Risk Disclosure & Warning Notice
1. Introduction
This Risk Disclosure & Warning Notice (the "Notice") is provided by LEVELS Ltd. (the "Company") to assist clients in understanding the risks associated with trading leveraged financial instruments.
This Notice does not disclose or explain every possible risk or all aspects of trading. Clients should carefully consider whether trading is appropriate in light of their objectives, financial resources, knowledge, experience, and risk tolerance.
By opening an account with the Company, the Client acknowledges that he, she, or it has read, understood, and accepted the risks described in this Notice.
2. No Investment Advice
The Company provides execution-only services unless expressly agreed otherwise in writing.
The Company does not provide:
- investment advice;
- portfolio management;
- tax advice;
- legal advice;
- financial planning services;
- recommendations regarding the suitability of transactions.
All trading decisions remain the sole responsibility of the Client.
3. General Trading Risk
Trading in Contracts for Difference (CFDs), foreign exchange products, commodities, indices, shares, cryptocurrencies, and other leveraged financial instruments involves a high degree of risk.
Clients may lose all funds deposited into their accounts and, depending upon the circumstances and applicable protections, losses may occur rapidly due to adverse market movements.
Past performance is not indicative of future results.
Profits are not guaranteed.
4. Leverage Risk
Leverage allows a Client to control a larger market exposure using a relatively small amount of capital.
While leverage may increase potential profits, it also increases potential losses.
Even relatively small market movements may have a significant impact on the Client's account balance, margin levels, and overall trading results.
Clients should ensure they fully understand the effect of leverage before trading.
5. Market Risk
Financial markets may be volatile and unpredictable.
Prices may fluctuate rapidly due to:
- economic announcements;
- geopolitical events;
- interest rate decisions;
- market sentiment;
- liquidity conditions;
- corporate events;
- regulatory developments;
- unforeseen events.
Such movements may result in significant gains or losses.
6. Liquidity Risk
Liquidity refers to the availability of market participants willing to buy or sell a financial instrument at a given price.
Under certain market conditions, liquidity may become limited, unavailable, or significantly reduced.
Reduced liquidity may result in:
- wider spreads;
- delayed execution;
- partial execution of orders;
- increased slippage;
- inability to open or close positions at desired prices.
The Company does not guarantee the availability of liquidity under all market conditions.
7. Slippage Risk
Orders may be executed at prices different from those requested or displayed at the time of order submission.
Such differences may arise due to:
- market volatility;
- liquidity conditions;
- rapid market movements;
- order size;
- market gaps;
- execution delays.
Slippage may be positive or negative and is a normal characteristic of financial markets.
The Company cannot guarantee that Orders will always be executed at the requested price.
8. Market Gap Risk
Market gaps occur when the price of a financial instrument moves significantly between successive quotations without trading at intermediate price levels.
Gaps may occur:
- after weekends;
- after public holidays;
- following economic announcements;
- following geopolitical developments;
- during periods of market disruption.
As a result, Stop Loss Orders, pending orders, and other instructions may be executed at prices materially different from those requested.
9. Execution Risk
The execution of transactions depends upon numerous factors beyond the Company's control.
The Client acknowledges that:
- orders may be delayed;
- orders may be rejected;
- orders may be partially filled;
- orders may be executed at different prices;
- execution quality may vary depending upon prevailing market conditions.
The Company does not guarantee execution at any particular price, spread, liquidity level, or execution speed.
10. Technology and Platform Risk
Trading platforms, communication systems, software applications, electronic networks, internet services, and hardware systems may fail, malfunction, become unavailable, or experience interruptions.
Such events may result in:
- inability to access the account;
- inability to submit orders;
- delayed execution;
- delayed account updates;
- communication failures;
- loss of connectivity.
The Company shall not be responsible for losses arising from failures of systems, networks, software, equipment, internet services, or third-party infrastructure beyond its reasonable control.
11. Third-Party Risk
The Company may rely on third-party providers including:
- liquidity providers;
- pricing providers;
- technology providers;
- payment service providers;
- hosting providers;
- communication providers;
- banking institutions.
The performance and availability of such services may affect the Company's ability to provide services.
The Company shall not be responsible for failures, delays, disruptions, or actions of third parties beyond its reasonable control.
12. Force Majeure Events
Extraordinary events may occur that are outside the control of the Company.
Such events may include:
- natural disasters;
- war;
- terrorism;
- civil unrest;
- cyberattacks;
- government actions;
- sanctions;
- exchange closures;
- communication failures;
- infrastructure failures;
- market disruptions.
During such circumstances, trading conditions may be materially affected and the Company may take any reasonable action necessary to protect its clients, systems, operations, counterparties, and legitimate business interests.
13. Pricing and Quotation Risk
Prices displayed on the Company's platforms may originate from one or more liquidity providers, market data providers, exchanges, counterparties, or pricing sources.
Prices may change rapidly and may differ from prices available through other sources.
Temporary discrepancies, delays, interruptions, or pricing anomalies may occur due to market conditions, technical issues, data-feed interruptions, or operational factors.
The Company reserves the right to review and correct transactions affected by Manifest Errors or pricing anomalies in accordance with the Client Agreement and Company Policies.
14. Profitability Risk
No representation, warranty, or assurance is given that any trading strategy will be profitable.
The fact that a strategy, system, methodology, signal service, expert advisor, algorithm, or trading approach has performed successfully in the past does not guarantee future performance.
Clients should not trade funds they cannot afford to lose.
15. Margin Call and Stop-Out Risk
The Client is responsible for maintaining sufficient margin in the Account at all times.
The Company may, but is not obliged to, provide margin call notifications.
Failure by the Company to provide a margin call shall not create any liability or obligation on the Company.
If margin levels fall below the Company's required thresholds, the Company may, without prior notice:
- reject new Orders;
- restrict trading activity;
- close positions;
- partially close positions;
- liquidate positions;
- take any other action permitted under the Client Agreement.
The Client acknowledges that positions may be closed at unfavorable prices and that resulting losses may exceed expectations.
16. Cryptocurrency Risk
Cryptocurrency-related products may involve additional risks beyond those associated with traditional financial instruments.
Such risks may include:
- extreme volatility;
- reduced liquidity;
- technological risks;
- cybersecurity risks;
- regulatory uncertainty;
- market manipulation;
- exchange failures;
- protocol changes;
- blockchain disruptions.
Cryptocurrency markets may experience sudden and significant price movements that can result in substantial losses.
Clients should carefully assess their ability to bear such risks before trading cryptocurrency-related products.
17. Concentration Risk
Concentrating trading activity in a single instrument, asset class, market sector, trading strategy, or market event may significantly increase risk.
A highly concentrated portfolio may be more vulnerable to adverse market movements, reduced liquidity, increased volatility, and unexpected events.
Clients should consider the potential risks associated with concentrated exposure.
18. Operational and Commercial Risks
The services provided by the Company are subject to operational, technological, commercial, and market-related risks.
The Company may, where reasonably necessary and in accordance with the Client Agreement and Company Policies:
- suspend trading;
- restrict account activity;
- review transactions;
- investigate trading activity;
- delay processing requests;
- impose protective measures;
- amend trading conditions.
Such actions may be required for risk management, compliance, operational integrity, fraud prevention, market integrity, or the protection of the Company's legitimate business interests.
19. Client Responsibility
The Client is solely responsible for:
- evaluating the suitability of trading activities;
- understanding the risks associated with trading;
- monitoring account activity;
- managing open positions;
- maintaining sufficient margin;
- seeking independent professional advice where appropriate.
The Client should not engage in trading activities unless fully prepared to bear the associated financial risks.
20. Acknowledgement of Risks
By opening an Account, depositing funds, placing Orders, or otherwise using the Company's services, the Client acknowledges and agrees that:
- a) trading involves substantial risk;
- b) losses may exceed expectations;
- c) trading results are uncertain;
- d) leverage increases both potential profits and potential losses;
- e) market conditions may change rapidly and without warning;
- f) execution outcomes may differ from expectations;
- g) the Client has carefully considered the risks associated with trading;
- h) the Client accepts responsibility for all trading decisions made through the Account.
21. Reservation of Rights
Nothing contained in this Notice shall limit any rights, powers, remedies, protections, or actions available to the Company under:
- the Client Agreement;
- the Abuse & Market Manipulation Policy;
- the Best Interest & Order Execution Policy;
- other Company Policies;
- applicable laws.
This Notice should be read together with all documents governing the relationship between the Company and the Client.
22. Effective Date
This Risk Disclosure & Warning Notice shall become effective on the date determined and published by the Company and shall remain in force until amended, replaced, or withdrawn.
