Legal Notes

1. Introduction

This Risk Disclosure applies to GeminiPrime (hereinafter “the Company”).

2. Risk Warnings

The Client should not engage in any investment directly or indirectly in Financial Instruments unless he knows and understands the risks involved for each one of the Financial Instruments offered by the Company. So, prior to applying for an account, the Client should consider carefully whether investing in a specific Financial Instrument is suitable for him in light of his circumstances and financial resources. If the Client does not understand the risks involved, he/she should seek advice or consultation from an independent financial advisor.

3. General Risks and Acknowledgements

The Client is warned of the following risks (not exhaustive):

• The Company does not and cannot guarantee that money deposited in his Client Account for trading will not be lost as a result of his transactions.
• The Client should acknowledge that, regardless of any information which may be offered by the Company, the value of any investment in Financial Instruments may fluctuate downwards or upwards, and it is even probable that the investment may become of no value.
• The Client should acknowledge that he runs a great risk of incurring losses and damages as a result of the purchase and/or sale of any Financial Instrument and accepts that he is willing to undertake this risk.
• Information on the previous performance of a Financial Instrument does not guarantee its current and/or future performance. The use of historical data does not constitute a binding or safe forecast.
• The Client is hereby advised that the transactions undertaken through the dealing services of the Company may be of a speculative nature. Large losses may occur in a short period of time and may be equal to the total of funds deposited with the Company.
• Some Financial Instruments may not become immediately liquid, as a result e.g., of reduced demand, and the Client may not be in a position to sell them or easily obtain information on the value of these Financial Instruments or the extent of the associated risks.
• When a Financial Instrument is traded in a currency other than the currency of the Client’s country of residence, any changes in the exchange rates may have a negative effect on its value, price, and performance.
• A Financial Instrument on foreign markets may entail risks different from the usual risks of the markets in the Client’s country of residence. In some cases, these risks may be greater.
• The value of the Derivative Financial Instrument may be directly affected by the price of the security or any other underlying asset, which is the object of the acquisition.
• The Client must not purchase a Derivative Financial Instrument unless he is willing to undertake the risks of losing entirely all the money which he has invested and also any additional commissions and other expenses incurred.

• Under certain market conditions (for example, but not limited to the following situations: force majeure event, technical failure, communications network failure, poor or no liquidity, market news or announcements, etc.), it may be difficult or impossible to execute an order.
• Placing Stop-Loss Orders serves to limit your losses. However, under certain market conditions, the execution of a Stop-Loss Order may be worse than its stipulated price and the realized losses can be larger than expected.
• Should the Equity of the Client be insufficient to hold current positions open, the Client may be called upon to deposit additional funds at short notice or reduce exposure. Failure to do so within the required time may result in the liquidation of positions at a loss.
• Trading on-line, no matter how convenient or efficient, does not necessarily reduce risks associated with currency trading.
• There is a risk that the Client’s trades in Financial Instruments may be or become subject to tax and/or any other duty. The Company does not warrant that no tax and/or any other stamp duty will be payable.
• The Company will not provide the Client with investment advice relating to investments or possible transactions in Investments or make investment recommendations of any kind.
• There may be situations, movements, and/or conditions occurring at the weekend, at the beginning of the week or intra-day after the release of significant macroeconomic figures, economic or political news that make currency markets to open with price levels that substantially differ from previous prices.

4. Third Party Risks

4.1. The Company may be required to hold your money in an account that is segregated from other Clients and the Company’s money in accordance with current regulations, but this may not afford complete protection.

4.2. The Company may pass money received from the Client to a third party (e.g., a bank) to hold or control in order to effect a Transaction through or with that person or to satisfy the Client’s obligation to provide collateral. The Company has no responsibility for any acts or omissions of any third party to whom it will pass money received from the Client.

4.3. The third party to whom the Company will pass money may hold it in an omnibus account, and it may not be possible to separate it from the Client’s money or the third party’s money. In the event of the insolvency of that third party, the Company may only have an unsecured claim against the third party on behalf of the Client.

4.4. A Company or Bank or Broker with whom the Company may deal could have interests contrary to the Client’s interests.

4.5. The insolvency of the Company or of a Bank or Broker used by the Company to effect its transactions may lead to the Client’s positions being closed out against your wishes.

5. Electronic Platform Risks

The Client is warned that when trading in an electronic platform, he assumes the risk of financial loss which may be a consequence of, amongst other things:

• Failure of Client’s devices, software, and poor quality of connection.
• The Company’s or Client’s hardware or software failure, malfunction, or misuse.
• Improper work of Client’s equipment.
• Wrong setting of the Client’s Terminal.
• Delayed updates of the Client’s Terminal.

In connection with the use of computer equipment and data and voice communication networks, the Client bears the following risks amongst other risks in which cases the Company has no liability of any resulting loss:

• Power cut of the equipment on the side of the Client or the provider, or communication operator.
• Physical damage (or destruction) of the communication channels used to link the Client and provider.
• Outage (unacceptably low quality) of communication via the channels used by the Client.
• The use of communication channels generates the risk of no reception of a message by the Client from the Company.
• Trading over the phone might be impeded by the overload of connection.
• Malfunction or non-operability of the trading system (platform), which also includes the Client Terminal.

6. Risks Particularly Associated with Transactions in Financial Instruments

6.1. Investing in some Financial Instruments entails the use of “gearing” or “leverage”. In considering whether to engage in this form of investment, the Client should be aware that the high degree of “gearing” or “leverage” is a particular feature of Derivative Financial Instruments.

This stems from the margining system applicable to such trades, which generally involves a comparatively modest deposit or margin in terms of the overall contract value so that a relatively small movement in the underlying market can have a disproportionately dramatic effect on the Client’s trade. If the underlying market movement is in the Client’s favor, the Client may achieve a good profit, but an equally small adverse market movement can not only quickly result in the loss of the Client’s entire deposit but may also expose the Client to a large additional loss.

The Client must not purchase Derivative Financial Instrument unless he is willing to undertake the risks of losing entirely all the money which he has invested and also any additional commissions and other expenses incurred.

6.2. Transactions may not be undertaken on a recognized or designated investment exchange and, accordingly, they may expose the Client to higher risks than exchange transactions. The terms and conditions and trading rules may be established solely by the Execution Venue.