading Account. We offer a range of risk management tools to help you to manage this risk.
4.6. The exchange market, the bullion market and the markets for the other underlying assets of Forex Instruments are extremely volatile. The movements of these markets are unforeseeable.
4.7. These markets may also experience periods of decreased liquidity or even periods of illiquidity. This liquidity risk may affect all the participants in the market or specifically the Company, in particular if there are changes in the liquidity provided by the Company’s counterparties. A lower liquidity may result in very rapid and hectic price movements, in wider spreads and/or in higher rejection rates. Forex Transactions aimed at excluding or limiting the risks arising from Open Positions, whether performed by the Client or by the Company, may therefore not be feasible or may only be so at a very unfavorable price.

5. OTHER RISKS
5.1. In exceptional circumstances or other undesirable situations, the market rules applicable to Forex Transactions may offer wide powers to the markets, clearing houses, bodies, organizations and companies that issued the said market rules which, if exercised, may considerably impact the Open Positions of the Client or his ability to carry out Forex Transactions.
5.2. Various events may arise over a weekend or, more generally, outside the Business Days, which may cause the markets to open at a significantly different price from where they closed. Orders cannot be executed outside the Business Days. This may cause considerable losses. Stop loss orders (as defined on the Company’s website or on the Forex Platforms) may be executed at prices significantly worse than the price desired by the Client. The Client’s open Orders may also not be cancelled outside the Business Days or outside the hours of operation of the Forex Platforms.
5.3. The insolvency of the Company or a custodian or counterparty used by the Company may result in the Client’s Open Positions being liquidated against his wishes or without the Client being consulted and without prior notice.
5.4. The risks associated with Forex Transactions are even higher if the said Forex Transactions are made on currencies or other underlying assets directly or indirectly connected with emerging markets. Indeed, many emerging markets lack a strong infrastructure. Telecommunications are generally poor, and Company’s and other financial systems are not always well developed, well regulated and well integrated. These countries may also have considerable external debt which could affect the proper functioning of their economies with a corresponding adverse impact on the performance of their markets. Tax regimes may be subject to the risk of a sudden imposition of arbitrary or onerous taxes, which could adversely affect investors.
5.5. Forex Transactions bear risks inherent to Internet and technology, as described in the General Terms and Conditions. Such risks include risks associated with latency, which the Client shall reduce by ensuring that his IT and mobile devices used for carrying out Forex transactions benefit from the fastest possible internet connectivity.
5.6. For any further information regarding the risks, the Client should refer to the brochure “Special risks linked to securities trading” available on the Company’s website, in particular the page related to the risk in investing in commodities.

6. CLIENT’S SITUATION
6.1. In the light of the risks described in this Forex Risk Disclosure Statement, the Client should carry out Forex Transactions only if he understands the nature of such Forex Transactions and the extent of his exposure to such risks, and if such Forex transactions are suitable for him. Forex Transactions are not suitable for many members of the public.
6.2. The Client undertakes to analyze his personal (in particular financial and tax) situation carefully before trading in Forex Instruments. The Client confirms that he has the necessary financial resources for all the Forex Transactions that he carries out or Orders to be carried out. The Client will only invest assets that he can afford to lose without having to change his standard of living, and the Client will cease trading in Forex Instruments if his personal situation no longer permits it. The Client understands that only assets that are not required for meeting the current expenses of his household and that are proportionate to his income and other assets should be placed at risk by Forex Transactions. The Forex Margin may be considered by the Company as “risk capital”. The Client understands that he should not carry out Forex Transactions if he is seeking a regular or a safe return.
6.3. The Client is solely responsible for deciding whether the Forex Transactions that he carries out are suitable in view of his personal (in particular financial and tax) situation, his investment objectives and other relevant circumstances. The Client further agrees that Forex Transactions is certainly not suitable for retirement funds.
6.4. In case of doubt, the Client should seek independent financial advice.

7. MANAGEMENT AND MONITORING OF OPEN POSITIONS
7.1. The Client is solely responsible for the management and monitoring of his Open Positions and open Orders.
7.2. In order to limit the extent of the risks, the Client may want to consider using different types of orders, such as Stop orders, Trailing Stop orders, One Cancels the Other (OCO) orders, If Done orders or If Done One Cancels the Other orders, as defined on the Company’s website or on the Forex Platforms. The Client acknowledges that placing such Orders may not necessarily guarantee limitation of the risk since, in certain market conditions, such Orders may not be executed. Indeed, depending on the circumstances, such as the liquidity available on the market, the Company will not be able to execute such Orders at the price the Client desires, and the Company shall not be liable for that. The Client remains responsible for any Forex Transaction executed at prices that differ from his Order.
7.3. The Client acknowledges that he shall frequently consult his Account, and in particular continually monitor the Forex Margin when he has one or several Open Positions or open Orders in his Account.
7.4. The Company has no obligation to cease entering into Forex Transactions when the Client suffers losses and/or the assets on the account decrease, even substantially.

8. CLIENT’S CONFIRMATIONS
8.1. The Client acknowledges and understands that trading in Forex Instruments is highly speculative, involves an extreme degree of risk and is generally suitable only for persons who can assume and sustain a risk of loss in excess of their Forex Margin.
8.2. The Client acknowledges and understands all the risks associated with Forex Transactions, in particular the risk resulting from the use of a significant leverage effect, the volatility of the markets, the liquidity risk, the legal risks resulting, in particular, from the market rules applicable to Forex Transactions, the technology risks and any other risks that may lead to a loss or any other Damage. The Client confirms that he is willing to assume these risks.
8.3. The Client acknowledges that he has read and understood the General Terms and Conditions and the Special Terms and Conditions for Forex, as well as the information contained in the documents to which these Special Terms and Conditions for Forex refer, and in particular the Company’s website, the Trading Rules and the various prospectuses, fact sheets and other information sheets available on the Company’s website or on any Forex Platform.
8.4. The Client in particular confirms that he has understood the explanations about any restrictions to use Forex Platforms, the leverage effect and the modification of the maximum leverage effect, the Required Margin and the Automatic Liquidation System, as explained in the Special Terms and Conditions for Forex and other documents to which the Special Terms and Conditions for Forex refer. The Client also confirms that he has understood and accepts the role of the Company within the Forex Transactions and the risks and conflicts of interest related thereto.
8.5. The Client acknowledges and accepts that the Company is entitled to liquidate his Open Positions that are not adequately margined, and the Client will be liable for all losses as a result of such liquidation. The Client acknowledges that the Company reserves the right to change the Liquidation Percentage at its sole discretion.
8.6. The Client confirms that neither the Company nor its directors, managers, officers, employees, agents and other representatives guaranteed or guarantee to the Client that Forex Transactions will generate profits for the Client. Moreover, past yields and profits are no indication of future performance.
8.7. The Client confirms that the Forex Transactions he will carry out are suitable for him.