Target Market Determination (TMD)

1. Purpose & Regulatory Context

This Target Market Determination (TMD) describes the class of consumers for whom the products are likely to be consistent with their likely objectives, financial situation, and needs, and sets out distribution conditions, review periods, and distributor reporting expectations. Where applicable (e.g., Australia), this TMD is prepared to satisfy Design and Distribution Obligations (DDO) under local law/regulation.

2. Products Covered

This TMD applies to the following product categories made available by Phyxtrade (availability varies by jurisdiction):

• CFDs on Forex/Indices/Commodities/Metals: leveraged derivatives for short-term trading and hedging.
• CFDs on Digital Assets (where permitted): high-volatility leveraged exposures to crypto under local rules.
• Spot Trading (non-leveraged) where available: direct exposure without leverage.

3. Target Market – Class of Consumers

These products are generally suitable for consumers who meet most of the following attributes:

• Objectives: short-term trading/speculation; hedging existing exposures; tactical portfolio strategies; not intended for buy-and-hold or capital preservation.
• Needs: access to leveraged or non-leveraged trading with real-time execution, advanced order types, and risk tools (stop-loss, position limits).
• Risk Tolerance: High to Very High (for CFDs/crypto CFDs); willing and able to accept rapid price movements and potential total loss of capital.
• Financial Situation: has discretionary capital; can absorb losses without impacting essential living needs; understands funding/margin requirements.
• Knowledge & Experience: prior experience with trading/derivatives or has completed an appropriateness assessment demonstrating understanding of leverage, margin, and liquidity risk.
• Time Horizon & Monitoring: short-term; able to actively monitor positions, margin, and market announcements.

Spot (non-leveraged) products may suit investors with Medium to High risk tolerance who seek directional exposure without leverage, while still accepting market volatility.

4. Negative Target Market

• Investors seeking capital preservation or guaranteed returns.
• Consumers with low risk tolerance or limited ability to bear losses.
• Individuals without adequate knowledge/experience and who do not pass an appropriateness/knowledge assessment.
• Persons unable to actively monitor and manage positions, margin, and funding.
• Residents in prohibited or restricted jurisdictions or otherwise ineligible under our onboarding checks.
• Use of credit/borrowed funds where this would cause financial hardship or is prohibited by law.

5. Distribution Conditions & Controls

• Onboarding & KYC/AML: identity verification and sanctions screening as per local requirements.
• Appropriateness/Knowledge Assessment: distributors/platforms must assess whether the consumer understands leverage, margin call/liquidation, volatility, and fees before enabling trading.
• Leverage & Product Limits: apply jurisdictional caps, margin close-out rates, and negative balance protection where required.
• Channel Controls: distribution via Phyxtrade’s official website/apps and approved partners; no cold-calling or high-pressure sales.
• Marketing Controls: balanced risk disclosures; no misleading performance claims; only jurisdictions where products are permitted.
• Ongoing Monitoring: intervene where usage indicates out-of-target distribution (e.g., repeated margin deficits by inexperienced clients).

6. Consistency Between Product & Target Market

The key attributes (leverage, short-term exposure, hedging capability, risk controls) are consistent with the needs of consumers seeking speculative/hedging strategies and who have high risk tolerance and the ability to bear losses. For spot products, the absence of leverage may suit consumers with medium to high risk tolerance seeking directional exposure without borrowing.

7. Review Triggers & Schedule

Scheduled review: at least annually (next review on or before August 23, 2026), or earlier upon a trigger.

Review triggers include:

• Regulatory/legal change affecting product features, leverage caps, or distribution obligations.
• Material changes to fees, margin requirements, or platform functionality.
• Spike in complaints, dispute outcomes adverse to clients, or client harm indicators.
• Evidence of sales outside target market or failure of control processes.
• Significant market events causing atypical product performance or risk profile changes.

8. Information to be Reported by Distributors

Approved distributors/introducers must report to Phyxtrade at agreed intervals and promptly upon request. Reports should include (non-exhaustive):

• Complaints data: number, nature, and resolution status within the period.
• Out-of-target sales: instances where distribution conditions were not met (and remedial steps).
• Appropriateness results: pass/fail rates and key knowledge gaps observed.
• Incidents: system outages, marketing breaches, or control failures impacting clients.
• Other material information: as required by local design & distribution obligations.

9. Significant Dealings

Distributors must notify Phyxtrade of any significant dealing in the product that is inconsistent with this TMD as soon as practicable and within any statutory timeframe applicable in the relevant jurisdiction. Notifications should describe the nature, date range, and suspected cause, and outline corrective actions.

10. Key Risks Summary

• Leverage & Margin Risk: losses may exceed initial deposit; rapid liquidation can occur.
• Market Volatility: gapping, slippage, and illiquidity can materially affect outcomes.
• Counterparty/Operational Risk: technology outages, pricing feeds, and third-party dependencies.
• Regulatory/Legal Risk: rule changes may alter product availability or terms.
• Complexity: derivatives are not suitable for inexperienced or low-risk consumers.

Refer to the PDS/Terms for full risk disclosures, fees, and examples.