Risk disclosure and warning policy
This risk disclosure and warning notice is provided to you (our Client and prospective Client), as subsequently amended from time to time (“the Law”), which is applicable in Seymour Marketing Ltd. (“the Firm”).
All Clients and prospective Clients should read carefully the following risk disclosure and warnings contained in this document, before applying to the Firm for a trading account and before they begin to trade with the Firm. However, it is noted that this document cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in Binary Options.
2.1. Trading in Binary Options is SPECULATIVE AND RISKY and is not made for all individuals of the general public but only for those investors who:
(a) have the knowledge to comprehend Binary Options trading and the underlying assets and markets.
(b) comprehend and are willing to assume the economic, legal and other risks involved.
(c) taking into account their personal financial circumstances, financial resources, life style and obligations are financially able to assume the loss of their entire investment.
2.2. The Firm will not provide the Client with any advice relating to Binary Options, the underlying assets and markets or make investment recommendations of any kind.
2.3. Binary Option are financial instruments deriving their value from the prices of the underlying assets/markets in which they refer to (for example currency, equity indices, stocks, metals, indices futures, forwards etc.). Although the prices at which the Firm trades are set by an algorithm developed by the Firm, the prices are derived from the underlying assets /market. It is important that the Client comprehends the risks associated with trading in the relevant underlying asset/ market because fluctuations in the price of the underlying asset/ market will affect the profitability of his trade. Some such risks include:
Market liquidity: The prices of Binary Options will be influenced by, amongst other things, changing supply and demand relationships, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and the prevailing psychological characteristics of the relevant market place. So, market conditions can change significantly in a very short period of time and hence under certain market conditions it may be impossible for a Client’s Directive to be realized leading to losses.
Volatility: movements in the price of underlying assets/ markets can be volatile and unpredictable. This will have a direct impact on the Clients profits and losses. Comprehending the volatility of an underlying market will help guide the Client how to trade and how much he is willing to lose.
Market swings: swing is a sudden shift in the price of an underlying asset price from one level to another. Various factors can lead to gapping (for example, economic events or market announcements) and gapping can occur both when the underlying market is open and when it is closed. ‘Gapping’ can result in a significant loss (or profit).
2.4. It is understood that when it comes to trading in currencies, there may be situations, movements and/or conditions occurring at weekend, in the beginning of week or intra-day after release of significant macroeconomic figures, economic or political news that make currency markets to open with price levels that may substantially differ from previous prices.
2.5. It is understood that the Client has no rights or obligations in respect of the underlying instruments or assets relating to the Binary Options he is trading.
2.6. Binary Options offered by the Firm are not listed and/or traded on any regulated exchange. The prices and other conditions are set by the Firm, and the calculation of the price to be paid (or the payout to be received) at the time the contract is purchased or sold, will be based on the Firm’s best estimate of underlying market prices and the expected level of interest rates, implied volatilities and other market conditions during the life of the contract. The prices and other conditions are based on complex arithmetic calculations.
3. Fees and commissions
3.1. Before the Client commences trading, he should obtain details of any charges for which the Client will be liable.
3.2. The Provision of Services by the Firm to the Client is subject to charges, available on the Firm’s website. It is the Client’s responsibility to check for any changes in the charges.
3.3. The Firm does not warrant that no tax and/or any other duty will be payable. There is a risk that the Client’s trades in Binary Options may be or become subject to tax and/or any other duty for example because of changes in legislation or his personal circumstances. The Client is responsible for any taxes and/or any other duty which may accrue in respect of his trades.
3.4. It is noted that the Firm’s prices in relation to Binary Options trading are set by the Firm and may be different from prices reported elsewhere. The Firm’s trading prices are the ones at which the Firm is willing to sell Binary Options to its Clients at the point of sale. As such, they may not directly correspond to real time market levels at the point in time at which the sale of Binary Options occurs.
4. Third Party Risks
4.1. The Firm may pass capital received from the Client to a third party (e.g. a bank or broker) to hold or control in order to effect a Transaction through or with that person. The Firm has no responsibility for any acts or omissions of any third party to whom it will pass capital received from the Client.
4.2. In the event of the insolvency or any other analogous proceedings in relation to that third party, the Firm may only have an unsecured claim against the third party on behalf of the Client, and the Client will be exposed to the risk that the capital received by the Firm from the third party is insufficient to satisfy the claims of the Client with claims in respect of the relevant account. The Firm does not accept any liability or responsibility for any resulting losses.
4.3. The Firm has the right to hold Client’s capital on the Client’s behalf outside the EEA. The Firm will not be liable for the insolvency, acts or omissions of any third party referred to in this paragraph.
4.5. A Bank or Broker through whom the Firm may deal with could have interests contrary to the Client’s Interests.
5. Technical Risks:
5.1. The Client and not the Firm shall be responsible for the risks of financial losses caused by failure, malfunction, interruption, disconnection or malicious actions of information, communication, electricity, electronic or other systems.
5.2. If the Client undertakes transactions on an electronic system, he will be exposed to risks associated with the system including the failure of hardware, software, servers, communication lines and internet failure. The result of any such failure may be that his Directive is either not realized according to his instructions or it is not realized at all. The Firm does not accept any liability in the case of such a failure.
5.3. The Firm has no responsibility if unauthorized third persons have access to information, including electronic addresses, electronic communication and personal data, access data when the above are transmitted between the Firm or any other party, using the internet or other network communication facilities, telephone, or any other electronic means.
5.4. The Client admits that the unencrypted information transmitted by e-mail is not protected from any unauthorized access.
5.5. At times of excessive deal flow the Client may have some difficulties to be connected over the phone or the Firm’s trading platform(s)/system(s), especially in fast Market (for example, when key macroeconomic indicators are released).
5.6. The Client admits that the internet may be subject to events which may affect his access to the Firm’s website and/or the Firm’s trading platform(s)/system(s), including but not limited to interruptions or transmission blackouts, software and hardware failure, internet disconnection, public electricity network failures or hacker attacks. The Firm is not responsible for any damages or losses resulting from such events which are beyond its control or for any other losses, costs, liabilities, or expenses (including, without restriction, loss of profit) which may result from the Client’s inability to access the Firm’s Website and/or Trading System or delay or failure in sending Directives or Transactions.
5.7. The Client is warned that when trading in an electronic platform he assumes risk of financial loss which may be a consequence of amongst other things:
Failure of Client’s devices, software and poor quality of connection.
The Firm’s or Client’s hardware or software failure, malfunction or misuse.
Improper work of Client’s equipment.
Wrong setting of Client’s Terminal.
Delayed updates of Client’s Terminal.
5.8. In connection with the use of computer equipment and data and voice communication networks, the Client bears the following risks amongst other risks in which cases the Firm has no liability of any resulting loss:
Power cut of the equipment on the side of the Client or the provider, or communication operator (including voice communication) that serves the Client.
Physical damage (or destruction) of the communication channels used to link the Client and provider (communication operator), provider, and the trading or information server of the Client.
Outage (unacceptably low quality) of communication via the channels used by the Client, or the channels used by the provider, or communication operator (including voice communication) that are used by the Client.
Wrong or inconsistent with requirements settings of the Client Terminal.
Untimely update of the Client Terminal.
When carrying out transactions via the telephone (land or cell phone lines) voice communication, the Client runs the risk of problematic dialing, when trying to reach an employee of the broker service department of the Firm due to communication quality issues and communication channel loads.
The use of communication channels, hardware and software, generate the risk of non-reception of a message (including text messages) by the Client from the Firm.
Trading over the phone might be impeded by overload of connection.
6.1. The Firm’s insolvency or default, may lead to positions being liquidated or closed out without the Client’s consent.
7. Trading Platform
7.1. The Client admits that only one Instruction is allowed to be in the queue at one time. Once the Client has sent an Instruction, any further Instructions sent by the Client are ignored and the “Directives is locked” message appears until the first Instruction is realized.
7.2. The Client admits that the only reliable source of Quotes Flow information is that of the live Server’s Quotes Base. Quotes Base in the Client Terminal is not a reliable source of Quotes Flow information because the connection between the Client Terminal and the Server may be disrupted at some point and some of the Quotes simply may not reach the Client Terminal.
7.3. The Client admits that when the Client closes the Directive placing/ deleting window or the position opening/closing window, the Instruction, which has been sent to the Server, shall not be cancelled.
8. Force Majeure Events
8.1. In case of Force Majeure Events the Client shall accept the risk of financial loss.
9. Investor Compensation Fund
9.1. The Firm participates in the Investor Compensation Fund. Certain clients will be entitled to compensation under the Investor Compensation Fund where the Firm fails. Compensation shall not exceed twenty thousand Euro (EUR 20.000) for each entitled Client. For more details please refer to the “Investor Compensation Fund” found on our website.
10. Advice and Recommendations
10.1. The Firm will not advise the Client about the merits of a particular Transaction or give him any form of investment advice and the Client admits that the Services do not include the provision of investment advice in Binary Options or the Underlying Markets. The Client alone will enter into Transactions and take relevant decisions based on his own judgment. In asking the Firm to enter into any Transaction, the Client represents that he has been solely responsible for making his own independent appraisal and investigation into the risks of the Transaction. He represents that he has sufficient knowledge, market sophistication, professional advice and experience to make his own evaluation of the merits and risks of any Transaction. The Firm gives no warranty as to the suitability of the products traded under this Agreement and assumes no fiduciary duty in its relations with the Client.
10.2. The Firm will not be under any duty to provide the Client with any legal, tax or other advice relating to any Transaction. The Client should seek independent expert advice if he is in any doubt as to whether he may incur any tax liabilities. The Client is hereby warned that tax laws are subject to change from time to time.
10.3. The Firm may, from time to time and at its discretion, provide the Client (or in newsletters which it may post on its Website or provide to subscribers via its Website or the Trading Platform or otherwise) with information, recommendations, news, market commentary or other information but not as a service. Where it does so:
(a) the Firm will not be responsible for such information;
(b) if the document contains a restriction on the person or category of persons for whom that document is intended or to whom it is distributed, the Client agrees that he will not pass it on to any such person or category of persons;
(c) the Firm gives no representation, warranty or guarantee as to the accuracy, correctness or completeness of such information or as to the tax or legal consequences of any related Transaction;
(d) this information is provided solely to enable the Client to make his own investment decisions and does not amount to investment advice or unsolicited financial promotions to the Client;
10.4. It is understood that market commentary, news, or other information provided or made available by the Firm are subject to change and may be withdrawn at any time without notice.
11. No Guarantees of Profit
11.1. The Firm provides no guarantees of profit nor of avoiding losses when trading in Binary Options. Customer has received no such guarantees from the Firm or from any of its representatives. Customer is aware of the risks inherent in trading in Binary Options and is financially able to bear such risks and withstand any losses incurred.