This Risk Disclosure and Warning Notice ("Notice") is provided to you (our Client and prospective Client) in accordance with the Investment Services and Activities and Regulated Markets Law of 2017 87(I)/2017, as subsequently amended from time to time ("the Law"), which is applicable to InterStellar Ltd. ("the Company", or "we").
All Clients and prospective Clients should read carefully the following risk disclosures and warnings contained in this Notice, before applying to the Company for a Trading Account and before they begin to accept any services from the Company. However, it is noted that this document cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in the Financial Instruments offered by the Company. This notice was designed to explain in general terms the nature of the risks involved when dealing in Financial Instruments on a fair and non-misleading basis.
The Company executes Client Orders in relation to Contracts for Differences ("CFDs"). The above products and services are intended for the client target market of Small to large scale retail and professional investors with knowledge and experience of the industry who feel comfortable trading complex financial markets and who want to trade with money they can afford to lose and have high risk tolerance. Prospective clients will understand the impact of and risks associated with margin trading, its key concepts along with leverage and the potential to bear losses of the entire invested capital.
The Provision of Services by the Company to the Client may be subject to fees. All relevant costs and fees will be provided by the Company or will be available on the Company's website at www.interstellarpromo.com. Before the Client begins to trade, he should obtain details of all fees, commissions, charges for which the Client may be liable. It is the Client's responsibility to check for any changes in the charges.
If any charges are not expressed in monetary terms (but, for example, as a percentage or formula), the Client should ensure that he understands what such charges are likely to amount to.
There is a risk that the Client's trades in any financial instruments may be or become subject to tax and/or any other duty for example because of changes in legislation or his personal circumstances. The Company does not warrant that no tax and/or any other stamp duty will be payable. The Company does not offer tax advice and recommends that the Client seek advice from a competent tax professional if the Client has any questions.
The Client is responsible for any taxes and/or any other duty which may accrue in respect of his trades.
It is noted that taxes are subject to change without notice.
It is possible that other costs, including taxes, relating to Transactions carried out on the Trading Platform may arise for which the Client is liable and which are neither paid via us nor imposed by the Company. Although it is the Client's sole and entire responsibility to account for tax due and without derogating from this, the Client agrees that the Company may deduct tax, as may be required by the applicable law, with respect to his trading activity on the Trading Platform. The Client is aware that the Company has a right of set-off against any amounts in the Client's Trading Account with respect to such tax deductions.
It is noted that the Company's prices in relation to CFDs trading are available on the Company's website at www.interstellarpromo.com. It is noted that Company's prices may be different from prices reported elsewhere. The prices displayed on the Company's Trading Platform reflects the last known available price at the moment prior to placing any Order, however, the actual execution price of the Order may differ. As such, the price that the Client receives when he opens or closes a position may not directly correspond to real time market levels at the point in time at which the sale of the CFD occurs or reflect the prices of third party brokers/providers.
The Company may pass money received from the Client to a third party (e.g. a bank, a market, intermediate broker, OTC counterparty or clearing house) to hold or control in order to effect a Transaction through or with that person or to satisfy the Client's obligation to provide collateral (e.g. initial margin requirement) in respect of a Transaction. The Company has no responsibility for any acts or omissions of any third party to whom it will pass money received from the Client.
The third party to whom the Company will pass money may hold it in an omnibus account and it may not be possible to separate it from the Client's money, or the third party's money. In the event of the insolvency or any other analogous proceedings in relation to that third party, the Company may only have an unsecured claim against the third party on behalf of the Client, and the Client will be exposed to the risk that the money received by the Company from the third party is insufficient to satisfy the claims of the Client with claims in respect of the relevant account. The Company does not accept any liability or responsibility for any resulting losses.
The Company may deposit Client money with a depository who may have a security interest, lien or right of set-off in relation to that money.
A Bank or Broker through whom the Company deals with could have interests contrary to the Client's Interests.
Investing in Financial Instruments is a high-risk activity. However, this section does not disclose all risks associated with CFDs. It describes the general risks involved in trading CFDs, which are complex financial instruments and not appropriate for all investors. Each Client should carefully consider whether such trading is suitable in light of his own personal circumstances.
Leverage: CFDs are highly leveraged, requiring only a small deposit or margin relative to the value of the contract. This magnifies both gains and losses.
High Volatility: CFDs are highly volatile, and prices can fluctuate rapidly. This volatility can be caused by various factors, including changes in supply and demand, governmental, agricultural, commercial and trade programs and policies, national and international socioeconomic and political events and the prevailing psychological characteristics of the relevant market place.
Market Gaps: CFDs can be affected by market gaps, where prices move sharply from one level to another without trading in between. This can be due to various factors such as economic events or market opening prices after a weekend or holiday.
Margin Calls: Due to the leverage involved in CFDs, small price movements can result in significant losses, potentially more than the initial deposit. Clients may be required to make additional margin payments to maintain their positions. If the Client fails to meet margin requirements, the Company may close positions without prior notice.
Risk of Loss: All Clients and prospective Clients should consider that the value of CFDs may increase or decrease. Clients run the risk of incurring losses and damages, including the total loss of the capital invested. The Company is not and will not be responsible for the Client's trading decisions.
Being Long in a CFD means buying an instrument with the expectation that its value will increase. However, if the value decreases, the Client will incur a loss.
The risk of loss in long CFD positions is limited to the capital invested.
Being Short in a CFD means selling an instrument with the expectation that its value will decrease. However, if the value increases, the Client will incur a loss.
The risk of loss in short CFD positions is unlimited, as there is no upper limit on the price of the underlying instrument.
Contingent liability investment transactions, which are margined, may require the Client to make a series of payments based on the value of the underlying assets. If the Client fails to meet margin requirements, the Client's position may be liquidated, resulting in a loss.
Off-exchange transactions in derivatives, including CFDs, may be less regulated and subject to higher risk compared to on-exchange transactions. The Client may face difficulties in closing positions, pricing transparency may be limited, and counterparty risk may be higher.