Risk Policy for AgapeCoin4all Ltd.
STATEMENT OF RISK WARNINGS
1. INVESTMENT
1.1 Below, we present a summary of the nature and risks associated with the types of investment with which the client could trade when purchasing one of our plans or linking an account with a third-party forex or CFD broker. This information is not intended to be a comprehensive statement of all the risks to which investors may be exposed as there may be others that currently exist or that may arise in the future.
1.2 The main general risks associated with investing are as follows:
1.2.1 Past performance is not an indicator of future performance;
1.2.2 The value of investments may rise and fall;
1.2.3 It is not certain that a benefit will be obtained. There could be losses. You could lose all of your investment;
1.2.4 The price or value of investments may fluctuate significantly;
1.2.5 If there are income distributions, they could also fluctuate significantly.
1.3 The investments described below are complex financial instruments and derivatives. Therefore, we have to inform you of their difference with respect to non-complex financial instruments, such as unit trusts and the elevated risks that the below investments carry by comparison.
2. CONTRACTS FOR DIFFERENCES
2.1 Contracts for Difference (“CFDs”) are financial instruments that allow you to speculate on price fluctuations in underlying markets. The complete list of CFDs offered can be consulted on the website. CFDs may be compared to futures which may be held in relation to foreign exchange or the FTSE-100 index or any other index or stock. However, CFDs must be settled in cash. The risk profile of CFDs is similar to that of similar futures or options. CFDs also have contingent liabilities, the implications of which are presented in section 6.
2.2 Although the prices at which you trade are set by us, our prices are derived from the underlying market. Fluctuations in the underlying market price will therefore affect the profitability of your investment. Some of those risks are:
2.2.1 Currency
If you trade in a market other than your base currency market, currency exchange fluctuations will impact your profits and losses;
2.2.2 Volatility
Price movements in the underlying markets can be volatile and unpredictable. This will directly impact your profits and losses. Knowing the volatility of an underlying market will help guide you on where to place stops.
2.2.3 Gapping
Gapping is a sudden change in the price of an underlying market from one level to another. There are various factors that could lead to gapping (for example: economic events or market communications) and it can occur when the underlying market is open or closed. When these factors occur when the underlying market is closed, the price of this market at the time of reopening (and, therefore, our derived price) can be significantly different from the closing price, with no possibility of closing your trade in the interval. Gapping can result in a significant loss (or profit). An unguaranteed stop will not protect you against this risk, whilst a guaranteed stop will protect you against market gapping.
2.2.4 Market liquidity
Market conditions can change significantly in a very short period of time, so if you want to close a contract, it may not be executed under the same conditions as when you opened it.
2.3 When trading, profits and losses can occur rapidly, therefore it is important that you monitor your positions closely. It is your responsibility to monitor your open orders and as long as you have open trades you should always remain in a position to do so.
2.4 When a non-guaranteed stop is triggered, it has the effect of you issuing an order to close your trade. However, it is not closed immediately at the time the stop occurs. We aim to deal with such orders fairly and quickly, but the time it takes to fill the order and the level at which the order is filled depends upon the underlying market. In changing markets, a price for your order level may not be available, or the market may change rapidly and significantly from the stop level before we fill it.
3. OPTIONS
3.1 There are many different types of options with different characteristics subject to the following conditions:
3.1. Purchase options:
Call options carry less risk than put options because if the price of the underlying asset moves against you, you can allow the option to expire. However, this would mean losing the entire option investment. The maximum loss is limited to the premium, plus commission or other transaction charges. However, if you purchase a call option on a futures contract and subsequently exercise the option, you will purchase the future. This will expose you to the risks described in section 5.
3.2 Some options markets operate on a margin basis, whereby buyers do not pay the full premium on their option at the time they purchase it. In this situation, you may subsequently be required to pay margin on the option at the level of your premium. If you do not do what is required of you, your position may be closed or liquidated in the same way as a futures position.
4. SPOT FOREIGN EXCHANGE
Currency and forex options have risks similar to those of futures investments. Trading in rolling forex or currency options may also have added risks of fluctuations in exchange rates and changes in political or economic regulations in foreign markets. Trading foreign exchange on margin may also have contingent liabilities, which are set out in section 6, and is one of the riskiest forms of investment. Spot currency trading is therefore only suitable for highly skilled traders. The risk of loss of the entire investment means that speculation in the foreign exchange market should be carried out with capital funds that, if lost, would not affect your personal financial wellbeing.
5. FUTURES
Futures transactions include an obligation to take, or accept, delivery of the underlying asset of the contract at a future date, or in some cases to settle the position with cash. They carry a high degree of risk. The "gearing" or "leverage" that is often gained in the futures market means that a small deposit or initial payment can lead to large losses as well as gains. It also means that a relatively small move can lead to a proportionally much larger move in the value of your investment and can work against you as well as for you. Futures transactions have a contingent liability and you should be aware of the implications of this, particularly margin calls, which are presented in section 6.
6. CONTINGENT LIABILITY TRANSACTIONS
Contingent Liability Transactions (“CLTs”) are transactions that are margined and require you to make a series of payments against the purchase price of an investment rather than paying the full purchase price up front. There is a risk that this margin could be lost or additional margin required if the market moves against you. Failure to do this could result in the liquidation of the investment at a loss. In the event that an investment is unmargined, there would still be contingent requirements to make the payment in some circumstances.
7. INVESTMENTS DENOMINATED IN A CURRENCY OTHER THAN THE BASE CURRENCY OF YOUR ACCOUNT
7.1 We may effect transactions on your behalf in an investment denominated in a currency other than the agreed base currency of your account (which is the currency in which your Trading Account is valued).
7.2 A movement in exchange rates could have a separate effect, unfavorable or favourable, on or gain or loss otherwise experienced on the affected investment. In addition, if you post bonds denominated in one currency, you may be subject to margin calls in circumstances where the obligations secured by such bond are denominated in another currency (in addition to the risk of margin calls for fluctuations in relative values). Some currencies are not freely convertible and restrictions may be placed on the conversion and/or repatriation of your funds including any profits or dividends.
8. TAXATION
The client should seek independent tax advice, wherever necessary, to establish whether or not the client is subject to making income tax declarations on their profits, including paying stamp duty.
AgapeCoin4all legal notice
Please note that you will not be able to invest in AgapeCoin4all until you have read and accepted the following legal notice:
By investing in our platform you benefit from information extracted from algorithmic trading operations and/or orders from other traders.
Specific market circumstances or plans chosen by you may prevent the algorithm (including its affiliates, its employees and specialized agents) from executing an investment on your behalf.
When investing on our platform you should always be able to bear the loss of the entire investment, even when investing in personalized or well-informed strategies based on trading history and/or orders from traders with the highest historical return. Past performance of a merchant or certain services indicated on www.agapecoin4all.com are not indicative of future results.
All information on www.agapecoin4all.com is provided by the Company for general information purposes only. If you make investment decisions in reliance on information made available as part of www.agapecoin4all.com or as a result of using www.agapecoin4all.com, you do so at your own risk and the Company (including its officers, employees and affiliates) shall not be liable for any loss that you may suffer. You should not make any investment decision without first conducting your own independent research. You are solely and exclusively responsible for determining whether an investment, or strategy, or any other product or service is appropriate or suitable for you based on your investment objectives and personal financial circumstances.
You can, with immediate effect, choose a stop following past and future performance of our services. You are solely responsible for closing any open trades that you may have established in the course of trading one or more services. The Company reserves the right to kill and immediately cancel any open trades by any user of our platform at any time for the prevention of sending an erroneous order or where the order may create or contribute to a disorderly market. The Company (including its affiliates) will not be liable for any loss you may suffer as a result of an investment decision made on the basis of information provdied on the Company's website.
Please note that not all products and services described in the Risk Policy may be available for trade in all jurisdictions or to all persons. You may not be able to invest in a service of our company if you are unable to trade in that specific product in your jurisdiction.