Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.

Risk Disclosure

Effective: January 1, 2024
Important risk warnings regarding leveraged trading, AI-assisted trading, and investment activities on the Merovex Markets platform.

IMPORTANT RISK WARNING: Trading and investing in financial instruments, including Forex, CFDs, commodities, cryptocurrencies, and AI-assisted trading sessions, involves a high level of risk and may not be suitable for all investors. You may lose some or all of your invested capital. Please read this Risk Disclosure Statement carefully before using our services.

1. General Risk Warning

The value of investments can go down as well as up. Past performance is not a reliable indicator of future results. Before trading or investing, you should carefully consider your investment objectives, level of experience, and risk appetite. Only invest money you can afford to lose entirely.

Merovex Markets does not provide personalized investment advice. Nothing on this platform constitutes financial, investment, legal, or tax advice.

2. Leverage and Margin Risk

Many of the financial instruments available on our platform are leveraged products. Leverage amplifies both potential gains and potential losses. Trading on margin means you may lose more than your initial deposit. If the market moves against your position, you may be required to deposit additional funds at short notice to maintain your positions, or your positions may be closed at a loss without prior notice.

  • A small adverse market movement can result in a large proportional loss relative to your deposited capital.
  • You should not trade with borrowed money or money you cannot afford to lose.
  • Margin calls may require you to deposit additional funds immediately.

3. Market Volatility Risk

Financial markets can be highly volatile. Prices of currencies, commodities, and other instruments can fluctuate rapidly and significantly due to economic releases, geopolitical events, market sentiment, and other unpredictable factors. High volatility can result in significant losses in a short period of time.

4. Liquidity Risk

Under certain market conditions, it may be difficult or impossible to execute an order at the desired price. Liquidity may be reduced during off-market hours, around major news events, or during periods of extreme market stress. In such conditions, you may experience slippage, meaning your order is executed at a less favorable price than expected.

5. Technology and System Risk

Trading through an electronic platform carries inherent technology risks, including but not limited to:

  • Internet connectivity failures or interruptions
  • Hardware or software malfunctions
  • Cybersecurity threats, hacking, and unauthorized access
  • Platform downtime or system errors during critical market periods
  • Data transmission errors or delays

Merovex Markets is not liable for losses resulting from system failures, communication errors, or third-party technology failures beyond our reasonable control.

6. AI-Assisted and Automated Trading Risk

Merovex Markets offers AI-assisted trading sessions and automated trading bot contracts. You acknowledge and accept the following specific risks:

  • AI trading algorithms are based on historical data and statistical models. They do not guarantee future profitability.
  • Automated systems may execute trades at times you would not personally choose, including during adverse market conditions.
  • A trading bot contract must be active to initiate a trading session. Failure to maintain the bot contract will suspend your trading session.
  • The 70/30 profit split (70% to the user, 30% to the AI software) applies at the conclusion of each completed trading session.
  • Automated systems can malfunction. We do not guarantee uninterrupted operation of any AI trading feature.
  • You remain responsible for all positions opened by AI-assisted systems on your account.

7. Currency Risk

If you trade instruments denominated in a currency other than your base account currency, changes in exchange rates may affect your profit or loss. Currency fluctuations can work against you and may result in additional losses beyond any market movement in the underlying instrument.

8. Regulatory and Legal Risk

Regulatory changes may affect the availability of certain financial instruments, leverage limits, or operational requirements. Changes in tax law may also affect the profitability of your investments. You are responsible for understanding the regulatory and tax implications of your trading activities in your home jurisdiction.

9. Counterparty Risk

When trading CFDs, you are trading against Merovex Markets as the counterparty, not on a regulated exchange. This means the pricing, execution, and settlement of your trades depend on our systems and financial stability. Although we hold client funds in segregated accounts, there remains counterparty risk.

10. No Guarantee of Returns

Merovex Markets makes no guarantee, representation, or warranty of any kind regarding investment returns, profit targets, or AI-generated trading performance. Any projected returns, historical performance figures, or illustrative examples shown on our platform are for informational purposes only and do not constitute a guarantee or promise of similar future results.

11. Seek Independent Advice

Before making any trading or investment decisions, we strongly recommend you seek independent financial, legal, and tax advice from qualified professionals who understand your personal financial circumstances, objectives, and risk tolerance.

If you do not understand the risks involved, do not trade.

Other Legal Documents

Investment Disclaimer Privacy Policy Terms & Conditions User Agreement Cookie Policy Refund Policy AML / KYC Policy