1. Scope of the notice
1.1 Marnic Group (referred to as ‘us’, ‘we’ and ‘our’) provides you with this ‘Risk Disclosure Notice’ (the ‘Notice’) to help you understand the risks that might arise when trading Contracts for Difference ( ‘CFDs’). However, you need to bear in mind that the Notice does not contain all the risks and aspects involved in trading CFDs. The Client (referred to as the ‘Client’, ‘you’, ‘your’ and ‘yourself’) should carefully read the Notice in conjunction with the ‘Client Agreement’, the ‘Order Execution’
1.2 Policy and the documentation/ information available to you through our Website. You need to ensure that any decision to engage in trading CFDs is made on an informed basis and in light of your knowledge and experience as well as to your personal circumstances (including but not limited to your financial position). In addition, you need to ensure that you understand the nature of CFDs and the extent of all risks and aspects involved in trading CFDs.
1.3 Please note that CFDs are leveraged financial products and therefore as such, trading CFDs involves a high risk of loss as price movements are influenced by the amount of leverage the client is using. For example, if a client is using 50 times leverage a movement of 0.5% will result in a gain or a loss of 25%. Nonetheless, as a result of the ‘Negative Balance Protection’ ( ‘NBP’) you may not lose more than your initial investment.
Trading CFDs is not appropriate for all persons. Under no circumstances, should you risk more than you are prepared to lose.
2. CFD Trading
2.1 CFDs are contracts to exchange the difference in the value of a particular instrument or currency between the time at which the contract is entered into and the time at which it is closed. CFDs allow the Firm’s Clients to replicate the economic effect of trading in particular currencies or other instruments without requiring the actual right of those assets; a full list of the CFDs on offer by Marnic Group is available on our Website.
2.2 CFDs are derivative products traded off-exchange (or Over-the-Counter ( ‘OTC’)); this means Marnic Group is at all times the counterparty to the Client trades and any CFD trades entered into with the Firm, can only be closed with us. Your capacity to open and/or close trades is dependent on the availability of our trading platform(s).
2.3 You understand that you are not entitled to the physical delivery of the underlying instrument (or reference instrument) of the CFDs you are trading and you have no rights in the underlying instrument (such as voting rights in case you are trading CFDs on shares).
CFDs fluctuate in value during the day; the price movements of CFDs are determined by a number of factors including but not limited to the availability of market information.
3. Technical Risks
3.1 If the Client launches transactions on an electronic system, he/she will be disclosed to risks associated with the scheme including the defeat of hardware and software (Internet / Servers). The outcome of any system failure may be that his order is either not executed according to his instructions or it is not executed at all. The Company does not accept any liability in the case of such a failure
3.2 The Client shall refer to the relevant sections of the Company’s Terms and Conditions of Use, to find more information regarding electronic trading and risks related to security and access to his/her Trading Account.
3.3 Marnic Group may, from time to time and as often as it considers appropriate, issue and/or distribute thirdparty material (the ‘Material’), which contains information including but not limited to the conditions of the financial markets, posted through our Website and other media and/or received by you. It should be stated that the Material is considered to be marketing communication only and does not contain, and should not be construed as having, investment advice and/or an investment recommendation and/or, an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the Client following an assessment by him/herself of their situation.
3.4 Marnic Group makes no expression and assumes no liability as to the precision or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of Marnic Group, a third party or otherwise.
3.5 The Material is not prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion included in the Material are subject to change without notice. Any opinions made may be personal to the author and may not recall the views of Marnic Group.
4. Suitableness Assessment
4.1 When processing your ‘Account Opening Form’ Marnic Group carries out an assessment of your appropriateness to trade CFDs and determines, based on the details you provide us with, if you have sufficient knowledge and experience to understand the risks involved in trading CFDs.
4.2 We will inform you of the results of our assessment but this does not relieve you of the need to carefully consider whether to trade CFDs with us. If we warn you that trading CFDs may not be appropriate for you, then you should refrain from trading CFDs until you attain sufficient knowledge and experience, for example, you may trade CFDs on a demo account prior to trading CFDs in a live environment and you acquainted yourself sufficiently with the relevant risks.
5. Customer’s Admission
5.1 During the Online Registration Process with the Company, as a Customer, you will be given the option to opt-out of subscribing to the following additional services
5.2 The Customer acknowledges that the Services offered by the Company do not include the condition of investment advice.
Any investment information as may be revealed or provided by the Company or on its behalf does not constitute investment advice services whatsoever, or in any possibilities and shall be considered as given for instructive purposes only. No information disclosed or provided by the Company shall be considered as an assurance or guarantee on the expected results of any Transaction.
5.3 The Customer acknowledges that the information in this document cannot and does not disclose or describe all of the risks and other significant aspects involved in dealing with CFDs.
The Customer should be conscious of all the risks associated with trading on margin and seek advice and talk from an independent financial advisor if he/she has any doubts. The Company does not provide such advice. If the Customer does not understand the risks involved in trading in CFDs, he/she should not trade at all.
6. Prices and Expense
6.1 The prices generated by our trading platform(s) are derived from the prices of the relevant underlying instruments, which the Firm obtains from third-party liquidity/ price providers. The prices of CFDs that you trade with us include a mark-up; this means that the spreads offered by us comprise of the raw spreads received from liquidity/ price provider(s) and a mark-up (where applicable).
6.2 Marnic Group serves as a market maker when executing Client trades and the Firm may profit from any Client losses.
6.3 You should not fund your Account using money obtained from any credit facility (including bank loan or otherwise).
You should understand that your overall risks will be significantly increased. For instance, if you incur a loss on your trades, you will still have to repay any amount borrowed plus any interest or other costs. Therefore, you shall never finance any trades on such borrowed money and you should never rely on being able to profit from any trade, in order to repay such amounts.
6.4 For trading certain CFDs, the Client may be required to pay a commission and/ or other fees; these instances are described in detail on our Website. For all types of CFDs offered by the Firm, the commission (if applicable) and financing/ overnight fees are not incorporated into the Firm’s quoted prices and are instead charged explicitly to the Client Account(s).
6.5 In the case of financing/ overnight fees, the value of opened positions in some types of financial instruments is increased or reduced by a daily financing fee ‘swap’ throughout the life of the trade. The financing fees are based on prevailing market interest rates.