1.Key information
1.1.Metritax (MU) Ltd (the "Company", "we", "us") is incorporated in the Republic of Mauritius (registered number 235525 GBC) and licensed as an Investment Dealer (Full Service Dealer, excluding underwriting) by the Financial Services Commission of Mauritius (licence number GB26206169).
1.2.This Risk Disclosure Statement explains the risks, rights, and obligations associated with our products, so that you can determine whether they are appropriate for your personal objectives, financial situation, and needs. All Clients and potential Clients are strongly advised to read carefully the risk disclosures and warnings contained in this document, before applying to the Company for a trading account and before they begin to trade with the Company.
1.3.This Statement does not disclose every risk or significant aspect of trading foreign exchange or derivative instruments. It highlights the principal risks; it is not an exhaustive list.
2.General risk warning
2.1.Trading contracts for difference ("CFDs") is highly speculative and involves substantial risk of loss as well as the potential for profit. It is not suitable for all investors. CFDs, are leveraged products that mature when an existing open position is closed. By investing in CFDs, You assume a high level of risk and it can result in the loss of all invested capital. The maximum loss you may suffer from your trading activities equals your account balance. Do not trade CFDs unless you understand their nature and are comfortable with the risks.
2.1.1.Most retail clients lose money when trading leveraged products. Before trading, you should ensure that you understand the risks of leverage and are comfortable with the possibility of losing some or all of the funds in your account.
2.2.Trading CFDs on currency pairs, equity indices, metals, commodities, cryptocurrencies and other underlying assets (each trading order refers to a "Transaction") places your capital at high risk. You should enter a Transaction only if you understand the nature of the contract, the contractual legal relationship it creates, and the true extent of your exposure to the risk of loss. Your profit or loss will depend on fluctuations in the price of the underlying asset on which your Transaction is based.
2.3.Trade only with money you can afford to lose. Past performance and the use of financial indicators are not reliable sources of information and are no indication or guarantee of future results.
2.3.1.The Company provides its services on an execution-only basis. This means that we do not provide investment advice, portfolio management services or recommendations regarding the suitability of any particular trade. You are responsible for your own trading decisions.
3.Suitability and your acknowledgement
3.1.Before engaging in CFDs trading, consider carefully whether these instruments are appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances. Transactions in foreign exchange and derivatives are not suitable for many members of the public. Prior to applying for a trading account with the Company or making an order, You should carefully consider which Financial Instrument is suitable for You, taking into account Your circumstances and financial resources. If You do not understand the risks involved in trading in Financial Instruments, You should consult an independent financial advisor. If after seeing the advisor, You still don’t understand these risks, then You should avoid trading CDFs.
3.2.By trading with us, You agree and acknowledge that, before doing so, you carefully considered whether trading is appropriate for You, assessed your financial condition and level of experience, and read this Risk Disclosure Statement.
3.2.1.The Company may assess your trading knowledge and experience before allowing access to certain products. If we believe that a product may not be appropriate for you, we may issue additional warnings or restrict access to that product.
3.3.We recommend that you obtain independent financial, legal, taxation, and other professional advice before entering a Transaction, to ensure it is appropriate for your objectives, needs, and circumstances. Nothing in this Statement is a recommendation to trade CFDs or any other financial instrument. The Company gives no guarantee of profit or of avoiding losses when trading, and you acknowledge that you have received no such guarantee from the Company or any of its representatives. Any examples in this Statement are illustrative only and do not reflect our actions or determinations, or any investor's personal circumstances. You confirm that you are aware of the risks inherent in trading and are financially able to bear those risks and withstand any losses incurred.
4.Leverage and margin
4.1.A high degree of leverage is a defining feature of CFD Transactions. Under Margin Trading conditions even small market movements may have a great impact on Your Trading Account. If the market moves in Your favour, this can produce a good profit; an equally small adverse movement can quickly produce a loss equal to your full account balance. If you decide to trade margined CFDs, you must accept this degree of risk.
4.2.Nature of margined CFDs. CFDs offered by the Company are non-deliverable spot transactions, giving an opportunity to make profit on changes of prices on an underlying asset or index. It is an express term of every CFD Transaction that:
4.2.1.neither party acquires any interest in, right to acquire, or obligation to sell, purchase, hold, deliver, or receive the underlying asset; and
4.2.2.each party's rights and obligations under the Transaction are limited to making and receiving the related payments.
4.3.Margin requirements. Margin requirements may differ between account types and between the instruments traded. We reserve the right to adjust margin requirements for any product we offer at any time. If Your margin requirement increases, You may need to deposit additional funds to maintain existing positions.
4.4.Position monitoring. You are responsible for monitoring your account. If the net value of your account (cash plus/minus Unrealised PnL) falls below the required margin, we may close some or all of your trades at the current market price. It is your responsibility to ensure your account holds sufficient funds at all times.
4.5.Margin calls. We may, but not obliged to, require you to deposit substantial additional margin at short notice, to maintain your positions. You must pay or transfer the required margin within the minimum period of time. If you do not provide the additional funds within the required time, your positions may be closed at a loss.
4.6.No credit. The Company does not extend credit or loans to the Client. For the avoidance of doubt, any allocation of initial margin or variation margin provided to facilitate leveraged trading does not constitute a legal credit facility or loan.
4.7.Leverage increases both potential profits and potential losses. The higher the leverage used, the greater the risk that a small market movement may significantly affect the value of your account.
4.8.The Company may implement automatic margin call and stop-out mechanisms to help manage trading risk. These mechanisms do not guarantee that losses will be prevented.
5.Market risk
5.1.What market risk is. Market risk is the risk of loss caused by movements in the prices of traded assets. It reflects how an instrument's return varies with overall market conditions.
5.2.Magnified exposure. Margined CFD trading tracks the price movements of underlying financial products. You are therefore exposed to risks similar to holding the underlying assets themselves, but magnified by Leverage, and in some cases greater.
5.3.Stop-loss orders and slippage. Placing a stop-loss order may limit your loss, but this is not guaranteed; in some circumstances your losses may be greater. Slippage occurs when a stop-loss is not filled at the exact order price but at a higher or lower one: for example, because the underlying asset or index has become unusually volatile. When this happens, the stop-loss may not be effective and your position will be closed at the current price of the underlying asset.
5.4.Gapping. Under certain trading conditions, 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, a gapping occurs so that your stop-loss level is skipped and your trade closes at a much higher or lower price than intended. When you hold an open position in a volatile market, you must understand that you may be filled at the next available price of the underlying asset.
5.5.Liquidity and suspension. Under certain trading conditions it may be difficult or impossible to liquidate a position, e.g., during rapid price movement where the price rises or falls within one trading session to such an extent that trading is restricted or suspended.
5.6.Spread widening. At market opening and closing times, and ahead of announcements, spreads may widen substantially. Ensure that your account holds sufficient funds to cover this eventuality (see clause 4.4).
5.7.Interest rate risk. Interest rates are a key component of many market prices and an important economic barometer; they are a key ingredient in the cost of capital. Fluctuations in market interest rates affect the prices of the instruments you trade.
5.8.Foreign exchange risk. International transactions carry exchange risk: the risk of loss (or gain) from unforeseen changes in exchange rates - the prices at which currencies trade for each other.
5.9.Financial markets may become highly volatile during economic events, political developments, market announcements or periods of market stress. Such events may result in rapid price movements which can significantly affect your positions.
5.10.Cryptocurrency CFDs are generally more volatile than many traditional financial instruments. Prices may change rapidly and unexpectedly, increasing the risk of significant losses.
6.Counterparty and third-party risk
6.1.We are the counterparty to all your trades. None of our products are listed on an exchange, and the rights or obligations associated with them are strictly non-transferable. While the Company commits to providing best execution and acting reasonably under Customer Agreement, all margin CFDs opened with the Company must be closed exclusively with the Company, at our quoted prices, and subject to our terms.
6.2.The Company may transfer Client funds to a third party (such as a bank) to hold or control. If that third party becomes insolvent, the Company may only hold an unsecured claim against them on the Client's behalf. The Client acknowledges and accepts the risk that recovered funds may be insufficient to satisfy their claims.
6.3.Segregated accounts. The Company is required to hold client funds in segregated trust accounts in accordance with the Financial Services Act 2007, but this may not afford complete protection. We monitor the creditworthiness of our banks closely and select them on the basis of robustness and solidity; this does not make them risk-free.
6.4.Trading platforms, internet connections, software systems and communication networks may occasionally become unavailable or experience delays. Such events could affect your ability to place, modify or close trades.
7.Tax
7.1.You bear sole responsibility for all taxes, stamp duties, and related liabilities arising from your trades and profits. The Company does not provide tax advice, and You remain fully responsible for managing Your own tax affairs.
7.2.The taxation consequences of CFD Transactions can be complex and differ according to each person's financial circumstances. Consult your tax adviser before entering into a Transaction.
8.Commissions, spreads, and financing costs
8.1.Before trading with the Company, obtain details of all commissions and other charges for which you will be liable. Where a charge is not expressed in money terms (for example, a bid-offer spread), you should obtain a clear explanation of what that charge is likely to mean in specific money terms. Where commission is charged as a percentage, it will normally be a percentage of the total contract value, not simply a percentage of your initial payment.
8.2.Some trades may require you to pay financing costs. The combination of such costs may exceed any profits on your trades or increase the losses you incur.
9.General terms
9.1.The distribution of this Risk Disclosure Statement (electronically or otherwise) in any jurisdiction outside Mauritius may be restricted by law. Persons who come into possession of this Statement should seek advice on, and observe, any such restrictions. The information in this Statement is not directed at residents of any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
9.1.1.The Company does not guarantee the performance of any financial product, trading strategy or investment outcome. Any decision to trade remains solely your responsibility.
9.2.The Company is regulated by the Financial Services Commission (FSC) of Mauritius. The Client acknowledges that their trading activities with the Company are not covered or protected by any statutory client compensation scheme under the laws of Mauritius.
9.3.In the event of any inconsistency between this Risk Disclosure Statement and applicable legislation, rules, or regulations, the latter shall prevail.
9.4.If you are dissatisfied with any aspect of the Company's services, you may submit a complaint in accordance with the Company's Complaint Handling Policy.