Risk Disclosure

1. Risks Involved in Trading CFDs

   The Client should be aware that trading CFDs is not suitable for everyone. Suitability will depend on the Client’s economic and personal situation as well as their understanding of the risks involved in dealing with CFDs.

   1. When opening an account or using services provided by LonghornFX, the Client acknowledges that:

      1. The value of CFDs is subject to volatility and fluctuations irrespective of the information displayed by LonghornFX. The prices of CFDs may fluctuate rapidly and over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the Client or Company. Under certain market conditions, it can be impossible to execute any type of Clients order at declared price

      2. Investments may lose value and even become devoid of value as a result of fluctuations, irrespective of the information displayed by LonghornFX

      3. The Client must trade CFDs unless they are prepared to face the risk of losing their investment and additional expenses.

   2. Trading with leverage is a particular feature of CFDs that stems from the margining system inherent to such trades. Leveraged trading requires a comparatively low deposit or margin when compared to the total contract value. A small movement in the underlying market can have a disproportionately dramatic effect on the Client’s trade. If the underlying market movement is in the Client’s favour, the client may achieve a good profit, but an equally small adverse market movement can not only quickly result in the loss of the Clients’ entire deposit, but may also expose the Client to a large additional loss.

   3. The CFDs available for trading with LonghornFX are non-deliverable spot transactions, which create an opportunity to earn profit from changes in currency rates, commodity prices, stock market indices or share prices called the underlying instrument. Stop-Loss Orders will not guarantee the limit of loss as the prices of CFDs will be influenced by the following events, among others:

      1. Changing supply and demand relationships

      2. Governmental, commercial and trade programs and policies

      3. National and international political and economic events

      4. Prevailing psychological characteristics of the relevant market place.

   4. CFDs Transactions have a contingent liability, and the Client should be aware of the implications of this, in particular, the margining requirements as set out below:

      1. Clients are required to deposit funds in their trading account to open a position. The Margin requirement will depend on the underlying instrument of the CFDs. Margin requirements can be fixed or can be calculated from the current price of the underlying instrument. The Company will not notify the Client of any Margin Call to sustain a loss-making position

      2. Some of the CFD instruments may not become immediately liquid as a result of reduced demand for the underlying instrument. The Client may not be able to obtain the information on the value of these Financial instruments or the extent of the associated risks, whether by using historical data or current performance

      3. The Client may be called upon to deposit a substantial additional margin to maintain his/her investment. If the Client does not provide such additional funds within the time required, his/her investment position may be closed at a loss and he/she will be liable for any resulting deficit. With regards to transactions in CFDs, the Company possesses the right to start closing positions starting from the one with the biggest loss when margin decreases to approximately 30%, and automatically close all positions at market prices if margin level drops below 5%. The Company will automatically close all positions at market close

      4. Transactions in CFDs are not undertaken on a recognized exchange but via the Company’s Trading Platform whereby execution is effected by the Company or other financial institutions and may, therefore, expose the Client to greater risks than regulated exchange transactions. The Terms and Conditions and trading rules are established solely by the Company. The Client may be obliged to close an open position of any given CFD during the opening hours of the Company Platform

      5. The Client should obtain details of all commissions and other charges for which the Client will be liable, which may be found on the Company website. Some charges may not be expressed in money terms but may be expressed in different forms, such as a dealing spread

      6. The Client accepts the risk that CFD trades may be or become subject to tax and/or any other duty due to any changes in legislation or changes to his/her circumstances. The Company does not warrant that no tax and/or any other stamp duty will be payable. The Client should be responsible for any taxes and/or any other duty which may accrue in respect of his/her trades.

2. Risk Involved in Cryptocurrencies

   1. Investment in Bitcoins involves risks specified, but not limited to, the list below:

      1. Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner’s hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible

      2. While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false Bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme

      3. Like with any investment, Bitcoin values can fluctuate. Indeed, the value of Bitcoin has seen wild swings in price over its short existence. If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless

      4. Bitcoins are a rival to government currency and may be used for black market transactions or tax evasion. Governments may seek to regulate, restrict or ban the use and sale of Bitcoins. Some governments have already put this into practice. The IRS has already announced that it treats Bitcoin as property for federal tax purposes. As Bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments in Bitcoin from taxation

      5. There may be additional risks that The Company has not foreseen or identified in this Bitcoin Risk Warning. Customer should carefully assess whether his or her financial situation and tolerance for risk is suitable for buying, selling or trading Bitcoins.

3. Other Risks

   1. All publications of the Company are, unless otherwise specifically stated, intended for informational and/or marketing purposes only and should not be construed as business, financial, investment, hedging, legal, regulatory, tax or accounting advice, a recommendation or trading idea, or any other type of encouragement to act, invest or divest in a particular manner. The Company shall not be responsible for any loss arising from any investment based on a perceived Recommendation. If a publication becomes outdated the Company shall be under no obligation to update the publication, inform the recipients of a publication, or perform any other action. Any publication may be personal to the author and may not reflect the opinion of the Company. The Company reserves the right at its sole discretion to withdraw or amend any publication or information provided at any time without notice (prior or subsequent).

   2. There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since the Company does not control signal power, its reception or routing via Internet, the configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. The Company employs backup systems and contingency plans to minimize the possibility of system failure, and trading via telephone is available.