Risk Disclosure – Kama Capital Securities Broker L.L.C
Introduction
This Risk Disclosure is provided in accordance with applicable laws and regulations of the United Arab Emirates, including the requirements of the Capital Market Authority (CMA).
It is intended to inform clients of the risks associated with trading Foreign Exchange (Forex/FX) and Contracts for Difference (CFDs) through Kama Capital Securities Broker L.L.C (“Kama Capital”).
Trading Forex and CFDs involves a high level of risk and may not be suitable for all investors. This document does not disclose all possible risks and should be read in conjunction with the Client Agreement and Privacy Policy.
Before opening an account or placing any trades, you should ensure that you fully understand the risks involved. If you are unsure, you should seek independent financial advice.
1. Key Risks
1.1 Margin Trading Risk
Trading on margin carries a high level of risk. Due to leverage, even small market movements can result in significant gains or losses.
1.2 Risk of Loss
You may sustain losses equal to or greater than your initial investment. You should not trade with funds you cannot afford to lose.
1.3 Leverage Risk
Leverage amplifies both potential profits and losses. Rapid market movements may significantly impact your account balance. You are responsible for monitoring your open positions at all times.
1.4 Margin Requirements
If your account equity falls below required margin levels, you may be required to deposit additional funds. Failure to do so may result in the automatic liquidation of positions. You remain liable for any resulting deficit
1.5 Market Risk
Financial markets are subject to fluctuations influenced by economic data, geopolitical events, interest rate changes, and other external factors. Past performance is not indicative of future results.
1.6 Abnormal Market Conditions
Under certain conditions, including high volatility, low liquidity, market gaps, or system disruptions, orders may be executed at prices different from those expected or may not be executed at all. Stop-loss orders are not guaranteed.
1.7 Weekend and Gap Risk
Events occurring outside trading hours may result in markets opening at significantly different price levels. This may lead to execution at less favorable prices than anticipated.
1.8 Technology and Communication Risk
Trading platforms and online systems are subject to risks such as system failures, connectivity issues, or delays. Kama Capital shall not be liable for losses resulting from technical disruptions beyond its reasonable control.
1.9 No Investment Advice
Kama Capital provides execution-only services. We do not provide investment, tax, legal, or financial advice. Any information or market commentary is for informational purposes only and should not be relied upon as a recommendation or solicitation.
2. Client Acknowledgement
By opening an account, you acknowledge and agree that:
- Trading leveraged products is speculative and involves a high degree of risk
- You understand the nature and risks of Forex and CFD trading
- No guarantees of profit or protection from loss have been made by Kama Capital or its representatives
- You are financially capable of bearing potential losses
- You are responsible for your own tax, legal, and regulatory obligations
3. Third-Party Risk
Kama Capital may hold client funds with third-party financial institutions, liquidity providers, or counterparties for the purpose of facilitating transactions or meeting collateral requirements.
Client funds may be held in omnibus accounts and may not be individually segregated at the third-party level.
In the event of insolvency, default, or failure of a third party, client funds may be treated as unsecured claims. Kama Capital Securities Broker L.L.C shall not be liable for losses arising from the acts, omissions, or insolvency of such third parties.
Third parties may also have rights of lien, set-off, or security interests over funds held with them.
4. General Disclaimer
While Kama Capital implements appropriate safeguards and operates within a regulated framework, trading in financial markets inherently involves risk. You should carefully consider your financial situation and risk tolerance before engaging in trading activities.
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