Risk Disclosure

Trading in financial instruments involves substantial risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you could sustain a loss of some or all of your investment. Therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts. Past performance is not indicative of future results. Any trading history presented is for informational purposes only and should not be construed as a guarantee of future performance.

Financial markets are subject to various risks including: Price Risk: The value of your investments may rise or fall due to market conditions, economic factors, or company-specific events. Systematic Risk: Market-wide events such as economic recessions, political instability, or global crises can affect all investments. Unsystematic Risk: Company or sector-specific events can cause significant price movements in individual securities. Gap Risk: Prices may "gap" between trading sessions, potentially triggering stop-losses at unfavorable levels. Correlation Risk: Diversification may not protect against market downturns when correlations increase during crises.

Leverage allows you to control larger positions with a smaller amount of capital. While this can amplify profits, it also significantly increases risk: • Losses can exceed your initial deposit • Small market movements can result in large losses • Margin calls may require additional deposits on short notice • Positions may be liquidated automatically if margin is insufficient • Interest charges apply to leveraged positions held overnight You should only use leverage if you fully understand the risks involved and can afford potential losses.

Trading in derivatives (futures, options, CFDs) carries specific risks: Futures: Obligate you to buy or sell at a predetermined price, regardless of market conditions at expiry. Options: Time decay (theta) works against option buyers. Options can expire worthless, resulting in total loss of premium paid. CFDs: Contracts for Difference involve leverage and may not be suitable for retail investors. A significant percentage of retail CFD accounts lose money. Mark-to-Market: Daily settlement of gains and losses may require additional margin deposits. Complexity: Derivatives are complex instruments that require thorough understanding before trading.

Foreign exchange trading involves additional risks: Exchange Rate Risk: Currency values fluctuate based on economic conditions, interest rates, and geopolitical events. 24-Hour Market: Forex markets operate continuously, and prices can change while you sleep. Central Bank Actions: Unexpected interest rate decisions or interventions can cause significant volatility. Leverage: Forex trading typically involves high leverage, amplifying both gains and losses. Regulatory Differences: Different jurisdictions have varying regulations for forex trading. Counterparty Risk: In OTC forex trading, you are exposed to the credit risk of your broker or counterparty.

Cryptocurrency trading carries unique and significant risks: Extreme Volatility: Cryptocurrencies can gain or lose 20-50% of their value in a single day. Regulatory Uncertainty: Cryptocurrency regulations are evolving and may change significantly. Security Risks: Exchange hacks and wallet vulnerabilities can result in loss of assets. Lack of Intrinsic Value: Most cryptocurrencies do not have underlying assets or cash flows. Technology Risks: Protocol bugs, network attacks, or forks can affect value. Limited Recourse: Unlike traditional financial products, there may be limited consumer protection. 24/7 Trading: Markets never close, requiring constant vigilance or automated strategies.

Electronic trading systems are subject to risks including: System Failures: Hardware or software failures may prevent order execution or cause erroneous trades. Connectivity Issues: Internet outages or latency may affect your ability to trade. Cybersecurity: Hacking, phishing, or malware can compromise your account security. Platform Errors: Trading platform bugs may cause unintended executions or display incorrect information. Data Delays: Real-time data may be delayed, leading to trades based on stale information. We implement robust technology infrastructure but cannot guarantee uninterrupted service.

Liquidity refers to the ability to buy or sell an asset quickly at a fair price: Low Liquidity: Some securities may have few buyers and sellers, making it difficult to execute trades. Wide Spreads: Illiquid markets often have wider bid-ask spreads, increasing transaction costs. Slippage: Orders may be filled at prices significantly different from expected in fast-moving or illiquid markets. Market Disruptions: Circuit breakers, trading halts, or market closures may prevent trading. Exit Risk: You may not be able to close positions when desired, especially during market stress.

Regulatory changes can affect your investments: Rule Changes: SEBI, RBI, or exchange rules may change, affecting trading conditions. Tax Laws: Changes in tax treatment of investments can affect after-tax returns. Compliance Requirements: Additional documentation or restrictions may be imposed. Cross-Border Issues: Trading international markets involves compliance with multiple jurisdictions. Legal Disputes: Disputes may be subject to arbitration or courts in specific jurisdictions.

Before trading, you should honestly assess whether trading is appropriate for you: Financial Situation: Can you afford to lose the money you plan to invest? Investment Objectives: Do your trading activities align with your financial goals? Knowledge and Experience: Do you understand the products you are trading? Risk Tolerance: Are you comfortable with the potential for significant losses? Time Commitment: Can you dedicate sufficient time to monitor your positions? If you are unsure, seek advice from a qualified financial advisor before trading.

By using Pro Exchange, you acknowledge that: • You have read and understood this Risk Disclosure • You understand that trading involves substantial risk of loss • You are solely responsible for your trading decisions • You will not hold Pro Exchange liable for trading losses • You have the financial capacity to bear potential losses • You will seek independent advice if needed This disclosure does not cover all possible risks. You should conduct your own research and due diligence before trading.