STEREOMAFX RISK DISCLOSURE

 

• STEREOMAFX ASSETS LTD (the “STEREOMAFX” or “Company”) is an International Investment Firm (the “IF”) incorporated in the Saint Vincent and the Grenadines
• The Company is authorized and regulated by the SVG (the “SVG”), with a Dealer in Securities Principal License (the “License”) granted by the Minister of Finance and Economic Management of The foundations of the services offered to Clients are based on the License of the Company.
• The Client knows that transactions in the Financial Instruments as are described in the “Terms and Conditions” involve a high degree of risk and are not suitable for many members of the Such transactions should be entered into only by persons who have read, understood and familiarized themselves with the style of exercise, the nature and extent of rights and obligations and the associated risks.
• This notice does not purport to disclose or discuss all of the risks and other significant aspects of any transaction, so the Client undertakes and warrants to consult with his own legal, tax and financial advisers prior to entering into any particular
• The Company does not and cannot guarantee the initial capital of the Client’s portfolio or its value at any time or any money invested in any financial
• The Client unreservedly acknowledges and accepts that, regardless of any information which

may be offered by the Company, the value of any Investment in Financial Instruments may fluctuate downwards or upwards and it is even probable that the investment may become of no value.

• The Client unreservedly acknowledges and accepts that he/she runs a great risk of incurring losses and damages as a result of the purchase and/or sale of any Financial Instrument and accepts and declares that he is willing to undertake this
• The Client should not engage in any investment directly or indirectly in Financial Instruments unless he knows and understands the risks involved for each one of the Financial
• The Client acknowledges and warrants that he/she is aware of the risks, which may be involved in any investment directly or indirectly in Financial He fully understands:
• The extent of the economic risk to which he is exposed as a result of such transactions (and have determined that such risk is suitable for him in light of my specific experience in relation to the transaction and my financial objectives, circumstances and (resources); the nature and fundamentals of the transaction and the market underlying such transactions; the legal terms and conditions for such The Client also acknowledges and warrants that he fully understands the terms and conditions of the transactions to be undertaken, including, without limitation:

• The terms as to price, term, expiration date, restrictions and of the term’s material to the transaction; any terms describing risk factors, such as volatility, liquidity, and so on; and the circumstances under which he may become obliged to make or take delivery of a leveraged

The Client acknowledges that the high degree of leverage can work against him as well as for him due to fluctuating market conditions. Trading in such financial instruments can lead to large losses as well as gains in response to a small market movement.

• The Client acknowledges that he / she can only loose up to the total capital deposited and that he / she cannot incur any further liability to the
• The Client acknowledges and accepts that he may sustain substantial losses on a contract or trade if the market conditions move against his position. He also acknowledges that it is in his interest to fully understand the impact of market movements, in particular the extent of profit/loss he would be exposed to when there is an upward or downward movement in the relevant rates and the extent of loss if he has to liquidate a position if market conditions move against
• The Client also understands that under certain market conditions he may find it difficult or impossible to liquidate a position, to assess a fair price or assess risk This can happen, for example, where the market for a transaction is illiquid or where there is a failure in electronic or telecommunications systems, or where there is the occurrence of an event commonly known as “force majeure”.
• The Client knows that placing contingent orders, such as “stop-loss” orders, will not necessarily limit his losses to the intended amounts, as it may be impossible to execute such orders under certain market conditions.
• The Client also acknowledge that because the prices and characteristics of over-the-counter transactions are individually negotiated and there is no central source for obtaining prices, there may be inefficiencies in transaction
• The Client consequently accepts that the Company cannot and does not warrant that the prices provided to him/her any time be the best prices available to him. The Company follows a Best Execution
• The Client declares and warrants that he has read, comprehends and unreservedly accepts the following:

• Information of the previous performance of a Financial Instrument does not guarantee its current and/or future The use of historical data does not constitute a binding or safe forecast as to the corresponding future performance of the Financial Instruments to which the said information refers.
• Some Financial Instruments may not become immediately liquid as a result g. of reduced

demand and the Client may not be in a position to sell them or easily obtain information on the value of these Financial Instruments or the extent of the associated risks.

• When a Financial Instrument is traded in a currency other than the currency of the Client’s country of residence, any changes in the exchange rates may have a negative effect on its value, price and
• Financial Instrument on foreign markets may entail risks different to the usual risks of the markets in the Client’s country of residence. In some cases, these risks may be The prospect of profit or loss from transactions on foreign markets is also affected by exchange rate fluctuations.
• derivative financial instrument (i.e. option, future, forward, swap, contract for difference) may be a non-delivery spot transaction giving an opportunity to make profit on changes in currency rates, commodity or indices.
• The value of the derivative financial instrument may be directly affected by the price of the security or any other underlying asset which is the object of the
• The Client must not purchase a derivative financial instrument unless he is willing to undertake the risks of losing entirely all the money which he has invested.
• The Client acknowledges and accepts that there may be other risks which are not contained
  • The Client should take the risk that his trades in Financial Instruments may be or become subject to tax and/or any other duty for example because of changes in legislation or his personal The Company does not warrant that no tax and/or any other stamp duty will be payable. The Client is personally liable for any taxes and/or any other duty which may accrue in respect of his trades.

• Prior to applying for an account the Client should consider carefully whether investing in a specific Financial Instrument is suitable for him in the light of his circumstances and financial Investing in some Financial Instruments entails the use of “leverage”. Leverage means the use of various Financial Instruments or borrowed capital, such as margin, to increase the potential return of an investment. In considering whether to engage in this form of investment, the Client should be aware of the following:

2. RISKS OF ONLINE TRADING
   • The Client’s access to the Company’s Electronic Trading Platform, or any portion thereof, may be restricted, intermittent or unavailable during periods of peak demands, extreme market volatility, systems upgrades or other The Company makes no express or implied representations or warranties to the The Client may be called upon to deposit substantial additional margin, at short notice, to maintain his investment. If the Client does not provide such additional funds within the time required, his investment position may be closed at a loss and he will be liable for any resulting deficit. With regards to transactions in derivative financial instruments, the Company shall provide through its Trading Platforms a Margin Call when the margin is less than 125% and is entitled, upon its discretion, to start closing positions when margin is less than 30% (Stop-out Level). The sole responsibility for observance of both the Margin Call and the Stop-out Call lies upon the Client and can be utilized through the Market Watch section of the Trading Platforms. Such transactions may not be undertaken on a recognized or designated investment exchange and, accordingly, they may expose the Client to greater risks than exchange transactions. The terms and conditions and trading rules may be established solely by the counterparty. The Client may only be able to close an open position of any given contract during the opening hours of the exchange. The Client may also have to close any position with the counterparty with whom it was originally entered into. In regard to transactions in financial instruments with the Company, the Company is using an Electronic Trading Platform for transactions in Financial Instruments which does not fall into the   definition   of   a recognized exchange as this is not a multilateral trading facility and the Company is always the counter party in every Client transaction.

The Company may not provide the Client with investment advice relating to investments or possible transactions in investments or make investment recommendations of any kind. This prohibition is subject to an exception where advice given amounts to the giving of factual market information or information, in relation to a transaction about which the Client has enquired, as to transaction procedures, potential risks involved and how those risks may be minimized. Client regarding the availability, usability, condition or operation thereof. The Company does not warrant that access to or use of any of the Electronic Trading Platform will be uninterrupted or error free or that the

Electronic Trading Platform will meet any particular requirements or criteria of processing, performance or quality.

• Under no circumstances, including negligence, shall the Company or anyone else involved in creating, producing, delivering or managing any part of the Electronic Trading Platform be liable for any direct, indirect, incidental, special or consequential damages that result from the use of or inability to use any part of the Electronic Trading Platform, or out of any breach of any warranty, including, without limitation, those for business interruption or loss of
• The Client expressly agrees that the Client’s use of the Electronic Trading Platform is of the Client’s sole risk. The Client assumes full responsibility and risk of loss resulting from use of, or materials or data obtained through the Electronic Trading Platform. Neither the Company, nor any of the Company’s directors, officers, employees, agents, contractors, affiliates, third party vendors, facilities, information providers, licensors, exchanges, clearing organizations or other suppliers providing data, information, or services, warrant:

• that the Electronic Trading Platform will be uninterrupted or error free at most of the times͖ nor does the Company make any warranty as to the results that may be obtained from the use of the Electronic Trading Platform or as to the timeliness, sequence, accuracy, completeness, reliability or content of any information, service, or transaction provided through the Electronic Trading Platform; or

• that the Client’s systems will be unaffected or undamaged by any malicious software͖ or
• that any data will not be intercepted by any third
  • In the event that Client’s access to the Electronic Trading Platform or any portion thereof is restricted or unavailable, the Client agrees to use other means to place the orders or access information, such as calling the Company and/or the Company
  • By placing an order through the Electronic Trading Platform, the Client acknowledges that orders may not be reviewed by a registered representative prior to execution. The Client agrees that the Company is not liable to the Client for any losses, lost opportunities or increased commissions that may result from the Client’s inability to use the Electronic Trading Platform to place orders or access
  • This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in all financial instrument and investment services. The Client will be informed in more detail of the risks involved based on the categorization assigned to him by the Company and the investment services and financial instruments

3. COMPANY’S CONTACT DETAILS
   • Clients shall communicate with the Company with the communication methods described within this policy and/or at the following address:

Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, Saint Vincent and the Grenadines.