Risk Disclosure Statement

 

Effective Date: 09 March 2025

 

ForexLumen Capital t/a LNTPK International (PTY) Ltd ("we," "us," "our") is committed to providing transparent and fair services to our clients. However, trading forex and other financial instruments involves significant risk. This Risk Disclosure Statement outlines the potential risks associated with trading and is intended to help you make informed decisions. By using our services, you acknowledge and accept these risks.

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1. General Risks of Trading

 

1.1 Market Risk: The value of financial instruments can fluctuate significantly due to market conditions, economic events, and geopolitical factors. These fluctuations can result in losses as well as gains.

 

1.2 Leverage Risk: Trading on margin or using leverage can amplify both profits and losses. While leverage can increase potential returns, it also increases the risk of losing more than your initial investment.

 

1.3 Liquidity Risk: Some financial instruments may have low liquidity, making it difficult to enter or exit positions at desired prices. This can lead to slippage and increased trading costs.

 

 

 

2. Specific Risks of Forex Trading

 

2.1 Currency Risk: Exchange rates are highly volatile and can be affected by interest rate changes, political instability, and economic data releases.

 

2.2 Overnight Risk: Holding positions overnight or over weekends exposes you to the risk of price gaps due to market openings or unexpected news events.

 

2.3 Counterparty Risk: When trading forex, you are exposed to the risk that the counterparty (e.g., the broker) may fail to fulfill its obligations.

 

 

3. Risks of Using Trading Platforms

 

3.1 Technical Failures: Trading platforms may experience outages, delays, or other technical issues that can prevent you from executing trades or managing positions.

 

3.2 Internet Risk: Trading online relies on internet connectivity. Any disruption in your internet connection could impact your ability to trade.

 

3.3 Third-Party Risk: We may use third-party platforms or services, which are beyond our control and may introduce additional risks.

 

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4. Risks of Automated Trading

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4.1 Algorithm Risk: Automated trading systems or algorithms may not perform as expected due to errors in programming or changes in market conditions.

 

4.2 Over-Reliance Risk: Relying solely on automated systems without manual oversight can lead to unexpected losses.

 

 

5. Regulatory and Legal Risks

 

5.1 Regulatory Changes: Changes in laws or regulations may affect the availability, terms, or conditions of trading products and services.

 

5.2 Jurisdictional Risk: Trading in certain jurisdictions may expose you to additional legal or tax obligations.

 

 

6. Psychological Risks

 

6.1 Emotional Trading: Trading can be emotionally challenging, and decisions driven by fear, greed, or stress can lead to poor outcomes.

 

6.2 Overconfidence: Overestimating your trading skills or market knowledge can result in excessive risk-taking and significant losses.

 

 

7. No Guarantees

 

7.1 No Profit Guarantee: Trading forex and other financial instruments does not guarantee profits. Losses can exceed your initial investment.

 

7.2 Past Performance: Historical performance is not indicative of future results. Markets are unpredictable, and past success does not ensure future profitability.

 

 

8. Recommendations and Advice

 

8.1 No Financial Advice: We do not provide financial, investment, or trading advice. Any information provided by us is for educational purposes only.

 

8.2 Independent Advice: You should seek advice from an independent financial advisor before engaging in trading activities.

 

 

9. Your Responsibility

 

9.1 Risk Awareness: You acknowledge that you understand the risks associated with trading and are willing to accept them.

 

9.2 Financial Capacity: You confirm that you are financially capable of bearing the risks of trading, including the potential loss of your entire investment.

 

9.3 Informed Decisions: You agree to make trading decisions based on your own judgment and analysis.

 

 

10. Acceptance of Risks

 

By using the services of ForexLumen Capital t/a LNTPK International (PTY) Ltd, you acknowledge that you have read, understood, and accepted the risks outlined in this Risk Disclosure Statement. You agree that we shall not be liable for any losses or damages arising from your trading activities.

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11. Contact Us

 

If you have any questions or concerns about this Risk Disclosure Statement, please contact us at:

 

ForexLumen Capital t/a LNTPK International (PTY) Ltd

 

Email: forexlumencapital@outlook.com

 

Phone: 0027 71 021 5044

 

Address: 15 Myngenoegen, Polokwane, Limpopo, 0700