This Risk Disclosure Policy (“Policy”) outlines the various risks associated with trading financial instruments through ProFinance Holdings (“Company”, “we”, “us”, or “our”). By using our services, you acknowledge and accept these risks.

1. General Risk

1.1. Market Risk: The value of financial instruments can fluctuate due to market conditions, which may result in significant financial loss. Market prices are influenced by numerous factors including economic news, political events, and market sentiment.

1.2. Liquidity Risk: Some financial instruments may have limited liquidity, making it difficult to enter or exit positions at desired prices. Illiquid markets can lead to increased volatility and potential losses.

1.3. Leverage Risk: The use of leverage in trading amplifies both gains and losses. High leverage can result in substantial losses exceeding your initial investment.

1.4. Interest Rate Risk: Changes in interest rates can affect the value of financial instruments, particularly those in the fixed-income markets.

2. Specific Risks Related to Trading Instruments

2.1. Forex Trading: Trading in foreign exchange markets involves risks due to currency rate fluctuations, geopolitical events, and changes in economic conditions. The forex market operates 24 hours a day, which can result in rapid and unpredictable movements.

2.2. Stocks and Indices Trading: Stock prices and indices can be affected by corporate actions, financial performance, and broader economic factors. Investing in individual stocks can be more volatile compared to diversified indices.

2.3. Commodities Trading: Commodity prices can be highly volatile due to supply and demand factors, weather conditions, geopolitical events, and other market dynamics.

2.4. Cryptocurrencies Trading: Cryptocurrencies are highly volatile and can experience significant price swings within short periods. Regulatory changes, market sentiment, and technological developments can impact cryptocurrency prices.

2.5. Bonds Trading: Bond prices are influenced by interest rate changes, credit ratings, and issuer stability. Bonds may carry default risk, where the issuer fails to meet its payment obligations.

3. Counterparty and Operational Risks

3.1. Counterparty Risk: There is a risk that counterparties, including brokers and financial institutions, may default on their obligations, potentially leading to financial loss.

3.2. Operational Risk: Trading systems and platforms may experience technical issues, outages, or disruptions that can affect your ability to execute trades. These issues can result from hardware and software failures, cyber-attacks, or other external factors.

4. Legal and Regulatory Risks

4.1. Regulatory Risk: Changes in laws, regulations, or policies can impact the trading environment and the value of financial instruments. Compliance with different regulatory requirements in various jurisdictions can pose additional risks.

5. Risk Management

5.1. Risk Management Practices: It is essential to implement robust risk management practices, including setting stop-loss orders, diversifying your portfolio, and using leverage cautiously.

5.2. Independent Advice: We recommend seeking independent financial advice to understand fully the risks involved in trading and to assess whether trading is suitable for your financial situation and investment objectives.

6. Acknowledgment

By using the services provided by ProFinance Holdings, you acknowledge that you have read, understood, and accepted this Risk Disclosure Policy. You also acknowledge that trading in financial instruments carries inherent risks and that you are willing and able to assume these risks.

7. Contact Information

If you have any questions or need further clarification regarding this Policy, please contact us at contact@capitalprofx.com.