Risk Disclosure

This Risk Disclosure statement is provided to you in compliance with regulatory requirements and to ensure you understand the nature and risks of trading financial instruments. By using Novo Capital services, you acknowledge that you have read, understood, and accepted the risks described herein.

1. General Risk Warning

Trading in forex and other financial instruments carries a high level of risk to your capital. You should only trade with money you can afford to lose. Trading may not be suitable for all investors, and you should ensure that you fully understand the risks involved before deciding to trade.

• Capital at Risk: You may lose some or all of your invested capital. Never invest more than you can afford to lose.
• Complex Products: Forex and CFDs are complex instruments that require a thorough understanding of the markets and trading mechanisms.
• No Guaranteed Returns: There is no guarantee of profit, and historical performance does not indicate future results.
• Professional Advice: If you are unsure about any aspect of trading, you should seek independent professional advice.

2. Market Volatility

Financial markets can be highly volatile, and prices can change rapidly and unpredictably. This volatility can result in significant gains or losses in a very short period of time.

• Rapid Price Movements: Currency prices can move significantly within seconds due to economic news, geopolitical events, or market sentiment changes.
• Gaps in Pricing: Market gaps can occur, especially during weekends or around major news events, which may result in orders being executed at prices significantly different from expected.
• Liquidity Risk: During periods of extreme volatility or low liquidity, it may be difficult to execute trades at desired prices.
• Slippage: The execution price may differ from the requested price, particularly during volatile market conditions.
• Weekend and Holiday Risk: Markets may open at significantly different prices after weekends or holidays, potentially affecting open positions.

3. Leverage Risks

Leverage allows you to control a larger position with a smaller amount of capital. While this can increase potential profits, it also significantly increases potential losses.

• Amplified Losses: Leverage magnifies losses as well as gains. You could lose more than your initial deposit.
• Margin Calls: If your account equity falls below the required margin level, you may receive a margin call requiring additional funds or position closure.
• Automatic Liquidation: Positions may be automatically closed if margin requirements are not met, potentially at unfavorable prices.
• Negative Balance Risk: In extreme market conditions, losses may exceed your account balance, although we offer negative balance protection for retail clients.
• Understanding Leverage: Before trading with leverage, ensure you fully understand how it works and its potential impact on your positions.

4. Past Performance

Past performance is not a reliable indicator of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance.

• No Guarantee: Historical trading results do not guarantee similar future performance.
• Market Conditions Change: Market conditions that produced past results may not recur in the future.
• Simulated Results: Simulated or hypothetical trading results have inherent limitations and may not reflect actual trading outcomes.
• Third-Party Performance: Performance data from third parties, including signal providers or copy trading, does not guarantee future results.

5. No Guarantee of Profits

Novo Capital does not guarantee any profits or protection against losses. All trading decisions are made solely by you, and you are fully responsible for the outcomes of your trades.

• Independent Decisions: All trading decisions are yours alone. We do not provide personalized investment advice.
• Educational Content: Any educational materials, market analysis, or trading signals provided are for informational purposes only and should not be considered as investment advice.
• No Profit Promises: Be wary of any claims guaranteeing profits. Legitimate trading involves risk, and no one can guarantee consistent profits.
• Risk of Total Loss: It is possible to lose your entire investment. Only trade with funds you can afford to lose completely.

6. Suitability

Trading forex and CFDs may not be suitable for everyone. Before you start trading, you should carefully consider whether such trading is appropriate for you in light of your circumstances and financial resources.

• Financial Situation: Consider your overall financial situation, including income, savings, debts, and financial obligations.
• Investment Objectives: Ensure that trading aligns with your investment goals and risk tolerance.
• Experience Level: Assess your knowledge and experience in trading financial instruments.
• Time Commitment: Active trading requires time for market analysis, monitoring positions, and staying informed about market developments.
• Emotional Preparedness: Trading can be stressful. Ensure you can handle the emotional aspects of potential gains and losses.
• Alternative Investments: Consider whether other investment options might be more suitable for your circumstances.

7. Independent Advice

We strongly recommend that you seek independent professional advice before making any trading or investment decisions. This is particularly important if you are new to trading or uncertain about any aspect of our services.

• Financial Advisors: Consult with a qualified financial advisor who can assess your individual circumstances and provide personalized guidance.
• Tax Implications: Seek advice from a tax professional regarding the tax implications of trading in your jurisdiction.
• Legal Considerations: Ensure you understand any legal requirements or restrictions that may apply to your trading activities.
• Continuous Education: Invest time in learning about financial markets, trading strategies, and risk management techniques.
• Demo Account: Consider practicing with a demo account before trading with real money to familiarize yourself with our platform and trading conditions.

8. Regulatory Information

Novo Capital operates in compliance with applicable financial regulations. Understanding the regulatory framework is important for your protection as a client.

• Regulatory Authorization: Novo Capital is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom.
• Client Fund Protection: Client funds are held in segregated accounts separate from company funds, in accordance with regulatory requirements.
• Compensation Schemes: Eligible clients may be covered by the Financial Services Compensation Scheme (FSCS) up to applicable limits.
• Regulatory Reporting: We comply with all regulatory reporting requirements and maintain transparent business practices.
• Complaints Procedure: We have established procedures for handling client complaints in accordance with regulatory guidelines.

For more information about our regulatory status and client protections, please contact our compliance department or visit the FCA website.

9. Additional Risks

In addition to the risks described above, you should be aware of the following:

• Technology Risk: Trading platforms may experience technical issues, including system failures, connectivity problems, or cyber attacks that could affect your ability to trade.
• Counterparty Risk: There is a risk that the counterparty to a transaction may not fulfill their obligations.
• Currency Risk: If you trade in instruments denominated in a currency other than your base currency, exchange rate fluctuations may affect your profits and losses.
• Interest Rate Risk: Changes in interest rates can affect the value of currency pairs and the cost of holding positions overnight.
• Political and Economic Risk: Political events, economic policies, and regulatory changes can significantly impact financial markets.
• Force Majeure: Extraordinary events beyond our control may affect our ability to provide services or execute trades.

10. Contact Us

If you have any questions about this Risk Disclosure or need further clarification about the risks involved in trading, please contact us:

11. Acknowledgment

By using Novo Capital services, you acknowledge that:

• You have read and understood this Risk Disclosure in its entirety.
• You understand the risks associated with trading forex and CFDs.
• You are aware that you may lose some or all of your invested capital.
• You have considered whether trading is appropriate for your financial situation and investment objectives.
• You accept full responsibility for your trading decisions and their outcomes.