Risk Disclosure Notice

Important Risk Warning

Spread Bets and Contracts for Difference ("CFDs") are complex leveraged financial products that carry a high level of risk and are not suitable for all investors.

Leverage can magnify both profits and losses. A relatively small movement in the underlying market can result in a significantly larger gain or loss.

Retail clients may lose all of the funds deposited into their trading account. Professional clients may lose more than the funds deposited into their trading account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

You should only trade if you fully understand the risks involved and can afford to bear potential losses.

Introduction

This Risk Disclosure Notice provides information about some of the risks associated with the services and products offered by Acetop Financial Limited ("Acetop", "we", "us" or "our").

This Notice does not explain all of the risks associated with our products and services or how those risks may relate to your individual circumstances. If you are in any doubt regarding the risks involved, you should seek independent professional advice before opening an account or entering into any transaction.

Before opening an account with Acetop, you should ensure that you fully understand the nature of Spread Bets and CFDs, the risks associated with leveraged trading, and your potential exposure to loss.

You should only trade if you have sufficient financial resources to bear the risks involved and are able to monitor your positions on an ongoing basis.

This Notice should be read together with our Terms and Conditions, Key Information Documents, Order Execution Policy and any other documentation made available through our website.

Contracts for Difference (CFDs)

A Contract for Difference ("CFD") is a leveraged financial product that enables you to speculate on the price movements of an underlying asset without owning that asset.

When trading CFDs, you enter into a contract directly with Acetop. CFDs do not provide ownership of the underlying asset and do not confer any rights associated with ownership, including voting rights, entitlement to dividends (except cash adjustments where applicable) or rights to take delivery of the underlying asset.

Due to leverage, a relatively small movement in the price of the underlying market can result in a significantly larger gain or loss on your position.

Losses can occur rapidly and may result in the loss of all funds held in your trading account.

Retail clients benefit from negative balance protection in accordance with FCA requirements. This means that losses on CFD trading are limited to the funds held in their CFD trading account. However, retail clients may lose all of the money deposited into their account.

Professional clients do not benefit from negative balance protection and may lose more than the funds deposited into their account.

CFDs are not suitable for all investors and should only be traded by individuals who understand the risks associated with leveraged products.

Spread Betting

A financial spread bet is an agreement to exchange the difference between the opening and closing value of a transaction.

When you place a spread bet, you are speculating on whether the price of an underlying instrument will rise or fall. Your profit or loss depends on the direction and extent of the price movement and the stake size selected by you.

Spread Betting is a leveraged product. Leverage means that a relatively small movement in the underlying market can result in a significantly larger gain or loss.

Losses can occur rapidly and may result in the loss of all funds held in your trading account.

Retail clients benefit from negative balance protection in accordance with FCA requirements. This means that losses on spread betting transactions are limited to the funds held in their trading account. However, retail clients may lose all of the money deposited into their account.

Professional clients do not benefit from negative balance protection and may lose more than the funds deposited into their account.

Spread Betting is not suitable for all investors and should only be used by individuals who understand the risks associated with leveraged products.

Leverage Risk

CFDs and Spread Bets are leveraged products. Leverage allows you to gain exposure to a larger market position by depositing only a relatively small amount of margin.

While leverage can increase potential profits, it can also significantly increase potential losses. Small market movements may have a disproportionately large impact on your account balance.

Losses can occur rapidly and may result in the loss of all funds held within your trading account.

Overnight Financing Charges

Positions held overnight may be subject to financing, swap or rollover charges.

These charges accrue daily and can significantly affect the profitability of your trading, particularly where positions are held for extended periods.

Overnight financing charges may exceed any profits generated by a position and may materially reduce the value of your account over time.

You should carefully consider the impact of financing charges before entering into transactions that may remain open overnight.

Non-Guaranteed Stop Orders

A non-guaranteed stop order is an instruction to close a position when a specified price level is reached.

A non-guaranteed stop order does not guarantee that your position will be closed at the exact level specified by you. If the market gaps or moves rapidly through your stop level, your order may be executed at a less favourable price than requested.

In fast-moving or volatile market conditions, prices may change significantly before an order can be executed, resulting in additional losses.

No Advice

Acetop provides its services on an execution-only basis.

We do not provide investment advice, portfolio management, financial, legal, tax, accounting or other professional advice.

Any market commentary, research, educational materials, news, analysis, webinars or other information provided by Acetop is provided for general information purposes only and does not constitute personal advice or a recommendation to enter into any transaction.

All trading decisions are made solely by you and at your own risk.

If you are uncertain whether our products are appropriate for your circumstances, you should seek independent professional advice before trading.

Tax

Acetop does not provide tax, legal or regulatory advice.

The tax treatment of trading activities depends upon your individual circumstances and may change in the future.

You are solely responsible for obtaining independent tax advice and for meeting any tax obligations arising from your trading activities.

No Rights to the Underlying Instrument

CFDs and Spread Bets allow you to gain economic exposure to movements in the price of an underlying instrument without owning that instrument.

You will not acquire any ownership rights, voting rights, delivery rights or other rights associated with the underlying instrument.

Appropriateness

Before opening an account, we are required to assess whether our products are appropriate for you based on the information you provide regarding your knowledge and experience.

Where we determine that a product may not be appropriate for you, we will provide a warning.

We assess appropriateness only. We do not assess whether trading CFDs or Spread Bets is suitable for your personal circumstances, financial situation or investment objectives.

Any decision to open an account and trade with Acetop remains your responsibility.

Margin Requirements and Margin Close-Out

Before opening a position, you must ensure that sufficient funds are available in your account to meet the applicable margin requirements.

Market movements may reduce the funds available in your account and additional funds may be required at short notice to maintain your positions.

If your account balance falls below the required margin level, we may close some or all of your open positions without prior notice in accordance with our Terms and Conditions and applicable regulatory requirements.

The closure of positions may result in losses and may occur during periods of market volatility.

Market Risk

Financial markets can be highly volatile and unpredictable.

The value of a CFD or Spread Bet is influenced by movements in the underlying market, which may be affected by economic events, political developments, interest rate changes, earnings announcements, natural disasters, geopolitical events and other factors.

During periods of extreme market volatility, low liquidity, economic announcements, geopolitical events or other exceptional circumstances, spreads may widen significantly, prices may gap and orders may be executed at less favourable levels than requested.

These events can result in substantial losses.

Liquidity Risk

Market conditions can change rapidly.

In certain market conditions, it may be difficult or impossible to open, close or execute a transaction at the expected price.

Reduced liquidity may result in wider spreads, delayed execution, increased volatility or the temporary suspension of trading.

In exceptional circumstances, Acetop may suspend trading, adjust pricing or take other reasonable measures in accordance with its Terms and Conditions.

Currency Risk

If you trade products denominated in a currency different from your account currency, fluctuations in exchange rates will affect the value of your profits and losses.

Adverse exchange rate movements may increase losses or reduce profits.

Regulatory and Legal Risk

Changes in laws, regulations, taxation, regulatory interpretation or market rules may adversely affect the value or performance of a product or market.

It is your responsibility to understand the legal and regulatory implications of your trading activities.

 

 

Charges and Costs

Trading CFDs and Spread Bets involves a range of costs and charges which may affect the profitability of your trading activities.

These charges may include, but are not limited to:

• Spreads;
• Overnight financing, swap or rollover charges;
• Currency conversion charges;
• Market data or third-party charges where applicable; and
• Inactivity fees.

The cumulative effect of charges and costs may have a significant impact on the profitability of your trading account and may reduce or eliminate any profits generated from trading activity.

You should ensure that you understand all applicable charges before entering into any transaction.

Full details of our charges, including spreads, financing charges and inactivity fees, are available on our website and within our Terms and Conditions.

Inactivity Fees

A trading account may be considered inactive where there has been no trading activity for a continuous period of twelve months or more.

Where an account becomes inactive, Acetop may apply an inactivity fee of £10 per month (or currency equivalent) in accordance with the Terms and Conditions.

Where reasonably practicable, Acetop will provide advance notice before any inactivity fee is applied.

The inactivity fee will continue to be charged until trading activity resumes, the account is closed, or the account balance is reduced to zero.

Client Money and Counterparty Risk

Segregation of client money is designed to protect client funds but does not completely eliminate the risk of loss in the event of insolvency of Acetop or a third-party banking institution.

Whilst we undertake due diligence and ongoing monitoring of the institutions with which client money is held, the holding of client money remains subject to the risk of insolvency or failure of the relevant institution.

In the event of Acetop's insolvency, client money will be returned in accordance with applicable insolvency legislation and FCA client money rules. There may be a shortfall in the client money pool and administrators' costs may be deducted before distribution.

Eligible claimants may be entitled to compensation under the Financial Services Compensation Scheme ("FSCS"). Eligibility and compensation limits are determined by the FSCS and may change from time to time.

Acetop acts as principal and counterparty to your CFD and Spread Betting transactions. As a result, you are exposed to Acetop's ability to meet its obligations under the terms of your transactions.

CFDs and Spread Bets offered by Acetop are over-the-counter products and are not traded on a regulated exchange.

You should not trade CFDs or Spread Bets unless you fully understand the risks involved and are able to bear the potential loss of your invested capital. If you are unsure whether these products are appropriate for you, you should seek independent professional advice before trading.