Risk Disclosure

Event Contracts CFD are leveraged products, meaning you can gain exposure to large positions with a relatively small initial investment.

Amplified Losses: While leverage can magnify profits, it equally amplifies losses. A small adverse price movement can result in losses that exceed your initial margin deposit.

Margin Calls: If the market moves against your position, you may be required to deposit additional funds to maintain your position. Failure to meet margin requirements may result in the liquidation of your position at a loss.

You can lose more than your initial investment.

Understanding and managing leverage is crucial to successful trading. Never use leverage beyond your risk tolerance.

Event Contracts are based on real-world events that can be highly unpredictable and subject to rapid price changes.

Sudden Price Movements: Political events, economic announcements, natural disasters, and other unforeseen circumstances can cause dramatic and sudden price swings.

Gap Risk: Markets can 'gap' - meaning prices can jump from one level to another without trading at intermediate prices. This can occur during major news events or when markets are closed.

Slippage: During periods of high volatility, your orders may be executed at prices significantly different from your requested price, potentially resulting in larger losses than anticipated.

Volatility can work in your favor or against you. Always use appropriate risk management tools.

Many Event Contracts have binary outcomes - they either settle at 100 or 0, with no middle ground.

All-or-Nothing: Unlike traditional markets where you might recover some value, binary contracts can result in total loss of your investment if the outcome goes against you.

Time Decay: As the event approaches, the value of your position may change rapidly based on the perceived probability of the outcome.

No Partial Recovery: If you're wrong about the outcome, you cannot recover any portion of your investment, regardless of how close the actual result was to your prediction.

Difficulty in Hedging: The binary nature of these contracts makes traditional hedging strategies more challenging to implement effectively.

Binary outcomes require precise predictions and carry significant risk of total loss.

Trading on margin means borrowing funds to increase your position size, which comes with specific risks.

Forced Liquidation: If your account equity falls below the required maintenance margin, your positions may be automatically closed (liquidated) to prevent further losses.

No Control Over Liquidation: Liquidations can occur without your consent and at unfavorable prices, especially during volatile market conditions.

Cascading Liquidations: During extreme market movements, mass liquidations can occur, further exacerbating price movements and potentially affecting your positions.

Negative Balance Risk: In extreme circumstances, rapid market movements may result in losses exceeding your account balance, potentially leaving you owing money to the platform.

Margin Requirements Can Change: We reserve the right to adjust margin requirements at any time, which may require you to deposit additional funds or reduce your position size.

Always monitor your margin levels and maintain adequate account equity.

Different types of events carry unique risks that traders must understand.

Political Events: Elections, referendums, and political decisions can be influenced by last-minute developments, polling errors, and unexpected voter behavior.

Economic Events: Economic indicators and central bank decisions can deviate significantly from market expectations, causing substantial price movements.

Sports Events: Injuries, weather conditions, and unexpected performances can dramatically affect outcomes in ways that are difficult to predict.

Weather Events: Weather predictions are inherently uncertain, and actual conditions can differ significantly from forecasts.

Technology Events: Product launches, earnings reports, and technological developments can be subject to delays, changes, or unexpected outcomes.

Cryptocurrency Events: Crypto markets are highly volatile and can be influenced by regulatory changes, security breaches, and market manipulation.

When you trade Event Contracts CFD, you are entering into a contract with EXDGE as the counterparty.

Platform Solvency: If EXDGE becomes insolvent or unable to meet its obligations, you may lose some or all of your funds, regardless of the success of your trades.

Segregation of Funds: While we maintain segregated client accounts, in the event of insolvency, there may be delays in returning your funds or you may not recover the full amount.

No Ownership of Underlying Assets: Event Contracts CFD do not give you ownership of any underlying assets. You are solely relying on EXDGE's ability to honor the contract.

Always consider the financial stability and reputation of your trading platform.

Liquidity refers to the ability to buy or sell contracts quickly without significantly affecting the price.

Difficulty Exiting Positions: Some Event Contracts may have limited liquidity, making it difficult to close your position at your desired price or at all.

Wide Spreads: Low liquidity can result in wide bid-ask spreads, increasing your trading costs and reducing potential profits.

Price Impact: Large orders in illiquid markets can significantly move prices against you, resulting in unfavorable execution.

Market Suspension: In extreme cases, trading in certain contracts may be suspended, preventing you from closing positions or managing risk.

Always consider liquidity when entering positions and avoid over-concentrating in illiquid markets.

Trading Event Contracts CFD relies heavily on technology, which can fail or malfunction.

Platform Outages: Technical issues, server failures, or maintenance can prevent you from accessing your account, placing orders, or closing positions.

Connectivity Issues: Internet connectivity problems on your end or ours can result in delayed or failed order execution.

Software Bugs: Despite rigorous testing, software bugs can occur, potentially affecting order execution, pricing, or account balances.

Data Feed Errors: Errors in data feeds can result in incorrect pricing or market information, potentially leading to poor trading decisions.

Third-Party Dependencies: We rely on third-party services for various functions. Failures in these services can affect our platform's performance.

Technology failures can occur at critical moments. Always have contingency plans.

Online trading platforms are targets for cyberattacks and security breaches.

Account Hacking: Unauthorized access to your account could result in theft of funds or unauthorized trading activity.

Phishing and Social Engineering: Criminals may attempt to trick you into revealing your login credentials or personal information through fake emails or websites.

Platform Security Breaches: Despite our security measures, no system is completely immune to sophisticated cyberattacks.

Data Privacy: Security breaches could result in the exposure of your personal and financial information.

Use strong passwords, enable two-factor authentication, and be vigilant against phishing attempts.

The regulatory environment for Event Contracts CFD is evolving and varies by jurisdiction.

Regulatory Changes: New regulations or changes to existing regulations could affect the availability, terms, or legality of Event Contracts CFD trading.

Jurisdictional Restrictions: Event Contracts CFD may not be legal in all jurisdictions. It is your responsibility to ensure compliance with local laws.

Limited Regulatory Protection: Depending on your jurisdiction, you may have limited or no regulatory protection or recourse in case of disputes.

Enforcement Actions: Regulatory authorities may take enforcement actions against EXDGE or the industry, potentially affecting your ability to trade or access funds.

Tax Implications: Trading profits may be subject to taxation. Tax laws vary by jurisdiction and can change. Consult a tax professional for guidance.

Trading Event Contracts CFD may have tax implications that vary by jurisdiction.

Tax Liability: Profits from trading may be subject to income tax, capital gains tax, or other taxes depending on your jurisdiction and circumstances.

Reporting Requirements: You may be required to report your trading activity and profits to tax authorities. Failure to do so could result in penalties.

Changing Tax Laws: Tax laws and regulations can change, potentially affecting the tax treatment of your trading activity.

International Taxation: If you trade across borders, you may be subject to tax obligations in multiple jurisdictions.

EXDGE does not provide tax advice. Consult a qualified tax professional regarding your specific situation.

As the counterparty to your trades, EXDGE may have conflicts of interest.

Counterparty Trading: When you trade Event Contracts CFD with us, we are the counterparty. Your losses are our gains and vice versa.

Pricing and Spreads: We set the prices and spreads for Event Contracts, which may not always reflect the most favorable market conditions for you.

Order Execution: We have discretion in how orders are executed, which could potentially disadvantage you in certain circumstances.

Market Making: We may act as a market maker, which means we may take positions that are opposite to yours.

Information Asymmetry: We have access to aggregate client position data and trading patterns, which could provide us with informational advantages.

We are committed to treating clients fairly, but you should be aware of these inherent conflicts.

Event markets can be susceptible to manipulation and fraudulent activity.

Price Manipulation: Bad actors may attempt to manipulate prices through coordinated trading, spreading false information, or other means.

Insider Information: Some participants may have access to non-public information that gives them an unfair advantage.

Fake News and Misinformation: False or misleading information spread through social media or other channels can affect market prices.

Wash Trading: Artificial trading activity designed to create the appearance of market interest can mislead traders.

Pump and Dump Schemes: Coordinated efforts to artificially inflate prices before selling can result in significant losses for unsuspecting traders.

Be skeptical of information sources and be aware that markets can be manipulated.

Extraordinary events beyond our control can affect trading and contract settlement.

Natural Disasters: Earthquakes, hurricanes, floods, and other natural disasters can disrupt trading operations and affect event outcomes.

War and Civil Unrest: Armed conflicts, terrorism, and civil disturbances can make it impossible to determine event outcomes or continue operations.

Government Actions: Government interventions, emergency declarations, or regulatory actions can affect trading and contract settlement.

Pandemic and Health Emergencies: Public health emergencies can disrupt events, markets, and our ability to operate normally.

In force majeure situations, we may suspend trading, delay settlements, or take other necessary actions.

Past performance is not indicative of future results.

Historical Returns: Any historical performance data or examples provided are for illustrative purposes only and do not guarantee future performance.

Hypothetical Performance: Hypothetical or simulated performance results have inherent limitations and may not reflect actual trading results.

Survivorship Bias: Performance statistics may not account for traders who have stopped trading due to losses.

Market Conditions Change: Market conditions, volatility, and liquidity can change significantly over time, affecting trading outcomes.

Forward-Looking Statements: Any projections, forecasts, or forward-looking statements are subject to significant uncertainties and should not be relied upon.

Make trading decisions based on your own analysis and risk tolerance, not past performance.

EXDGE services are not available in all jurisdictions.

EXDGE does not accept clients from: United States, Canada, European Union member states, United Kingdom, Japan, Singapore, and other restricted jurisdictions as determined by applicable law.

Responsibility to Comply: It is your responsibility to ensure that your use of EXDGE services complies with all applicable laws in your jurisdiction.

VPN and Location Masking: Using VPNs or other methods to circumvent geographic restrictions is prohibited and may result in account termination and forfeiture of funds.

Changes to Restrictions: We may add or remove jurisdictional restrictions at any time based on regulatory developments or business decisions.

Account Closure: If we determine that you are located in a restricted jurisdiction, we reserve the right to close your account and return your funds (minus any applicable fees).

Do not attempt to use our services if you are located in a restricted jurisdiction.

By trading Event Contracts CFD with EXDGE, you acknowledge and accept the following responsibilities:

• Understanding Risks: You understand the risks associated with Event Contracts CFD trading and accept full responsibility for your trading decisions.
• Financial Capability: You have the financial capability to bear the risks of trading and can afford to lose your entire investment.
• Independent Decision Making: You are making independent trading decisions and are not relying on EXDGE for investment advice.
• Account Security: You are responsible for maintaining the security of your account credentials and for all activity in your account.
• Accurate Information: You have provided accurate and complete information during account registration and will update it as necessary.
• Compliance with Laws: You will comply with all applicable laws and regulations in your jurisdiction.
• Monitoring Positions: You are responsible for monitoring your positions, margin levels, and account activity.
• Understanding Platform: You have familiarized yourself with the EXDGE platform and understand how to place orders and manage positions.
• Reading Terms: You have read and understood our Terms & Conditions, Privacy Policy, and all other relevant documentation.
• Seeking Professional Advice: You will seek professional financial, legal, and tax advice as appropriate for your circumstances.

Failure to meet these responsibilities may result in losses or account restrictions.

While we cannot guarantee profits or prevent losses, we recommend the following risk management practices:

• Start Small: Begin with small position sizes until you gain experience and confidence.
• Use Stop Losses: Implement stop-loss orders to limit potential losses on each trade.
• Diversify: Don't concentrate all your capital in a single event or market category.
• Limit Leverage: Use leverage conservatively and understand its impact on your risk exposure.
• Set Risk Limits: Determine in advance how much you're willing to risk on each trade and overall.
• Avoid Emotional Trading: Don't let emotions drive your trading decisions. Stick to your trading plan.
• Keep Records: Maintain detailed records of your trades for analysis and tax purposes.
• Stay Informed: Keep up with news and developments that may affect your positions.
• Understand Contracts: Fully understand the terms and settlement conditions of each contract before trading.
• Monitor Margin: Regularly check your margin levels and maintain adequate account equity.
• Use Demo Accounts: Practice with demo accounts before risking real money.
• Set Time Limits: Avoid overtrading by setting limits on your trading time and frequency.
• Review Performance: Regularly review your trading performance and learn from both successes and failures.
• Avoid Revenge Trading: Don't try to immediately recover losses by taking larger risks.
• Take Breaks: Step away from trading if you're experiencing stress or making poor decisions.
• Understand Fees: Be aware of all fees and costs associated with trading, as they affect your profitability.
• Plan Your Exits: Have a clear exit strategy for both winning and losing trades before entering a position.

These recommendations do not guarantee success but can help manage risk effectively.