Risk Disclosure Statement
RISK DISCLOSURE STATEMENT
In consideration of Spotoption Exchange Limited (hereafter the “Company”) agreeing to engage into binary options trading with the undersigned (hereinafter referred to as the “Customer”, “you”, “your”), Customer acknowledges, understands and agrees with the risks, including but not limited to:
(i) Trading is highly speculative and risky and is suitable only for those customers who: a) understand and are willing to assume the economic, legal and other risks involved; b) are financially able to assume the loss of their total investment understand and are knowledgeable about binary options trading and the underlying assets.
(ii) Cash Settlement Binary options trading can only be settled in cash.
(iii) Conflicts of Interest The Company is the counterparty to all transactions entered into under the Customer Agreement and, as such, the Company’s interests may be in conflict with yours. Our conflicts of interest policy is available at the Company’s website.
(iv) 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 Customer positions in accordance with its Trading Policies and Procedures. The trading rates assigned to the assets on the Company’s website are the ones at which the Company is willing to sell binary options to its Customers at the point of sale. As such, they may not directly correspond to real time market levels at the point in time at which the sale of options occurs.
(v) Rights to Underlying Assets You have no rights or obligations in respect of the underlying instruments or assets relating to your binary options trading.
(vi) Right to cancel an order The Customer will have the choice to cancel the trade for a period of at least 2 seconds after clicking the CALL or PUT button (cancelling the trade will not affect the Customer’s trading balance and the funds will be returned to the trading account).
(vii) The Company is not an adviser or a fiduciary to customer Where the Company provides generic market recommendations, such generic recommendations do not constitute a personal recommendation or investment advice and have not considered any of your personal circumstances or your investment objectives,
Risk Disclosure Policy
Spotoption Exchange Ltd. 2
Last update: December 2015
nor is it an offer to trade, or the solicitation of an offer to trade, in any binary options. Each
decision by Customer to trade in binary options with the Company and each decision as
to whether a transaction is appropriate or proper for Customer is an independent decision
made by the Customer. The Company is not acting as an advisor or serving as a fiduciary
to Customer. Customer agrees that the Company has no fiduciary duty to Customer and
no liability in connection with and is not responsible for any liabilities, claims, damages,
costs and expenses, including attorneys’ fees, incurred in connection with Customer
following the Company’s generic trading recommendations or taking or not taking any
action based upon any generic recommendation or information provided by the
(viii) Recommendations are not guaranteed
The generic market recommendations provided by the Company are based solely on the
judgment of the Company’s personnel and should be considered as such. Customer
acknowledges that it enters into any Transactions relying on its own judgment. Any
market recommendations provided are generic only and may or may not be consistent
with the market positions or intentions of the Company and/or its affiliates. The generic
market recommendations of the Company are based upon information believed to be
reliable, but the Company cannot and does not guarantee the accuracy or completeness
thereof or represent that following such generic recommendations will reduce or
eliminate the risk inherent in trading in binary options.
(ix) No guarantees of profit
There are no guarantees of profit nor of avoiding losses when trading in binary options.
Customer has received no such guarantees from the Company or from any of its
representatives. Customer is aware of the risks inherent in trading in binary options and
is financially able to bear such risks and withstand any losses incurred.
(x) Internet Trading
When Customer trades online (via the internet), the Company shall not be liable for any
claims, losses, damages, costs or expenses, caused, directly or indirectly, by any
malfunction or failure of any transmission, communication system, computer facility or
trading software, whether belonging to the Company, Customer, any exchange or any
settlement or clearing system.
(xi) Expiry System Errors
In case the expiry system fails for any reason, it will auto detect un-expired options and
expire them in accordance to the rates stored historically in the archive. If any position
did not expire on time, the system will issue a notification to Risk Manager and
Compliance Officer, detailing all position information, in order to be resolved manually
Risk Disclosure Policy
Spotoption Exchange Ltd. 3
Last update: December 2015
The Company participates in the Investor Compensation Fund for clients of Investment
Firms regulated in the Republic of Cyprus. Customers will be entitled to compensation
under the Investor Compensation Fund where we are unable to meet our duties and
obligations arising from your claim. Any compensation provided to you by the Investor
Compensation Fund shall not exceed twenty thousand euro (EUR 20,000). This applies to
your aggregate claims against us.
2. Review of this policy
The Company may update this Risk Disclosure Policy from time to time. In the event that the
Company materially changes this Policy including how it collects, processes or uses clients’
personal information, the revised Risk Disclosure Policy will be uploaded in the Company’s
website. In this respect, the clients hereby agree to accept posting of a revised Risk Disclosure
Policy electronically on the website as the actual notice of the Company to its clients. Any dispute
over the Company’s Risk Disclosure Policy is subject to this notice and the Client Agreement. The
Company encourages its clients to periodically review this Risk Disclosure Policy so that they are
always aware of what information the Company collects, how it uses it and to whom it may
disclose it, in accordance with the provisions of this Policy.