Risk Disclosure

Market risk

The value of securities, currencies, digital assets, and other instruments can fall as well as rise, and it can do so sharply and without warning. Prices respond to company results, interest rates, inflation, political events, sentiment, and forces that no one can reliably predict. A position may fall in value, and you may get back less than you put in, including losing the entire amount you committed.

Market risk is not something that can be eliminated. It applies to every market and to every strategy, and it applies whether or not positions are actively managed. Holding an investment for longer does not remove the risk that it ends up worth less than the price at which you bought it.

Leverage risk

Where leverage or margin is involved, your exposure is larger than the capital behind it. That magnifies gains, but it magnifies losses by the same measure. A comparatively small adverse move in the market can produce a loss that is large relative to the money you deposited, and can trigger a requirement to add funds, or force positions to be closed at a loss.

Where leverage is used, you can lose more than you initially committed. It should never be assumed that a position can be held through a downturn and will recover, because a leveraged position may be closed before it has the chance to. Leverage is unsuitable for anyone who is not prepared for the possibility of a rapid and substantial loss.

Liquidity risk

Some markets are less liquid than others, and liquidity can disappear exactly when it is most needed. In thin or stressed conditions it may be difficult, or impossible, to buy or sell at a reasonable price, or to trade at all. The price shown may not be achievable for the size of the position, and the difference between the price at which you can buy and the price at which you can sell can widen sharply.

Illiquidity can delay an exit, force a sale at a materially worse price than expected, or prevent a position from being closed at all. This risk is greatest in smaller markets, in assets that trade infrequently, and during periods of widespread market stress. Withdrawals or redemptions may likewise take longer than expected, or be satisfied on less favourable terms.

Counterparty and custody risk

Whenever capital is placed with, or a trade is executed through, another party, there is a risk that the party fails to meet its obligations. That risk applies to exchanges, brokers, custodians, payment providers, and the other firms involved in holding assets or settling transactions. A failure of any of them can result in a loss, a delay, or an inability to access what you hold.

Custody arrangements determine how assets are held, who is able to move them, and what happens if a firm fails. Client assets are held in segregated accounts with established custodians, titled to clients and reconciled daily.

Concentration risk

Concentration is the risk of holding too much of your capital in one place. A large exposure to a single position, asset, sector, strategy, or firm means that the fortunes of that one thing have a disproportionate effect on your overall outcome. A concentrated portfolio can gain quickly, but it can also lose a large part of its value from a single adverse event.

Diversification can reduce the effect of any one holding, but it does not remove risk. Assets that appear unrelated can move together in a wider downturn, so spreading capital lowers the impact of a single mistake without making loss impossible.

Technology risk

The service depends on software, networks, data feeds, and systems operated by third parties. Systems can fail, be interrupted, be misconfigured, or be attacked, and the prices and other information shown can be delayed, incomplete, or wrong. During a failure you may be unable to place, amend, or close a position at a moment when the market is moving against you.

We do not guarantee that the service will be uninterrupted, secure, or free of error, and we do not accept responsibility for losses caused by events outside our reasonable control. You should not rely on any single channel remaining available, and you should keep your own record of the instructions you give.

Regulatory risk

The legal and regulatory treatment of markets and products can change, sometimes with little or no notice. A change in the law, in tax treatment, or in the rules that govern an activity can affect the value of what you hold, your ability to hold it, and your ability to realise it. Different jurisdictions take different approaches to the same asset, and rules that apply where you live may differ from those where a market operates.

You are responsible for understanding and meeting the laws, tax obligations, and reporting requirements that apply to you. The service operates subject to applicable U.S. laws and regulations; no specific compensation scheme is implied.

No guarantee

Nothing on this site is a guarantee. We do not guarantee any return, any outcome, or the preservation of your capital. Past performance is not indicative of future results. The value of an investment can go down as well as up, and you should not commit money you cannot afford to lose.

The information on this site describes how the service works in general; it is not advice, and it is not a recommendation of any particular asset, strategy, or plan. If you are unsure whether a product is suitable for your circumstances, you should seek independent professional advice before you act. Our Terms of Service set out the agreement that applies to your use of the site.