RISK DISCLOSURE STATEMENT
In the event of a conflict between SwissCap Holdings Ltd. and a Client, terms expressed in English and expressed in any other language, the terms expressed in English shall prevail over those expressed in any other language.
In consideration of SwissCap Holdings Ltd. (hereafter the “Company”) agreeing to enter into derivative contracts (“DCs”) with the applicant (hereinafter referred to as the “ Customer”, “you”, “ your”), the Customer acknowledges, understands and agrees that:
Dealing with DCs is highly speculative, involves a significant risk of loss and is not suitable for all individuals but only for those customers who:
DCs are not appropriate for retirement purposes. DCs transactions are among the riskiest types of transactions and can result in large losses. Customer represents, warrants and agrees that Customer understands these risks, is willing and able, financially and otherwise, to assume the risks of dealing with DCs and that the loss of Customer’s entire account balance will not change Customer’s lifestyle.
Being long in DC means you are buying the DCs on the market by speculating that the market price of the DC’s underlying will rise between the time of the purchase and sale. As owner of a long transaction, you will generally make a profit if the price of the underlying rises whilst your DC long transaction is open. On the contrary, you will generally suffer a loss, if the price of the underlying falls whilst your DC long transaction is open. Your potential loss may therefore be bigger than the initial margin deposited. In addition, you might suffer a loss due to the closure of your transaction, in case you do not have enough liquidity for the margin on your account in order to maintain your transaction open.
Being short in DC means you are selling the DCs on the market by speculating that the market price of the underlying will fall between the time of the purchase and sale. As owner of a short transaction, you will generally make a profit if the price of the underlying falls whilst your DC short transaction is open. On the contrary, you will generally suffer a loss, if the price of the underlying rises whilst your DC short transaction is open. Your potential loss may therefore be bigger than the initial margin deposited. In addition, you might suffer a loss due to the closure of your transaction, in case you do not have enough liquidity for the margin on your account in order to maintain your transaction open.
The high degree of “gearing” or “leverage” is a particular feature of DCs. The effect of leverage makes dealing in DCs riskier than investing directly in the underlying. This stems from the margining system applicable to DCs which generally involves a small deposit relative to the size of the transaction, so that a relatively small price movement in the underlying can have a disproportionately dramatic effect on your transaction. This can be both advantageous and disadvantageous. A small price movement in your favour can provide a high return on the deposit, however, a small price movement against you may result in significant losses. Such losses can occur quickly. The greater the leverage, the greater the risk. The size of leverage therefore partly determines the result of your activity.
Customer must maintain the minimum margin requirement on their open transactions at all times. It is Customer’s responsibility to monitor his/her account balance. Customer may receive a margin call to deposit additional cash if the margin in the account concerned is too low. The Company has the right to liquidate any or all open transactions whenever the minimum margin requirement is not maintained and this may result in Customer’s DCs being closed at a loss for which you will be liable.
The Customer understands that DCs can only be settled in cash.
The Company will provide prices to be used in transactions, valuation of Customer’s positions and determination of Margin requirements. The performance of your DC will depend on the prices set by the Company and fluctuations in the underlying asset to which your contract relates. Each underlying therefore carries specific risks that affect the result of the DC concerned.
You have no rights or obligations in respect of the underlying relating to your Derivative Contracts. The Customer understands that DCs can have different underlying.
Investing in DC with an underlying listed in a currency other than your base currency of the account entails a currency risk, due to the fact that when the DC is settled in a currency other than your base currency, the value of your return may be affected by its conversion into the base currency.
The Company’s online system provides immediate transmission of Customer’s requests once Customer enters the volume and clicks “Buy/Sell.” This means that there is no opportunity to review the request after clicking “Buy/Sell” and Market Request cannot be cancelled or modified. This feature may be different from other systems you have used. Customer should utilize the Demo System to become familiar with the Online System before actually dealing online with the Company. Customer acknowledges and agrees that by using the Company’s online system, Customer agrees to the one-click system and accepts the risk of this immediate transmission/execution feature.
Where the Company provides generic market analysis for educational purposes, such generic analysis does not constitute a personal recommendation or investment advice and have not considered any of your personal circumstances or your investment objectives, nor is it an offer to buy or sell, or the solicitation of an offer to buy or sell, any Derivative Contracts. Each decision by Customer to enter into a Derivative Contract with the Company and each decision as to whether a transaction is appropriate or proper for Customer, is an independent decision made by the Customer. The Company is not acting as an advisor or serving as a fiduciary to Customer. Customer agrees that the Company has no fiduciary duty to Customer and no liability in connection with and is not responsible for any liabilities, claims, damages, costs and expenses, including attorneys’ fees, incurred in connection with Customer following the Company’s generic market analysis or taking or not taking any action based upon any generic market analysis or information provided by the Company.
At the same time, the Company does not provide any form of investment services to Customers.
The generic market analysis provided by the Company are based solely on the judgment of the Company’s personnel or third party service providers and should be considered as such. Customer acknowledges that Customer enters into any Transactions relying on Customer’s own judgment. Any market analysis provided are generic only and may or may not be consistent with the transactions or intentions of the Company and/or its affiliates. The generic market analysis of the Company are based upon information believed to be reliable, but the Company cannot and does not guarantee the accuracy or completeness thereof or represent that following such generic market analysis will reduce or eliminate the risk inherent in dealing with Derivative Contracts.
There are no guarantees of profit nor of avoiding losses when dealing with Derivative Contracts. Customer has received no such guarantees from the Company or from any of its representatives. Customer is aware of the risks inherent in dealing with Derivative Contracts and is financially able to bear such risks and withstand any losses incurred.
When Customer deals online (via the internet), the Company shall not be liable for any claims, losses, damages, costs or expenses, caused, directly or indirectly, by any malfunction, disruption or failure of any transmission, communication system, computer facility or trading software, whether belonging to the Company, Customer, any exchange or any settlement or clearing system.
Should a quoting error occur (including responses to Customer requests), the Company is not liable for any resulting errors in account balances and reserves the right to make necessary corrections or adjustments to the relevant Account. Any dispute arising from such quoting errors will be resolved on the basis of the fair value, as determined by the Company in its sole discretion and acting in good faith, of the relevant market at the time such an error occurred. In cases where the prevailing market represents prices different from the prices the Company has posted on our screen, the Company will attempt, on a best efforts basis, to execute Transactions on or close to the prevailing market prices. These prevailing market prices will be the prices, which are ultimately reflected on the Customer statements. This may or may not adversely affect the Customer’s realized and unrealized gains and losses.
Sterling Holdings Ltd. provides online trading services via its brand “Revolve Markets” and its billing agent and revolvemarkets.com website and domain registrar. The Company provides its services through a trading platform/electronic system for online trading on the investment market. Trading in the investment markets online is speculative and carries a high level of risk, thus may not be suitable for all investors. If you are thinking of trading online in the investment markets, you should be aware of all the risks associated beforehand and take your investment objectives and level of experience into consideration. You should not speculate with capital that you can’t afford to lose, as there is a possibility you may lose some or all of your invested capital. Please note that revolvemarkets.com and its partners and associates, do not accept clients or client funds from the US and North Korea. Read our full risk discolure.
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