Risk Disclosure Statement
This brief statement does not disclose exhaustive risks involved in transactions of foreign exchange contracts and other major issues. In view of such risks, Clients shall only conduct transactions based on their understanding of the contractual nature, the contractual relationship to be established by Clients and the degrees of risk to be confronted by Clients. Some Clients may not be suitable for getting involved in foreign exchange contracts. Clients shall deliberate on whether the transaction would be suitable for them based on their experience, purpose, financial resources and other related situations, etc.
In leverage transactions, foreign exchange contracts are of high risk. Compared with the value of foreign exchange contracts, the value of initial margin is relatively low. The relatively less market fluctuation may lead to greater proportional impact on the funds deposited or to be deposited by clients, which may develop adversely or beneficially to Clients. Clients might loss all initial margin and any other deposits in order to maintain Clients’ position.
Issuing “stop-loss” or “price-limited” orders and other conditional orders, especially under very volatile market conditions, would not necessarily limit Clients’ losses within the expected amount because market conditions may lead to the impossible execution of such orders. The use of combined positions strategies such as “arbitrage” and “straddle trading” may be as dangerous as simply maintaining “long position” or “short position”.
Prior to any transaction, Clients should have a clear understanding of all the fees which might be charged. These charge of fees will affect Clients’ net profits (if any) or increase losses of Clients.
Transactions carried out by electronic trading systems are not only different from those of open outcry markets, but also different from other electronic trading systems. If Clients made transactions through electronic trading systems, Clients would face the risks associated with electronic trading systems, including any hardware and software breakdowns. The result of any system breakdowns may cause Clients’ orders not to be followed by Clients’ instructions or not to be executed at all. Since GMI Edge cannot control the signal power, its reaction
path, or the Internet path, the configuration of clients’ equipment or reliability of its connection, GMI Edge cannot be liable for any communication breakdown, disorder or delay, in online transaction (via the Internet). In no event shall GMI Edge be liable for speculative or anticipated damages for future potential profit losses.
When clients accept any “original” trading system provided by GMI Edge, GMI Edge does not provide any express or implied warranty, including but not limited to the merchantability or any implied warranty of conforming to the specific purpose or application; any warranty for undisturbed timeliness; or any implied warranty caused during the transactions, the process or performance of transactions. In any case, GMI Edge shall not be liable for any consequential, indirect, incidental, special or consequential loss or damage, including but not limited to any loss of business, earning or goodwill, etc. GMI Edge is not liable for any service or transmission delay or interruption caused by any reason (including but not limited to hardware or software faults; regulatory measures; natural disasters; war, terrorism or intentional behavior, etc.). Clients accept that there may be delays or interruptions in the use of systems, including but not limited to any delay or disruption caused by GMI Edge for the purpose of maintaining the system. GMI Edge cannot guarantee to provide alternative trading arrangements in a specific time. GMI Edge shall not be liable for any delay in placing any order.
The margin policy of GMI Edge requires that there shall be a reasonable margin in Client’s account. Failure to meet margin requirements might result in termination and loss of any existing position. If the margin of an account is less than the minimum margin required by the margin policy of GMI Edge, GMI Edge reserves the right to terminate all positions without any prior notice.
If the quotation errors occur (including but not limited to GMI Edge input errors not representing the fair market price quotations, GMI Edge quotation errors reported by GMI Edge employees, including but not limited to large numbers of wrong quotations or wrong quotations caused by hardware, software or communication lines or systems and / or quotation error due to inaccurate external data sources provided by third party suppliers), GMI Edge shall not be liable for any fault of the account balance. The above list is not exhaustive when quotation errors occur. GMI Edge reserves the right to make necessary corrections or adjustments to the accounts involved. If there is a system error that interests or interest payments in accordance with the plan are not charged, GMI Edge reserves the right to withdraw or distribute the interest at any time.
If Clients grant third party trading advisors (including but not limited to fund managers) the trading authority or rights of controlling accounts whether full authorization or non-full authority, in no case shall GMI Edge be liable for or make any suggestion for Clients’ choices of any third party trading advisor. GMI Edge does not make any statement or guarantee to any trading advisor; GMI Edge is not responsible for any loss, which Clients may suffer and is caused by any trading adviser’s conduct. GMI Edge does not acknowledge any third party trading advisor’s trading methods either in explicit or implied way. If a Client authorized a fund manager to exercise any right to the Client’s account, the Client shall be at his/her own risks and the Client shall periodically check the activities of the account to ensure that any transaction operated by the fund manager has been approved by the Client.
Transactions conducted by Clients through GMI Edge are different from other transactions conducted on the Exchange. The protection of Client’s funds may be different from that of the funds with a priority in bankruptcy or the protection of futures and options contracts secured by the Exchange. The funds invested in OTC Forex trading and online derivatives contracts or other online trading products cannot obtain the same priority. For example, if GMI Edge were insolvent while Clients lodged claim for deposits or profits from GMI Edge, the claims of Clients as general creditors would not obtain the priority and thus Clients would be paid the remaining amount until after the payment of the claims with priority even if GMI Edge separated its Clients’ funds from its own operating funds.
Transactions are sometimes subject to the volatile market. For example, the release of critical news may make Clients face additional risks, including but not limited to the risk that Clients may not be able to get the price they ask for. GMI Edge cannot guarantee any price for any Clients in the volatile market.
Trading in demo accounts might be different from real transactions. Therefore, it should not be assumed that Clients trading in demo accounts would come across the same results in real transactions.