Risk Disclosure

Last modified on: 12/07/2024

This Risk Disclosure Statement (“Statement”) explains the potential risks associated with the use of the  independent platform (referred to as “Platform”) linked to www.bitdelta.pro (“Website”) owned by BitDelta brand (“We, “Us”, “Ours”) when any user (referred to as “You” or “Your“)  visits or uses Our Platform or any other related websites, domains, sub-domains, pages, features, or content We own.

For the purposes of this document, “BitDelta” refers to:

1. BITDELTA FINTECH LTD: A company incorporated under the laws of Vanuatu, located at Office 1 & 2 Executive Suites, Upper Floor, Novo House building, Port Vila, Vanuatu.
2. Delta6: A company incorporated under the laws of Mauritius, with its registered address at the 6th Floor, THE CORE, 62 ICT Avenue, Cybercity Ebene, Mauritius.

DISCLAIMER:

Please consider the information in this Statement as a general overview of investment risks made for your awareness only. We do not intend to provide investment or legal advice through this Statement and make no representation that the investments or services described herein are suitable for You or that the information contained herein is reliable, accurate, or complete.

We do not provide guarantees or make any representations or assume any liability regarding financial outcomes resulting from the use of the information in this Statement. Furthermore we do not recommend relying solely on this information when making informed investment decisions. 

We are committed to:

1. providing a high standard of client service; and
2. maintaining its reputation for credibility and accountability.

We provide the opportunity for investment and dealing in the following products:  

1. Contracts for differences (“CFDs”) on financial assets, including shares, bonds, indices, exchange-traded funds, commodities, and currencies.  
2. Over the Counter (OTC) products on a variety of financial asset classes, including Indices, and commodities.  

Even though Our offerings are suitable for both retail and professional clients, be aware that by investing in or dealing in any of the above, you are risking your capital, and you may not get back as much as you originally invested. Users are strongly advised to read the Statement carefully before deciding to start trading on the Platform.  

1. RISKS ASSOCIATED WITH TRADING SPECIFIC FINANCIAL ASSETS 

1.1 CFDs 

Trading in CFDs involves substantial risks and may not be suitable for all investors. You could lose all or more than the amount You initial invested. Please carefully consider whether trading CFDs is appropriate for You in light of your financial circumstances and risk tolerance. Seek independent advice if necessary.  

CFDs are subjected to the following risks, including but not limited to: 

1.1.1 General Risks:  CFDs are financial instruments that are traded on margin, enabling investors and Users to participate in the movement of shares and index prices without having ownership of the underlying asset. Trading in CFDs may not be suitable for all investors due to its high risk and complex nature. You may lose all or most of Your initial payment and may be required to make additional payments. You shall be responsible for Your own trading decisions. If you are in any doubt, We advise You to seek independent advice before trading: 

You must carefully consider Your financial circumstances and risk tolerance before trading CFDs. CFD trading carries a high risk to Your capital. Don’t use money You can’t afford to lose. You should only consider trading in CFDs if:  

• You have extensive experience trading in volatile markets,  
• You fully understand how they operate, including all the risks and costs involved,  
• You are aware that the greater the leverage, the greater the risk,  
• You understand that positions held by You can be closed whether or not You agree with Our decision to close Your position, 
• You have high-risk tolerance and the financial capability to absorb losses if they occur,  
• You have sufficient time to manage Your investment on an active basis. 

Trading in CFDs relies on the price movement (appreciation and depreciation) of underlying instruments. You are therefore exposed to similar but magnified risks to holding the underlying instruments. The value of the underlying instruments may go up and down. Due to the use of leverage, CFD trading carries a higher degree of risk than ordinary share dealing and may not be suitable for everyone.  

The trading You conduct on Our Platform is not conducted on an exchange or a market and is not cleared on a central clearinghouse. The CFD transactions are contracts with Us as Your counterparty. 

1.1.2 Leverage: Our CFD products offer various levels of leverage. Before trading, We shall ask You to make an initial deposit. Each product We offer has a margin requirement. Based on this requirement and Your initial deposit, You shall be able to trade a contract value in excess of Your funds. Fluctuations in asset prices will therefore be magnified many times.  

A small price movement against You may result in a larger loss. Using leverage or margin means that You may lose the entire funds You have actually deposited in Your account if the price of the CFD moves significantly against You. 

1.1.3 Margin Rates: We reserve the right to adjust margin requirements for each of Our products and have the right to change or increase its Margin Requirements at any time. In order to protect the firm and all of Our clients, We may modify Margin Requirements for any or all clients for any open or new positions at any time, at Our sole discretion. If We increase Our margin requirements, it may prevent You from adding positions or hedging existing positions if You have insufficient equity. If margin requirements increase on Your existing CFDs, You will have to deposit additional equity in advance or Your positions may be liquidated. This may result in Your margin requirement increasing. You may therefore be required to deposit additional funds to maintain existing positions. 

1.1.4 Swap Charges/Funding Fees and Risk of Margin Shortfall: Swap Charges/Funding Fees for Overnight Positions: We highlight the importance of understanding Swap Charges or Funding Fees, also referred to as Overnight Finance Charges. These charges apply to positions held open overnight in Your trading account and are critical to consider as they influence the total cost of holding positions, affecting both profitability and margin requirements. 

• Definition and Applicability: These fees reflect the cost or credit incurred for holding a trading position overnight, influenced by the interest rates of the currencies involved, prevailing market conditions, and the position size. Charges vary across different instruments such as Forex pairs, commodities, and indices. 
• Calculation and Timing: Fees are calculated daily and applied to accounts for positions that remain open overnight. The exact time these fees are charged is detailed on the trading platform, and Users are advised to familiarize themselves with this schedule. 
• Calculation of Swap Charges/Funding Fees: Users need to comprehend the components that contribute to the calculation of Swap Charges or Funding Fees, also known as Overnight Finance Charges. These fees, applied to positions that are held open overnight, are determined by several factors including interest rates, market conditions, and the position size across various trading instruments. 
• Base Funding Fee Calculation: The base funding fee is calculated at the close of each trading day for positions held overnight. This fee is a reflection of the cost or credit associated with maintaining a position open past the daily market close, influenced by prevailing market interest rates and the specific attributes of the traded instrument.

1.1.5 Adjustment of Swap Rates: We may adjust swap rates based on market conditions and risk management considerations. Any adjustments will be communicated to Users through the Platform or other official channels. 

• User’s Responsibility: It is the User’s responsibility to stay informed of the Swap Charges/Funding Fees and understand how they affect trading accounts and margin levels. We offer tools and resources on the platform to assist Users in managing their accounts effectively. 
• By engaging in trading activities on Our Platform, Users acknowledge their understanding of Swap Charges/Funding Fees, including the risks of margin shortfall due to these fees, and accept the terms under which these fees will be applied to their accounts. 

1.1.6 Risk and Margin Shortfall Risk Due to Funding Fees: When trading on margin or spot in CFDs, it is vital to be aware that if Your account’s margin level falls below the required margin due to Swap Charges on open positions, We reserve the right to automatically liquidate positions. This action is taken to prevent further losses and ensure margin requirements are met. To avoid such scenarios, You must actively monitor their margin levels and manage their positions and potential funding fee impacts diligently. 

1.1.7 Corporate Actions/Events- “Corporate Event” refers to an event within a corporation that has the potential to affect the share price of the relevant company/issuer. Such events encompass various Corporate Actions, including but not limited to share and rights issues, delisting’s, mergers and demergers, takeover offers, reorganizations, conversions, share consolidations, share splits, sell-offs and dividends, name changes and rebranding, dividend distributions, insolvency, and changes to applicable laws or regulations. 

In the event of a Corporate Action/Event, We will make reasonable efforts to adjust the Securities in the Client Account in a manner that is equitable and aligned with market practices. However, the Platform retains the right to close out any open positions impacted by a Corporate Event. 

• It is acknowledged that Corporate Event notices may originate from sources beyond Our control and might have been subject to translation or summarization. While We may consider these sources reliable, it is not obligated to verify the information in such notices or the accuracy of any translations or summaries. Therefore,  We do not guarantee the accuracy, completeness, or timeliness of such information and shall not be held liable to the client/You for any losses arising from reliance on these notices. You are responsible for independently monitoring all Corporate Actions concerning the Securities’ issuers. 
• Users must be aware of the potential for funding fee adjustments due to corporate actions and understand how these adjustments can affect the total funding fees applied to their positions. We provide tools and resources to assist Users in monitoring such fees and managing their positions effectively. 
• Adjustment Notification: We will communicate any adjustments to funding fees resulting from corporate actions through the trading platform or official communication channels to ensure Users are informed of changes affecting their positions. 
• By understanding the calculation of Swap Charges/Funding Fees, including adjustments for corporate actions, Users can better manage their trading strategies and financial exposure. We are committed to providing transparency in the calculation of these fees as part of Our comprehensive risk management practices. 
• Impact on Trading and Margin Requirements: Awareness of Swap Charges/Funding Fees is crucial for effective trade and risk management. These fees can significantly impact the net profitability of trades and the margin available in Your account. 

1.1.8 Open Position: High Volatility and Execution Risks: Users are advised that holding open positions in times of high market volatility exposes them to significant risk, including but not limited to, rapid price fluctuations which can dramatically affect the value of their positions. We emphasizes the importance of understanding that market conditions can change swiftly and without prior notice, leading to potential gaps in market prices. This volatility can result in significant losses that may exceed the account’s equity and margin requirements. 

1.1.9 Platform Downtime: We strive to maintain a high standard of reliability and uptime for Our trading platform. However, Users should be aware that occasional technical issues, maintenance periods, or unforeseen disruptions (“Downtime”) can occur, potentially impacting their ability to execute trades, manage positions, or access Their accounts. During such Downtime, the risk of loss can increase, especially if market prices move unfavourably against open positions. 

• Awareness of Downtime: We will endeavour to notify users of scheduled maintenance or anticipated platform issues that could result in Downtime before 24 hours of that scheduled downtime. However, unexpected Downtime may occur without warning. Users are encouraged to plan their trading activities accordingly and consider the potential impact of Downtime on their ability to trade. 
• No Liability for Downtime Losses: We are committed to providing a robust and reliable trading environment, We shall not be liable for any loss or damage arising from the inability to execute trades or manage positions due to market volatility or platform Downtime. 

1.1.10 Position Monitoring: It is Your sole responsibility to monitor Your own account. We have the right to liquidate Your positions in the event of a margin deficiency.  

You must always monitor Your account so that, the account contains sufficient equity to meet Our Margin Requirements. We will notify You of any failure to meet Margin Requirements prior to Us exercising Our rights under the Agreement with you, including but not limited to Our right to liquidate positions in Your account(s). 

Should the net value of the account (cash plus running profits minus running losses) fall below 50% of the margin required, We may close some or all of Your positions at the current market price. This should not, however, be taken as a guarantee, and it is Your responsibility to ensure that sufficient funds are in Your account at all times. 

1.1.11 Counterparty Risk: In relation to CFDs, We are the counterparty to all Your trades. None of Our CFD products are listed on an exchange, nor can any rights, benefits, or obligations be transferred to anyone else. While We undertake Our obligation to provide You with the best execution and to act reasonably and in accordance with Our published terms and conditions, CFDs opened on Your account with Us must be closed with Us, based on Our prices and conditions. CFDs are contracts with Us as Your counterparty, are not traded on a regulated exchange, and are not cleared on a central clearinghouse. Thus, exchange and clearinghouse rules and protections do not apply to trading CFDs with Us. 

1.1.12 Counterparty Credit Risk on CFD Trades:  As We are the counterparty to Your CFD trades, You are subject to financial and business risks, including credit risk, associated with Our operations. In the unlikely event of Our insolvency, We may be unable to fulfill Our obligations to You. 

1.1.13 CFDs Do Not Give You Any Rights In The Underlying Asset: A CFD aims to secure a profit or mitigate losses based on price fluctuations of the underlying product, without involving physical delivery of the product. No CFD transaction shall confer on You any right, voting right, title, or interest in any Underlying Product or entitle or oblige You to acquire, receive, hold, vote, deliver, dispose of, or participate directly in any Corporate Action of any Underlying Product. 

Our rights to adjust, modify, and/or Close-Out CFD transactions in the event of a Corporate Action affecting the Underlying Product In the event of a Corporate Action affecting the Underlying Product of a CFD (e.g. splits, spin-offs, rights offerings, mergers, and acquisitions, etc. 

• We may at our sole discretion, determine the appropriate adjustment or modification or action to take if any, and when, with respect to the CFD to preserve the economic equivalent of the rights and obligations of the parties;  
• As an addition or alternative to the foregoing, We reserve the right at Our sole discretion, to close out Your open CFD position in the Underlying Product prior to the Corporate Action. 

1.1.14 Market Risk and Non-Exchange Trading: CFD trades are executed off-exchange and are not cleared through a central clearinghouse. This means CFD positions are agreements with us as your counterparty, exposing you to our credit risk. Market conditions, including liquidity and price volatility, can impact execution, pricing, and ability to close positions. 

1.1.15 Suitability and Considerations: CFD trading is suitable only for those with a good understanding of market dynamics and a high tolerance for risk. You should not invest money you cannot afford to lose. Assess your financial situation, investment goals, and risk appetite before trading CFDs. 

1.2 Foreign exchanges– Foreign exchange (also known as FOREX) is the term used for the purchase of another currency. Foreign exchange transactions expose You to a high degree of risk. Before deciding to trade foreign exchange, You should carefully consider Your investment objectives and expectations, level of experience, and amount of risk acceptance. Any market movement will have a proportionate effect on Your deposited funds when trading on a margin basis. This can work for You as well as against You. You may even suffer a total loss in excess of initial margin funds; or be called upon  at short notice to deposit additional margin funds. You should consider risk-reducing strategies such as ‘stop- loss’ or ‘stop- limit’ orders, although these may not necessarily limit losses to the intended amounts. 

Where there is a need to convert currency under a foreign currency-denominated contract, the resulting profit or loss will be affected by fluctuations in currency rates. Transactions involving currencies are also likely to be affected by factors beyond Our control, such as changes in a country’s political condition, economic climate, and acts of nature. These factors may substantially affect the price or availability of a given currency. 

1.3 Futures: Futures can involve special risks. Only investors who are familiar with these financial instruments, have sufficient money available and are able to bear potential losses should invest in them. 

Futures are contingent liabilities. This means that if the market moves against Your position or margin levels are increased, You may be called upon to pay substantial additional funds on short notice to maintain Your position. If You fail to comply with a request for additional funds within the prescribed time, Your position may be automictically liquidated at a loss and You will be liable for any resulting deficit. Moreover, it is typical for transactions in futures that the amount of initial margin is small relative to the value of the futures contract so that transactions are ‘leveraged’ or ‘geared’. A relatively small market movements will have proportionally larger impact on the funds that you have deposited or may have to deposit. You should realize that You may sustain a total loss of initial margin funds and any additional funds deposited to maintain Your position. In order to limit price fluctuations, an exchange may set price limits for certain contracts. You should become acquainted with such limits before investing in futures, as it can be much more difficult or even impossible to close out a contract if a price limit is reached. 

1.4 Commodities: Typical way to invest in commodities is via commodity funds, commodity futures or OTC swaps and options. With commodity futures, investors may receive physical delivery of the commodity concerned on expiry under certain circumstances. You should sell Your commodity futures before the expiry date, if You prefer cash settlement. 

The price of commodities is influenced by various factors, including: the relationship between supply and demand; climate and natural disasters; state programs and regulations, national and international events; state intervention, embargoes and tariffs; movements in interest and exchange rates; additional factors arising as the combination of factors mentioned above. You should realize that commodity investments are more volatile than conventional investments, and their returns can often fall suddenly and sharply. The volatility of a commodity’s price also affects the value and hence the price of futures and forwards it underlies. For example, conventional oil futures are normally easy to trade, regardless of their term, but they can become illiquid if market activity is low . This can cause their prices to fluctuate significantly, which is a typical feature of commodities. If indicated in the terms and conditions of any Financial Instruments, the relevant calculation agent may determine that a market disruption event has occurred or exists at a relevant time. Any such determination could potentially delay valuation of the relevant Underlying Asset thereby impacting the value of the relevant Financial Instruments and/or may delay settlement in respect of such Financial Instruments. 

1.5 Additional Risks pertaining to Financial Instruments  

In addition, if indicated in the terms and conditions of any Financial Instruments, the calculation agent may make adjustments to such terms and conditions to account for relevant adjustments or events in relation to the Underlying including, but not limited to, determining a successor to the relevant Underlying or its issuer or its sponsor, as the case may be. In addition, We or the relevant Third Party, as the case may be, may terminate or put on hold or extent holding period of relevant Financial Instruments (including Western) securities following any such event. In addition, We or the relevant Third Party, as the case may be, may terminate or put on hold or freeze the chosen Investment strategy and or holding/or sell out period of relevant Financial Instruments (including Western) securities following any such event. 

2. GENERAL RISKS ASSOCIATED WITH ALL TRADITIONAL FINANCIAL ASSETS  

2.1 Market Risk: The risk that the value of investments may fluctuate due to market conditions. This can be due to economic factors, political events, changes in interest rates, and other factors affecting the overall market. 

2.2 Liquidity Risk: The risk of not being able to sell investments quickly enough to prevent or minimize a loss. In some market conditions, liquidating a position may be difficult or impossible. 

2.3 Credit Risk: The risk that the counterparty to a transaction may default on their obligations. This is particularly relevant in the case of derivatives and other non-exchange traded instruments. 

2.4 Operational Risk: The risk of suffering a loss resulting from inadequate or failed internal processes, people, and systems or from external events. This may includes the risk of errors, fraud, or other disruptions. 

2.5 Regulatory Risk: The risk of changes in laws and regulations that could negatively impact trading activities or the value of investments. Compliance with existing laws and regulations is also essential to avoid fines and other penalties. 

2.6 Systemic Risk: The risk of collapse or significant disruption in the financial system that could lead to a widespread economic crisis. This can affect the ability to trade and the value of investments. 

2.7 Interest Rate Risk: The risk that changes in interest rates will affect the value of investments, particularly those that are interest rate-sensitive, such as bonds and other fixed-income securities. 

2.8 Currency Risk: The risk of losing money due to unfavorable changes in exchange rates. This is especially relevant for investments in foreign markets. 

2.9 Inflation Risk: The risk that the value of returns will be eroded by inflation, which reduces the purchasing power of money over time. 

2.10 Reinvestment Risk: The risk that proceeds from an investment may have to be reinvested at a lower rate of return than the original investment. 

2.11 Taxation Risk: The risk that changes in tax laws or interpretations of those laws could negatively impact the value of investments or returns. 

2.12 Counterparty Risk: The risk that the other party in a trading transaction may fail to fulfill their obligations. This is particularly important in over-the-counter (OTC) transactions. 

2.13 Leverage Risk: The risk that the use of borrowed funds to increase the potential return of an investment can also magnify losses. High leverage can lead to significant losses in volatile markets. 

2.14 Behavioral Risk: The risk associated with human behaviors and biases, such as overconfidence, fear, and herd behavior, which can lead to poor investment decisions. 

2.15 Technology Risk: The risk that technological failures, cyber-attacks, or other technological issues could disrupt trading activities or lead to losses. 

2.16 Settlement Risk: The risk that a transaction may not be settled as expected, potentially leading to financial losses. 

These general risks are inherent in all types of trading and investment activities, and it’s important to be aware of them when making investment decisions. 

3. ABSENCE OF ADVISORY SERVICES 

The information disseminated by Us is not to be construed as offering financial, investment, or any form of advisory service. Instead, it should be regarded as a general market commentary. We refrain from providing personalized recommendations or advising on the merits of specific transactions. You are solely responsible for making decisions regarding transactions, and We offer no assurances regarding the outcomes. Any investment decisions made based on Our information are undertaken at Your sole discretion and risk. 

4. PRINCIPAL-BASED INTERACTIONS 

Our interactions with You are premised on the understanding that You are acting as the principal and not as an agent representing another principal. Should You neglect to inform Us of another entity or software operating on Your behalf, we reserve the right to terminate the agreement or nullify any transactions. 

5. COSTS AND TAX IMPLICATIONS 

You might incur interest, taxes, fees, and other charges when trading with Us. These expenses can impact Your net profits or amplify your losses. Tax authorities might challenge Your interpretation of Our services, leading to potential tax consequences. It is therefore essential that you consult Your tax advisor regarding these services. 

6. ACKNOWLEDGMENT 

Upon entering any transaction with Us, You hereby affirm and concur: 

6.1 You’ve procured, perused, and comprehended the Statement, and have consulted advisors were deemed necessary. 

6.2 The disclosed risk factors may not encompass all potential risks associated with the transactions. 

6.3 You’ve independently assessed the legality, suitability, and appropriateness of the transaction, considering Your financial and investment objectives. 

6.4 We or Our associates, do not serve as Your fiduciary or advisor regarding any transaction. 

6.5 You haven’t relied on any communication from Us or Our associates as investment counsel or endorsement for any transaction. 

6.6 You’re aware of the tax implications, especially concerning the relevant Financial Assets, within Your jurisdiction. 

6.7 We hold no liability for Your investments or transactions. Any communication from is purely informational and not advisory. 

6.8 In case of discrepancies between the English version of this document and its translations, the English version prevails. 

6.9 This Statement can be modified periodically. Continued use of our services post-modification implies Your consent. 

6.10 No communication from Us guarantees anticipated outcomes for any transaction. 

6.11 You qualify as a professional investor or equivalent under Your country’s laws and are eligible for the services/products mentioned. 

6.12 Your engagement with Us is solely based on Your initiative, without any solicitation from Us or Our associates. 

6.13 Any information or documentation received from Us was upon Your request. 

6.14 Your decision to utilize Our services/products is based on Your independent evaluation. 

6.15 Should any of the above statements become inaccurate, You commit to promptly notifying Us in writing.