Risk Disclosure
Risk Disclosure Statement
Last Updated: January 2025
Important Risk Warning
Trading CFDs, forex, and other leveraged products involves significant risk and may not be suitable for all investors. You could lose all or substantially more than your initial investment. Please ensure you fully understand the risks involved and seek independent advice if necessary.
General Risk Warning
Trading in financial instruments carries a high level of risk to your capital. The value of your investment can go down as well as up, and you may not get back the amount you invested.
You should not invest money that you cannot afford to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent financial advice if necessary.
Leverage and Margin Risk
Leveraged trading allows you to control larger positions with a smaller initial investment. However:
• Leverage magnifies both potential profits AND losses
• You can lose more than your initial deposit
• A small market movement can result in significant losses
• Margin calls may require immediate additional funds
• Positions may be liquidated without notice if margin is insufficient
With leverage up to 1:1000, even small price movements can result in substantial losses.
Market Risk
Financial markets are inherently volatile and unpredictable:
• Prices can change rapidly and without warning
• Past performance does not guarantee future results
• Economic events can cause extreme market movements
• Gaps in pricing may occur, especially over weekends
• Liquidity may vary, affecting execution prices
• Currency exchange rates fluctuate continuously
No trading strategy can guarantee profits or protection from losses.
Technology and System Risk
Online trading relies on technology that can fail:
• Internet connectivity issues may prevent trading
• Platform outages may occur during critical moments
• System errors could affect order execution
• Quotes may be delayed or inaccurate
• Hardware or software failures may impact your trading
We recommend maintaining alternative means of contact and monitoring your positions.
Regulatory and Legal Risk
Regulatory changes can impact trading conditions:
• Laws and regulations may change without notice
• Tax treatment of trading profits varies by jurisdiction
• Some products may become restricted or banned
• Regulatory requirements may affect service availability
You are responsible for understanding and complying with applicable laws in your jurisdiction.
No Guarantee of Profit
There is no guarantee that you will make money trading with us:
• Most retail traders lose money trading CFDs and forex
• Educational materials do not guarantee trading success
• Demo account results do not reflect live trading conditions
• Following other traders (copy trading) does not guarantee profits
• AI signals and analysis tools are not infallible
Past performance of any trader or strategy is not indicative of future results.
Counterparty Risk
When you trade with us, you are exposed to counterparty risk:
• We act as your counterparty for CFD trades
• You rely on our financial stability and ability to meet obligations
• We are not a bank and your funds are not protected by deposit insurance
• In the event of our insolvency, you may not recover all your funds
We maintain segregated client accounts and adequate capital as required by regulation.
Account Security Risk
Your account security is crucial:
• Keep your login credentials confidential
• Use strong, unique passwords
• Enable two-factor authentication when available
• Monitor your account for unauthorized activity
• Report any suspicious activity immediately
You are responsible for all trading activity conducted through your account.
Withdrawal Considerations
Withdrawals may be subject to:
• Identity verification requirements
• Processing times varying by payment method
• Additional documentation requests for large amounts
• Currency conversion fees if applicable
• Holds during pending verification
Ensure you maintain adequate liquidity outside your trading account for financial needs.
Need More Information?
If you have questions about the risks involved in trading:
Email: support@yellowboxmarkets.com
We strongly recommend consulting with independent financial, legal, and tax advisors before trading.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.