Risk Disclosure

High-Risk Investment

Engaging in Forex margin trading entails exposure to risks stemming from political dynamics, economic variables, natural occurrences, and other external factors. These elements also exert influence on currency prices and their availability for trading purposes.

Participating in speculative or anticipatory trading presents a formidable challenge, even for seasoned traders possessing a comprehensive understanding of the associated risks. It is imperative for a trader to commit only funds to trading that do not compromise their financial stability.

Forex trading operates on distinct principles compared to traditional investment methods. Traders must be cognizant that in the event of sustained adverse market movements against their position, there exists the potential for the complete loss of all deposited funds.

Web Trading Risks

Internet-based trading carries inherent risks, such as potential hardware, software, and Internet connection failures. As we lack control over Internet service providers, their equipment, technological infrastructure, and the speed or reliability of connections, along with the configuration and reliability of traders' equipment, we cannot assume responsibility for communication failures, distortions, or delays that may occur during online trading.

Software Risks

The trading software, MetaTrader 5, employs an advanced order entry and tracking system aimed at facilitating efficient order execution at requested prices. It is important to note that despite the utilization of internet trading, the associated risks with currency trading may not necessarily be diminished. All quotes and trades are subject to the terms and conditions outlined in our Client Agreement, emphasizing the need for traders to adhere to established guidelines.

Other Risks

We do not provide assurances regarding the trading volume or potential profits that clients may achieve from their portfolio of instruments at any given time. It is crucial for clients to acknowledge and accept the inherent high risk of loss and potential damage associated with utilizing financial instruments. Clients are required to explicitly declare their willingness to undertake such risks.

Investing in financial instruments should be approached with caution, and clients should only engage in such endeavors if they possess a comprehensive understanding of the risks associated with each specific financial instrument.

Use of Leverage

Leverage is a powerful feature offered by Alieus Capitals Limited, allowing clients to gain significant exposure to a financial asset with a relatively small initial investment. While leverage can amplify returns, it also increases the potential for higher losses, making it imperative for clients to approach margin trading with caution. Alieus Capitals Limited provides negative balance protection, ensuring that retail clients do not lose more than their account balance.

Credit and Insolvency Risk

Trading CFDs with Alieus Capitals Limited means entering into over-the-counter (OTC) transactions. These come with their own set of risks, notably the counterparty credit risk, since these transactions are not executed on regulated markets and there's no central counterparty. In the event of the Company's insolvency, clients may face the risk of having their positions liquidated or closed out without their consent.

Market Risk

CFDs are susceptible to various market risks, including changes in government policies, geopolitical events, and natural disasters, which can significantly impact the prices of underlying assets. Clients must evaluate their risk tolerance and investment goals before engaging in CFD trading.

Volatility Risk

Market volatility can dramatically affect CFD positions, with high volatility leading to large price swings. Clients must be prepared for the possibility that order execution times could extend during periods of abnormal market conditions.

Foreign Exchange/Currency Risk

Trading CFDs in a currency different from your account's base currency exposes you to currency risk, where fluctuations in exchange rates can affect the profit or loss realized on a position.

Liquidity Risk

Certain underlying assets may experience periods of low liquidity, making it difficult to execute trades without substantial price changes. This can lead to wider bid-ask spreads and potentially increase trading costs.

Technical Risk

Online trading involves technical risks related to internet connectivity, system reliability, and cyber threats. Clients should utilize robust technology solutions and maintain secure and reliable internet connections to mitigate these risks.

Trading Platforms

Clients are responsible for their trading orders. Submitting a new order before the previous one has been executed can lead to the latter being rejected. It's crucial to understand that closing an order or position window does not cancel an existing order.

Communication

Keeping your contact information up-to-date is critical to ensure you do not miss important communications from Alieus Capitals Limited. Failure to maintain current and functional contact details could result in missed notifications or updates.

Abnormal Market Conditions and Suspensions of Trading

During extreme market conditions, executing or liquidating a position may become difficult or impossible, and stop loss orders may not limit losses to intended amounts.

Force Majeure Events

Alieus Capitals Limited is not liable for losses resulting from unavoidable, extreme events beyond our control, including natural disasters and significant geopolitical incidents.

Slippage

Slippage occurs when the execution price of a trade differs from the requested price, due to market volatility or gaps. This can result in a trade being executed at a less favorable price than expected.

Legal and Regulatory Risks

Clients are responsible for ensuring that their trading activities comply with the laws of their jurisdiction. Trading restrictions or prohibitions in certain countries may affect the legality of their transactions.

Third-Party Risk

Client funds may be held with third parties, and while Alieus Capitals Limited exercises due diligence in their selection, we cannot guarantee against the insolvency or failure of these entities.

Additional Disclosures

Margin Requirements:

Clients must maintain the minimum margin requirement on their open positions to prevent liquidation.

Rights to Underlying Assets:

CFDs do not confer any rights to the underlying assets.

Taxation:

Clients should seek independent advice regarding potential tax liabilities.

Impersonation Risk:

Be cautious of fraudulent impersonation attempts. Always verify the identity of individuals claiming to represent Alieus Capitals Limited.

For further details or inquiries regarding the risks associated with trading CFDs and other financial instruments, please contact our customer support at support@alieuscapitals.com

Prior to engaging in trading, it's essential for you to thoroughly evaluate your financial circumstances, goals, and requirements. We highly recommend obtaining advice from independent professionals in finance, law, and taxation.

If there are any uncertainties or queries regarding the risks associated with trading, consulting with your legal, tax, and financial advisors is advisable before you proceed with any specific transactions with the Company.