Risk Disclosure

1. Introduction

This Risk Disclosure Statement is provided by MSSA Global Multi-Asset Strategy ("Company," "we," "our," or "us") to inform you about the significant risks associated with trading foreign exchange (Forex), Contracts for Difference (CFDs), and other leveraged financial instruments offered through our platform.

Trading in leveraged financial instruments carries a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.

This document does not disclose all risks and other significant aspects of trading leveraged products. You should not engage in trading unless you understand the nature of the transactions you are entering into and the extent of your exposure to risk.

2. General Risk Warning

The products offered by MSSA Global Multi-Asset Strategy are leveraged products. Trading leveraged products may result in losses that exceed your initial deposit. You should ensure that you fully understand the risks involved and seek independent advice if necessary.

The value of your investments can go down as well as up, and you may receive back less than your original investment. The high degree of leverage that is often obtainable in trading can work against you as well as for you.

3. Types of Risks

When trading with us, you are exposed to various types of risks. Understanding these risks is essential for making informed trading decisions.

3.1 Market Risk

Market risk is the risk of losses due to adverse movements in market prices. This includes:

• Price Volatility: Financial markets can be highly volatile. Prices can move rapidly in either direction, potentially resulting in significant gains or losses.
• Gap Risk: Prices may "gap" – move sharply from one level to another without trading at prices in between. This can occur during market openings, after news announcements, or during periods of high volatility.
• Slippage: Your order may be executed at a price different from the requested price due to rapid market movements or low liquidity.
• Market Conditions: Unusual market conditions or circumstances may affect the execution of orders and the prices at which trades are executed.

3.2 Leverage Risk

Leverage allows you to control a large position with a relatively small amount of capital. While leverage can amplify profits, it can also amplify losses:

• Magnified Losses: A small adverse movement in the market can result in substantial losses relative to your initial investment.
• Margin Calls: If the market moves against your position, you may be required to deposit additional funds to maintain your position.
• Automatic Liquidation: If you fail to meet margin requirements, your positions may be automatically closed at a loss.
• Negative Balance: In extreme market conditions, losses may exceed your account balance, potentially resulting in a debt to the Company.

3.3 Liquidity Risk

Liquidity risk refers to the risk that you may not be able to open or close a position at your desired price:

• Market Liquidity: Some instruments may have limited liquidity, making it difficult to execute trades at desired prices.
• Widening Spreads: During periods of low liquidity or high volatility, spreads may widen significantly.
• Execution Delays: Orders may experience delays in execution during volatile market conditions.
• Partial Fills: Large orders may only be partially filled at the requested price.

3.4 Counterparty Risk

When you trade with us, you are exposed to counterparty risk:

• Company Solvency: The risk that the Company may become insolvent or unable to meet its financial obligations.
• Segregated Funds: While we maintain client funds in segregated accounts, there is still a risk in the event of insolvency.
• Third-Party Risk: Risk associated with banks, payment processors, and other third parties we work with.

3.5 Technology Risk

Trading through electronic platforms exposes you to various technology-related risks:

• System Failures: Hardware or software failures may prevent you from placing, modifying, or closing orders.
• Internet Connectivity: Loss of internet connection may prevent access to the trading platform.
• Cyber Attacks: Risk of unauthorized access to your account or trading platform disruptions.
• Data Errors: Errors in price feeds or other data may affect your trading decisions.

3.6 Regulatory Risk

Changes in laws and regulations may affect your trading:

• Regulatory Changes: New regulations may restrict certain trading activities or instruments.
• Tax Changes: Changes in tax laws may affect the profitability of your trading.
• Jurisdictional Issues: Different jurisdictions may have different rules affecting your trading.

3.7 Currency Risk

If you trade in instruments denominated in a currency other than your account currency:

• Exchange Rate Fluctuations: Changes in exchange rates may affect the value of your positions and profits/losses.
• Conversion Costs: Currency conversions may incur additional costs.

4. CFD Trading Risks

Contracts for Difference (CFDs) are complex financial instruments that carry specific risks:

4.1 Nature of CFDs

A CFD is a contract between you and the Company to exchange the difference in value of an underlying asset between the time the contract is opened and when it is closed. Key characteristics include:

• You do not own the underlying asset
• CFDs are leveraged products
• CFDs may have no fixed expiry date (except for futures CFDs)
• CFDs are traded over-the-counter (OTC)

4.2 Specific CFD Risks

• Overnight Financing: Holding CFD positions overnight incurs financing charges (swap fees) that can accumulate over time.
• Corporate Actions: CFDs on shares may be affected by dividends, stock splits, and other corporate actions.
• No Shareholder Rights: CFD holders do not have voting rights or other shareholder privileges.
• Pricing: CFD prices are derived from underlying markets but may differ from actual market prices.
• Conflicts of Interest: As the counterparty to your trades, we may have interests that conflict with yours.

4.3 Margin Requirements

CFD trading requires you to maintain margin in your account:

• Initial Margin: The minimum amount required to open a position.
• Maintenance Margin: The minimum amount required to keep a position open.
• Margin Close-Out: Positions may be automatically closed if margin falls below required levels.

5. Forex Trading Risks

Foreign exchange trading carries specific risks in addition to general trading risks:

5.1 Market Characteristics

• 24-Hour Market: The forex market operates 24 hours a day, 5 days a week, which means prices can change at any time.
• Decentralized Market: There is no central exchange, and prices may vary between providers.
• High Volatility: Currency pairs can experience significant price movements in short periods.

5.2 Factors Affecting Forex Prices

Currency prices are influenced by numerous factors:

• Interest rate decisions by central banks
• Economic indicators (GDP, employment, inflation)
• Political events and geopolitical tensions
• Natural disasters and unexpected events
• Market sentiment and speculation
• Government interventions in currency markets

5.3 Weekend and Holiday Gaps

The forex market closes over weekends and holidays. When it reopens, prices may have moved significantly from the closing price, potentially triggering stop-loss orders at unfavorable prices or resulting in margin calls.

5.4 Exotic Currency Pairs

Trading exotic currency pairs (those involving currencies from emerging markets) carries additional risks:

• Lower liquidity and wider spreads
• Higher volatility
• Greater susceptibility to political and economic instability
• Potential for capital controls or currency restrictions

6. Cryptocurrency CFD Risks

Trading CFDs on cryptocurrencies carries unique and heightened risks:

6.1 Volatility

Cryptocurrencies are known for extreme price volatility:

• Price swings of 10-20% in a single day are common
• Prices can drop to zero in extreme cases
• Volatility can be unpredictable and sudden

6.2 Regulatory Uncertainty

• Cryptocurrency regulations vary widely by jurisdiction
• Regulatory changes can significantly impact prices
• Some jurisdictions may ban or restrict cryptocurrency trading

6.3 Market Manipulation

• Cryptocurrency markets may be susceptible to manipulation
• "Pump and dump" schemes are known to occur
• Large holders ("whales") can significantly impact prices

6.4 Technology Risks

• Blockchain technology is still evolving
• Network congestion can affect pricing and execution
• Hard forks and protocol changes can impact prices

6.5 Limited Trading Hours

While cryptocurrency markets trade 24/7, our cryptocurrency CFD trading may have specific trading hours. Gaps can occur when trading resumes.

7. Past Performance Warning

Any historical returns, expected returns, or probability projections may not reflect actual future performance. The following should be noted:

• Historical trading results do not guarantee future performance
• Demo account results do not reflect real trading conditions
• Backtested strategies may not perform the same in live markets
• Market conditions change over time
• Individual results will vary based on trading decisions and market conditions

Any examples, charts, or testimonials presented are for illustrative purposes only and should not be construed as a guarantee of similar results.

8. Suitability

Trading forex and CFDs may not be suitable for everyone. Before trading, you should consider whether this type of trading is appropriate for you based on:

8.1 Financial Situation

• Your overall financial position and obligations
• Your ability to bear financial losses
• Whether you have emergency funds separate from trading capital
• Your income stability and sources

8.2 Investment Objectives

• Your investment goals and time horizon
• Whether speculative trading aligns with your objectives
• Your expectations for returns and risk tolerance

8.3 Knowledge and Experience

• Your understanding of financial markets
• Your experience with leveraged products
• Your ability to monitor positions and react to market changes
• Your understanding of technical and fundamental analysis

8.4 Who Should NOT Trade

You should NOT trade forex or CFDs if:

• You cannot afford to lose the money you invest
• You are using borrowed money or funds needed for essential expenses
• You do not understand how leveraged products work
• You are unable to monitor your positions regularly
• You are seeking guaranteed returns

9. Risk Management Recommendations

While trading carries inherent risks, proper risk management can help protect your capital:

9.1 Capital Management

• Risk Only What You Can Afford to Lose: Never trade with money you need for essential expenses.
• Position Sizing: Limit the size of each trade relative to your account balance.
• Diversification: Don't put all your capital into a single trade or instrument.

9.2 Use of Stop-Loss Orders

• Always use stop-loss orders to limit potential losses
• Set stop-loss levels before entering a trade
• Consider using guaranteed stop-loss orders where available
• Be aware that stop-loss orders may not always be executed at the specified price

9.3 Leverage Management

• Use lower leverage, especially when starting out
• Understand the margin requirements for your positions
• Monitor your margin level regularly
• Be prepared for margin calls

9.4 Education and Preparation

• Educate yourself about the markets and instruments you trade
• Practice with a demo account before trading with real money
• Develop and test a trading strategy
• Keep up with market news and events

9.5 Emotional Discipline

• Don't let emotions drive your trading decisions
• Stick to your trading plan
• Accept losses as part of trading
• Take breaks when needed

10. Acknowledgement

By opening an account with MSSA Global Multi-Asset Strategy and trading on our platform, you acknowledge and confirm that:

• You have read, understood, and accept this Risk Disclosure Statement in its entirety.
• You understand that trading forex and CFDs involves a high level of risk and may result in the loss of all your invested capital.
• You are aware that past performance is not indicative of future results.
• You have considered your financial situation and have determined that trading is appropriate for you.
• You understand the nature of leveraged products and the risks associated with them.
• You accept full responsibility for your trading decisions and any resulting profits or losses.
• You have not relied on any representations or guarantees from the Company regarding potential profits.
• You understand that the Company does not provide investment advice and that any market analysis or educational materials are for informational purposes only.
• You agree to seek independent financial advice if you are unsure about any aspect of trading.

11. Contact Us

If you have any questions about this Risk Disclosure Statement or need clarification on any risks associated with trading, please contact us:

We strongly encourage you to contact us if you have any doubts about whether trading is suitable for you or if you need any clarification on the risks involved.