Risk Disclosures
Arcano Capital Markets Ltd (ACML) is committed to transparency and regulatory compliance. As part of this commitment, the following risk disclosures are provided to ensure that all clients and prospective clients are fully informed of the risks associated with our services prior to engaging in any investment or trading activity.
1. Types of Risk
The following risks are inherent to the services offered by ACML and must be carefully considered before engaging in any investment or trading activity:
1.1 Market Risk
Investments are subject to price fluctuations due to economic, political, or other factors. The value of investments may go up or down, and clients may receive back less than they originally invested. Past performance is not a reliable indicator of future results.
1.2 Leverage Risk
Derivatives involve leverage, which can amplify both gains and losses. A relatively small movement in the underlying asset can result in a proportionally much larger movement in the value of the derivative instrument. Clients should be aware that losses can exceed the initial margin deposited and may be required to deposit additional funds at short notice to maintain their positions.
1.3 Foreign Exchange Risk
Currency fluctuations may adversely affect returns. Where investments are denominated in a currency other than the client’s base currency, changes in exchange rates may have a negative effect on the value, price, or income of those investments.
1.4 Operational Risk
Technical issues, cyberattacks, or human error may disrupt services. ACML employs robust operational controls and business continuity procedures; however, clients should be aware that system failures or external disruptions may temporarily affect the ability to place, amend, or close orders.
1.5 Regulatory Risk
Changes in laws or regulations may impact the availability or profitability of certain investments. Regulatory changes may affect ACML’s ability to offer certain products or services, and clients should be aware of the regulatory environment applicable to their jurisdiction.
2. How Risk Disclosures Are Presented
ACML ensures risk disclosures are prominently displayed and accessible through the following measures:
-
Dedicated Risk Disclosure Page: A dedicated page on the website provides comprehensive details on all risks associated with ACML’s services.
-
Prominent Warnings on Marketing Materials: All banners, brochures, and advertisements include a clear risk warning statement.
-
Pop-Up Notifications: Users accessing account opening forms or trading platforms are presented with a pop-up notification requiring acknowledgement of risk disclosures before proceeding.
3. Regulatory Compliance
These risk disclosures are maintained in alignment with the following regulatory provisions:
-
Internal Operations Manual (Section 4.4.2.5): Requires that marketing materials include risk warnings and that clients are advised to consider their level of experience and investment objectives.
-
Client Agreement (Clause 4.3 — Risk Disclosures): Clients acknowledge that all investments carry inherent risks including market risk, derivatives-specific risk, foreign exchange risk, and operational risk. ACML shall not be liable for any losses arising from these risks.
-
FSC Guidelines: Risk disclosures are provided in a durable medium (the website) and remain accessible to clients at all times.
4. Client Acknowledgement
By proceeding to use ACML’s services, clients confirm that they:
-
Have read and understood the risk disclosures set out on this page.
-
Understand that all investments carry inherent risks and that past performance is not indicative of future results.
-
Have considered their level of experience, financial situation, and investment objectives.
-
Have sought independent financial advice where necessary.
These disclosures are reviewed and updated regularly to reflect any changes in ACML’s services or applicable regulatory guidelines. For queries, please contact ACML directly.
