Risk Disclosure Statement

1. General Risk Warning

Trading in financial instruments — including foreign exchange (forex), contracts for difference (CFDs), cryptocurrencies, indices, and commodities — involves substantial risk of loss. The value of investments can fall as well as rise, and you may receive back less than you invest. In the case of leveraged products, losses can exceed your initial deposit.

Retail client statistic: A significant proportion of retail investor accounts lose money when trading CFDs and leveraged products. You should not invest money you cannot afford to lose.

2. Leverage Risk

Leveraged trading allows you to control a large position with a relatively small deposit (margin). While leverage can amplify profits, it equally amplifies losses. A small adverse movement in the market can result in a loss that exceeds your entire margin deposit. You may be required to deposit additional funds at short notice to maintain your positions. If you fail to do so, your positions may be closed at a loss.

3. Market Risk

Financial markets are subject to rapid and unpredictable price movements driven by:

• Economic data releases and central bank decisions
• Geopolitical events, wars, and natural disasters
• Changes in government policy, taxation, or regulation
• Market sentiment, speculation, and herd behaviour
• Technological failures or cyberattacks affecting market infrastructure

Past performance of any financial instrument, trading strategy, or AI signal is not indicative of future results.

4. Cryptocurrency Risk

Cryptocurrency markets carry additional and heightened risks including:

• Extreme volatility: Cryptocurrency prices can move 20–80% in a single day
• Regulatory risk: Cryptocurrencies may be banned, restricted, or heavily regulated in various jurisdictions
• Technology risk: Blockchain networks may experience forks, bugs, or protocol failures
• Liquidity risk: Some cryptocurrencies have thin markets and may be difficult to exit at desired prices
• No deposit protection: Cryptocurrency holdings are not covered by the Australian Financial Claims Scheme (FCS) or the UK Financial Services Compensation Scheme (FSCS)

5. Forex Risk

The foreign exchange market is the world's largest financial market and operates 24 hours a day, 5 days a week. Forex trading involves the risk of currency fluctuations, interest rate differentials, and geopolitical events. Exchange rates can be highly volatile, particularly around major economic announcements. Overnight positions are subject to swap/rollover charges which can erode returns.

6. AI Signal Risk

Capitals.au provides AI-generated trading signals and market intelligence. These signals are generated by algorithmic models and are provided for informational purposes only. They do not constitute personalised financial advice. AI models are based on historical data and statistical patterns; they cannot predict future market movements with certainty. You should not rely solely on AI signals when making trading decisions.

7. Liquidity Risk

During periods of extreme market volatility, low liquidity, or outside normal trading hours, it may not be possible to execute orders at the desired price. Slippage — the difference between the expected price and the actual execution price — may result in worse outcomes than anticipated. Stop-loss orders do not guarantee execution at the specified price.

8. Technology & Platform Risk

Online trading platforms are subject to technical failures including internet outages, server downtime, software bugs, and cyberattacks. During such events, you may be unable to access your account, place orders, or close positions. We maintain business continuity plans and redundant systems, but we cannot guarantee uninterrupted service. You should have alternative means to contact us in an emergency.

9. Counterparty Risk

When trading CFDs, you are trading with Capital Corporation Pty Ltd (trading as Capitals.au) as the counterparty. Your funds are held in segregated client accounts in accordance with ASIC and FCA client money rules. However, in the event of our insolvency, there is a risk that you may not recover all of your funds. Client funds held in Australia are not covered by the Financial Claims Scheme for investment products.

10. Regulatory & Tax Risk

The regulatory environment for financial services and cryptocurrency is evolving rapidly. Changes in laws, regulations, or tax treatment may adversely affect your trading activities or the value of your investments. You are responsible for understanding and complying with all applicable tax obligations in your jurisdiction. We recommend seeking independent tax advice.

11. Suitability Assessment

Before opening an account, we will conduct a suitability assessment to determine whether our products are appropriate for you based on your knowledge, experience, financial situation, and investment objectives. If we determine that our products are not suitable for you, we will inform you. You may still choose to proceed, but you do so at your own risk.

12. Seek Independent Advice

We strongly recommend that you seek independent financial, legal, and tax advice before trading. You should only trade with funds you can afford to lose entirely without affecting your lifestyle or financial obligations. If you are in financial difficulty, please contact the National Debt Helpline (Australia) at 1800 007 007 or the Money and Pensions Service (UK) at 0800 138 7777.

13. Regulatory Affiliations & Licences