Legal & Policies
Risk Disclosure
Draft for review · Not yet effective
Trading involves significant risk. This draft highlights considerations relevant to discretionary, quantitative and alternative strategies across FX, crypto, stocks, CFDs and options; it is not an exhaustive assessment of any particular strategy.
1. Capital and Market Risk
Market prices can move sharply and capital committed to trading can be lost. Leverage magnifies gains and losses. Gaps, volatility and correlated exposures can produce outcomes materially different from expectations. Stop orders and internal limits may not prevent losses during stressed conditions.
2. Liquidity and Execution
Positions may be difficult or costly to enter, reduce or close. Spreads, slippage, fees, financing costs and market impact affect results. Trading interruptions, rejected orders and changing margin requirements can force decisions at unfavourable prices.
3. Instrument-Specific Risks
FX exposures may be affected by policy changes and currency intervention. Crypto markets introduce custody, venue, protocol and continuous-market risks. Stocks face issuer and corporate-action risks. CFDs involve leverage, financing and counterparty exposure. Options involve non-linear payoffs, time decay, volatility sensitivity and potential exercise or assignment obligations.
4. Models and Performance Evidence
Backtests and simulations are hypothetical. Overfitting, data errors, selection bias, unrealistic execution assumptions and changing market conditions can undermine a strategy. Past results do not reliably predict future performance. Any review should distinguish live results from simulated results and account for relevant trading costs.
5. Operational and Counterparty Risk
Technology outages, connectivity problems, cyber incidents, human error and failures by brokers, venues or other counterparties can disrupt trading or access to funds. Diversification and controls may reduce some exposures but cannot eliminate all risks.
6. Individual Arrangements
FYFX Capital is not a broker and does not accept client deposits. The website does not establish an investment product, guaranteed return or entitlement to capital. Responsibilities, permitted activity, limits and commercial terms must be assessed and agreed separately. Prospective counterparties should obtain advice appropriate to their own circumstances before entering an arrangement.