Exness Key Facts Statement - Contracts For Difference
Purpose of this document
This document, referred also as “Key Facts Statement”, does not constitute and/or should not be regarded as marketing
material. It provides key information about Contracts for Difference to help you understand the nature, risks, costs andcharges as well as other aspects of significant importance related to this product, and to be able to compare this productwith other investment products.

Product description

TypeA Contract for Difference (“CFD”) is a complex contract entered between two parties, typically described as a "buyer"
and a "seller", stipulating that one party will pay the other the difference between the opening and closing market priceof an Underlying Asset, net of any costs and charges related to the product and service offered (if the difference ispositive, the buyer pays instead of the seller. If the difference is negative, the seller pays instead of the buyer). A CFD is afinancial instrument that is traded over-the-counter and not through a regulated market; that means that the Company isat all times the counterparty to the client trades and any CFD trades entered into with the Company can only be closedwith the latter. A CFD enables you to obtain indirect exposure to an underlying asset such as a security, commodity,index, currency and other asset types. This means you will never own the underlying asset, but you will make gains or
incur losses as a result of price movements in the underlying asset.
A CFD is a leveraged product, which means you only pay a margin (collateral), which corresponds to a fraction of theactual position value. When opening a CFD position, you decide if you want to invest in rising or falling prices for theunderlying asset. The difference between the price at the opening of the position and the price at the closing of theposition multiplied by your traded volume determines your profit or loss. Any positions that are left open overnight are‘rolled over’ and therefore may be subject to swap fees. For further details in regards to swap fees you may refer to theContract Specifications on the Company’s website.
Margin trading requires extra caution: while large profits can be realized in cases where the price moves in your favor,
there is also a risk for incurring extensive losses if the price moves against you. The Company provides negative balanceprotection1 for your trading account(s), which means that you will not be able to lose more than the amount you haveavailable in your trading account(s).
The available CFD products can be found on the official website of the Company and on the trading terminal.
Objectives
CFD trading serves as an alternative investment method, accommodating varying trading styles among clients.
There is no determined or recommended holding period for a CFD. The investor should decide when to open and close
a CFD while considering relevant and applicable fees and charges or margin requirements. Investors trading CFDs
should have an adequate balance on their account, and if needed, deposit additional funds to avoid any forced closureson open positions when the market moves against them and the minimum margin requirement for maintaining theposition(s) open is not met.
Intended investor
Trading CFDs is not appropriate for everyone. CFD trading is intended for investors who have investment knowledge
and/or trading experience with leveraged products, and understand the impact and risks associated with margin trading.
Such investors should have a high risk tolerance and be willing to accept rapid price fluctuations. Investors should be
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This does not apply for the B2B business.

aware that CFD trading could result in losing all the funds available in their trading account(s), including any accumulated
profits, and as such, they should only trade with capital they can afford to lose. Investors must understand that CFD
trading can lead to high returns as well as high losses in a short period of time, and must be in a position to understandthe difference and risk/reward profile between CFD trading and trading of traditional financial products. Furthermore,
CFDs are usually intended for persons who would like to use the product for short-term investment, speculative trading,portfolio diversification and/or hedging of exposure on an underlying asset.

Risks & returns
Please consider our Risk Disclosure and Warning Notice, the Client Agreement, and other general terms and agreements
available on our website before using our products and services. Please ensure you fully understand and accept therisks involved. Trading CFDs may not be suitable for you. CFDs are leveraged products that due to underlying market
movements may generate losses rapidly.
CFD trading requires you to maintain a certain level of funds in your trading account in order to open position(s) andkeep them open. This is called the initial margin and maintenance margin respectively. You will be able to open a
position by depositing only a small percentage of the notional value of the position, creating a leveraged position.
Leverage can significantly magnify your trading result. Once the margin level hits a certain percentage (refer to theContract Specifications on our website), you will receive a margin call. A margin call is a notification sent in your trading
terminal stating that it is necessary to deposit or close your position(s) to avoid stop out. Once the margin level reaches
0%, one or more of your positions will be forcibly closed. This in accordance with the Company’s margin close-out policy.
You could, therefore, lose your entire balance. Traders should not rely on the margin call and should take their ownprecautions.
The Company’s CFDs are not listed on any exchange, and all prices and trading conditions are set by the Company. The
contract can be closed only with the Company, and is not transferable to any other provider. If you have multiple
positions open through the Company, your risk may be cumulative and not limited to one position. This product does notinclude any protection from future market performance so you could lose some or all of your balance. This includes yourdeposit(s) as well as any accumulated profits. There is no capital protection against market risk, credit risk or liquidity risk.
The tax regime of the country in which you are domiciled may impact your return.
Trading CFDs is not suitable for all. You should consider your investment objectives, risk tolerance and experience
before deciding to trade these products.
If you are not in a position to understand all the risks related to CFD trading, you might consider seeking
independent advice. Further informative material about the product and its risks is available on our website.

Performance scenarios

The Key Facts Statement is not specific to a particular CFD. It applies to all CFDs offered on the Company’s platform(s).
However, each CFD you enter into with the Company is specific to you and your choices. For each trade, you will beresponsible for choosing the underlying instrument, when you open and close the trade, the trading volume of eachorder and whether to use any risk mitigation features and trading strategies, such as making use of stop loss orders, orof any other pending orders. Each instrument has different characteristics, such as contract size per lot. For example, forcurrency pairs, the contract size for 1 lot is 100,000 units of the base currency, for stocks, 1 lot is 100 shares, etc. You canfind the contract size for each underlying type in the Contract Specifications on the Company’s website.
The table below shows the potential profit or loss you may have under different scenarios. Each of the performance
scenarios is based on a trading account with only one open position.
Market developments in the future cannot be accurately predicted. The performance scenarios below are only anindication of some of the possible outcomes. Actual returns could be lower or higher.

Assumptions Used:
CFD Portfolio - CFD on a commodity
Open a position on single CFD instrument XAUUSD
Opening PriceOP
Trade size (per CFD)TS
Lots size
LS
Margin %M
Margin requirement (USD)
MR = OP x TS x M x LS
Notional Value of the Trade (USD)N
LONG POSITION

1,908.66
0.1
100
0.50%
95.43
19,086.60

SHORT POSITION

Performance
scenario

Closing
price

Price
changeProfit/Loss

Return on
investment

Performance
scenario

Closing
price

Price
changeProfit/Loss

Return on
investment

Favorable

1927.751%

190.87200.00%Favorable

1889.57-1%

190.87200.00%Moderate

1918.20

0.50%

95.43

100.00%Moderate

1899.12-0.50%

95.43

100.00%Unfavorable

1870.49-2%-381.73-400.00%

Unfavorable

1946.832%-381.73-400.00%

Stress1813.23-5%-954.33-1000.00%

Stress2004.095%-954.33-1000.00%

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Losses are limited to your total account balance, as the Company offers negative balance protection . In addition, theCompany offers “Stop Out Protection3” which can protect against stop outs in the event of volatility. The effect ofnegative balance protection and StopOut protection is not reflected in the profit/loss and return on investmentnumbers illustrated in the table above. More details in regards to the market protection tools that the Company may
offer are available on our website.
The results of trades on instruments that are denominated in a different currency to that of the trading account, aresubject to a bid/ask spread in the conversion rate, and are exposed to FX risk.
The figures do not take into account your personal tax situation, which may also affect how much you get back.
Buy orders result in a profit when the closing price (bid) is higher than the opening price (ask). If the closing price is lower thanthe opening price then buy orders will suffer a loss.
Sell orders result in a profit when the closing price (ask) is lower than the opening price (bid). If the closing price is higher thanthe opening price then sell orders will suffer a loss.

Associated costs

Depending on the product you trade, you may incur some or all of the following costs:
This table shows the different types of costs related to trading CFDs
One-offcosts

SpreadApplicable to all
CFDs

The spread is the difference between the bid (buy) andthe ask (sell) price on the specific instrument you trade.

Not applicable for the B2B business.
If the Company reasonably suspects, based on your trading strategy or other operations, that you make use of any form ofprohibited trading techniques, or conduct operations which aim to exploit and/or benefit from the internal Stop Out
Protection or perform other doubtful operations or in you are in default as described in the Client Agreement, the Company
reserves the right to terminate/cancel/modify/revoke this from a client’s account. Note that this feature may not be availablefor some accounts with unlimited leverage, to achieve a balance between trader benefits and risks.
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Ongoing
costs

Other Costs

A standard trading commission to specific account types
is applied and is based on the trading volume in both
directions - i.e. open and close - and this is charged
together when the position is opened. Trading
commission can vary depending on the instrument
traded, but all details are readily available to traders in
our Contract Specifications.
The Company does not apply any mark-up conversion
fee. However, any credits, realized profits and losses,
adjustments, fees and charges that are denominated ina currency other than the base currency of the trading
account will be converted to the base currency of thetrading account at the prevailing market buy or sell price.
Depending on the trading account type, the currency
conversion spread varies. For further details, refer to ourContract Specifications.

Commission

Applicable only to
Raw Spread andZero accounts

Currency
Conversion

Applicabledepending on thebase currency of thetrading account

Swap fee(Financingcost)

Applicable to all
CFDs which are notswap-free*This is the cost for keeping your position openovernight. The swap cost can be positive or negative
depending on the instrument traded. More details
available at the website and/or Personal Area.

Deposits/
Withdrawal
Fee

Applicabledepending on thepayment method
and/or client’s
transaction activity

The Company may apply deposits/withdrawal fees whenclients make use of specific payment methods. Moredetails available at the website and/or Personal Area.

Inactivity Fee,
DormancyFee,
Termination
Handling Fee

Applicabledepending on
clients’ trading
activity

The Company may apply such fees depending on
clients’ activity as these are provided in the Client
Agreement and communicated to the Client.

Administration
Fees for
Overnight
OrdersApplicabledepending on
clients’ trading
activity

The Company may apply such fees depending on
clients’ activity as these are provided in the Client
Agreement and communicated to the Client. For furtherdetails, refer to the website and/or Personal Area.

*There are currently two types of swap-free trading accounts offered, namely those offered to Islamic regions (swap-freeby default) and those offered to non-Islamic regions. For the non-Islamic regions, there are 2 levels of swap-free status,
the Standard swap-free and the Extended swap-free. An account’s swap-free status is determined based on the trading
activity and can change between the swap-free levels accordingly. To maintain Extended swap-free status, you need to
trade mostly within the day and have a low number of overnight positions. Further details available at the website.
More specific details on the costs and charges applicable for each CFD account type and underlying CFD asset can befound on the Company’s official website (specifically in the Contract Specifications section, and/or in the Fees section).
and/or on the Client Terminal and/or on the Trading Platform.

Other relevant information

Other relevant information and documentation, such as the Client Agreement and the Complaints Handling Procedure,
can be found on the Company’s website section concerning legal documentation. It is important for you to read andunderstand these documents before opening an account and start trading with the Company.
Any query and/or concern and/or issue you may have in respect of the services provided by us under the ClientAgreement should be made in writing and addressed to the Customer Support Department at support@exness.com.