Risk Disclosure Statement

The purpose of the Risk Disclosure Statement is to provide the Client with appropriate guidance on the nature and risks of the specific types of financial instruments offered by Parenta Financial Services Limited(the Company).

The Client acknowledges, understands, and agrees with the risks disclosed below.


Trading is highly speculative and risky. Contracts for Difference (CFDs) are complex financial products, most of which have no set maturity date. Therefore, a CFD position matures on the date you choose to close an existing open position. CFDs, which are leveraged products, carry a high level of risk and can result in the loss of all of your invested capital. Trading in CFDs is highly speculative and therefore suitable only for those Clients who:

a. Understand and are willing to assume the economic, legal, and other risks involved;

b. Are financially able to assume the risk of losses up to their invested capital;

c. Understand and are knowledgeable about CFDs and the underlying assets.

The Client represents, warrants, and agrees that he/she understands these risks, is willing and able, financially and otherwise, to assume the risks of trading CFDs. Before deciding to trade, a client should ensure that he understands the risks involved and take into account his level of experience, and if necessary, seek independent advice. The Client is responsible for all the losses suffered in his account. Consequently, the Client should be prepared to lose all the invested capital.

When trading CFDs, you need to take into consideration the following main risks:

a. CFDs are leveraged products; therefore, they carry a higher level of risk to your capital compared to other financial products and may result in the loss of all of your invested capital. However, it should be noted that the Company operates on a 'negative balance protection' basis, meaning that you cannot lose more than your initial investment;

b. The value of CFDs may increase or decrease depending on market conditions, and the potential for profit should be balanced alongside the significant losses that may be generated over a very short period of time when trading CFDs;

c. CFD trading, unlike traditional trading, enables you to trade the markets by paying only a small fraction of the total trade value. However, this entails that a relatively small market movement may lead to a proportionately much larger movement in the value of your position;

d. The Client needs to make sure that he has sufficient margin in his trading account at all times to maintain an open position. In addition, the Client needs to continuously monitor any open positions to avoid positions being closed due to the unavailability of funds; it should be noted that the Company is not responsible for notifying you of any such instances.

Prices are set by the Company and may be different from prices reported elsewhere. The Company will provide the prices to be used in trading and valuation of the Client's positions in accordance with its Trading Policies and Procedures. As such, they may not directly correspond to real-time market levels at the point in time at which the sale of options occurs.

Orders and Immediate Execution. Market orders executed over the phone through the Company's Dealing Room are completed when the Company's analyst says "deal" or "done" following the Client's placing of an order. Upon such confirmation from the manager, the Client has bought or sold and cannot cancel the order. By placing orders through the Company's Dealing Room, the Client agrees to such immediate execution and accepts the risk of this immediate execution feature.

The Company is not an adviser or a fiduciary to a customer. Where the Company provides generic market recommendations, such generic recommendations do not constitute personal recommendations or investment advice and do not consider any of the Client's personal circumstances or investment objectives.

Before investing in CFDs, it is important for the Client to be aware of any associated costs, such as spreads, commissions, and swaps. In this Statement, a swap refers to the interest added or deducted for holding a position open overnight. The swap for a position opened on Wednesday and held overnight is three times that of other days. This is because the value date of a trade held open overnight on a Wednesday would normally be Saturday, but since banks are closed, the value date becomes Monday, resulting in an additional two days of interest. From Friday to Monday, the swap is charged only once.

Expiry System Errors. In the event of any failure in the expiry system, it will automatically detect unexpired options and expire them based on historically stored rates in the archive. If any position fails to expire on time, the system will generate a notification to the Risk Manager, providing all the relevant position information for manual resolution.

If you encounter any difficulties, please don't hesitate to contact our customer support.