Risk Disclosure Statement

1General Risk

Financial markets are inherently unpredictable. Prices can change rapidly due to:

• Economic announcements
• Interest rates
• Inflation
• Central-bank decisions
• Political developments
• Geopolitical events
• Wars
• Natural disasters
• Market sentiment
• Regulation
• Technological disruption

Past performance does not guarantee future performance.

2Leverage

Leverage allows you to control a position larger than your deposited margin. This increases both potential profits and potential losses.

3Margin

You are responsible for maintaining sufficient margin. If your Account falls below required margin levels, positions may be liquidated. You may lose substantially more than expected where markets move rapidly or gap.

4Stop-Out and Liquidation

Positions may be automatically closed when risk or margin thresholds are reached. Liquidation may occur without additional notice where permitted under the applicable Account terms.

During volatile conditions, liquidation prices may differ significantly from the price you expected.

5Forex Risk

Forex trading involves:

• Currency volatility
• Interest-rate differences
• Economic conditions
• Central-bank policy
• Geopolitical events
• Overnight financing
• Spreads
• Liquidity risk

Major announcements can cause significant and rapid movements.

6CFD Risk

CFDs are leveraged derivative products. You generally do not own the underlying asset. CFD trading exposes you to:

• Leverage
• Margin
• Financing costs
• Spreads
• Slippage
• Liquidity risk
• Counterparty risk
• Market risk

7Cryptocurrency Risk

Cryptocurrency trading carries additional risks. Prices can experience extreme movements.

Other risks include:

• Regulatory restrictions
• Blockchain failures
• Protocol changes
• Forks
• Cyberattacks
• Liquidity shortages
• Exchange disruption
• Custody risk

Cryptocurrency holdings are not covered by the Australian Financial Claims Scheme or UK Financial Services Compensation Scheme, according to the current Capitals.au disclosure.

8Commodities

Commodity prices may be affected by:

• Supply and demand
• Geopolitical events
• Production
• Weather
• Inventories
• Interest rates
• Currency movements

Gold, silver, oil and other commodities can experience significant volatility.

9Indices

Indices may move rapidly during:

• Economic announcements
• Interest-rate decisions
• Market openings
• Geopolitical events
• Corporate earnings periods

10Equities

Equity values may fall substantially due to:

• Company performance
• Earnings
• Management decisions
• Economic conditions
• Interest rates
• Market sentiment
• Regulatory events

11Liquidity Risk

Liquidity may decrease during periods of market stress. This may result in:

• Wider spreads
• Delayed execution
• Rejected Orders
• Partial fills
• Significant slippage

12Slippage

Slippage occurs when an Order executes at a price different from the requested or displayed price. This may occur during:

• Fast markets
• Market gaps
• Major announcements
• Low-liquidity periods
• System delays

Stop-loss Orders cannot always guarantee execution at the exact requested price.

13Market Gaps

Markets may open or move at a price significantly different from the previous available price. A Stop Loss may therefore execute at a materially different price.

14AI Signal Risk

Capitals.au provides AI-generated signals and market intelligence. AI systems use algorithms, historical data and statistical patterns. They cannot predict future markets with certainty.

AI signals:

• May be wrong
• May be delayed
• May use incomplete information
• May fail during unusual market conditions
• Do not guarantee profits

The current Capitals.au disclosure expressly states that AI signals are informational and should not be relied upon exclusively.

15Automated Trading and AI Bots

Automated systems may execute trades without manual intervention. Losses may result from:

• Incorrect parameters
• Technical errors
• Market gaps
• Abnormal market conditions
• Connectivity failures
• Software bugs
• Algorithmic errors

You remain responsible for monitoring your automated strategies.

16Copy Trading

If copy-trading functionality is provided, copied results may differ from the results of the original trader. Differences may result from:

• Execution timing
• Account size
• Leverage
• Liquidity
• Spreads
• Slippage
• Risk settings

17Backtesting

Backtested results are hypothetical. They do not guarantee actual performance. Backtests may not fully account for:

• Spreads
• Commissions
• Slippage
• Liquidity
• Execution delays
• Market impact

18Technology Risk

Trading platforms may experience:

• Server outages
• Internet failures
• Software bugs
• API failures
• Cyberattacks
• Hardware failures
• Connectivity problems

During a disruption you may be unable to access your Account or close positions. Capitals.au states that it maintains business-continuity and redundant systems, but does not guarantee uninterrupted service.

19Counterparty Risk

For CFDs, Capitals.au identifies Capital Corporation Pty Ltd as the counterparty. The current disclosure states that client funds are held in segregated client accounts under the applicable framework while acknowledging insolvency and recovery risks.

20Client Money

Capitals.au states that client funds are maintained separately from operational funds through segregated arrangements. Segregation does not eliminate all counterparty, banking or insolvency risk.

21Regulatory Risk

Financial-market regulation may change. Changes may affect:

• Leverage
• Available products
• Account eligibility
• Cryptocurrency availability
• Trading conditions
• Taxation
• Reporting requirements

Capitals.au currently identifies ASIC, AUSTRAC, FCA and AFCA within its regulatory framework.

22Tax Risk

You are responsible for determining and satisfying your tax obligations. Capitals.au does not provide personalised tax advice.

23Currency Risk

Where your Account currency differs from the currency of an asset or transaction, exchange-rate fluctuations may affect your result.

24Financing and Overnight Risk

Positions held overnight may incur:

• Swap charges
• Rollover charges
• Financing costs

These costs can materially affect profitability.

25Force Majeure

Capitals.au may be affected by events outside reasonable control, including:

• Natural disasters
• War
• Terrorism
• Cyberattacks
• Government restrictions
• Banking failures
• Exchange failures
• Telecommunications failures
• Power outages

26Suitability

Capitals.au states that suitability assessments may consider:

• Knowledge
• Experience
• Financial circumstances
• Investment objectives

Where products are determined to be unsuitable, restrictions or warnings may apply.

27Independent Advice

You should consider obtaining independent financial, legal and tax advice before trading.

28Regulatory Information

29Client Acknowledgement

By opening or maintaining a trading Account, you acknowledge that:

• You have read this Risk Disclosure
• You understand leveraged trading
• You understand that losses can occur rapidly
• You understand that you may lose your deposited capital
• You understand cryptocurrency volatility
• You understand AI signals are not guaranteed
• You understand automated trading carries additional risk
• You understand past performance is not indicative of future performance
• You understand technology failures can affect trading
• You understand the importance of independent advice
• You accept responsibility for your trading decisions