This General Risk Disclosure (‘Disclosure’) governs how you may use the Unicapital platform (‘Platform’) and its functionalities, including, but not limited to, the website and any of its content to conduct any activities (‘Services’). This Disclosure applies between Unicapital LTD (‘we’, ‘us’, ‘our’) and you, the person accessing or using the Services (‘User’, ‘you’ or ‘your’). This Disclosure provides you with information about the risks associated with using our Services. Please read this Disclosure carefully to understand your responsibilities and the limitations of our Services.
Unicapital LTD is an entity regulated by the Financial Service Unit (‘FSU’) in the Commonwealth of Dominica, as a valid sub-licensee under Financial Master Management Ltd. We provide a wide range of investment services in relation to a number of products, such as Forex trading.
Investment products offered by Unicapital include Foreign Exchanges (Forex) and Cryptoasset, in which you gain ownership of the underlying asset (i.e. ‘Buy’ transactions for said assets using leverage, hold such assets, and subsequently sell such assets).
In addition, Unicapital offers contracts for differences (‘CFDs’) that offer exposure to currencies, commodities, and indices, without owning the underlying asset. Any transactions relating to stocks, Forex, or Cryptoasset, in which Unicapital offers you leverage, or allows you to enter into a ‘Short’ transaction, and/or some copy trading transactions, shall be considered a CFD transaction.
Since Cryptoasset markets are decentralized and non-regulated, our Cryptoassets Trading Services (defined in Schedule C of our Terms and Conditions) are unregulated Services, which are not governed by any specific regulatory framework.
All of these products carry a high degree of risk and are not suitable for many investors. This Disclosure provides you with information about the risks associated with these products, but it cannot explain or highlight all of the risks involved, or how such risks relate to your personal circumstances. If you are in doubt, you should seek professional advice. It is important that you fully understand the risks involved before deciding to trade with Unicapital, that you have adequate financial resources to bear such risks and that you monitor your positions carefully. Trading involves risk to your capital. You should not invest money that you cannot afford to lose, however, you cannot lose more than the equity in your account.
CFDs
CFD stands for “Contracts For Difference,” meaning you are not buying the underlying asset, but rather purchasing a contract to settle the difference in the initial asking price and the end price of the asset. When trading CFDs, you generally trade on margin, which means you only have to deposit a small percentage of the overall value of your position. This is known as “Leverage”, and even small market movements may have a significant impact, negative or positive, on your trading account.
If the market moves against you, you may sustain a total loss greater than the funds invested in a specific position. You are responsible for all losses in your account up to the equity in your account.
Before deciding to trade on margin, you should carefully consider your investment objectives, level of experience, and your risk appetite. Our CFDs are not listed on any third-party exchange. CFDs involve greater risk than investing in on-exchange products, as market liquidity cannot be guaranteed and it may be more difficult to liquidate an existing position. The prices and other conditions are set by us in accordance with our obligation to provide Best Execution as set out in our Best Execution and Order Handling Policy, to act reasonably, and in accordance with the applicable Terms and Conditions. The characteristics of our CFDs can vary substantially from the actual underlying market or instrument. Full details of all of our CFDs are set out on our website.
In respect of Corporate Events, with respect to the underlying assets, we do not aim to make a profit from our clients from the outcome of Corporate Events, which includes without limitation, rights issues, takeovers, mergers, share distributions or consolidations and open offers. We aim to reflect the treatment we receive, or would receive, if we were hedging our exposure to you in the underlying market. Ultimately, however, you are not dealing in the underlying market and, therefore, in relation to our CFDs, the treatment you receive may be less advantageous than if you owned the underlying instrument outright. Please refer to section 11, Schedule A, within our Terms and Conditions for further information on Corporate Events.
CFDs are complex instruments and come with a high risk of losing money rapidly due to the principle of leverage. Between 61%-81% of retail investors lose money when trading CFDs. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are not suited to the long-term investor. If you hold a CFD open over a long period of time, the associated costs increase (such as overnight fees), and it may be more beneficial for you to buy the underlying asset instead in these circumstances. Sudden market movements, known as “gapping” may occur, causing a dramatic shift in the price of an underlying asset. Gapping may occur when the underlying asset’s market is closed, meaning the price on the underlying market may open at a significantly different level, and at a less advantageous price for you.
At all times during which you have open positions, you must ensure that your account meets our margin requirements, which may change from time to time. Therefore, if our price moves against you, or if our margin requirements have changed, you may need to provide us with significant additional funds to meet your margin requirement at short notice, to maintain your open positions. If you do not do this, we will be entitled to close one or more of your open positions, and you alone will be responsible for any losses incurred as a result.
Appropriateness
Before we open your account we are required to make an assessment of whether the product(s) and/or services you have chosen are appropriate for you, and to warn you if, on the basis of the information you provide us, any product or Service is not appropriate for you. If you decide to continue and open an account with us, you are confirming that you are aware of and understand the risks involved.
Position Monitoring
You should further ensure that you are able to monitor positions on your account at all times, as you are solely responsible for this. We are not responsible for monitoring positions on your account, or for notifying you of any changes or fluctuations that occur. This is also the case even if our Services do include notifications for market changes and fluctuations, as technical issues can arise and so you should not be reliant on receiving such notifications (if applicable).
Execution
Although the Unicapital trading platform is automated, and we give you the Best Execution available, it is possible that the market price could have changed between order placement and execution time, and, therefore, we cannot guarantee that the price requested will be the same as the price at which the order is executed, therefore the price you receive can be in your favour or against you.
To limit losses, we highly recommend that you set ‘stop loss’ limits. Using a stop loss can limit the amount you may lose if the market moves against you, as the stop loss will automatically close your position when it reaches the limit you have selected. There are, however, circumstances in which a ‘stop loss’ limit is not fully effective — for example, where there are rapid price movements, or market closure. In addition, there are risks associated with the use of online deal execution and trading systems including, but not limited to, software and hardware failure, and internet disconnection or connectivity issues.
Copy Trading
Unicapital offers social trading features which allow you to copy and mimic other traders’ portfolios. In making a decision to copy a specific trader or traders and/or follow a particular strategy, you must consider your entire financial situation, including financial commitments and risk appetite. You must understand that using the CopyTrading feature is highly speculative, and does not guarantee gains, and you could sustain significant losses exceeding the amount used to copy a trader. The risks associated with CopyTrading include, but are not limited to, automated trading execution, whereby the opening and closing of trades will happen in your account without your manual intervention.
Cryptoassets Trading Risk
The terms Cryptocurrency and Cryptoasset are synonymous however, we choose to use the term Cryptoasset throughout our documentation. Since Cryptoasset markets are decentralized and non-regulated, our Cryptoasset Trading Services are unregulated services which are not governed by any specific regulatory framework. This means that there is no central bank that can take corrective measures to protect the value of Cryptoasset in a crisis or issue more currency. Therefore, when Unicapital LTD customers use our Cryptoasset Trading Services, they will not benefit from the protections available to regulated investment services.
Cryptoasset markets are determined by supply and demand, and market sentiment.. The Cryptoasset market is a dynamic arena and its respective prices are often highly unpredictable and volatile. The Cryptoasset prices are usually not transparent, highly speculative and susceptible to market manipulation. In the worst-case scenario, the product could be rendered worthless.
It is important to make a distinction between indicative prices which are displayed on charts, and dealable prices which are displayed on our trading platform. Indicative quotes only give an indication of where the market is. Because Cryptoasset markets are decentralized, each market maker may quote slightly different prices. Therefore, any prices displayed on any chart made available by us or by a third party will only reflect “indicative” prices, and not necessarily actual “dealing” prices where trades can be executed.
Like most groundbreaking technologies, Cryptoassets are prone to being misused for illicit activities due to the anonymity of transactions. If a particular Cryptoasset is associated with illicit activity and law enforcement agencies and regulators investigate these activities, and potentially take action, investors could be adversely affected. This is also the reason why Cryptoassets will vary according to their specific nature (i.e. BTC will differ from DOGE, and DOGE will differ from ADA). Accordingly, Cryptoassets should be seen as an extremely high-risk asset and you should never invest funds that you cannot afford to lose.
It follows that you should not deal with Cryptoasset trading unless you have the necessary knowledge and expertise to understand these characteristics, and the financial stability to be able to mitigate your exposure to risk. You should be aware that you may sustain a total loss of the funds in your account.
If the market moves against your position, we may ask you to provide a substantial amount of additional margin funds on short notice, in order to maintain your position. If you do not provide the required funds within the time frame required by us, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
Given that the Cryptoasset exchanges may operate over weekends, there may be a significant difference between Friday’s close and Monday’s opening price. Unicapital currently allows trading in Cryptoassets over the weekend and it reserves the right not to do so. Should Unicapital so elect, trading in Cryptoassets shall be allowed only from Monday through Friday. All such factors may result in you either not completing an order on a specific trading day or completing an order on a substantially less favorable price. Unicapital LTD are not responsible for these fluctuations and any consequential losses which may result.
Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit (“limit move”), if there is insufficient liquidity in the market.
Newly issued Cryptoassets may carry additional risks you need to consider. Limited liquidity or difficulties to trade the asset after you’ve bought it, or even an overvaluation. Unicapital cannot control and/or influence these external market factors.
Blockchain Risks
Since blockchain is an independent public peer-to peer network and is not controlled in any way or manner by Unicapital, we shall not be responsible for any failure and/or mistake and/or error and/or breach which shall occur in blockchain or in any other networks in which the Cryptoassets are being issued and/or traded.
You will be bound and subject to any change and/or amendments in the blockchain system and subject to any applicable law which may apply to the blockchain. We make no representation or warranty of any kind, express or implied, statutory or otherwise, regarding the blockchain functionality nor for any breach of security in the blockchain technology.
Operation of Cryptoasset Protocols
Unicapital does not own or control the underlying software protocols which govern the operation of Cryptoassets available for trading on our platform. In general, the underlying protocols are open source and anyone can use, copy, modify, and distribute them. Unicapital makes no guarantee of their functionality, security, or availability. The underlying protocols are subject to sudden changes in operating rules (“Forks”), and such Forks may materially affect the value, function, and/or even the name of the Cryptoassets Unicapital holds for your benefit. In the event of a Fork, Unicapital may temporarily suspend the operations (with or without advance notice) and we may (i) configure or reconfigure its systems or (ii) decide not to support (or cease supporting) the Forked protocol entirely. Unicapital may, but is not obligated to do so, adjust your account in respect of a Fork, depending on the circumstances of each event attributable to any specific Cryptoasset which you hold.
Third Party Risk
We may elect to execute any order and/or hold any fiat money and Cryptoasset via a third-party. Such Third Parties are not banks that hold fiat money or Cryptoassets as a deposit. If any such Third Party loses any money, assets, fails, gets shut down, or goes out of business, there is no specific legal protection that covers you for the losses arising, even when such a party is registered with a national authority.
Depending on the structure and security of the Unicapital crypto wallet, there may be vulnerabilities to hacks, which, if successful, can result in the theft of your Cryptoassets, or loss of customer data. Unicapital will not be responsible in the event of losses caused by those Third Parties, albeit Unicapital takes all reasonable measures to the extent possible, to mitigate against such risks.
Delisting and/or unsupported Cryptoassets: if at any time any of the Cryptoassets from the subject of your order are delisted and/or we no longer support the trading in such Cryptoassets for any reason, then the applicable order will be immediately closed. If Unicapital is notified that a Cryptoasset you hold in your account is likely to be delisted and/or removed and/or canceled from any of the exchanges (some of them or all) and we believe that it shall not be able to trade in such Cryptoasset, we shall make an effort to sell the Cryptoasset on your behalf, at such time and price, and in such manner, as we determine. We cannot be held responsible for any losses resulting from a delisting, as this is something outside our control. You should take precautions by ensuring you are up to date with any relevant market news surrounding Cryptoassets.
Automated Trades and Online Risks
While trading on our website and/or applications, system errors may occur. You should be aware of the risks that can result from any system failure, which could mean that your order may be delayed, or fail, or that it will not be executed as you had intended.
You acknowledge that there are risks associated with utilizing an internet-based trading system including, but not limited to, the failure of hardware, software, connectivity, the risk of malicious software, the risk that third parties may obtain unauthorized access to information and/or assets (including your Cryptoasset) stored on your behalf, cyber attack, Cryptoasset network failure (such as blockchain), computer viruses, communication failures, disruptions, errors, distortions or delays you may experience when trading via the Services, howsoever caused, spyware, scareware, Trojan horses, worms or other malware that may affect your computer or other equipment, or any phishing, spoofing or other attack.
You should also be aware that SMS and email services are vulnerable to spoofing and phishing attacks, and you should use care in reviewing messages purporting to originate from Unicapital. Whilst we take precautions to ensure such risks are minimized, we cannot guarantee that our Services will be risk-free, and we will not be responsible for any breaches which may occur.
Fees and Costs
Our fees are set out on our website https://www.unicapital.tech/ under the ‘Fees’ section. Please be aware of all costs and charges that apply to you in your particular circumstances, because such costs and charges will affect your profitability. Please also note that our fees are subject to change and you should also check the ‘Fees’ section on our website periodically to ensure you are aware of the most up to date fees.
Information
Any opinions, news, research, analyses, charts, blogs, prices, or other trading information contained on our website, are provided as general market commentary, and do not constitute professional financial investment advice. Unicapital shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided.
Past Performance
Past performance is not an indication of future performance. The value of investments can go down as well as up.
Currency Risk
Your account with Unicapital will be held in USD which may be different from the currency you used to deposit. Accordingly, you should be aware of currency fluctuations.
Extended-Hours Trading Risk
There is generally less trading volume during the extended hours market. Consequently, price moves can be more volatile and less representative of the broader market sentiment. Traders may experience some of the inherent risks listed below, but this list is by no means exhaustive:
1. Lower liquidity: There are typically fewer buyers and sellers during extended hours, which can result in less trading volume and wider bid-ask spreads. This might make it harder to execute trades at desirable prices.
2. Higher volatility: Lower liquidity can also lead to greater price volatility, with potentially rapid and significant price movement.
3. Increased competition: Extended hours traders may also be competing against professional traders and institutional investors who have access to greater resources.
4. Risk of changing prices: The price of securities traded in extended hours may not reflect the prices either at the end of regular trading hours or at the opening. As a result, you may receive an inferior price when engaging in extended-hours trading than you would during regular trading hours.
5. Risk of news announcements: Normally, issuers make news announcements that may affect the price of their securities after regular trading hours. Similarly, important financial information is frequently announced outside of regular trading hours. In extended-hours trading, these announcements may occur during trading and, if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
6. Risk of wider spreads: The spread refers to the difference between the price you can buy a security and the price you can sell at. Lower liquidity and higher volatility in extended-hours trading may result in wider than normal spreads for a particular asset.
By creating a Unicapital account and using our Platform, you acknowledge that you have read and understood this Disclosure. You agree to accept all associated risks and take full responsibility for your actions (and omissions) whilst using our Platform. If you do not agree with this Disclosure, please refrain from using our Services.
If you have any questions or concerns about this Disclosure or any aspect of our Services, please contact our support team at support@unicapital.tech.
