RISK DISCLOSURE NOTICERisk Disclosure Notice

TABLE OF CONTENTS
1.

INTRODUCTION .................................................................................................................................................................................... 32.

GENERAL INFORMATION ................................................................................................................................................................. 33.

RISKS ASSOCIATED WITH CFDs ................................................................................................................................................. 4
A.

Leverage risk................................................................................................................................................................................... 4

B.

Gapping Risk................................................................................................................................................................................... 4C.

Risk of Margin Call and Liquidation (close-out) .................................................................................................. 5D.

Risk of loss of invested funds ............................................................................................................................................. 5E.

No guarantee of profit............................................................................................................................................................. 5F.

No rights to the underlying assets ................................................................................................................................. 54.

OTHER RISKS .......................................................................................................................................................................................... 6A.

Market risk ........................................................................................................................................................................................ 6

B.

Systemic risk ................................................................................................................................................................................... 6C.

Technical risk.................................................................................................................................................................................. 6D.

Operational risk ............................................................................................................................................................................ 6E.

Country risk...................................................................................................................................................................................... 6F.

Interest rate risk............................................................................................................................................................................ 6G. Foreign exchange risk...............................................................................................................................................................7H.
5.

Legal and Regulatory Risk .....................................................................................................................................................7
RISKS BEYOND THE CONTROL OF THE COMPANY............................................................................................................7‘FinPros.com’ is a domain owned and operated by ‘FinPros Financial Ltd’, a company registered in Seychelles withcompany registration number: 8429300-1, having its registered office at CT House, Office 9A, Providence, Mahe,
Seychelles. ‘FinPros Financial Ltd’ is regulated by the Financial Services Authority (‘FSA’) of Seychelles as a Securities
Dealer with License number: SD087
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Risk Disclosure Notice

RISK DISCLOSURE NOTICE1.

INTRODUCTION

1.1.

‘FinPros Financial Ltd’ (hereinafter, ‘FinPros’, the ‘Company’, ‘us’, ‘we’ and ‘our’) a company
registered in Seychelles with company registration number: 8429300-1, having its
registered office at CT House, Office 9A, Providence, Mahe, Seychelles, is regulated by the
Financial Services Authority (‘FSA’) of Seychelles as a Securities Dealer with License number:SD087 .

1.2.

The Client (hereinafter, “you”) should carefully read the Risk Disclosure in conjunction with
our “Terms and Conditions of Business”, our “Order Execution Policy” and any other legal
documentation/information available through our Website(s).

1.3.

CFDs (Contracts For Difference) are agreements executed with the opening of trading
positions on an electronic trading platform. Such contracts involve two parties, typicallydescribed as "buyer" and "seller". The two parties agree that the seller will pay to the buyer
the difference between the opening price and the closing price of an asset. The opening
price is the price of the underlying asset at the time the contract (trading position) opens.
The closing price is the price of the underlying asset at the time of closing of the contract(trading position). If the difference between the opening price and the closing price isnegative, then the buyer pays the seller instead. In essence, CFDs allow investors to takelong positions (buy) when they expect the value of an asset to rise and short positions (sell)when they expect it to drop, without actually owning the underlying asset.

2.

GENERAL INFORMATION

2.1.

This document does NOT disclose all the associated risks or other important aspects ofCFDs, and it should NOT be considered as investment advice or recommendation for theprovision of any service or investment in any financial instrument.

2.2. The Client should NOT carry out any transaction in CFDs or in any other financial instruments
unless he/she is fully aware of their nature, the risks involved and the extent of his exposurein these risks. In case of uncertainty as to the meaning of any of the warnings described
below, the Client must seek an independent legal or financial advice before taking any
investment decision.

‘FinPros.com’ is a domain owned and operated by ‘FinPros Financial Ltd’, a company registered in Seychelles withcompany registration number: 8429300-1, having its registered office at CT House, Office 9A, Providence, Mahe,Seychelles. ‘FinPros Financial Ltd’ is regulated by the Financial Services Authority (‘FSA’) of Seychelles as a Securities
Dealer with License number: SD087
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Risk Disclosure Notice
2.3. The Client should also be aware that:a) The value of any investment in financial instruments may fluctuate downwards orupwards, and the investment may diminish to the extent of becoming worthless;b) Previous returns do not constitute an indication of a possible future return;c) Trading in Financial Instruments may entail tax and/or any other duty; andd) Changes in the exchange rates, may negatively affect the value, price and/or
performance of the Financial Instruments traded in a currency other than the basecurrency of the Client’s account.

3.

RISKS ASSOCIATED WITH CFDs
A. Leverage risk

3.1.

Leverage is a distinct feature of CFDs. The effect of leverage makes investing in CFDs riskier
than investing directly in the underlying asset. This is a result of the margining systemapplicable to CFDs, which generally involves a small deposit relative to the size of thetransaction, so that a relatively small price movement in the underlying asset can have adisproportional impact on a Client’s trade. A small price movement in the Client’s favor canprovide a high return on the deposit, however, a small price movement against the Clientmay quickly result in significant losses.

B. Gapping Risk
3.2. Financial markets may fluctuate rapidly, and the prices of CFDs will reflect this. Gapping isa risk that arises as a result of market volatility. Gapping occurs when the prices of CFDs
suddenly shift from one level to another, without passing through the level in between. Theremay not always be an opportunity for the Client to place an order between the two pricelevels.
3.3. Stop Loss Orders cannot always protect you from losses. The Company offers you theopportunity to choose Stop Loss Orders to limit the potential losses you can incur from an
open position. This option automatically closes your position when it reaches a certain pricelimit. There are some circumstances in which a ‘stop loss’ may be ineffective, e.g., where
there are rapid price movements or market closure.
3.4. Therefore, in a rapidly moving market, a stop-loss order may not be filled at exactly thespecified stop price level, but will usually be filled fairly close to the specified stop price. Buttraders should clearly understand that in some extreme instances stop-loss orders may
not provide complete protection. Thus, In the event of a market gap or rapidly moving
markets, a stop loss may not restrict your losses by closing a trading position at the‘FinPros.com’ is a domain owned and operated by ‘FinPros Financial Ltd’, a company registered in Seychelles withcompany registration number: 8429300-1, having its registered office at CT House, Office 9A, Providence, Mahe,
Seychelles. ‘FinPros Financial Ltd’ is regulated by the Financial Services Authority (‘FSA’) of Seychelles as a Securities
Dealer with License number: SD087
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Risk Disclosure Noticespecified market price. In instances of high volatility, rapid market movement, or marketgaps, your stop loss will be filled at the next best available price at the time.

C. Risk of Margin Call and Liquidation (close-out)
3.5. To keep CFD positions open, the Client needs to have enough funds in his/her account tocover his margin obligations. When the Client’s margin obligations are no longer covered,
the Client must immediately deposit additional cleared funds or close positions so that thefunds in his account cover the margin.
3.6. Margin shortages can arise quickly as market values change. Unless the Client has
sufficient funds in his/her account to cover these situations, there is a risk of having to close
positions when the Client may prefer not to.
3.7. The value of the Client’s account must always remain above the liquidation, or close out,level. If it falls below this level, the Client’s CFD trades are at risk of being liquidated. To
prevent liquidation of the Client’s CFD positions, the Client must make sure he has depositedenough funds to keep his/her account value above the liquidation level. If the Client’s tradedoes not go as he expects, the Client may be required to deposit additional funds in orderto hold his position.

D. Risk of loss of invested funds
3.8. It is possible for adverse market movements to result in the loss of your account balance infull or even more. In case you lose more that your current account balance, we will bear thenegative consequences of such adverse events and your losses will be limited to your thencurrent account balance.

E. No guarantee of profit
3.9. There are no guarantees of profit nor of avoiding losses when trading CFDs. Neither theCompany nor its representatives intend to provide, or can they actually provide suchguarantees. The Client has been alerted by means of this Statement that risks are inherent
to trading CFDs and that he/she and must be financially able to bear such risks andwithstand any losses incurred.

F. No rights to the underlying assets
3.10. You have no rights or obligations in respect of the underlying instruments or assets relating
to your CFD. The client should understand that CFDs can have different underlying assets,including, equity, indices and commodities. Specifically, in case of an equity CFD you will
not receive any voting rights.

‘FinPros.com’ is a domain owned and operated by ‘FinPros Financial Ltd’, a company registered in Seychelles withcompany registration number: 8429300-1, having its registered office at CT House, Office 9A, Providence, Mahe,
Seychelles. ‘FinPros Financial Ltd’ is regulated by the Financial Services Authority (‘FSA’) of Seychelles as a Securities
Dealer with License number: SD087
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Risk Disclosure Notice
4. OTHER RISKS
A. Market risk
4.1.

Market risk is the risk that the value of a portfolio will decrease due to the change in valueof the market factors such as stock prices, interest rates, exchange rates and commodity
prices. In case of a negative fluctuation in prices, the Client runs the risk of losing part or allof his/her invested capital.

B. Systemic risk
4.2. Systemic risk is the risk of collapse of the entire market or the entire financial system. It refers
to the risks imposed by interdependencies in a system or market, where the failure of asingle entity or cluster of entities can cause a cascading negative effect, which could
potentially bring down the entire system or market.

C. Technical risk
4.3. Faults in electronic equipment used to perform margin trading and investment operations
may lead to unexpected and unpredictable results and therefore to losses on the Client’s
operations in the international derivatives markets. At the carrying out of transactions via
an electronic trading system, the Client runs the risk related with possible faults in thesystem, including equipment and software failures.

D. Operational risk
4.4. Operational risk is the risk of business operations failing due to human error. Operationalrisk will change from industry to industry and is an important consideration to make whenlooking at potential investment decisions. Industries with lower human interaction are likely
to have lower operational risk.

E. Country risk
4.5. Country risk is the risk that an investment's returns could suffer as a result of politicalchanges or instability in a country. Instability affecting investment returns could stem froma change in government, legislative bodies, other foreign policy makers, or military control.

F. Interest rate risk
4.6. Interest risk is the risk that an investment's value may change due to a change in theabsolute level of interest rates, in the spread between two rates, in the shape of the yield
curve, or in any other interest rate relationship.

‘FinPros.com’ is a domain owned and operated by ‘FinPros Financial Ltd’, a company registered in Seychelles withcompany registration number: 8429300-1, having its registered office at CT House, Office 9A, Providence, Mahe,Seychelles. ‘FinPros Financial Ltd’ is regulated by the Financial Services Authority (‘FSA’) of Seychelles as a Securities
Dealer with License number: SD087
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Risk Disclosure Notice
G. Foreign exchange risk
4.7. Foreign exchange risk is the risk of an investment’s value being affected by changes inexchange rates.

H. Legal and Regulatory Risk
4.8. A change in laws or regulations made by the government or a regulatory body may
increase the costs of operating a business, reduce the attractiveness of an investment
and/or change the competitive landscape and by such materially alter the overall profit
potential of your investment. This risk is unpredictable and may vary depending on themarket for the underlying asset of a given CFD.

5.

RISKS BEYOND THE CONTROL OF THE COMPANY

5.1.

The Client and not the Company, is completely liable for the following risks the listing of
which is not exceptive:a) Lack of knowledge of the trading terminal settings;b) Technical faults in the Client’s software or hardware;c) Disclosure of the registration credentials to the third parties at the opening of the realaccount;d) Unauthorized access by the third party to the personal email account of the Client;e) Reading with the delay of the information sent the Client’s email address;f) Any other force-majeure circumstances on the part of the Client.

_________________‘FinPros.com’ is a domain owned and operated by ‘FinPros Financial Ltd’, a company registered in Seychelles withcompany registration number: 8429300-1, having its registered office at CT House, Office 9A, Providence, Mahe,
Seychelles. ‘FinPros Financial Ltd’ is regulated by the Financial Services Authority (‘FSA’) of Seychelles as a Securities
Dealer with License number: SD087
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