Risk Warning

Acetop Financial Limited — Risk Disclosure Notice

 

INTRODUCTION

This Risk Disclosure Notice (“Notice”) outlines the principal risks associated with the leveraged trading services offered by Acetop Financial Limited (“Acetop”, “we”, “us”, “our”) via our trading platforms (including MT4). It is designed to help you understand the key risks before you engage in trading Contracts for Difference (“CFDs”) or Financial Spread Bets.

This Notice should be read together with our Customer Agreement, Order Execution Policy, Conflicts of Interest Policy, and Costs & Charges Disclosure.

It does not constitute investment advice, and does not take account of your individual financial situation, investment objectives or risk appetite. You should seek independent professional advice if you are unsure whether these products are suitable for you.

 

HIGH-RISK PRODUCTS WARNING

Spread bets and CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage.

CFDs and Spread Bets are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs and Spread Bets. You should consider whether you understand how CFDs and Spread Bets work and whether you can afford to take the high risk of losing your money.

 

CONTENTS

• Section 1: Spread Bets and CFDs (Retail Clients)
• Section 2: Spread Bets and CFDs (Professional Clients)
• Section 3: Product & Market-Specific Risks
• Section 4: Trading Platform, Operational & Counterparty Risks
• Section 5: Costs, Funding & Corporate Actions
• Section 6: General & Legal Risks (All Clients)

 

 

 

 

 

 

SECTION 1: SPREAD BETS AND CFDS (RETAIL CLIENTS)

1.1 What Are CFDs and Financial Spread Bets?

A Contract for Difference (CFD) is a leveraged derivative contract where you speculate on the price movement of an underlying asset (e.g., foreign exchange, indices, commodities, shares) without owning it.

A Financial Spread Bet allows you to bet on the future direction of a market by staking an amount per point of movement. Like CFDs, they are leveraged, cash-settled, and do not confer ownership or voting rights.

Both products involve leverage, meaning a relatively small margin deposit controls a much larger notional exposure — magnifying potential profits and losses.

 

1.2 Leverage, Margin and Liquidation

• Initial Margin: A percentage of the notional value is required to open a position.
• Variation Margin: Adverse price moves reduce available equity; margin calls may require you to deposit additional funds immediately.
• Automatic Close-Out: If your equity falls below our maintenance margin level, we may close positions automatically without notice.
• Negative Balance Protection (Retail Only): Your losses are limited to the funds in your account, but market gaps may cause rapid depletion before protection applies.

 

1.3 Appropriateness and Suitability

Before you begin trading, we assess whether leveraged products are appropriate for you based on your knowledge and experience. This assessment does not constitute a recommendation. You must ensure that you fully understand the risks and can afford potential losses.

 

1.4 Execution-Only Basis

Acetop provides execution-only services. We do not offer investment advice or portfolio management. Any information, market commentary or analysis provided is general in nature and should not be construed as a recommendation.

 

1.5 Key Retail Client Risks (Non-Exhaustive)

• Leverage Risk: Small price movements can result in significant losses.
• Stop-Loss Orders: Non-guaranteed stops may suffer from slippage. Guaranteed stops (GSLOs) incur a premium and specific conditions.
• Market Gapping: Prices can open at levels significantly different from prior closes due to news or events.
• Liquidity & Spreads: Volatility can lead to wider spreads, slippage, or order rejection.
• Corporate Actions: Dividend or rights issue adjustments may differ from underlying outcomes.
• Short Selling: Subject to borrow fees, recalls, and forced buy-ins.
• Out-of-Hours Pricing: Quotes may be indicative, and prices may differ from exchange data.
• Currency Risk: If your account currency differs from the product’s currency, exchange rate movements affect results.
• Taxation: Tax laws can change and vary by jurisdiction. Seek independent advice.

 

SECTION 2: SPREAD BETS AND CFDS (PROFESSIONAL CLIENTS)

Professional classification removes certain retail safeguards. Specifically:

• Higher Leverage: Professional clients may access increased leverage, which magnifies losses.
• No Negative Balance Protection: You may lose more than your initial deposit.
• Appropriateness Presumption: We assume you have the requisite knowledge and experience.
• Reduced Communications: We may provide fewer standardised risk disclosures and warnings.

All market and operational risks outlined for retail clients apply equally, often with greater potential impact due to higher exposure and the absence of retail protections.

 

SECTION 3: PRODUCT & MARKET-SPECIFIC RISKS

3.1 Foreign Exchange (FX)

FX markets are influenced by interest rate differentials, macroeconomic releases, geopolitical developments and central bank actions. Volatility can be extreme during news releases or low-liquidity periods.

Weekend/holiday gaps can occur, causing stop-loss orders to trigger at worse levels.

3.2 Indices

Indices reflect the performance of a basket of equities. Price swings can be triggered by large constituent movements, macroeconomic reports, or futures expiries.

3.3 Commodities (including Gold, WTI, Brent)

Commodity prices are sensitive to inventory data, weather conditions, supply disruptions, geopolitical events and currency fluctuations.

Futures-based products are affected by roll-over costs and term-structure effects (contango/backwardation).

 

 

3.4 Shares & Share Baskets

Equity CFDs are subject to company-specific risks such as earnings, corporate actions, and regulatory announcements.
Dividends, splits, and rights issues can cause adjustments to open positions.

 

SECTION 4: TRADING PLATFORM, OPERATIONAL & COUNTERPARTY RISKS

4.1 Execution and Pricing

Prices on Acetop platforms are derived from liquidity providers and may differ from exchange or interbank quotes.

During volatile periods, order execution may experience delays or slippage.

4.2 Order Handling

• Market orders may fill at the next available price, which can differ materially from your requested level.
• Limit and stop orders may execute at the next tradable price when triggered.
• Partial fills may occur for larger orders or illiquid markets.

4.3 Technology and System Risks

Trading depends on internet connectivity, hardware, and third-party systems. Failures, latency or cyber incidents may prevent order placement or closure.

Use alternative communication methods where possible.

Automated trading tools (e.g., MT4 Expert Advisors) may malfunction; ensure adequate testing and supervision.

4.4 Counterparty & Client Money Risks

Acetop acts as principal to client trades. If we become insolvent, recovery may depend on statutory protection schemes.

Retail client money is held under FCA CASS rules in segregated accounts at recognised institutions. However, banking failure may lead to shortfalls.

The Financial Services Compensation Scheme (FSCS) may protect eligible clients up to £85,000 (subject to limits and eligibility criteria).

 

SECTION 5: COSTS, FUNDING & CORPORATE ACTIONS

5.1 Trading Costs

Your total cost of trading may include:

• Bid/offer spread
• Commission (where applicable)
• Overnight funding (swaps/rollovers)
• Currency conversion charges
• GSLO premiums
• Borrow fees (for short positions)
• Market data or inactivity fees

Refer to our Costs & Charges pages for current rates.

5.2 Overnight Funding

Positions held overnight incur financing charges or credits based on prevailing interest rate differentials and instrument type.

These charges can materially affect profitability over time.

5.3 Borrow Fees & Short Sales

Short equity positions are subject to borrow costs that can change without notice. Borrow availability can be withdrawn, resulting in forced closure of positions.

 

SECTION 6: GENERAL & LEGAL RISKS (ALL CLIENTS)

6.1 Active Monitoring

You must monitor your open positions, available margin, and account notifications at all times. Failure to act on margin calls may result in automatic liquidation.

6.2 Communication Risks

Electronic communications (email, platform messages) can be delayed, intercepted, or lost. Maintain updated contact details and notify us immediately if issues arise.

6.3 Conflicts of Interest

As principal, Acetop may set its own prices and spreads. Our Conflicts of Interest Policy outlines how we manage such conflicts fairly and is available on our website.

6.4 Regulatory & Legal Change

Regulatory, tax, and market rules may change at short notice. Such changes may impact the pricing, margin, or availability of certain instruments.

6.5 Insolvency & Default

The insolvency of Acetop, a custodian bank, or service provider could impact your ability to recover funds.

The FSCS provides protection for eligible claims up to £85,000 but does not cover market losses.

6.6 Taxation

Tax treatment varies based on your personal circumstances and may change. Acetop does not provide tax advice. Clients are encouraged to seek independent tax counsel.

IMPORTANT DISCLOSURES

• Authorisation: Acetop Financial Limited is authorised and regulated by the FCA (FRN 767154).
• Verify details on the FCA Register.
• Trading services are provided by Acetop Financial Limited.
• Review our current disclosures, legal documentation, and any FCA warnings via our website.

 

ACKNOWLEDGEMENT

By opening an account or placing an order with Acetop, you confirm that you:

• Have read, understood, and accepted the risks outlined in this Notice and related documents;
• Understand that leveraged products carry a high risk of loss; and
• Have sufficient financial resources and risk tolerance to engage in leveraged trading.

 

Registered address: 1st Floor, 13 St. Swithin’s Lane, London EC4N 8AL
Telephone: +44 (0)800 955 1710 | Email: compliance@acetop.uk
Website: www.acetop.uk