| This brief statement does not disclose all the risks and other significant aspects of trading in securities and other property relating to cash, shares, stocks, corporate, public and government bonds, exchange-traded equities and any other financial instruments (whether certificated or uncertificated) that are admitted to trading on a financial market, as well as any related contracts for the present or future delivery of such securities (or the value of which is calculated by reference to the price of such securities) and any and all rights and entitlements thereto. |
| Trading in securities and other property is highly speculative and involves a various kind of risk (Including but not limited to market, currency, operational, foreign countries etc.) and associated losses. Such trading is not suitable for all investors so you (hereinafter referred to as “the Customer”, “You, “Your”. “I”, “Me”, “We”, “Us”) must ensure that you fully understand the risks before trading. You should carefully consider your investment goals, level of experience, and risk appetite. Your potential liability is unlimited and there is a possibility that you can lose some or all your initial investment and any profit and therefore you should not invest money that you cannot afford to lose. All investors whose investment authority is subject to legal, or tax restrictions should consult their legal advisers to determine whether and to what extent the Products would legally constitute investments for such investors. Investors should invest or transact only if they can withstand a varied degrees of loss (including total) on their investment. |
| Arzan Financial Group, (hereinafter referred to as “the Company”, “AFG”) wishes to emphasize that past results are not necessarily indicative of future results. You should not deal in securities trading unless you understand the nature of the contract you are entering into and the extent of the exposure to risk. You should also be satisfied that trading in various instruments and asset/ Securities classes are suitable for you in the light of your circumstances and financial position. |
| You should undertake such transactions only if you understand the nature of the trading which you are about to engage in and the extent of your exposure and risk. |
| In consideration of the Company agreeing to provide regulated financial services to you under the terms and conditions of the customer agreement between us, you acknowledge, understand, and agree that: |
- High leverage and low margins can lead to quick losses
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| The high leverage and low margin associated with spot forex and other OTC transactions can result in significant losses due to price changes in foreign exchange contracts/transactions and cross currency contracts/transactions. A small price movement in your favor can provide a high return on the deposit, however, a small price movement against you may result in significant losses which could exceed the money placed on deposit. Such losses can occur quickly. |
- Risks associated with Warrants
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| A warrant is a time-limited right to subscribe for shares or debentures and is exercisable against the original issuer of the securities. A relatively small movement in the price of the underlying security results in a disproportionately large movement, favorable or unfavorable, in the price of the warrant. The prices of warrants can therefore be volatile. It is essential for anyone who is considering purchasing a warrant to understand that the right to subscribe which a warrant confers is invariably limited in time, with the consequence that if you fail to exercise this right within the predetermined timescale then the investment becomes worthless. You should not buy a warrant unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges. |
| Some other instruments are also called warrants but are actually options (for example, a right to acquire securities which is exercisable against someone other than the original issuer of the securities, often called a “covered warrant”). |
- Margining requirements
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| You must maintain the minimum margin requirement on the open positions of the securities and other property held in your account at all times. It is your responsibility to monitor your account balance. The Company has the right to liquidate any or all open positions whenever the minimum margin requirement is not maintained and this may result in your, spot forex, warrants, margin trades, options and futures contracts/transactions being closed at a loss for which you will be liable. |
- Liquidation of positions
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| Positions may be liquidated or closed out without your consent in the event you fail to meet a margin call. Additionally, the insolvency or default of any broker involved in your transaction may lead to positions being liquidated or closed out without your consent. In certain circumstances, you may not get back the actual assets which you lodged as collateral, and you may receive any available payment in cash. |
- Contingent liability transactions
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| Contingent liability transactions which are margined require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. |
| If you trade in futures or sell options, you may sustain a total loss of the margin you deposit with your broker to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss, and you will be liable for any resulting deficit. |
| Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract. Contingent liability transactions which are not traded on or under the rules of a recognized or designated investment exchange may expose you to substantially greater risks than those which are so traded. |
- Foreign Markets and Currency Risk
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| Foreign markets will involve different risks across Kuwait Stock Exchange, GCC, US and other financial markets. In some cases, the risks will be greater. The value of any investment in financial instruments may fluctuate downwards or upwards and a particular instrument may become worthless. |
| The profit or loss in transactions in foreign currency denominated contracts/transactions (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency. |
| In some cases, currency fluctuations may result in you suffering a loss even though an investment (denominated in its local currency) has increased in value. |
- Collateral
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| If you deposit collateral as security, the way in which it will be treated will vary according to the type of transaction and where it is traded. There could be significant differences in the treatment of your collateral depending on whether you are trading on a recognized or designated investment exchange, with the rules of that exchange (and associated clearing house) applying or trading off exchange. Deposited collateral may lose its identity as your property once dealings on your behalf are undertaken. You may not get back the same assets which you deposited and may receive any payment in cash. You may also be subject to credit and market risk in respect of the entity or entities holding your collateral. |
- Prices, Margin and Valuations are set by the Company and may be different from prices reported elsewhere
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| AFG will provide prices to be used in trading, valuation of Customer positions and the determination of margin requirements. Prices reported by the Company may vary from prices available in the market. The Company exercises discretion in setting and collecting the margin. The Company is authorized to convert funds in your account for margin into and from such foreign currency at a rate of exchange determined by the Company in the Company’s sole discretion on the basis of the prevailing market rates. |
- One click trading and Immediate Execution
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| Our online trading system provides immediate transmission of customer orders once the customer enters the notional amount and clicks “Buy/Sell.” This means that there is no opportunity to review the order after clicking “Buy/Sell” and market orders cannot be cancelled. This feature may be different from other trading systems you have used. By using AFG order entry system you agree to the one-click system and accept the risk of this immediate transmission feature. |
- Telephone Orders
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| The Company is not responsible for disruption, failure or malfunction of telephone facilities and does not guarantee telephone availability. |
- Telephone Orders and Immediate Execution
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| Market orders executed through the trading desk by telephone are completed when the Company’s telephone operator says “deal” or “done” following customer’s placing of an order. Upon such confirmation of the telephone operator, you have bought or sold and cannot cancel the market order. By placing market orders through the trading desk, you agree to such immediate execution and accept the risk of this immediate execution feature. Non-margining trades will be executed only if you have sufficient cash/securities in your portfolio. All phone calls to the trading desk are recorded. |
- Internet Trading
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| There are risks associated with utilizing internet-based deal execution trading system including, but not limited to, failure of hardware, software, and internet connection. One result of such a failure may be that your order is either not executed according to your instructions or is not executed at all. |
| The Company will have no liability or duty of indemnification for any claims, losses, damages, costs, or expenses, caused, directly or indirectly, by any malfunction or failure of any transmission, communication system, computer facility or trading software, whether belonging to the Company, the customer, any exchange, or any settlement or clearing system, and/or for any third-party violations and/or from any actions or events outside our control. Furthermore, the Company is not responsible for the breach of internet security with respect of your account. |
- Market Recommendations are informational, you make independent decisions, and the Company is not an advisor or fiduciary to you
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| The Company shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided on this website. The Company does not warrant that the information is accurate, reliable, or complete or that the supply will be without interruptions. The Company shall not be liable for any delay, inaccuracy, error, or omission of any kind in the information provided by the Company and/or the exchange and/or any third-party information provider or for any resulting loss or damage you may suffer as a result of or in connection with the information supplied by the Company and/or the exchange and/or any third-party information provider. In addition, the Company shall have no liability for any losses arising from unauthorized access to information or any other misuse of information. |
| Any opinions, news, research, analysis, prices, or other information on the Company website are provided as general market commentary, and do not constitute investment advice. The Company will not accept liability for any loss or damage, including, without limitation, for any loss of profit which may arise directly or indirectly from use of or reliance on such information. Each decision as to whether a transaction is appropriate or proper, is an independent decision by you. You agree that the Company has no fiduciary duty to you and is not responsible for any liabilities, claims, damages, costs and expenses, including attorneys’ fees, incurred in connection with you following the Company’s generic trading recommendations or taking or not taking any action based upon any information provided by the Company. You also agree that you alone are responsible for monitoring you positions and shall not rely on us to do so. |
| The Company makes no representations as to whether a particular investment is appropriate or suitable for you. |
- No guarantees of profit
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| There are no guarantees of profit nor of avoiding losses when trading in securities and other property. You have received no such guarantees from the Company or from any of our representatives. You are aware of the risks inherent in trading in securities and other property and financially able to bear such risks and withstand any losses incurred. |
| The contents of any report provided by the Company should not be construed as an express or implied promise, as a guarantee or implication that you will profit from the strategies herein or as a guarantee that losses in connection therewith can or will be limited. |
- Commission, Conversion, and other Charges
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| Before you begin to trade, you should ensure that you understand all commissions, fees, and other charges for which you will be liable. If any charges are not expressed in money terms (but, for example, as a percentage of contract value), you should obtain a clear written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms. |
| You should be aware that profit and loss in foreign currency denominated contracts/transactions (whether they are traded in your own or another jurisdiction) will be affected by the fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency. These charges will affect your net profit (if any) or increase your loss. |
- Quoting Errors
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| Should a quoting error occur due to a mistype of a quote, or a mis-quote given by telephone or electronic means (including responses to your requests), the Company is not liable for any resulting errors in account balances and reserve the right to make necessary corrections or adjustments to the relevant account. Any dispute arising from such quoting errors will be resolved based on the fair market value, as determined by the Company’s sole discretion and acting in good faith, of the relevant market at the time such an error occurred. In cases where the prevailing market represents prices different from the prices the Company posted on its screen, the Company will attempt, on a best-efforts basis, to execute transactions on or close to the prevailing market prices. These prevailing market prices will be the prices which are ultimately reflected on customer statements. This may or may not adversely affect your realized and unrealized gains and losses. |
- Legal Considerations
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| To the extent permitted by Applicable Regulations, the Company may place trading, disbursement, service, or other restrictions on your Trading Account for reasons including court order, tax levy or garnishment, request of a competent government agency or law enforcement authority in any Relevant Jurisdiction and or any Debit Balance in “My Trading Account”. The Company may be required to liquidate or close out Securities and/or Other Property in your Trading Account to satisfy any such court order, garnishment, tax levy or other legal obligation. The Company will not be held liable for any Claims or Losses that arise out of or relate to any such Transaction and you agree to indemnify and hold the Company and/or its Affiliates harmless from and against any Claims or Losses they may incur in taking such actions. You understand that the Company may refuse for any reason to accept share or other ownership certificates for deposit into “My Trading Account”. |
- Password Protection
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| You are obligated to keep passwords secret and ensure that third parties do not obtain access to your online account. You will be liable for trades executed by means of your password even if such use may be wrongful. |
- Suspensions of trading
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| Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange trading is suspended or restricted. Placing a stop-loss order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an order at the stipulated price. |
| Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions. |
- Clearing House protections
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| On many exchanges, the performance of a transaction by your broker (or the third party with whom he/she is dealing on your behalf) is “guaranteed” by the exchange or it’s clearing house. However, this guarantee is unlikely in most circumstances to cover you and may not protect you if another party defaults on its obligations to you. Customer may not be able to close open positions. |
| Due to market conditions or other circumstances the Company may be unable to close out your position at a level specified by you, and you agree that the Company will bear no liability for failure to do so. |
- Additional Disclaimer
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| In the absence of gross negligence, fraud, willful misconduct or willful default, you acknowledge to indemnify the Company expressly from any obligations, responsibility or liability whatsoever arising from; |
- Any fraud, financial mismanagement, irregularity, siphoning of funds, money laundering, non-compliance or any illegal activity on your part, arising out of the opening and/or operating of Trading Accounts;
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- Any single Transaction or series of Transactions transacted by you, which resulted into a loss for you;
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- Your decision, judgment or action to invest or buy particular Securities and/or Other Property;
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- For the Claims or Losses suffered by you due to Force Majeure events; and for the Claims or Losses suffered by you for reasons including but not limited volatile market conditions, lack of judgments, error, mistake, omission, commission, speculations on your part.
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- Modifications to the Risk Disclosure Statement
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| The Company reserves the right to change this risk disclosure statement at any time by posting revisions on this website. Such changes will be effective upon posting. You are advised to check the Company website frequently to review any changes to this risk disclosure statement. |
- Acknowledgement
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| You confirm that you have fully read and understood the risk disclosure statement and you unreservedly acknowledge and accept the risks set out herein and accept and declare that you are willing to undertake these risks. |
| This Risk Disclosure should be read in conjunction with the Account Opening Form and Client agreement, and neither the Risk Disclosure nor the Account Opening Form substitutes each other. |
| By signing on this risk disclosure statement, I/we acknowledge and agree that I/we have received a copy of the Risk Disclosure Statement and have understood its contents in conjunction with the Account Opening Form. In signing these risk disclosures, I/we take full responsibility for the trades placed by me/us and indemnify the Company for any losses incurred on account of the disclosures made above and as stated in my Account Opening Agreement. |
