Risk Disclosure
Effective date: 1 January 2025. Please read this document carefully before trading on TradeFames.
Important: Trading in financial instruments involves a high level of risk and may not be suitable for all investors. You may lose some or all of your invested capital. Please ensure you fully understand the risks before trading.
1. General Risk Warning
Trading in financial instruments, including cryptocurrencies, foreign exchange, contracts for difference (CFDs), futures, and other derivative products, involves a significant risk of loss. You may lose some or all of the capital you invest. You should not trade with money you cannot afford to lose.
Past performance is not indicative of future results. The value of investments can go down as well as up. TradeFames does not guarantee any return on your investments.
2. Leverage and Margin Risk
Many instruments available on TradeFames can be traded with leverage, meaning you can control a position significantly larger than your initial deposit. While leverage can amplify profits, it equally amplifies losses and can result in losses that exceed your initial deposit.
You may be required to provide additional margin at short notice to maintain open positions. If you fail to meet a margin call, your positions may be closed automatically at a loss without notice. You are responsible for monitoring your positions at all times.
3. Cryptocurrency-Specific Risks
Cryptocurrency markets are highly volatile, largely unregulated in many jurisdictions, and susceptible to extreme price movements within very short timeframes. Prices can drop to zero. There is no guarantee of liquidity at any price.
Additional risks include: technical vulnerabilities in blockchain protocols, exchange hacks, regulatory changes that may restrict or ban trading, hard forks creating uncertainty, and the irreversibility of blockchain transactions. Cryptocurrency holdings are not protected by the Financial Services Compensation Scheme (FSCS).
4. Market and Liquidity Risk
Markets can be illiquid, particularly for smaller cryptocurrencies and exotic currency pairs. This can result in slippage — where your order is filled at a different price to what was quoted — especially during periods of high volatility or low market activity.
Market orders may execute at prices significantly different from the last traded price. During extreme market conditions, the platform may suspend trading or limit certain operations.
5. Technology and Operational Risk
Trading on an online platform introduces technology risks including internet connectivity failures, hardware malfunctions, software bugs, and cyber attacks. While TradeFames maintains robust infrastructure and redundancy systems, we cannot guarantee uninterrupted availability.
You are responsible for ensuring your own hardware and internet connection are reliable. Orders placed during platform outages may not be executed. You should always have a plan for managing open positions if you cannot access the platform.
6. Regulatory and Legal Risk
Regulations governing financial instruments, particularly cryptocurrencies, are evolving rapidly. Changes in law or regulation in your jurisdiction could adversely affect your ability to trade certain instruments, the value of your holdings, or the tax treatment of your trading activities.
It is your responsibility to understand the tax implications of trading in your jurisdiction. TradeFames does not provide tax advice.
7. Copy Trading Risk
When using copy trading features, you are copying the trades of other users. Past performance of copy traders does not guarantee future results. The trader you copy may make decisions based on their individual financial situation and risk tolerance, which may differ significantly from yours.
You retain full responsibility for all trades executed in your account, including those copied from other traders. You can stop copying at any time and should review your copied positions regularly.
8. Suitability Warning
Trading in leveraged products and cryptocurrencies is not suitable for everyone. Before trading, you should honestly assess: (a) your investment objectives and financial situation; (b) your experience and knowledge of the products; (c) your ability to absorb losses; (d) whether you have sought independent financial advice.
If you are unsure whether trading is right for you, please seek independent professional financial advice before opening any positions.