Risk Disclosure Addendum

1. Purpose & Who Should Read

This Addendum provides additional details on key risks of using Phyxtrade’s products and platforms. It is intended for all clients and prospective clients, including distributors where applicable.

2. High-Level Warnings

• High Risk. Derivatives (e.g., CFDs) and digital assets are high-risk and may not be suitable for all investors.
• Total Loss Possible. You can lose the entire amount invested; leveraged positions can amplify losses.
• No Guarantee. Stop orders are not guaranteed; prices can gap and slip.
• No Advice. We do not provide personal financial advice or suitability recommendations.

3. Product-Specific Risks

• CFDs (Forex/Indices/Commodities/Metals). Leverage magnifies gains/losses; margin calls and liquidations can occur rapidly; financing costs apply to positions held overnight.
• Crypto CFDs / Crypto Exposure (where permitted). Extreme volatility, market fragmentation, exchange outages, and regulatory changes may lead to sudden loss of value or trading suspensions.
• Spot (non-leveraged). Still subject to price volatility, liquidity constraints, and execution risk; not designed for capital preservation.

4. Leverage, Margin & Liquidation

• Initial & Maintenance Margin. You must meet margin obligations at all times. Falling below maintenance margin may trigger automatic liquidation without prior notice.
• Negative Balance Risk. In fast markets, losses can exceed your account equity before liquidation completes. Local laws may require negative balance protection; where not mandated, you remain liable for any deficit.
• Concentration. Large single-position exposure increases liquidation and slippage risk.

5. Liquidity, Volatility, Slippage & Gapping

Prices can move sharply during news events, illiquid sessions, weekends/holidays, and around corporate or protocol events. Orders may fill at worse levels than requested or not fill at all.

6. Pricing, Spreads & Execution

• Price Sources. Quotes may incorporate third-party data and liquidity; small delays or discrepancies can occur.
• Spreads & Fees. Spreads may widen during volatile/illiquid periods; check the platform fee schedule for commissions, financing, and network fees.
• Order Types. Market/stop/limit orders each carry distinct risks; stop orders are not guarantees in gapping markets.

7. Funding, Rollover & Corporate Actions

• Financing. Overnight financing/rollover charges or credits apply to derivative positions; rates can change.
• Corporate Actions. Index/stock-linked instruments may be adjusted for dividends, splits, or events; crypto forks/airdrops are typically excluded unless we expressly state otherwise.
• Payment Methods. Chargebacks or reversals may result in account restrictions.

8. Counterparty, Custody & Segregation

Phyxtrade may use regulated banks, custodians, exchanges, and liquidity providers. While client money policies and segregation controls are applied where required, counterparty failure or custody risks can lead to delays, losses, or inaccessibility of funds/digital assets.

9. Technology & Operational Risks

• Platform outages, latency, DDOS, or vendor incidents may affect order placement or execution.
• Device, connectivity, or API issues can prevent timely monitoring or closure of positions.
• Price feed interruptions or data errors can impact displayed P&L or order behaviour.

10. Legal, Regulatory & Tax Risks

Regulatory changes may restrict product availability, leverage, or marketing. Tax treatment varies by jurisdiction and may change; you are responsible for your own tax obligations.

11. Protections & Negative Balance

Investor protection schemes, deposit insurance, and negative balance protection differ by jurisdiction and product. Where required by law, protections will apply as specified; otherwise they may not be available. Refer to your account disclosures and local rules.

12. Illustrative Scenarios

• Leverage example (CFD 1:30). A 3.3% adverse move can consume initial margin; further move may trigger liquidation and deficit risk in gapping markets.
• Weekend gap. A stop-loss at 1.2000 may fill at 1.1975 after weekend news, resulting in larger-than-expected loss.
• Spread widening. During an announcement, spread widens from 1.0 pip to 6.0 pips, increasing entry/exit cost and stop-out probability.

13. Risk Controls & Good Practices

• Use position sizing, stop-loss/limit orders, and avoid excessive leverage.
• Maintain a buffer above maintenance margin; monitor funding/rollover charges.
• Avoid trading during illiquid times if you cannot tolerate gaps and slippage.
• Enable 2FA; keep devices updated; ensure stable connectivity.
• Regularly review our TMD, Terms, and Complaints Policy.

14. Changes & Acknowledgement

We may update this Addendum to reflect product, market, or regulatory changes. By using the Services, you acknowledge having read and understood these risks.

15. Contact

For risk questions or clarifications: