Risk Disclosure Statement
TradeSphere Ltd – Licensed Forex Trading Services Provider in the Republic of Mauritius
This Risk Disclosure Statement is provided by TradeSphere Ltd, a company licensed in the Republic of Mauritius to operate as a Forex trading services provider. The purpose of this statement is to inform clients and prospective clients about the potential risks associated with foreign exchange (Forex) trading. This statement is not exhaustive, and it is essential to conduct independent due diligence before participating in Forex trading.
1. Market Risk
Forex trading involves significant risk due to rapid and unpredictable movements in currency exchange rates. This market volatility can result in losses greater than your initial investment. Currency values fluctuate based on global events, political developments, interest rates, and economic data.
2. Leverage Risk
Leverage enables traders to control larger positions with a smaller initial investment. However, leverage can magnify both gains and losses, potentially leading to a substantial loss of capital, even with small market fluctuations. Clients should only engage in leveraged trading if they fully understand its risks and have the financial ability to handle potential losses.
3. Credit and Counterparty Risk
TradeSphere Ltd operates as a counterparty to transactions, which may involve credit risk. If TradeSphere Ltd or its liquidity providers become insolvent, clients may experience delays in accessing funds or face other financial consequences.
4. Operational Risk
Operational risks such as system failures, trading platform issues, and connectivity interruptions may arise, impacting the ability to execute trades as intended. TradeSphere Ltd strives to maintain robust systems but cannot guarantee uninterrupted services.
5. Legal and Regulatory Risk
The Forex industry is subject to changing legal and regulatory requirements. TradeSphere Ltd is licensed in the Republic of Mauritius and complies with all local regulations. However, legal and regulatory risks, including changes in tax laws, trading restrictions, and compliance requirements, may affect your trading activities.
6. Foreign Exchange Risk
Currency exchange rate fluctuations impact Forex transactions and may result in significant gains or losses. TradeSphere Ltd does not guarantee profitability and recommends that all clients fully understand the risks of exchange rate movements.
7. Investment and Financial Knowledge
Forex trading is suitable only for individuals with adequate knowledge and understanding of the Forex market and its risks. Clients should carefully consider their risk tolerance, financial objectives, and trading experience before engaging in Forex trading.
8. No Guarantee of Returns
TradeSphere Ltd does not offer any guarantees or promises of financial gain. Past performance of trading strategies or market trends does not indicate future results. Clients should be prepared to accept the risk of potential losses and should never trade with funds they cannot afford to lose.
9. Third-Party Risk
Clients may choose to use third-party trading strategies, tools, or advisors, over which TradeSphere Ltd has no control or liability. Any reliance on third-party services should be approached with caution, as TradeSphere Ltd does not endorse or assume responsibility for such services.
Acknowledgment of Risk
By opening a trading account with TradeSphere Ltd, clients acknowledge that they have read, understood, and accepted the risks outlined in this statement. Clients also affirm that they have sought or will seek independent financial advice if they lack a full understanding of the risks associated with Forex trading.