Risk Disclaimer

1. Introduction

Tag Fx Ltd (Registration Number 2024-00138) is a brokerage firm offering trading services in financial and commodity-based derivative instruments. Our office is located at:

Ground Floor, The Sotheby Building

Rodney Village, Gros-Islet

Rodney Bay, Saint Lucia LC01401

2. Scope of the Policy

This risk disclosure policy (hereinafter referred to as the “Policy”) is provided to both existing and prospective Clients of the Company, in compliance with legal requirements.

The Policy is an integral part of the Client’s agreement with the Company, specifically the Terms and Conditions Agreement, and thus binds the Client to its terms as detailed herein.

Before applying for a trading account with the Company and prior to initiating any trading activities, all Clients and potential Clients are advised to thoroughly review the following risk disclosures and warnings related to CFDs and leveraged FX.

It is important to note that this Policy cannot and does not cover all risks and significant aspects associated with trading in CFDs and leveraged FX. The notice is intended to provide a general understanding of the risks involved in trading these financial instruments in a fair and non-misleading manner.

3. General Risk Warning

Clients should not engage in investments in Financial Instruments unless they fully understand the associated risks of each financial instrument offered by the Company.

Clients should recognize that they are at substantial risk of incurring losses and damages due to the purchase and/or sale of any financial instrument and must accept that they are prepared to undertake this risk.

This document cannot and does not cover all risks and other significant aspects involved in dealing in CFDs and leveraged FX. It is designed to provide a general understanding of the risks associated with trading Financial Instruments in a fair and non-misleading manner, in accordance with the Law. Clients should be aware of all the risks associated with trading in CFDs and leveraged FX and should seek independent professional advice if they have any doubts. The Company does not provide such advice. If Clients do not understand the risks involved in trading CFDs and leveraged FX, they should refrain from trading.

4. Technical Risks

A. The Client, not the Company, is responsible for financial losses caused by failure, malfunction, interruption, disconnection, or malicious actions of information, communication, electricity, electronic, or other systems.

B. If the Client undertakes transactions on an electronic system, they will be exposed to risks associated with the system, including the failure of hardware, software, servers, communication lines, and internet failure. Such failures may result in the Client's order not being executed according to instructions or not being executed at all. The Company does not accept any liability in the case of such failures.

C. The Client acknowledges that unencrypted information transmitted by email is not protected from unauthorized access.

D. During periods of high trading volume, the Client may experience difficulties in connecting via phone or to the Company’s Platform(s)/system(s), particularly in fast Market conditions (e.g., when key macroeconomic indicators are released).

E. The Client acknowledges that internet access may be subject to events that can affect their access to the Company’s Website and/or 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 Company is not responsible for any damages or losses resulting from such events beyond its control or for any other losses, costs, liabilities, or expenses (including, without limitation, loss of profit).

F. The Client is warned that trading on an electronic platform carries the risk of financial loss, which may be a consequence of, among other things:

• Failure of the Client’s devices, software, and poor quality of connection;
• Hardware or software failure, malfunction, or misuse by either the Company or Client.

G. In connection with the use of computer equipment and data and voice communication networks, the Client bears the following risks, among others, for which the Company accepts no liability:

• Power outages affecting the Client’s or provider’s equipment or communication operator (including voice communication) that serves the Client;
• Physical damage (or destruction) of communication channels linking the Client and provider (communication operator), provider, and the trading or information server of the Client;
• Outage (unacceptably low quality) of communication channels used by the Client, the Company, the provider, or communication operator (including voice communication) used by the Client or the Company;
• Incorrect or non-compliant settings of the Client Terminal;
• Delayed updates of the Client Terminal;
• Use of communication channels, hardware, and software that generate the risk of non-reception of messages (including text messages) by the Client from the Company;
• Trading over the phone might be impeded by an overload of connections;
• Malfunction or non-operability of the Platform, which includes the Client Terminal.
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The Client may suffer financial losses due to the materialization of the above risks, for which the Company accepts no responsibility or liability, and the Client shall be responsible for all related losses.

5. Trading Platform

A. The Client is warned that trading on an electronic platform involves the risk of financial loss due to, among other things:

• Failure of the Client’s devices, software, and poor quality of connection;
• Hardware or software failure, malfunction, or misuse by either the Company or Client;
• Improper functioning of the Client’s equipment;
• Incorrect settings of the Client’s Terminal;
• Delayed updates of the Client’s Terminal.

B. The Client acknowledges that only one Instruction can be in the queue at a time. Once an Instruction is sent, a new Instruction can be given to the Company.

C. The Client acknowledges that the only reliable source of Quotes Flow information is the live Server’s Quotes Base. The Quotes Base in the Client Terminal is not reliable because the connection between the Client Terminal and the Server may be disrupted, causing some Quotes to not reach the Client Terminal.

D. The Client acknowledges that once the order placing/deleting window or the position opening/closing window is closed, the Instruction sent to the Server cannot be cancelled.

E. Orders may be executed one at a time while in the queue. Multiple orders from the same Client Account at the same time may not be executed.

F. The Client acknowledges that closing an Order does not cancel the Instruction.

G. If the Client does not receive the result of the execution of a previously sent Order but decides to repeat the Order, the Client assumes the risk of making two Transactions instead of one.

H. The Client acknowledges that if a Pending Order has already been executed, but the Client sends an instruction to modify its level, only the instruction to modify Stop Loss and/or Take Profit levels on the position opened when the Pending Order triggered will be executed.

6. Risks and Warnings Associated with Transactions in Complex Financial Instruments (CFDs and Leveraged FX)

6.1 General

While CFDs and leveraged FX can be used for managing investment risk, these products may not be suitable for all investors. Different CFDs and leveraged FX involve varying levels of risk, and Clients should be aware of the risks and factors outlined in this document. However, this document cannot disclose all risks and important aspects of CFDs and leveraged FX.

Trading in CFDs and leveraged FX is VERY SPECULATIVE AND HIGHLY RISKY and is not suitable for all members of the general public.

Clients should not trade in these products unless they fully understand their nature and the extent of their exposure to economic, legal, and other risks involved, including the potential loss of all their money, additional commissions, and other expenses incurred.

Clients should also ensure that the product is suitable for them in light of their personal financial circumstances, financial resources, lifestyle, and obligations, and that they are financially able to bear the loss of their entire investment.

Clients should have sufficient knowledge to understand CFDs, leveraged FX trading, and the Underlying assets and Markets. CFDs are derivative financial instruments whose value is derived from the prices of the underlying assets/markets to which they refer (e.g., currency, equity indices, stocks, metals, indices futures, forwards, etc.). Although the Company sets the prices at which it trades through an algorithm, these prices are derived from the Underlying Assets/market. Therefore, it is crucial for Clients to understand 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 their trades.

The Company will not provide any advice regarding CFDs, leveraged FX, the Underlying Assets and Markets, or make investment recommendations of any kind. Therefore, if Clients do not understand the risks involved, they should seek advice and consultation from an independent financial advisor. If Clients still do not understand the risks involved in trading CFDs and leveraged FX, they should not trade.

6.2 Leverage and Gearing

Transactions in foreign CFDs and leveraged FX carry a high degree of risk. The initial margin may be small relative to the value of the CFDs and leveraged FX, resulting in transactions being “leveraged” or “geared”.

A relatively small market movement will have a proportionately larger impact on the funds the Client has deposited or will have to deposit, which can work against the Client as well as in their favor. Clients may sustain a total loss of initial Margin funds and any additional funds deposited with the Company to maintain their positions. If the market moves against the Client’s position and/or Margin requirements increase, the Client may be required to deposit additional funds on short notice to maintain their position. Failure to comply with a request for additional funds may result in the closure of the Client’s position(s) by the Company, and the Client will be liable for any resulting loss or deficit.

6.3 Risk-Reducing Orders or Strategies

The placement of certain Orders (e.g., “stop-loss” orders, where permitted

under local law, or “stop limit” Orders) intended to limit losses to certain amounts may not be effective if market conditions make it impossible to execute such Orders, e.g., due to illiquidity. Strategies using combinations of positions, such as “spread” and “straddle” positions, may be as risky as taking simple “long” or “short” positions. Therefore, Stop Limit and Stop Loss Orders cannot guarantee the limit of loss.

Trailing Stop and Expert Advisor cannot guarantee the limit of loss.

6.4 Volatility

Some CFDs and leveraged FX trade within wide intraday ranges with volatile price movements. Clients must carefully consider that there is a high risk of losses as well as profits. The price of CFDs is derived from the price of the Underlying Asset to which the CFDs refer (e.g., Currency Pairs, equity indices, metals, commodities, and forwards or any other asset available for CFD trading with the Company at its discretion). CFDs, leveraged FX, and related Underlying Markets can be highly volatile. The prices of CFDs, leveraged FX, and the Underlying Asset may fluctuate rapidly and over wide ranges, reflecting unforeseeable events or changes in conditions beyond the control of the Client or the Company. Under certain market conditions, it may be impossible for a Client's order to be executed at declared prices, leading to losses. The prices of CFDs, leveraged FX, and the Underlying Asset will be influenced by, among 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 marketplace.

6.5 Margin

Clients acknowledge and accept that, regardless of any information provided by the Company, the value of CFDs and leveraged FX may fluctuate downwards or upwards, and it is even possible that the investment may become worthless. This is due to the margining system applicable to such trades, which generally involves a comparatively modest deposit or margin in terms of the overall contract value. Consequently, a relatively small movement in the Underlying Market can have a disproportionately dramatic effect on the Client’s trade. If the Underlying Market movement is favorable, the Client may achieve a good profit, but an equally small adverse market movement can quickly result in the loss of the Client’s entire deposit and may also expose the Client to a large additional loss.

6.6 Liquidity

Some Underlying Assets may not become immediately liquid due to reduced demand, and Clients may not be able to obtain information on their value or the extent of associated risks.

6.7 Off-Exchange Transactions in CFDs and Leveraged FX

CFDs and leveraged FX offered by the Company are off-exchange transactions. While some off-exchange markets are highly liquid, transactions in off-exchange or non-transferable derivatives may involve greater risk than investing in on-exchange derivatives because there is no exchange market on which to close out an Open Position. It may be impossible to liquidate an existing position, assess the value of the position arising from an off-exchange transaction, or assess the exposure to risk. Bid prices and Ask prices need not be quoted, and even where they are, they will be established by dealers in these instruments, making it difficult to establish a fair price. Regarding transactions in CFDs and leveraged FX, the Company uses an Online Trading System for transactions in CFDs and leveraged FX that does not fall into the definition of a recognized exchange as it is not a Multilateral Trading Facility and thus does not offer the same protection.

6.8 Contingent Liability Investment Transactions

Contingent liability investment transactions, which are margined, require Clients to make a series of payments against the purchase price instead of paying the whole purchase price immediately. The Margin requirement depends on the underlying asset of the Financial Instrument. Margin requirements can be fixed or calculated from the current price of the underlying instrument and can be found on the Company’s website.

If Clients trade in CFDs or leveraged FX, they may sustain a total loss of the funds deposited to open and maintain a position. If the market moves against the Client, substantial additional funds may be required at short notice to maintain the position. Failure to provide the required funds within the specified time may result in the position being liquidated at a loss, and the Client will be responsible for the resulting deficit. It is noted that the Company is not obligated to notify the Client of any Margin Call to sustain a loss-making position.

Even if a transaction is not margined, it may still carry an obligation to make further payments under certain circumstances, over and above any amount paid when the Client entered the contract. Contingent liability investment transactions that are not traded on or under the rules of a recognized or designated investment exchange may expose Clients to substantially greater risks.

6.9 Contingent Liability Investment Transactions

Under certain trading conditions, it may be difficult or impossible to liquidate a position. This may occur, for example, during periods of rapid price movement when the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange, trading is suspended or restricted. Placing a Stop Loss will not necessarily limit the Client’s losses to the intended amounts because market conditions may make it impossible to execute such an Order at the stipulated price. In addition, under certain market conditions, the execution of a Stop Loss Order may be worse than its stipulated price, and the realized losses can be larger than expected.

6.10 No Delivery

It is understood that the Client has no rights or obligations in respect of the leveraged FX or Underlying Assets relating to the CFDs being traded. There is no delivery of the underlying asset.

6.11 Slippage

Slippage refers to the difference between the expected price of a Transaction in CFDs or leveraged FX and the actual execution price. Slippage often occurs during periods of higher volatility (e.g., due to news events), making it impossible to execute an Order at a specific price, especially when market orders are used, and also when large Orders are executed when there may not be sufficient interest at the desired price level to maintain the expected price of the trade.

7. Charges and Taxes

A. The provision of Services by the Company to the Client is subject to fees, available on the Company’s website. Before beginning to trade, Clients should obtain details of all fees, commissions, and charges for which they will be liable. Clients are responsible for checking for any changes in the charges.

B. If any charges are not expressed in monetary terms (e.g., as a percentage of contract value), Clients should ensure they understand what such charges are likely to amount to.

C. The Company may change its charges at any time.

D. There is a risk that the Client’s trades in any Financial Instruments may be or become subject to tax and/or any other duty, for example, due to changes in legislation or personal circumstances. The Company does not warrant that no tax and/or any other stamp duty will be payable. The Company does not offer tax advice.

E. Clients are responsible for any taxes and/or any other duty which may accrue in respect of their trades.

F. Taxes are subject to change without notice.

G. The Company’s prices in relation to CFDs and leveraged FX trading are set by the Company and may differ from prices reported elsewhere. The Company’s trading prices are those at which the Company is willing to sell CFDs and leveraged FX to its Clients at the point of sale. As such, they may not directly correspond to real-time market levels at the time of the sale of CFD or Leverage products.

8. Third-Party Risks

A. The Company may pass money received from Clients to a third party (e.g., an intermediate broker, a bank, a market, a settlement agent, a clearing house, or OTC counterparty) to hold or control in order to effect a Transaction through or with that person or to satisfy the Client’s obligation to provide collateral (e.g., initial margin requirement) in respect of a Transaction. The Company has no responsibility for any acts or omissions of any third party to whom it passes money received from the Client.

B. The third party to whom the Company passes money may hold it in an omnibus account, making it impossible to separate the Client’s money from the third party’s money. In the event of insolvency or analogous proceedings concerning that third party, the Company may only have an unsecured claim against the third party on behalf of the Client, exposing the Client to the risk that the money received by the Company from the third party is insufficient to satisfy the Client’s claims. The Company does not accept any liability or responsibility for any resulting losses.

C. The Company may deposit Client money with a depository that may have a security interest, lien, or right of set-off in relation to that money.

D. A Bank or Broker through whom the Company deals could have interests contrary to the Client’s interests.

9. Insolvency

The Company’s insolvency or default may result in positions being liquidated or closed out without the Client’s consent.

10. Communication between the Client and the Company

A. Clients accept the risk of financial losses caused by delays in receiving or not receiving any notice from the Company.

B. Clients acknowledge that unencrypted information transmitted by email is not protected from unauthorized access.

C. The Company is not responsible if unauthorized third parties access information, including electronic addresses, electronic communication and personal data, access data when transmitted between the Company and the Client or when using the internet or other network communication facilities, telephone, or any other electronic means.

D. Clients are fully responsible for the risks associated with undelivered internal mail messages sent by the Company’s Online Trading System.

11. Force Majeure Events

A. In the event of a Force Majeure Event, the Company may not be able to arrange for the execution of Client Orders or fulfill its obligations under the agreement with the Client. Consequently, Clients may suffer financial loss.

B. The Company will not be liable for

any type of loss or damage arising from any failure, interruption, or delay in performing its obligations under the Client Agreement due to a Force Majeure event. Clients acknowledge that under Abnormal Market Conditions, the period during which Orders are executed may be extended, or it may be impossible for Orders to be executed at declared prices or at all.

12. Abnormal Market Conditions

Clients acknowledge that under Abnormal Market Conditions, the period during which Orders are executed may be extended, or it may be impossible for Orders to be executed at declared prices or at all.

13. Foreign Currency

When a Financial Instrument is traded in a currency other than the Client’s country of residence, any changes in exchange rates may negatively affect its value, price, and performance, leading to losses for the Client.

14. Advice and Recommendations

A. The Company does not provide advice on the merits of a particular Transaction or any form of investment advice. Clients acknowledge that the Services do not include investment advice in CFDs and leveraged FX or the Underlying Markets. Clients alone will enter into Transactions and make relevant decisions based on their judgment. By requesting the Company to enter into any Transaction, Clients represent that they have independently assessed and investigated the risks of the Transaction. Clients represent that they have sufficient knowledge, market sophistication, professional advice, and experience to evaluate the merits and risks of any Transaction. The Company does not guarantee the suitability of the products traded under the Client Agreement and assumes no fiduciary duty in its relations with the Client.

B. The Company is not obligated to provide legal, tax, or other advice related to any Transaction. Clients should seek independent expert advice if they are uncertain about potential tax liabilities. Clients are warned that tax laws are subject to change from time to time.

C. From time to time and at its discretion, the Company may provide Clients (or in newsletters posted on its Website or provided 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. When it does so:

• The Company is not responsible for such information;
• The Company makes no representations, warranties, or guarantees regarding the accuracy, correctness, or completeness of such information or the tax or legal consequences of any related Transaction;
• This information is provided solely to enable Clients to make their own investment decisions and does not constitute investment advice or unsolicited financial promotions to the Client;
• If the document contains a restriction on the person or category of persons for whom it is intended or to whom it is distributed, Clients agree not to pass it on to such persons or categories of persons;
• Clients accept that prior to dispatch, the Company may have acted upon the information itself to make use of the information on which it is based. The Company does not make representations regarding the time of receipt by the Client and cannot guarantee that Clients will receive such information at the same time as other clients;
• It is understood that market commentary, news, or other information provided or made available by the Company are subject to change and may be withdrawn at any time without notice.
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15. No Guarantees of Profit

The Company provides no guarantees of profit or avoidance of losses when trading. Clients have received no such guarantees from the Company or its representatives. Clients are aware of the risks inherent in trading and are financially capable of bearing such risks and withstanding any losses incurred.

16. Conclusion

This policy cannot and does not disclose or explain all of the risks and other significant aspects involved in all Financial Instruments and Investment Services. The Company may provide additional warnings to Clients regarding the risks associated with their selected Investment Services and Financial Instruments, based on, among other things, the categorization assigned to them by the Company.