Risk Disclosure Policy

We’re obligated by regulation to keep you always informed about possible risks.

GENERAL RISK DISCLOSURE

In consideration of Kanak Capital Markets LLC (hereafter the “Company”, “we”, “our“) agreeing to enter into over-the-counter (“OTC”) Contracts for Differences (“CFDs”) with you (hereinafter referred to as the “Client”, “you”, “your”). The Client hereby acknowledges, understands, and agrees to all clauses under this Risk Disclosure Policy.

The following disclaimer is provided for informative purposes only and should not be construed as a complete list of all potential risks. Please keep in mind that we do not disclose or explain all of the risks and other important aspects of trading in Financial Instruments (including CFDs). On a fair and non-misleading basis, we describe the basic nature of the risks involved when dealing in Financial Instruments. You should also read our other legal documents on the website (i.e. Terms and Conditions, Order Execution Policy, Privacy Policy, and so on) for more information on how our services work, which combined with this Statement comprise our agreement with you.

We encourage you to firstly review and understand all our Legal Documents, as these are available on our website, before you enter into a business relationship with us.

LEGAL FRAMEWORK

As per the Rules & Regulations, as modified from time to time, govern the Company’s operations.

This Statement should be read in connection with the Company’s Terms and Conditions, Privacy Policy, Order Execution Policy, and Conflict of Interest Policy, all of which are available on our website. The Company officially provides the following statement on the risks associated with Clients’ financial instrument transactions.

OBJECTIVES

The Company offers investments in CFDs which are OTC derivatives CFDs, in general, allow Client’s to gain exposure to and hence participate in the returns (which might be positive or negative) from price fluctuations in an underlying financial instrument without physically acquiring that underlying financial asset. CFDs are exposed to market risk. This Statement is provided for informative purposes only, and we offer no warranties or guarantees about the contents. The phrases contained below should not be interpreted as investment objectives, financial status, or disclosure of all risks connected with our investing services.

Before making an investment choice based on information in this Statement, you understand and agree to seek individual financial guidance based on your particular objectives.

You have read, understood, and accepted the risk including but not limited to the below:

  • A Financial Instrument tied to international markets may contain risks that are distinct from the risks associated with markets in the client’s own country. These risks may be greater in some cases. The profit or loss from international market transactions is determined by currency rate risk and other international considerations such as geopolitical risk.
  • Financial instruments may become illiquid due to decreased demand or/and supply, which means you may be unable to sell them or quickly receive information on their pricing.
  • Tax implications is your sole responsibility. You shall make sure that investing in CFDs may be subject to tax and/or any other duty in your jurisdiction. You are responsible for any taxes and/or any other duty which may accrue in respect of your trades.
  • You are solely responsible for any tax repercussions. You must ensure that whether investing in CFDs subject to taxation or other duties in your country. You are liable for any taxes and/or other duties incurred as a result of your dealings.

TRADING IS VERY SPECULATIVE AND RISKY

CFD trading is highly speculative, involves a significant risk of loss, and is not suitable for all investors, but only for those who: 

  1. Understand and are willing to accept the economic, legal, and other risks involved;
  2. Are experienced and knowledgeable about trading in derivatives and underlying asset types; and are willing to accept the economic, legal, and other risks involved.
  3. Are financially capable of bearing losses that are substantially greater than margin or deposit losses since investors may lose the entire contract value rather than only the margin or deposit..

CFD trades are not regarded as suitable investments for retirement funds. CFD trades are among the riskiest types of investments, with substantial losses of invested funds possible. You represent, warrant, recognize, and understand the associated risks, and you are willing and able, financially and/or otherwise, to undertake the risks of trading CFDs, and you realize that losing your whole account balance will not disrupt your lifestyle.

CFDs are leveraged products that, when compared to other financial instruments, represent a higher level of risk to the client’s money and may result in the loss of all invested capital. The Company has, however, implemented “Negative Balance Protection,” which implies that you cannot lose more than your initial investment. When Margin Close-out Protection cannot be successfully implemented owing to extraordinary market occurrences impacting the underlying asset, Negative Balance Protection is triggered. The value of trading CFDs may rise or fall in response to abnormal market conditions.

RISKS ASSOCIATED TO LONG CFD POSITIONS, I.E., FOR PURCHASERS OF CFDS.

Being long in CFDs implies that you are purchasing CFDs on the market with the expectation that the underlying asset’s market price will climb between the time of purchase and sell.

As the owner of a long position, you will typically profit if the underlying asset’s market price rises while your CFD long position is open.

On the contrary, if the market price of the underlying asset declines while your CFD long position is active, you will normally lose money. As a result, your potential loss might be more than the initial margin deposit. Furthermore, you may incur a loss if your position is closed because you do not have enough liquidity on your account to provide the margin required to keep your trade open.

RISKS ASSOCIATED WITH SHORT CFD POSITIONS, I.E., FOR SELLERS OF CFDS

Being Short in CFDs means selling them on the market in the hope that the underlying asset’s market price will fall between the time of purchase and sale. As the owner of a short position, you will typically profit if the underlying asset’s market price falls while your CFD short position is open.

On the contrary, if the market price of the underlying asset rises while your CFD short position is open, you will generally make a loss. As a result, your potential loss could be greater than the initial margin deposit. Furthermore, you may incur a loss if your position is closed because you do not have enough liquidity on your account to cover the margin required to keep your position open.

HIGH LEVERAGE AND LOW MARGIN CAN LEAD TO QUICK LOSSES

CFDs are distinguished by a high degree of “gearing” or “leverage.” Investing in CFDs is riskier than investing directly in the underlying asset due to the effect of leverage. This is due to the margining system used for CFDs, which generally requires a small deposit relative to the size of the transaction, resulting in a relatively small price movement in the underlying asset having a disproportionately dramatic effect on your trade. This can be advantageous as well as disadvantageous.

A small price movement in your favour can result in a high return on your deposit; however, a small price movement in the opposite direction can result in significant losses. If your losses exceed the amount deposited, they will never exceed the balance of your account, which is balanced to zero. These kinds of losses can happen quickly. The higher the leverage, the higher the risk. As a result, the size of leverage influences the outcome of your investment.

MARGIN REQUIREMENTS

The client must always maintain the minimum margin requirement of required percentage as per company’s rules on their open positions. You are responsible for keeping track of your account balance. If the margin in the account is too low, you may receive a margin call to deposit additional funds.

When the minimum margin requirement is not met, the Company reserves the right to liquidate any or all open positions, which may result in the Client’s CFDs positions being closed at a loss for which you will be liable.

It should be noted that the Company is not obligated to warn you for any such circumstances, so the Client must regularly check any open positions to prevent positions from being cancelled due to a lack of funds.

SETTLEMENT

The Client understands that trading CFDs can only be settled in cash and the difference between the buying and selling price partly determines the result of the investment

RIGHTS TO UNDERLYING ASSETS

The Client has no rights or obligations in respect of the underlying instruments or assets relating to CFDs. You understand and accept that CFDs can have different underlying assets, such as stocks, indices, currencies, and commodities.

CURRENCY RISK

Trading CFDs on currency pairs (also known as FOREX) or other CFDs with an underlying asset listed in a currency other than your base currency, entails a currency risk, due to the fact that when such transaction(s) is settled in a currency other than your base currency, the value of your return may be affected by its conversion into the base currency.

ONE CLICK TRADING AND IMMEDIATE EXECUTION

Once the Client enters the notional amount and selects “Buy/Sell,” the order is immediately transmitted through the company’s online trading system. This indicates that Market Orders cannot be cancelled or amended once the “Buy/Sell” button has been clicked. It’s possible that this function is unique from other trading platforms you’ve used. Before trading online with the Company, the Client should use the Demo Account to get a feel for the platform. You understand and agree that utilizing the Company’s online trading platform constitutes your acceptance of the one-click system and all associated risks.

ADVICE AND RECOMMENDATIONS

The Company does not act as Client’s advisor or fiduciary. We may offer generic market recommendations; however, these generic recommendations are not personal recommendations or investment advice, and they do not take into account your particular financial situation or investment goals. Additionally, they are not an offer to buy or sell any CFDs, nor are they a solicitation of an offer to do so. A Client makes an autonomous choice regarding whether to trade CFDs with the Company and each choice regarding whether a transaction is appropriate or proper for the Client.

The Company is not operating as the Client’s advisor or fiduciary in this situation. The Client acknowledges that the Company does not owe the Client any fiduciary duties and disclaims all liability such as any liabilities, claims, damages, costs, and expenses, including attorneys’ fees, resulting from the Client acting or refraining from acting in accordance with any general recommendations or information provided by the Company.

The Company makes no guarantees about recommendations. The Company’s generic market recommendations are solely based on the judgment of the Company’s personnel and should be regarded as such. The Client acknowledges that any transactions undertaken by the Client are made solely on their own discretion. Any market recommendations provided are only general in nature and may or may not be consistent with the Company’s and/or its affiliates’ market positions or intentions.

The Company’s generic market recommendations are based on information that is believed to be reliable, but the Company cannot and does not guarantee the accuracy or completeness of such generic recommendations, nor does it represent that following such generic recommendations will reduce or eliminate the risk inherent in trading CFDs.

NO GUARANTEES OF PROFIT

When trading CFDs, there are no guarantees of profit or loss. The Company or any of its representatives have made no such guarantees to the Client. The Client is aware of the risks involved in trading CFDs and is financially capable of bearing such risks and absorbing any losses.

NO GUARANTEES AGAINST OUTDATED PUBLICATIONS

The Company’s Publications are not updated after their release and may become inaccurate and misleading to its Clients after a period that can range from seconds and minutes to days, weeks, and months depending on the Information. We accept no liability and make no guarantees to any recipient in the event that the publication becomes out of date.

We will make every effort to obtain information from reliable sources, but all publications are provided “as is” with no express or implied warranty. The Company shall not be liable for any Publication that is not complete, accurate, and appropriate, including but not limited to

  1. The accuracy and/or discontinuance of any market quotations; and
  2. Any error, inaccuracy, interruption, or/and omission in providing market quotations.

We reserve the right, at our sole discretion, to withdraw or modify any Publication or Information provided at any time and without notice (prior or subsequent).

INTERNET TRADING

When you trade online (via the internet), the Company will not be liable for any claims, losses, damages, costs, or expenses incurred because of any malfunction, disruption, or failure of any transmission, communication system, computer facility, or trading software, whether owned by the Company, you, any exchange, or any settlement or clearing system.

Neither the Company nor any of its directors, officers, employees, agents, contractors, affiliates, third-party vendors, facilities, information providers, licensors, exchanges, clearing organizations, or other data, information, or service providers warrant:

  • That the Trading Platform will be uninterrupted or error free at most of the times; nor does the Company make any warranty as to the results that may be obtained from the use of the Trading Platform or as to the timeliness, sequence, accuracy, completeness, reliability or content of any information, service, or transaction provided through the Trading Platform;
  • That your systems will be unaffected or undamaged by any malicious software;
  • That any data will not be intercepted by any third
  • In the event that your access to the Trading Platform or any portion thereof is restricted or unavailable, you agree to contact us through telephone or email to resolve such issue.

FEES AND OTHER CHARGES

Before investing in CFDs, you must be aware of any costs involved, such as spread(s), commission(s), and swap(s). Charges can be expressed monetary or as a percentage. As a result, it is your responsibility to understand the basis for such charges. A swap is defined as the interest added or deducted for holding a position open overnight for the purposes of this Statement. It is recommended that you read more information on all costs and charges available on our website or contact Company’s representative to guide you with such costs & charges.

QUOTING ERRORS

If a quoting error occurs (including responses to Client requests/orders), the Company is not liable for any resulting errors in account balances and reserves the right to correct or adjust the relevant Account. Any dispute arising from such quoting errors will be resolved on the basis of the relevant market’s fair market value at the time the error occurred, as determined by the Company in its sole discretion and acting in good faith.

In cases where the prevailing market represents prices that differ from the prices posted on screen, the Company will use its best efforts to execute Transactions at or near the prevailing market prices. These current market prices will be the prices that are ultimately reflected on Client’s statements. This could have an impact on the Client’s realized and unrealized gains and losses.

CONFLICTS OF INTERESTS

As the counterparty to all transactions entered into under the Client Agreement, the Company’s interests may conflict with those of the Client. Please visit our website to learn more about our Conflicts of Interest Policy.

OTHER INFORMATION

The Company reserves the right, at its sole discretion, to review and/or amend this Statement whenever it deems fit or appropriate by law, and the revised Statement will be posted on the Company’s Website.

Your continued use of our services following such notification constitutes your acknowledgement and consent to such amendments to this Statement.

Should you require any further information and/or clarification in terms of all the above, please do not hesitate to contact our Compliance Department at info@kanakmarkets.com

OUR LOCATION(S)

Kanak Capital Markets LLC,
Euro House, Richmond Hill Road, P.O. Box 2897, Kingstown, St. Vincent and the Grenadines.

Kanak Capital Markets LLC,
Bonovo Road, Fomboni, Island of Mohéli, Comoros Union

Representative Office
Business Bay, Dubai, United Arab Emirates.

The information presented is not directed at residents of any particular country outside St. Vincent and The Grenadines and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

RISK DISCLOSURE

Trading in financial instruments carries various risks and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Kanak Capital Markets LLC does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Kanak Capital Markets LLC does not take into account an individual’s needs, objectives or financial situation. Please read the full Risk Disclosure.

Kanak Capital Markets is an execution only service provider and does not provide advice. Kanak Capital Markets may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. Kanak Capital Markets LLC accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.

*ADVISORY WARNING

kanakmarkets.com provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and kanakmarkets.com specifically advises clients & prospects to carefully review all claims & representations made by advisors, introducing brokers, bloggers, money managers & system vendors (EA’s) before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary & does not constitute investment or trading advice. kanakmarkets.com expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

kanakmarkets.com is the brand name of Kanak Capital Markets LLC, with its registered address at Euro House, Richmond Hill Road, P.O. Box 2897, Kingstown, St. Vincent and the Grenadines and. Kanak Capital Markets LLC (“Kanak Markets”) is a company duly incorporated in Saint Vincent & The Grenadines and registered by the Financial Services Authority (SVGFSA) under Number 1810 LLC 2022 to provide margin FX trading services and other product services for global investors.

kanakmarkets.com is authorized and regulated by the Mwali International Services Authority from Comoros Union as an International Brokerage and Clearing House with reference number T2022152. Kanak Capital Markets LLC is incorporated and registered under the Laws of Comoros with registration number HY01122186.

Kanak Markets does not operate in the mentioned registered office, instead, have offices, and agents acting on its behalf, outside of SVG and Comoros Union.

Kanak Markets’ products and services are not intended for citizens of Belgium, the US, and Canada.

© 2024 Kanak Capital Markets. All Rights Reserved