1. Scope of the Statement

AFXMarkets Limited (hereafter to as “AFXMarkets”, the “Company”, “us”, “we”, “our”) provides

you (referred to as the “Client”, “your”), with this Risk Disclosure Statement which is written

in accordance Provision of Investment Services, The Exercise of Investment Activities, The

Operation of Regulated Markets and Other Related Matters Law (L. 87(Ι)/2017) and is intended

to inform you of the general risks that exist in trading activities on our website and of dealing

in the Financial Instruments offered by the Company. You must recognize that these risks entail

a chance of losing money while trading. This disclosure is informational and must not be

considered a list of all possible risks.

This document does NOT disclose all the associated risks or other important aspects of CFDs,

and it should NOT be considered as investment advice or recommendation for the provision of

any service or investment in any financial instrument.

The Client should NOT carry out any transaction in CFDs or in any other financial instruments

unless he is fully aware of their nature, the risks involved and the extent of his exposure in

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.

The Client should also be aware that:

• The value of any investment in financial instruments may fluctuate downwards or

upwards, and the investment may diminish to the extent of becoming worthless;

• Previous returns do not constitute an indication of a possible future return;

• Trading in Financial Instruments may entail tax and/or any other duty; and

• 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 Client’s

base currency.

You are strongly advised to carefully read the Risk Disclosure Statement in conjunction with

the Terms and Conditions and other legal documents available through our Website before

applying to the Company for a trading account and before you begin trading with us.

The statement does not purport to disclose, or discuss all of the risks and other significant aspects

of all transactions entered into with or through the Company, so the Company requires you to

undertake and warrant that you will consult with your own legal, tax and financial advisers prior to

entering into any particular transaction with or through the Company.

2. Risks Associated with Trading in Financial Instruments

Trading is very speculative and risky. Trading CFDs is highly speculative and is suitable only

for those Clients who

a) understand and are willing to assume the economic, legal and other risks involved, and

b) are financially able to assume the risk of losses up to their invested capital. CFDs are

not appropriate investments for retirement funds.

AFXMarkets is owned and operated by AFXMarkets Limited

v.3

AFXMarkets Limited is a Cyprus Investment Firm, regulated by Cyprus Securities and Exchange Commission (CySEC)

Registered Office Address:

12 Arch. Makarios III Avenue Office 201, Mesa Geitonia 4000, Limassol, Cyprus

2.1 Possess the appropriate level of experience and/or knowledge in the specific Financial

Instruments offered by the Company. The Company will apply an Appropriateness Test on the

information provided by you, during the process of verifying your account. If, based on this

information, the Company finds that you do not possess the appropriate level of experience and/or

knowledge, you will be informed as such and must understand and accept all associated risks if you

decide to continue in the opening of your trading account. It is important for you to ensure that any

decision to engage in trading CFDs and other products offered by the Company, is made on an

informed basis, and that you understand the nature of the CFDs/products offered and the extent of

ll the risks associated with CFDs and other products.

2.2 Prior to accepting Company’s Terms and Conditions, or making an order, the Client

should consider carefully whether investing in a specific Financial Instrument is suitable

for him/her in the light of his/her circumstances and financial resources.

2.3 The Client represents, warrants and agrees that he understands these risks, is willing and

able, financially and otherwise, to assume the risks of trading in forex and CFD and that

the loss of Customer’s entire Account balance will not change Client’s lifestyle.

Cash Settlement. The client acknowledges and understands that forex CFD trading can

only be settled in cash.

Conflicts of Interests. The Company is the counterparty to all transactions entered into under

the Client Agreement and, as such, the Company’s interests may be in conflict with the

Client’s. The Conflicts of Interest Policy is available at the Company’s website.

Prices, Margin and Valuations are set by the Company and may be different from prices

reported elsewhere. The Company will provide prices to be used in trading, valuation of the

Client’s positions and determination of margin requirements in accordance with its Trading

Policies and Procedures and Market Information Sheets. The performance of the Client CFDs

will depend on the prices set by the Company and market fluctuations in the underlying asset to

which the Client contract relates. the Company’s prices for a given market are calculated by

reference to the price of the relevant underlying asset which the Company obtain from third party

external reference sources or exchanges. For Spot FX Contracts, the Company obtain price data

from wholesale market participants. Although the Company expects that these prices will be

reasonably related to prices available in the market, the Company’s prices may vary from prices

available to banks and other market participants. The Company has considerable discretion in

setting and collecting margin. The Company is authorized to convert funds in the Client’s account

for margin into and from such foreign currency at a rate of exchange determined by the

Company in its sole discretion based on then- prevailing money market rates.

Rights to Underlying Assets. The Client have no rights or obligations in respect of the

underlying instruments or assets relating to the Client’s CFDs.

Margin Requirements. The Client must maintain the minimum margin requirement on his/her

open positions at all times. It is Client's responsibility to monitor his/her account balance. The

Company has the right to liquidate any or all open positions whenever the minimum margin

requirement is not maintained and this may result in the Client’s CFDs being closed at a loss

AFXMarkets is owned and operated by AFXMarkets Limited

v.3

AFXMarkets Limited is a Cyprus Investment Firm, regulated by Cyprus Securities and Exchange Commission (CySEC)

Registered Office Address:

12 Arch. Makarios III Avenue Office 201, Mesa Geitonia 4000, Limassol, Cyprus

for which the Client will be liable.

8. Extent of Losses. Where the Client short a market and the price rises, it is possible that the

extent of the Client losses may not become clear until the position has been closed. The Client

must undertake sufficient analysis prior to entering into a transaction to ensure the Client is able

to support the extent of the risk arising.

9. Currency Risk. Where the CFD is settled in a currency other than the Client’s base currency,

the value of the Client return may be affected by its conversion into the base currency.

10. CFDs are derivative financial instruments deriving their value from the prices of the

underlying assets/markets in which they refer to (for example currency, equity indices,

stocks, metals, indices futures, forwards, etc.). Although the prices at which the Company

trades are set by an algorithm developed by the Company, the prices are derived from the

Underlying Assets/market. It is important therefore that the Client understands the risks

associated with trading in the relevant underlying asset/market because fluctuations in the

price of the underlying asset/market will affect the profitability of his trade.

11. CFDs are leveraged financial products and therefore as such, trading CFDs involves a high risk of

loss as price movements are influenced by the amount of leverage the client is using. Nonetheless,

as a result of the Negative Balance Protection, you may not lose more than your initial investment.

12. One Click Trading and Immediate Execution. The Company’s Online Trading System

provides immediate transmission of the Client’s order once he/she enters the notional amount

and clicks “Buy/Sell.” This means that there is no opportunity to review the Order after

clicking “Buy/Sell” and Market Orders cannot be cancelled or amended. This feature may be

different from other trading systems the Client has used. The Client should utilize the Demo

Trading System to become familiar with the Online Trading System before actually trading

online. By using the Company’s Trading System, the Client acknowledges and agrees to the

one-click system and accepts the risk of this immediate transmission/execution feature.

13. Telephone Orders and Immediate Execution. Market orders executed over the telephone

through the Company’s Dealing Room are completed when the Company’s telephone operator

says “deal” or “done” following the Client’s placing of an order. Upon such confirmation of the

telephone operator, the Client has bought or sold and cannot cancel the market order. By placing

market orders through the Company’s Dealing Room, the Client agrees to such immediate

execution and accepts the risk of this immediate execution feature.

14. The Company is not an adviser or a fiduciary to customer. Where the Company provides

generic market recommendations, such generic recommendations do not constitute a personal

recommendation or investment advice and do not consider any of the Client’s personal

circumstances or investment objectives, nor is it an offer to buy or sell, or the solicitation

of an offer to buy or sell, any Foreign Exchange Contracts or Cross Currency Contracts.

Each decision taken by the Client to enter into a CFD Contract with the Company and each

decision as to whether a transaction is appropriate or proper for the Client is an independent

decision made by the Client. The Company is not acting as an advisor or serving as a fiduciary

to the Client. The Client agrees that the Company has no fiduciary duty to the Client and no

liability in connection with and is not responsible for any liabilities, claims, damages, costs and

AFXMarkets is owned and operated by AFXMarkets Limited

v.3

AFXMarkets Limited is a Cyprus Investment Firm, regulated by Cyprus Securities and Exchange Commission (CySEC)

Registered Office Address:

12 Arch. Makarios III Avenue Office 201, Mesa Geitonia 4000, Limassol, Cyprus

expenses, including attorneys’ fees, incurred in connection with the Client following the

Company’s generic trading recommendations or taking or not taking any action based upon any

generic recommendation or information provided by the Company.

15. Recommendations are not guaranteed. The generic market recommendations provided by the

Company are based solely on the judgment of its personnel and should be considered as such.

The Client acknowledges that it enters into any transactions relying on his/her own judgment. Any

market recommendations provided are generic only and may or may not be consistent with the

market positions or intentions of the Company and/or its affiliates. The generic market

recommendations 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 recommendations will reduce or eliminate the risk inherent in trading

CFDs.

16. The Client may not be able to close open positions. Due to the market conditions which may

cause any unusual and sharp market price fluctuations, or other circumstances the Company

may be unable to close out the Client’s position at the price specified by the Client and the

Client agrees that the Company will bear no liability for a failure to do so.

17. Internet Trading. When the Client trades 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 or failure of any transmission, communication system, computer facility or trading

software, whether belonging to the Company, the Client, any exchange or any settlement or

clearing system.

18. Risks Associated With The Trading Platform. The Company is not responsible for disruption,

failure or malfunction of telephone facilities and does not guarantee its telephone availability.

For the avoidance of doubt, the Client is aware that the Company may not be reachable by

telephone at all times and thus the Client can place his orders through online access to the

Company’s Trading Platform.

19. Quoting Errors. Should a quoting error occur (including responses to the Client’s 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 market 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, it 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 Client’s statements. This may or may not

adversely affect the Client’s realized and unrealized gains and losses.

20. No guarantees of profit. There are no guarantees of profit nor of avoiding losses when trading

CFDs. The Client has received no such guarantees from the Company or from any of its

representatives. The Client is aware of the risks inherent in trading CFDs is financially

able to bear such risks and withstand any losses incurred.

AFXMarkets is owned and operated by AFXMarkets Limited

v.3

AFXMarkets Limited is a Cyprus Investment Firm, regulated by Cyprus Securities and Exchange Commission (CySEC)

Registered Office Address:

12 Arch. Makarios III Avenue Office 201, Mesa Geitonia 4000, Limassol, Cyprus

21. Communication Risks: The Client acknowledges that the unencrypted information

transmitted by e-mail is not protected from any unauthorized access. The Company shall

not be responsible for financial losses arising from delayed or failed receipt of Company’s

message. the Client remains fully responsible for the security of the credentials for his/her

Personal Area and trading accounts as well as the confidential information that Company

sends to the Client. The Company is not responsible for financial losses arising from

client’s disclosure of this information to third parties.

22. Investor Compensation Fund. The Company participates in the Investor Compensation Fund for

clients of Investment Firms regulated in the Republic of Cyprus. The Client will be entitled to

compensation under the Investor Compensation Fund where the Company is unable to meet its

duties and obligations arising from the Client’s claim. Any compensation provided to the Client

by the Investor Compensation Fund shall not exceed twenty thousand Euro (EUR 20.000).

This applies to the Client’s aggregate claims against the Company.

23. OTC Counterparty Risk. When trading, such transactions will not be executed on a recognized

or designated investment exchange and are known as OTC transactions. All positions entered

into with the Company must be closed with the Company and cannot be closed with any other

entity. OTC transactions may involve greater risk than investing in on-exchange contracts

because there is no exchange market on which to close out an open position. It may be

impossible to liquidate an existing position, to assess the value of the position arising from an

OTC transaction or to assess the exposure to risk. Bid Prices and Ask Prices need not be quoted

by the Company, based on best execution policies applicable in the market. There is no central

clearing and no guarantee by any other party of the Company’s payment obligations to the Client.

The Client must look only to the Company for performance of all contracts in Client’s account

and for return of any Margin or collateral.

24. Trading CFDs carries a high degree of risk. The gearing or leverage often obtainable in such

trading means that a relatively small market movement can lead to a proportionately much

larger movement in the value of Client liability. Client should be aware of the implications of this,

in particular, the Margin requirements.

25. The Company’s insolvency or default or the insolvency or default of any parties involved

in Transactions undertaken by the Company on the Client’s behalf (including without

limitation brokers, execution venues, and liquidity providers), may lead to positions being

liquidated or closed out without the Client’s consent and as a result the Client may suffer

losses. In the unlikely event of the Company’s, segregated client funds cannot be used for

reimbursement to the Company's creditors. If the Company is unable to satisfy repayment

claims, eligible claimants have the right to compensation by the Investor Compensation

Fund as stated above.

26. Force Majeure Events. In case of a Force Majeure Event the Company may not be in a

position to arrange for the execution of Client Orders or fulfill its obligations under the

agreement with the Client. As a result, the Client may suffer financial loss. The Company

will not be liable or have any responsibility for any type of loss or damage arising out of

any failure, interruption, or delay in performing its obligations under this Agreement

AFXMarkets is owned and operated by AFXMarkets Limited

v.3

AFXMarkets Limited is a Cyprus Investment Firm, regulated by Cyprus Securities and Exchange Commission (CySEC)

Registered Office Address:

12 Arch. Makarios III Avenue Office 201, Mesa Geitonia 4000, Limassol, Cyprus

where such failure, interruption or delay is due to a Force Majeure event.

27. Abnormal Market Risks. The Client acknowledges that under Abnormal Market

Conditions, the period during which the Orders are executed may be extended, or it may

be impossible for Orders to be executed at the declared prices or to be executed at all.

Abnormal Market Conditions include but are not limited to times of rapid price

fluctuations, rises or falls in one trading session to such an extent that, under the rules of

the relevant exchange, trading is suspended or restricted, or there is lack of liquidity, or

this may occur at the opening of trading sessions.

28. Risks Associated With The Laws Of Certain Government. A change in laws and

regulations may materially impact a Financial Instrument and investments in a sector or

market. A change in laws or regulations made by a government or regulatory body or a

decision reached by a judicial body can increase business operational costs, lessen

investment attractiveness, change the competitive landscape and as such alter the profit

possibilities of an investment. This risk is unpredictable and may vary from market to

market.

29. Leverage risk 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

system applicable to CFDs, which generally involves a small deposit relative to the size of the

transaction, so that a relatively small price movement in the underlying asset can have a

disproportional impact on a Client’s trade. A small price movement in the Client’s favor can

provide a high return on the deposit, however, a small price movement against the Client may

quickly result in significant losses.

30. Gapping Risk Financial markets may fluctuate rapidly, and the prices of CFDs will reflect this.

Gapping is a 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.

There may not always be an opportunity for the Client to place an order between the two price

levels.

31. Stop Loss Orders cannot always protect you from losses. The Company offers you the opportunity

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 price limit. There are some

circumstances in which a ‘stop loss’ limit is ineffective, e.g., where there are rapid price

movements or market closure.

32. No rights to the underlying assets. 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.

3. Risks associated with trading in CFDs on cryptocurrencies

The Company hereby wishes to warn Investors on Trading CFDs on Cryptocurrencies of

the following:

Trading CFDs on Cryptocurrencies is not suitable for all investors since these products are

considered highly complex and therefore investors shall be fully aware and be able to

AFXMarkets is owned and operated by AFXMarkets Limited

v.3

AFXMarkets Limited is a Cyprus Investment Firm, regulated by Cyprus Securities and Exchange Commission (CySEC)

Registered Office Address:

12 Arch. Makarios III Avenue Office 201, Mesa Geitonia 4000, Limassol, Cyprus

understand the specific characteristics and risks from these trading activities. Investors

should not trade in such products if they don't have the necessary knowledge and expertise

in this specific product.

The Client should always have in mind any risk from the trading venues on which such

virtual currencies may be traded on. Cryptocurrencies are traded on non-regulated digital

exchanges. These exchanges can determine price formation and movement, without notice

causing price volatility.

Cryptocurrencies are extremely volatile and subject to sharp price movements. As such,

trading in CFDs on cryptocurrencies carries an even higher degree of risk. There is always

a high risk of losing all your invested capital and especially within a short period of time.

These products are highly volatile. Pricing can fluctuate and it does not fall under any

regulatory supervision therefore it can change at any time. Cryptocurrency trading carries

additional risks such as hard forks or discontinuation. Any event in the market may

immediately affect your trading account. You should only invest funds that you can afford

to lose and familiarize yourself with these risks before trading these products.

Cryptocurrency CFDs are not suitable and/or appropriate for all clients.

You should only invest if you are an experienced investor with sophisticated knowledge of

financial markets and you fully understand the risks associated with CFDs and

cryptocurrencies.

Additional Info

You can find more information on the

‘Guide to Investing’ issued by the European

Securities and Markets Authority (ESMA) and the ‘Investor Warning on Contracts for

difference (CFDs) issued jointly by ESMA and the European Banking Authority (EBA).

AFXMarkets is owned and operated by AFXMarkets Limited

v.3

AFXMarkets Limited is a Cyprus Investment Firm, regulated by Cyprus Securities and Exchange Commission (CySEC)

Registered Office Address:

12 Arch. Makarios III Avenue Office 201, Mesa Geitonia 4000, Limassol, Cyprus