1. Introduction
This Risk Disclosure Statement (hereinafter referred to as 'this Statement') aims to inform clients intending to open a trading account with Wmax Broker Ltd (hereinafter referred to as 'Wmax', 'we', or 'us') of the key risks involved in trading Contracts for Difference (CFDs) through our platform. This Statement does not list all risks. You should fully understand the nature of the products and your financial situation before opening an account and engaging in any trading, and seek independent financial advice if necessary.
2. Nature of Contracts for Difference (CFDs)
CFDs are derivative financial instruments traded on margin without physical delivery. You do not hold the underlying assets (such as forex, precious metals, indices, energy, or cryptocurrencies) but settle profits and losses based on price differences. CFDs are complex financial instruments and are not suitable for all investors.
3. Leverage Risk
Leveraged trading allows you to control a large notional position with a small margin deposit (e.g., under 1:1000 leverage, a $100 margin can control a $100,000 EUR/USD position). Leverage amplifies both profits and losses. An adverse price movement of 1% could result in losses exceeding your margin. In extreme market conditions, you may lose your entire capital in a short period, or even incur liabilities exceeding your initial deposit.
4. Market Volatility Risk
Financial market prices are influenced by multiple factors, including macroeconomics, geopolitics, central bank policies, corporate earnings, and breaking news, and can experience drastic fluctuations in a very short time. Information accumulated over weekends or non-trading hours may cause price gaps at the next market open, causing your stop-loss orders to be executed at prices significantly worse than your set level.
5. Liquidity Risk
During periods of low liquidity (e.g., early Asian session, holidays, before/after market open), or when trading less popular instruments, bid-ask spreads may widen significantly, order execution may be delayed or partially filled. In extreme cases, you may be unable to close positions at your desired price.
6. Slippage and Overnight Interest
Slippage: The actual execution price of an order may be better or worse than your specified price, particularly common during news events, market openings, or when using market orders.
Overnight Interest (Swap): Positions held overnight will incur a swap charge based on the interest rate differential of the currency pair, which can be positive (credit) or negative (debit). Overnight positions held on Wednesday incur triple swap (covering the weekend). Holding positions long-term may significantly impact overall profit/loss due to accumulated swap costs.
7. Hedging and Capital Management
We strongly recommend you: (1) Only trade with capital you can afford to lose; (2) Use stop-loss/take-profit orders to manage per-trade risk; (3) Avoid over-concentrating positions in a single instrument; (4) Continuously learn and regularly review your trading records. Hedging (holding opposite positions simultaneously) is not risk-free and may lead to double costs from spreads and swaps, accumulating losses.
8. Regional Restrictions
Wmax services are not available to residents or citizens of the following jurisdictions:United States, North Korea, Iran, Syria, Cuba, Crimea, Donetsk & Luhansk regions. Browsing this website from these regions does not constitute any business relationship or service commitment. The restricted list is established based on international sanctions and offshore regulatory practices and may be adjusted due to regulatory changes. If you reside in a non-restricted region but hold citizenship of a restricted region, please consult us via email before opening an account.
9. Investor Responsibility
All trades executed on the Wmax platform are your own investment decisions. Wmax only provides an execution platform, market data, and technical infrastructure. We are not responsible for your trading results, do not provide personalized investment advice, and do not guarantee any returns. Past performance does not guarantee future results. Any market analysis, educational articles, or platform demonstration data on this website do not constitute investment advice, an offer, or a solicitation.
10. Contact and Disputes
If you have any questions about this Statement or need to file a complaint regarding a trading dispute, please contact us via email:
Customer Support：support@wmax.com
Compliance & Reporting：compliance@wmax.com
If a dispute cannot be resolved through amicable negotiation, it will be handled in accordance with the dispute resolution clause in our Terms of Service, governed by the laws of the Union of the Comoros.
