This notice provides you with information about the risks
associated with investment products, in which you may invest,
through services provided to you by Xpartradinglive Group
entities.
Investment products offered by Xpartradinglive include stocks,
Exchange-Traded Funds (ETFs) and cryptocurrencies, in which you
gain ownership of the underlying asset. In addition,
Xpartradinglive offers contracts for differences (CFDs) that offer
exposure to currencies, commodities and indices.
Any transactions relating to stocks, ETFs or cryptocurrencies in
which Xpartradinglive offers you leverage (which is not currently
available for cryptocurrencies) or allows you to enter into short
transactions, and/or some copy trading transactions (including
CopyPortfolios), shall be considered CFD transactions.
Xpartradinglive also offers investors the opportunity to buy the
underlying cryptocurrencies, stock or ETFs (i.e., BUY transactions
for said assets using leverage 1) hold such assets and
subsequently sell such assets. All transactions relating to
cryptocurrencies are subject to the Cryptocurrencies Trading
Addendum (“Cryptocurrencies Trading Addendum”).
Since Cryptocurrency markets are decentralised and non-regulated,
our Cryptocurrencies Trading Services as such term is defined in
the Cryptocurrencies Trading Addendum, are unregulated services
which are not governed by any specific European regulatory
framework (including MIFID). Therefore, when Xpartradinglive
(Europe) Ltd. customers use our Cryptocurrencies Trading Service,
they will not benefit from the protections available to clients
receiving regulated investment services such as access to the
Investor Compensation Fund for Customers of Cypriot Investment
Firms and the UK Financial Ombudsman Service for dispute
resolution. Xpartradinglive (Europe) Ltd. customers will continue
to benefit from the rules relating to best execution and client
money and safekeeping of client assets. Xpartradinglive (UK) Ltd.
customers using the Cryptocurrencies Trading Service only will not
benefit from the protections available to clients receiving
regulated investment services such as access to the Financial
Services Compensation Scheme (FSCS) and the Financial Ombudsman
Service for dispute resolution. We will endeavour to enable you to
benefit from rules relating to best execution and safekeeping of
client assets.
All of these products carry a high degree of risk and are not
suitable for many investors. This notice provides you with
information about the risks associated with these products, but it
cannot explain all of the risks nor how such risks relate to your
personal circumstances. If you are in doubt, you should seek
professional advice. It is important that you fully understand the
risks involved before deciding to trade with Xpartradinglive, that
you have adequate financial resources to bear such risks and that
you monitor your positions carefully. Trading involves risk to
your capital. You should not invest money that you cannot afford
to lose, however, you cannot lose more than the equity in your
account.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE TERMS AND
CONDITIONS AND/OR THIS GENERAL RISK DISCLOSURE, FRENCH RESIDENTS
SHALL BE ELIGIBLE TO INTRINSIC PROTECTION. ACCORDINGLY AND
INDEPENDENTLY OF MARKET VOLATILITY, THEIR MAXIMUM LOSS WITH
RESPECT TO EACH TRANSACTION SHALL BE THE TOTAL AMOUNT INVESTED IN
SUCH TRANSACTION, AS UPDATED BY SUCH USER FROM TIME TO TIME.
CFDS
CFD stands for “Contract For Difference,” meaning you are not
buying the underlying asset, but, rather, purchasing a contract to
settle the difference in the initial and ending price of the
asset. When trading CFDs, you generally trade on margin, which
means you only have to deposit a small percentage of the overall
value of your position. This is known as “Leverage”, and even
small market movements may have great impact, negative or
positive, on your trading account.
If the market moves against you, you may sustain a total loss
greater than the funds invested in a specific position. You are
responsible for all losses in your account up to the equity in
your account.
Before deciding to trade on margin, you should carefully consider
your investment objectives, level of experience, and risk
appetite. Our CFDs are not listed on any exchange. CFDs involve
greater risk than investing in on-exchange products, as market
liquidity cannot be guaranteed and it may be more difficult to
liquidate an existing position. The prices and other conditions
are set by us in accordance with our obligation to provide best
execution as set out in our order execution policy, to act
reasonably and in accordance with the applicable Terms and
Conditions. The characteristics of our CFDs can vary substantially
from the actual underlying market or instrument. Full details of
all of our CFDs are set out on our website. In respect of
corporate events, with respect to the underlying assets, we do not
aim to make a profit from our clients from the outcome of
corporate events such as rights issues, takeovers, mergers, share
distributions or consolidations and open offers. We aim to reflect
the treatment we receive, or, would receive if we were hedging our
exposure to you in the underlying market. Ultimately, however, you
are not dealing in the underlying market and, therefore, in
relation to our CFDs, the treatment you receive may be less
advantageous than if you owned the underlying instrument.
CFDs are complex instruments and come with a high risk of losing
money rapidly due to leverage. 67% of retail investor accounts
lose money when trading CFDs with this provider. You should
consider whether you understand how CFDs work, and whether you can
afford to take the high risk of losing your money.
CFDs are not suited to the long-term investor. If you hold a CFD
open over a long period of time, the associated costs increase
(such as overnight fees), and it may be more beneficial for you to
buy the underlying asset instead. Sudden market movements, known
as “gapping” may occur, causing a dramatic shift in the price of
an underlying asset. Gapping may occur when the underlying market
is closed, meaning the price on the underlying market may open at
a significantly different level, and at a less advantageous price
for you.
At all times during which you have open positions, you must ensure
that your account meets our margin requirements, which may change
from time to time. Therefore, if our price moves against you, or
if our margin requirements have changed, you may need to provide
us with significant additional funds to meet your margin
requirement at short notice, to maintain your open positions. If
you do not do this, we will be entitled to close one or more or
all of your positions and you alone will be responsible for any
losses incurred as a result.
Appropriateness
Before we open an account for you, we are required to make an
assessment of whether the product(s) and/or services you have
chosen are appropriate for you, and to warn you if, on the basis
of the information you provide us, any product or service is not
appropriate. If you decide to continue and open an account with
us, you are confirming that you are aware of and understand the
risks.
Position Monitoring
You should further ensure that you are able to monitor positions
on your account at all times, as you are solely responsible for
this. We are not responsible for monitoring positions on your
account.
Copy Trading
Xpartradinglive offers Social Trading Features. In making a
decision to copy a specific trader or traders and/or follow a
particular strategy, you must consider your entire financial
situation, including financial commitments. You must understand
that using Social Trading Features is highly speculative and that
you could sustain significant losses exceeding the amount used to
copy a trader or traders. The risks associated with Social Trading
Features include, but are not limited to, automated trading
execution whereby the opening and closing of trades will happen in
your account without your manual intervention.
Trading risks
Since Cryptocurrency markets are decentralised and non-regulated,
our Cryptocurrencies Trading Services are unregulated services
which are not governed by any specific European regulatory
framework (including MIFID). This means that there is no central
bank that can take corrective measures to protect the value of
Cryptocurrencies in a crisis or issue more currency. Therefore,
when Xpartradinglive (Europe) Ltd. customers use our
Cryptocurrencies Trading Services, they will not benefit from the
protections available to clients receiving regulated investment
services such as access to the Investor Compensation Fund for
Customers of Cypriot Investment Firms and the Financial Ombudsman
Service for dispute resolution. Xpartradinglive (Europe) Ltd.
customers will continue to benefit from the rules relating to best
execution and client money and safekeeping of client assets.
Xpartradinglive (UK) Ltd. customers using Cryptocurrencies
Services will not benefit from the protections available to
clients receiving regulated investment services such as access to
the Financial Services Compensation Scheme (FSCS) and the
Financial Ombudsman Service for dispute resolution. We will
endeavour to enable you to benefit from rules relating to best
execution and safekeeping of client assets.
CRYPTOCURRENCY MARKETS ARE DETERMINED BY DEMAND AND SUPPLY ONLY.
The Cryptocurrency market is a dynamic arena and its respective
prices are often highly unpredictable and volatile. The
Cryptocurrency prices are usually not transparent, highly
speculative and susceptible to market manipulation. In the
worst-case scenario, the product could be rendered worthless.
It is important to make a distinction between indicative prices
which are displayed on charts and dealable prices which are
displayed on our trading platform. Indicative quotes only give an
indication of where the market is. Because Cryptocurrency markets
are decentralised, meaning they lack a single central exchange
where all transactions are conducted, each market maker may quote
slightly different prices. Therefore, any prices displayed on any
chart made available by us or by a third party will only reflect
“indicative” prices and not necessarily actual “dealing” prices
where trades can be executed.
Cryptocurrency trading is prone to being misused for illegal
activities due to the anonymity of transactions and investors
would be adversely affected if law enforcement agencies were to
investigate any alleged illicit activities.
ACCORDINGLY, CRYPTOCURRENCIES SHOULD BE SEEN AS AN EXTREMELY
HIGH-RISK ASSET AND YOU SHOULD NEVER INVEST FUNDS THAT YOU CANNOT
AFFORD TO LOSE.
Given the foregoing, Cryptocurrencies are not appropriate for all
investors. You should not deal in these products unless you have
the necessary knowledge and expertise, understand these products’
characteristics and your exposure to risk. You should also be
satisfied that the product is suitable for you in light of your
circumstances and financial position. In addition, use of our
Services can never be considered a safe investment, rather, only
an investment with a high risk of loss inherently associated with
them.
Furthermore, our own spread is added to online quotes which makes
a trade on our websites even more volatile.
The risk of loss in trading Cryptocurrencies can be substantial.
You should, therefore, carefully consider whether such trading is
suitable for you in light of your circumstances and financial
resources. You should be aware that you may sustain a total loss
of the funds in your account. If the market moves against your
position, we may ask you to provide a substantial amount of
additional margin funds on short notice, in order to maintain your
position. If you do not provide the required funds within the time
frame required by us, your position may be liquidated at a loss,
and you will be liable for any resulting deficit in your account.
Xpartradinglive currently allows trading in cryptocurrencies over
the weekend and it reserves the right not to do so. Should
Xpartradinglive so elect, trading in cryptocurrencies shall be
allowed only from Monday through Friday. Given that the
Cryptocurrency exchanges may operate over weekends, there may be a
significant difference between Friday’s close and Sunday’s open.
All such factors may result in you either not completing an order
on a specific trading day or completing an order on a
substantially less favourable price.
Under certain market conditions, you may find it difficult or
impossible to liquidate a position. This can occur, for example,
when the market reaches a daily price fluctuation limit (“limit
move”), if there is insufficient liquidity in the market. Certain
crypto assets may carry additional or specific risks.
Newly issued cryptocurrencies might carry additional risks you
need to consider. Limited liquidity or difficulties to trade the
asset after you’ve bought it. This means prices could be volatile,
going up and down quickly, and liquidity may be limited, all
depending on supply and demand. Xpartradinglive cannot control
these external factors.
Blockchain Risks
Since blockchain is an independent public peer-to peer network and
is not controlled in any way or manner by Xpartradinglive,
Xpartradinglive shall not be responsible for any failure and/or
mistake and/or error and/or breach which shall occur in blockchain
or in any other networks in which the Cryptocurrencies are being
issued and/or traded. You will be bound and subject to any change
and/or amendments in the blockchain system and subject to any
applicable law which may apply to the blockchain. We make no
representation or warranty of any kind, express or implied,
statutory or otherwise, regarding the blockchain functionality nor
for any breach of security in the blockchain.
Operation of Cryptocurrency Protocols
Xpartradinglive does not own or control the underlying software
protocols which govern the operation of Cryptocurrencies available
for trading on our platform. In general, the underlying protocols
are open source and anyone can use, copy, modify, and distribute
them. Xpartradinglive is not responsible for the operation of the
underlying protocols and Xpartradinglive makes no guarantee of
their functionality, security, or availability. The underlying
protocols are subject to sudden changes in operating rules
(“Forks”), and such Forks may materially affect the value,
function, and/or even the name of the Cryptocurrency
Xpartradinglive holds for your benefit. In the event of a Fork,
Xpartradinglive may temporarily suspend Xpartradinglive operations
(with or without advance notice) and Xpartradinglive may (a)
configure or reconfigure its systems or (b) decide not to support
(or cease supporting) the Forked protocol entirely.
Xpartradinglive may, but is not obligated to do so, adjust your
account in respect of a Fork, depending on the circumstances of
each event attributable to any specific Cryptocurrency which you
hold.
Third-party Risks.
We may elect to execute any order and/or hold any fiat money and
cryptocurrencies via a Third Party. Such Third Parties are not
banks that hold their fiat money/virtual currency as a deposit. If
any such Third Party loses any money, fails or goes out of
business, there is no specific legal protection that covers you
for losses arising from any funds you may have held with such a
Third Party, even when such party is registered with a national
authority. Depending on the structure and security of the
Xpartradinglive Money crypto wallet, some individuals may be
vulnerable to hacks, resulting in the theft of virtual currency or
loss of customer assets. Xpartradinglive will not be responsible
in the event of losses caused by those Third Parties.
Delisting and/or unsupported Cryptocurrencies: if at any time any
of the Cryptocurrencies form the subject of your order are
delisted and/or we no longer support the trading in such
Cryptocurrencies for any reason, then the applicable order will be
immediately closed. If Xpartradinglive is notified that a
Cryptocurrency you hold in your account is likely to be delisted
and/or removed and/or cancelled from any of the exchanges (some of
them or all) and Xpartradinglive believes that it shall not be
able to trade in such Cryptocurrencies, Xpartradinglive shall make
an effort to sell the Cryptocurrencies on your behalf at such time
and price, and in such manner, as it determines.
Automated Trading & Internet Risks
While trading on our website and/or applications, system errors
may occur. You should be aware of the risks that may result from
any system failure which could mean that your order may be delayed
or fail.
You acknowledge that there are risks associated with utilising an
Internet-based trading system including, but not limited to, the
failure of hardware, software, and Internet connections, the risk
of malicious software introduction, the risk that third parties
may obtain unauthorized access to information and/or assets
(including your Cryptocurrencies) stored on your behalf, cyber
attack, Cryptocurrency network failure (such as blockchain),
computer viruses, communication failures, disruptions, errors,
distortions or delays you may experience when trading via the
Services, howsoever caused, spyware, scareware, Trojan horses,
worms or other malware that may affect your computer or other
equipment, or any phishing, spoofing or other attack. You should
also be aware that SMS and email services are vulnerable to
spoofing and phishing attacks and should use care in reviewing
messages purporting to originate from Xpartradinglive.
Fees and Costs
Our fees and charges are set out on our website
Xpartradinglive.com under the ‘Fees’ section. Please be aware of
all costs and charges that apply to you, because such costs and
charges will affect your profitability.
Information
Any opinions, news, research, analyses, prices, or other
information contained on this website are provided as general
market commentary, and do not constitute investment advice.
Xpartradinglive shall not be responsible for any loss arising from
any investment based on any recommendation, forecast or other
information provided.
SPAC Risks
Investing in SPACs carries different risks to investing in other
stocks on Xpartradinglive. Unlike other listed companies, SPACs
are shell companies when they become public and, therefore, they
do not have an underlying operating business. This means that you
are relying on the managers of the SPACs to realise your
investment. There is no guarantee that SPACs will be managed by
individuals and firms that may not be competent or qualified to do
so. You should read the SPAC’s IPO prospectus and any reports or
other key information documents filed or published to understand
the terms of your investments and the economic interests and
motivations of the SPAC you are investing in. Moreover, SPACs that
do not carry out an acquisition within a certain time period will
be liquidated. As a result, there is a risk that you may not
recover some or all of the money directly invested by you into the
SPAC.