01 General Risk Warning
You could sustain a loss of some or all of your initial investment. You should not invest money you cannot afford to lose. Leveraged trading is not suitable for everyone.
Before trading, you should carefully consider your investment objectives, level of experience, financial situation, and risk appetite. If in doubt, seek independent financial advice.
02 Leverage Risk
Leverage allows you to control positions much larger than your deposited capital. While this magnifies potential profits, it equally magnifies losses. With 1:500 leverage, a 0.2% adverse move can wipe out your entire margin.
| Leverage | Adverse Move to Lose 100% | Adverse Move for 50% Loss |
|---|---|---|
| 1:10 | 10.0% | 5.0% |
| 1:50 | 2.0% | 1.0% |
| 1:200 | 0.5% | 0.25% |
| 1:500 | 0.2% | 0.1% |
03 Market Volatility
Prices can gap significantly between trading sessions, especially around news events, central bank announcements, and weekends. Stops may be executed at prices substantially different from those requested — this is known as slippage.
04 Liquidity Risk
During periods of reduced liquidity — such as public holidays, the Asian session for European pairs, or market stress — you may be unable to close positions at the desired price. Exotic FX pairs and smaller-cap crypto assets are particularly vulnerable.
05 Counterparty Risk
CFDs are over-the-counter products. Your positions are held with Sun Capital FX as counterparty, not with an exchange. While we segregate client funds and provide negative balance protection, counterparty risk cannot be entirely eliminated.
06 Cryptocurrency Specific Risks
Cryptocurrency derivatives carry additional risks beyond those of traditional FX and CFDs:
- Extreme volatility — BTC and other crypto assets can move 10–20% in a single day;
- Regulatory uncertainty — crypto regulation is evolving and may change rapidly;
- Weekend gaps — crypto markets trade 24/7, and positions cannot always be closed during weekends;
- Exchange and network failures — blockchain congestion or exchange outages may disrupt pricing;
- Forks and airdrops — these may impact the value of your positions.
07 Technology and Execution Risk
Trading platforms depend on internet connectivity, hardware, and software. Failures in any of these could prevent you from placing or closing orders. We recommend using a VPS and redundant internet connections for critical trading. We are not liable for losses caused by technical failures outside our control.
08 Regulatory and Legal Risk
Changes in law or regulation in your jurisdiction may affect the availability of products, tax treatment of profits, or ability to deposit and withdraw funds. You are responsible for compliance with all local regulations.
09 Past Performance
Past performance is not indicative of future results. Strategies that performed well historically may fail under different market conditions. You should not rely solely on historical returns when assessing risk.
10 Suitability Assessment
Before opening an account, we ask you to complete a suitability assessment. This helps ensure you understand the risks of leveraged products. However, it does not replace your own research or independent advice. Ultimately, you are responsible for your trading decisions.