Risk Disclosure Statement

1. Leverage Risk

Leverage can work both for and against you. While leverage magnifies profits, it also magnifies losses. A small market movement in an unfavorable direction can result in the loss of your entire investment and potentially more. You could lose more than your initial deposit.

2. Market Volatility Risk

Financial markets can be extremely volatile. Prices can move rapidly in response to news events, economic data releases, or changes in market sentiment. High volatility can lead to significant losses in a very short period of time.

3. Margin Call and Stop Out Risk

If the market moves against your position and your account equity falls below the required margin level, you will receive a margin call. If you fail to deposit additional funds, your positions may be automatically closed (stop out) at a loss.

• Margin Call Level: 100% - You will be notified but positions remain open
• Stop Out Level: 50% - Positions will be automatically closed starting with the most losing position

4. Currency Risk

If you trade instruments denominated in a currency other than your account base currency, you are exposed to currency risk. Exchange rate fluctuations can affect the value of your investments and the profit or loss in your account.

5. Liquidity Risk

In certain market conditions, it may be difficult or impossible to liquidate a position. This can occur during periods of rapid price movement, market gaps, or when markets are closed. You may not be able to close positions at your desired price.

6. Gap Risk

Markets can "gap" - meaning prices can jump from one level to another without trading at the levels in between. This commonly occurs over weekends or following significant news announcements. Gaps can cause stop loss orders to be executed at levels significantly different from the set price.

7. Technology and System Risk

Trading platforms rely on technology infrastructure. Internet connectivity issues, power failures, hardware malfunctions, or platform outages may prevent you from placing, modifying, or closing orders. We maintain robust systems, but technology risks cannot be completely eliminated.

8. Counterparty Risk

When trading CFDs, you are entering into a contract with FX Mako. Your exposure is to our ability to meet our obligations. While we are regulated and client funds are held in segregated accounts, there remains a counterparty risk.

To manage your risk exposure, we strongly recommend:

• Use Stop Loss Orders: Always use stop loss orders to limit potential losses on each trade
• Manage Position Size: Never risk more than 1-2% of your account on a single trade
• Understand Leverage: Use lower leverage, especially when starting. Higher leverage increases risk exponentially
• Diversify: Don't put all your capital into one instrument or trade
• Stay Informed: Keep abreast of economic news and events that could affect your positions
• Trade with a Plan: Develop and stick to a trading plan with clear entry, exit, and risk management rules
• Use Demo Accounts: Practice on a demo account before risking real capital
• Monitor Your Account: Regularly check your open positions and account equity
• Seek Education: Use our educational resources to improve your trading knowledge