RISK DISCLOSURE STATEMENT
Bkquote Global Market Limited
No: 2025-00089
The Sotheby Building, Rodney Village, Rodney Bay, Gros-Islet, Saint Lucia
INTRODUCTION
1. GENERAL RISKS
1.1. Market Risk
● The value of financial instruments and crypto assets is subject to fluctuations in market prices due to changes in supply and demand, market sentiment, economic conditions, political events, and global financial instability.
● Market volatility can cause sudden and significant price changes, potentially leading to substantial losses.
1.2. Volatility Risk
● Financial markets and cryptocurrency markets are inherently volatile.
● The price of a financial instrument or crypto asset may change rapidly, causing sharp movements in profits and losses.
● Cryptocurrency markets are often more volatile than traditional financial markets, with price swings of 10% or more in a single day being common.
1.3. Liquidity Risk
● Market liquidity refers to the ability to buy or sell an asset without significantly affecting its price.
● Low liquidity can result in wider spreads, increased slippage, and difficulty executing trades at desired prices.
● Cryptocurrency markets may experience periods of extremely low liquidity, particularly during high market stress or technical disruptions.
1.4. Counterparty Risk
● When trading CFDs and crypto assets on our platform, you are exposed to the risk that the Company or its liquidity providers may default on their obligations.
● In the event of default or bankruptcy of the Company or its liquidity providers, you may suffer financial losses.
1.5. Political and Regulatory Risk
● Changes in government policies, laws, and regulations can impact financial and crypto markets.
● Regulatory changes may lead to restrictions on trading, additional reporting requirements, or the prohibition of certain financial products or crypto assets.
2. RISKS ASSOCIATED WITH CFD TRADING
2.1. Leverage Risk
● Trading CFDs involves leverage, which allows you to control a larger position with a smaller initial deposit.
● While leverage can amplify profits, it also increases potential losses.
● A small market movement can lead to significant losses, potentially exceeding your initial investment.
2.2. Margin Call and Liquidation Risk
● You are required to maintain a minimum margin level in your trading account.
● If your account equity falls below the required margin level, a margin call will be triggered.
● If you fail to meet the margin call, the Company reserves the right to close all or part of your open positions without notice to prevent a negative balance.
2.3. Spread Risk
● The difference between the bid and ask price (spread) may widen due to market conditions, increased volatility, or low liquidity.
● Widening spreads can lead to increased trading costs and reduced profitability.
2.4. Overnight Financing Risk
● If you hold a CFD position overnight, you may incur overnight financing charges.
● These charges vary depending on market conditions and interest rates and can affect your overall trading profitability.
2.5. Slippage Risk
● Slippage occurs when the execution price of a trade differs from the expected price due to rapid market movement or lack of liquidity.
● Slippage can result in greater losses or reduced profits.
3. RISKS ASSOCIATED WITH CRYPTO ASSET TRADING
3.1. High Volatility and Price Fluctuations
Crypto asset prices are highly volatile and may experience large price swings within short periods.
● Market manipulation, technological changes, and macroeconomic factors can all contribute to extreme price fluctuations.
3.2. Lack of Regulation
● Cryptocurrency markets are less regulated than traditional financial markets.
● This lack of oversight increases the risk of fraud, market manipulation, and security breaches.
3.3. Exchange Risk
● Trading on our crypto asset exchange exposes you to operational risks, including system failures, hacking, and security breaches.
● In the event of a security breach, your funds or personal information may be compromised.
3.4. Fork and Protocol Risk
● Blockchain networks may undergo forks, upgrades, or changes to the underlying protocol, which can affect the value and usability of a crypto asset.
● Forks can lead to the creation of new crypto assets or changes in network consensus.
3.5. Cybersecurity Risk
● Crypto asset trading platforms are targets for hacking and cyberattacks.
● Losses due to security breaches, hacking, or technical failures may not be recoverable.
3.6. Custody and Storage Risk
● The Company holds crypto assets on your behalf in secure wallets.
● Despite implementing industry-standard security measures, there is a risk of loss due to hacking, internal fraud, or technical failure.
4. LEGAL AND TAX RISKS
4.1. Tax Implications
● Trading financial instruments and crypto assets may have tax implications depending on your jurisdiction.
● You are solely responsible for understanding and complying with your tax obligations.
4.2. Regulatory Uncertainty
● Regulatory frameworks governing crypto asset trading and CFD trading may change over time.
● Changes in regulation may affect your ability to trade, the value of your holdings, and the operation of the Company.
5. RISKS ASSOCIATED WITH PLATFORM AND TECHNOLOGY
5.1. System and Platform Failures
● Trading platforms may experience technical failures, including network outages, server errors, and software bugs.
● These failures can prevent you from executing trades or accessing your account.
5.2. Latency and Execution Risk
● Latency (delays) in data transmission may result in execution at less favorable prices.
● High-frequency trading and automated trading strategies may be affected by system latency.
5.3. Third-Party Provider Risk
● The Company relies on third-party technology providers for data feeds, execution, and payment processing.
● Disruption or failure of these services may affect your ability to trade.
6. ACKNOWLEDGEMENT AND ACCEPTANCE OF RISKS
By opening an account and using the Company's trading services, you acknowledge and accept that:
● Trading financial instruments and crypto assets involves a high level of risk.
● You may lose all or part of your investment.
● You are solely responsible for assessing whether trading is suitable for your financial situation and risk tolerance.
● The Company is not liable for losses resulting from market volatility, system failures, or regulatory changes.
7. FINAL PROVISIONS
● This Risk Disclosure Statement forms an integral part of the Terms and Conditions of Bkquote Global Market Limited.
● The Company reserves the right to update this statement periodically.
● Any changes will be published on the Company's website and will take effect on the date of publication.