Client Agreements as defined: You are considering dealing using the OmegaCrypto (“we”, “our”, “us”) trading platform in Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’). these instruments are high risk investments, which are not suitable for many investors.
This notice provides you with information about the risks associated with Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’), 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 enter into a trading relationship with us. If you choose to enter into a trading relationship with us, it is important that you remain aware of the risks involved, that you have adequate financial resources to bear such risks and that you monitor your positions carefully.
The nature of margin trading means that both profits and losses can be magnified and you could incur very large losses if your position moves against you. To avoid incurring large losses, where possible, you should trade carefully. Please note you cannot lose more than the balance on your Trading Account.
If you hold a Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) open over a long period of time the associated costs increase, and it may be more beneficial to buy the underlying asset instead.
NO RIGHTS TO THE UNDERLYING INSTRUMENT
Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) do not provide any right to the underlying instruments.
ONLY INVEST MONEY YOU CAN AFFORD TO LOSE
Do not invest in Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) with money you cannot afford to lose. An investment in Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) carries a high degree of risk to the investor and, due to fluctuations in value, the investor may not get back the amount he has invested.
Subject to our obligation to assess the appropriateness of the Trading Platform for your circumstances, any decision whether or not to open an account, and whether or not you understand the risks is yours.
We may also ask you for information about your financial assets and earnings. We do not monitor on your behalf whether the amount of money that you have sent us or your profits and losses are consistent with that information. It is up to you to assess whether your financial resources are adequate and what level of risk you take.
You can lose all, but not more than the balance of your Trading Account.
Before you open a Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) trade you must have enough funds on your account to cover the Initial Margin and, in order to keep the Transaction open, you must ensure that the amount of money in your Trading Account exceeds the required Maintenance Margin. The Initial Margin will differ between Instruments and the amount required for a particular transaction will be indicated on the Trading Platform. Trading using ‘leverage’ can work for or against you in equal measures; a small price movement in your favor can result in a high return whilst a small price movement against you may result in substantial losses. Trading Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) on leverage means you can secure a significantly larger exposure to an underlying asset for a relatively small initial margin. However, the use of leverage magnifies the size of your trade, which means your potential gain and your potential loss are equally magnified. You should, therefore, closely monitor all of your open positions to manage the risk of large losses. For example, a leverage of “10%” (or 1:10) means that if the price of the underlying asset changes by 1%, it is as if the price of the Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) has changed by 10%. Each instrument has a fixed leverage which is specified in the instrument’s details. An important consideration is whether or not, you wish to dedicate all of your deposit to meet your margin requirements. By dedicating all your deposit in this manner, you will be less able to deal with market volatility than if you only dedicate some of your deposit. 7.3. You must ensure that the amount in your Trading Account exceeds the Maintenance Margin in order to keep a Transaction open if price moves against you, you may need to deposit additional funds, at short notice, to maintain your open position(s). If you fail to do this, we will be entitled to close or partially close one, more or all of your trades and you will be responsible for any losses that may be incurred.
You should also be aware that under our User Agreement we are entitled, at our sole discretion, to make a Margin Call which you are required to satisfy immediately. If you do not satisfy the Margin Call in a timely manner, we will be entitled to close or partially close one, more, or all of your trades.
Unless you have taken steps to place an absolute limit on your losses by setting a Guaranteed Stop, it is possible for adverse market movements to result in the loss of the entire balance of your Trading Account. Guaranteed Stops are not offered on all instruments, but there are other risk management tools available, e.g. by placing “Close at Loss” or “Close at Profit” orders on your account, that will help mitigate your losses. However, please note “Close at Loss” and “Close at Profit” are not guaranteed if the rate changes by more than a single pip.
With Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) customers can buy (“go long”) and close the position later by selling. Alternatively customers can sell (“go short”) and close the position later by buying (the mere action of closing the position functions as the action of buying/selling). Selling at a higher/lower price than the purchase price yields a gain/loss accordingly. If the market goes against you and you do not have the necessary risk management tools in place your position could result in significant losses.
NOT SUITABLE AS INCOME
The inherent concept of Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) means they are not suitable for an investor seeking an income from their investments, as the income from such investments may fluctuate in value in money terms. For an investment in an OTC product, which is not a readily realizable investment, it may be difficult to sell or realize the investment and obtain reliable information about its value or the extent of the risks to which it is exposed.
FLUCTUATIONS IN THE MARKET
It is important that you comprehend the risks associated with trading in Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’), as fluctuations in the price of the underlying market will have an effect on the profitability of the trade.
Trading Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) is only appropriate for those customers who fully understand the risks and have previous trading experience. If unsure, it is advisable to seek independent advice.
Positions opened with us are not traded on any exchange. The prices and other conditions are set by us, subject to any obligations we have to provide best execution, to act reasonably and in accordance with our user agreement and with our order execution policy. Certain Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) offered by the Company are not traded on an exchange, but they are created and priced by a third-party index service provider. Each Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) trade that you open through our Trading Platform results in you entering into a contract with us; these contracts can only be closed with us and are not transferable to any other person.
NEED TO MONITOR POSITIONS
Because of the effect of leverage and the speed at which profits or losses can be incurred, it is important that you monitor your positions closely. It is your responsibility to monitor your trades at all times.
Markets are subject to many influences which may result in rapid price fluctuations. Because of market volatility, there is no Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) transaction available via our trading platform that can be considered “risk free”. Given the potential levels of volatility in markets, it is recommended that you closely monitor your transactions at all times.
OPERATIONAL RISKS 1
Operational risks with OmegaCrypto on your computer are inherent in every Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) transaction. For example, disruptions in OmegaCrypto’s operational processes such as communications, computers, computer or mobile networks or external events may lead to delays in the execution and settlement of a transaction. OmegaCrypto does not accept or bear any liability whatsoever in relation to the operational processes of OmegaCrypto,
Customers should be aware that Crypto-Currency Trading / Crypto Contracts for Difference (‘CFDs’) denominated in a currency other than their home currency have the additional risk associated with currency fluctuations.
TRADING CRYPTOCURRENCY CFDs RISK
Cryptocurrency CFDs are complex, extremely and usually highly speculative. Trading in Cryptocurrency CFDs involves a high risk of loss of funds over a short period of time due to high market volatility, execution issues and industry-specific disruptive events, including, but not limited to, discontinuation, regulatory bans and other malicious actors within cryptocurrency ecosystems.
The pricing of Cryptocurrency CFDs is derived from specific cryptocurrency exchanges, which means that the market depth is limited to what is available in the order books of such exchanges. These markets are relatively new and thus might be volatile and limited in terms of liquidity. The pricing engines of cryptocurrency exchanges may experience delays and/or interruptions which can be caused by numerous potential issues. Cryptocurrency CFD trading is not appropriate for all investors and therefore, any person wishing to trade in Cryptocurrency CFDs should have detailed and updated knowledge and expertise in these specific products. Customers should always be fully aware and understand the specific characteristics and risks related to these products as laid down in this section.
COMMUNICATION BETWEEN THE CLIENT AND THE COMPANY
The Client shall accept the risk of any financial losses caused by the fact that the Client has received with delay or has not received at all any notice from the company. The Client acknowledges that the unencrypted information transmitted by e-mail is not protected from any unauthorized access. The Company has no responsibility if unauthorized third persons have access to information, including electronic addresses, electronic communication and personal data, access data when the above are transmitted between the Company and the client or when using the internet or other network communication facilities, or any other electronic means.