Risk Disclosure

1. CFDs in General

Contracts for Difference (CFDs) are complex financial instruments that typically remain open until the client chooses to close the position and generally do not have a fixed maturity date.

CFDs are similar to futures contracts and can be based on indices, precious metals, oil, commodities, or other financial instruments. Unlike traditional futures, however, CFDs are cash-settled rather than resulting in the delivery of the underlying asset.

Investing in CFDs carries risks comparable to those associated with futures contracts, and clients should be fully aware of these risks. CFD transactions may also involve contingent liabilities, the implications of which are explained in paragraphs 3, 5, 17, and 18 below.

It is important to note that all CFD trades are purely contracts for difference. Clients do not acquire ownership of the underlying asset, nor do they receive any rights attached to it—such as reference shares or voting rights—unless explicitly stated in the terms of the specific CFD.

2. Investing in Rolling Forex, Indices, Precious Metals, Oil, and Commodities

Investing in rolling Forex, indices, precious metals, oil, and commodities carries risks similar to those associated with futures contracts, and clients should be fully aware of these risks. Margined transactions in these markets may also create contingent liabilities, the implications of which are outlined in paragraphs 3 and 4 below.

Beyond the standard industry disclosures included in this Risk Acknowledgement, it is important to understand that margin trading in rolling Forex, indices, precious metals, oil, and commodities is among the highest-risk investment activities available. Such trading is generally suitable only for sophisticated investors and institutions.

Given the potential to lose the entire invested amount, speculation in these markets should only be undertaken with risk capital—funds that, if lost, would not materially affect your personal or institutional financial well-being.

3. Risk-Reducing Orders or Strategies

Certain orders or strategies, such as “stop loss” or “stop limit” orders, are designed to limit potential losses to a specified amount. However, these orders may not always be effective due to market conditions or technological limitations that could prevent their execution.

Clients who choose to trade using such orders or strategies do so fully aware of and accepting this risk.

4. Contingent Liability Transactions

CFDs and Forex are margin transactions, meaning that you are required to deposit only a portion of the total contract value rather than paying the full amount upfront. You may lose the entire margin deposited with Edmora Markets to open or maintain a position.

Edmora Markets continuously revalues all open positions throughout each business day. Any profit or loss is immediately reflected in your account, and losses may require you to provide substantial additional margin on short notice to maintain your positions.

Edmora Markets may also adjust its initial margin and/or notional trading requirements at any time, which could increase the margin you are required to maintain. If you fail to maintain sufficient margin or do not provide additional funds within the required timeframe, your open positions may be closed at a loss, and you will remain responsible for any resulting deficit.

5. Leverage

While derivative instruments can be used to manage risk, some investments are not suitable for all investors. Trading CFDs and Forex carries a high level of risk.

Due to the gearing and leverage available in CFDs and Forex, you are only required to deposit a relatively small amount to open a position with Edmora Markets. However, this small initial deposit can lead to substantial losses or gains.

Highly leveraged transactions are extremely sensitive to market movements, meaning that even relatively small changes in the value of the underlying asset or related market factor can result in significant fluctuations in your position’s value.

6. Over-the-Counter (OTC) Transactions

When trading CFDs, you are speculating on the anticipated price movements of an underlying asset. These transactions do not take place on a regulated exchange. Instead, you enter directly into a contract with Edmora Markets for the financial instrument or underlying asset you wish to trade. All open positions must be closed with Edmora Markets and cannot be closed through any other party.

Trading in OTC financial instruments carries additional risks compared to trading on a regulated market. Since there is no formal market to close positions, prices and other trading conditions are set by Edmora Markets, subject to applicable legal and regulatory requirements. OTC transactions can increase liquidity risk and introduce other significant risks, including:

• Difficulty in assessing the value of positions from off-market transactions;
• Challenges in determining overall risk exposure;
• Bid and offer prices may not be available, or establishing a fair price may be difficult, especially when the relevant exchange or market for the underlying is closed or suspended;

Exposure to the risk of Edmora Markets’s default.

7. Prices

The prices displayed on theEdmora Markets platform (the “Platform”) may not always reflect the broader market. Edmora Markets determines closing prices to calculate margin requirements, mark positions to market, and close out positions as necessary. While these prices are generally expected to be reasonably aligned with those in the interbank market or other relevant exchanges or financial markets (the “Reference Market”), they may differ from prices available to banks or other market participants.

As a result, Edmora Markets may exercise discretion in setting margin requirements and collecting margin funds. Since CFDs and other products are linked to underlying assets, you should be aware of the risks associated with the underlying, including currency fluctuations, market volatility, and gapping—sudden price shifts that can occur due to economic events, market announcements, or periods when trading in the underlying asset is inactive.

It is important to note that non-guaranteed stop orders will not eliminate this risk, as they do not execute instantly and only trigger a close at the next available market price.

8. Weekend Risk

Market conditions can change significantly over weekends or during other periods when markets are generally closed. Events or developments occurring during these times may cause markets to open at prices substantially different from those at which they closed.

You will not be able to place, modify, or cancel orders on the Platform during these periods. As a result, stop-loss orders or other protective measures applied to positions held over the weekend may be executed at prices significantly worse than their intended levels.

By holding positions over such periods, clients acknowledge and accept this risk and agree that they may be liable for any resulting losses.

9. Electronic Trading

Trading OTC contracts via the Platform may differ from trading on other electronic systems or traditional open markets. Clients are exposed to risks associated with electronic trading, including potential hardware or software failures, system outages, or interruptions in the communications infrastructure (e.g., Internet connectivity) linking the Platform to the client.

10. Intraday Trading

Intraday trading through the Platform may involve executing multiple transactions within a single trading day, which can increase both potential gains and potential risks.

11. Trading Suspensions

In certain situations, it may be difficult or impossible to close or liquidate a position. This can occur, for example, during periods of rapid price movement when the price of an underlying asset rises or falls sharply, leading to restrictions or suspension of trading in that asset. In such cases, the client accepts the associated risks and is responsible for any resulting losses. Additionally, clients should be aware that Edmora Markets may be required to close positions under regulatory or exchange instructions, and therefore cannot be held liable for any losses that may occur as a result.

12. Commissions

Before commencing trading, clients should review and understand all commissions and other charges that may apply, as outlined in the Rates Schedule available on the Edmora Markets website. Clients should also be aware of any potential costs or liabilities associated with their positions, including, but not limited to, swaps, corporate actions such as rights issues, dividends, stock splits, and similar events.

13. Insolvency

In the event of a client’s insolvency or default, Edmora Markets may liquidate or close out positions without your consent. By depositing funds with Edmora Markets, you transfer full ownership and title of a portion of those funds to Edmora Markets. This portion represents the amount necessary to secure your current or future, actual or contingent obligations to Edmora Markets, including margin requirements.

Edmora Markets will determine the required amount at its sole discretion on a daily basis, taking into account your open positions, trading activity, and prevailing market conditions. This amount may exceed standard margin requirements. You will have no proprietary claim over these funds, which are not subject to segregation or other client money protections under applicable law, and Edmora Markets may use them for its own account. As a result, such funds may be irrecoverable in the event of Edmora Markets’ insolvency or default.

14. Communication

Edmora Markets shall not be liable for any losses resulting from delayed, undelivered, or failed communication sent to a client through any channel. The client also acknowledges that Edmora Markets is not responsible for any losses arising from unauthorized access to the client’s trading platform by third parties, except in cases of gross negligence by the company or its staff.

Clients are solely responsible for safeguarding their login credentials.Edmora Markets strongly advises that user details are neither written down nor stored in an insecure manner.

15. Advice

Edmora Markets does not provide personalized investment advice and operates solely as an execution-only service. While we may, under our authorizations, offer general market commentary or assessments, these do not constitute individual investment advice and do not take into account your personal circumstances. All trading decisions are made solely by the client.

Under IFSC regulations, we are required to assess the general appropriateness of our products for clients with similar profiles to yours. This assessment does not mean that opening an account constitutes individualized advice that these products are suitable for you personally; it only indicates potential suitability for someone with comparable financial situation and experience.

To make this assessment, we will collect information regarding your trading experience, financial assets, and income. Edmora Markets does not monitor the ongoing accuracy of this information or any changes in your financial circumstances. It is the client’s responsibility to provide updates on any relevant changes that may affect the suitability of the products offered.

16. Corporate Actions: Share CFDs

Please be aware that the treatment of Share CFDs during corporate actions may be less favorable than if you directly owned the underlying shares. Adjustments made by Edmora Markets in response to corporate events may occur on a reactive basis, often ahead of the deadlines set by the corporate action itself. As a result:

• The time available for you to make decisions may be significantly reduced.
• The options available to you may be limited, less advantageous, or may not allow you to close the position.
• Corporate events are sometimes announced on very short notice, leaving you little or no opportunity to close positions to avoid the consequences.
• You may be required to provide additional funds to cover margin obligations at very short notice.

Clients should be aware of these risks when trading Share CFDs around corporate actions.

17. Going Short on CFD Shares

Short-selling CFD shares carries additional risks that do not apply to holding long positions. These risks include, but are not limited to:

• You may be required to take the opposite side of a purchase opportunity, such as a rights issue, which could result in increasing your short position at potentially unfavorable prices or paying a sum to buy back the rights. Decisions regarding these actions may be made by Edmora Markets without your input or with shorter notice than would apply to the underlying shares.
• You may be subject to forced buy-backs due to corporate actions, stock borrowing conditions, or regulatory requirements or changes.
• Variable borrowing charges may apply while your short position remains open.

Clients should fully understand these additional risks before taking short positions on CFD shares.

18. Position Monitoring

Clients are solely responsible for monitoring their open positions at all times and should ensure they are able to do so. While Edmora Markets will make efforts to close positions if your margin is depleted, we cannot guarantee this will always be possible. Consequently, you remain liable for any resulting shortfall.

This document should be read in conjunction with any other materials provided to the client or made available on our website.

19. Dividends and Dividend Adjustments on CFDs

Dividend adjustments are applied at the sole discretion of Edmora Markets.

A dividend adjustment occurs when a share passes its ex-dividend date (including special dividends) in the underlying market.

• For long positions, the dividend adjustment is credited to your account.
• For short positions, the dividend adjustment is debited from your account.

Impact on Shares and Indices

When a stock or index goes ex-dividend, its market value typically drops by the dividend amount. To ensure your position is not unfairly affected:

• If you hold a long position, your account is credited.
• If you hold a short position, your account is debited.

Purpose of Dividend Adjustments

The adjustment ensures that your running profit and loss (P&L) reflects market realities. Without it:

• Long positions would miss out on potential profits due to the price drop.
• Short positions would reflect a P&L advantage that does not accurately represent market movement.

Calculation of Dividend Adjustments

Adjustment = Position size × Dividend amount

The dividend amount varies depending on the underlying stock or index.

Total Return Index

Some indices do not have dividend adjustments; these are known as Total Return indices. A Total Return Index tracks both the capital gains of its component stocks and assumes that any cash distributions, such as dividends, are reinvested. This approach provides a more accurate representation of the index’s overall performance, including stocks that do not issue dividends but reinvest earnings.