This Risk Disclosure Statement (the “Disclosure”) is issued by Kohle Capital Markets Limited (the “Company”, “we”, “us”, or “our”) in relation to digital services, platforms, and applications operated under the KCM Trade brand (the “Services”).
This Disclosure is intended to inform users of the nature and risks associated with trading in leveraged and derivative financial instruments and should be read in conjunction with the Company’s Terms of Service, Regulatory and Licensing Disclosure, Order Execution Policy, Leverage and Margin Policy, Client Appropriateness Policy, and other applicable legal documentation.
1. General Risk Warning
Trading in leveraged financial instruments involves a high degree of risk and may not be suitable for all investors.
Users may sustain losses in excess of their initial investment. Past performance is not a reliable indicator of future results.
Before engaging in trading activities, users should carefully consider their financial situation, investment objectives, level of experience, and risk tolerance.
2. Nature of the Products
The Services may provide access to financial instruments, including but not limited to:
- Contracts for Difference (CFDs)
- Foreign exchange (forex) instruments
- Derivative instruments, including options, futures, swaps, and related products
These instruments are complex and may not be suitable for all users. Full specifications for each available instrument — including trading hours, margin requirements, spreads, swap rates, and contract sizes — are set out in the Company’s Product Specification.
3. Leverage Risk
Many financial instruments offered through the Services involve leverage, which can magnify both gains and losses.
A relatively small market movement may have a disproportionately large impact on a user’s position, potentially resulting in rapid and significant losses.
4. Market Volatility and Liquidity Risk
Financial markets may be volatile, and prices may change rapidly due to economic events, market conditions, or other factors.
Periods of low liquidity may increase the risk of slippage, delayed execution, or the inability to close positions at desired prices.
5. Counterparty and Execution Risk
In certain transactions, the Company may act as principal or counterparty to a user’s trade. This means the Company takes the opposite side of the user’s position. Where the Company acts as market maker, a potential conflict of interest may exist between the Company’s interest and the user’s interest in trade execution. The Company manages such conflicts in accordance with its Conflicts of Interest Policy and its obligations as a licensed Investment Dealer under the Securities Act 2005 (Mauritius).
Execution of orders is subject to market conditions, system availability, and liquidity. Slippage, re-quotes, partial fills, or execution delays may occur.
6. Margin and Liquidation Risk
Trading on margin involves the risk that positions may be automatically closed if margin requirements are not met.
Such liquidation may occur without prior notice and may result in losses that exceed the funds available in a user’s account.
7. Currency and Exchange Rate Risk
When trading foreign exchange instruments or financial products denominated in currencies other than a user’s base currency, exchange rate fluctuations may adversely affect the value of positions, profits, or losses.
Currency risk is present throughout the life of a position and may result in additional losses that are independent of any movement in the underlying instrument.
8. Overnight Financing and Swap Rate Risk
Positions held open overnight or over weekends may be subject to financing charges, commonly referred to as swap rates or rollover costs.
Such charges accrue on a daily basis and may represent a significant cumulative cost where positions are held for extended periods. Swap rates may be positive or negative depending on the direction of the trade and prevailing interest rate differentials. Applicable rates are published through the trading platform and are subject to change without prior notice.
9. Gap Risk
Financial markets may open at prices significantly different from the previous close — commonly referred to as “gapping” — due to events occurring outside trading hours, including economic data releases, geopolitical developments, or other market-moving announcements.
Gap events may result in orders being executed at prices materially worse than intended, and losses may exceed any stop-loss orders placed or the available account balance. Negative balance protection measures apply under normal market conditions; however, the Company cannot guarantee protection against all gap events.
10. Concentration Risk
Holding positions that are concentrated in a single instrument, sector, currency pair, or correlated group of instruments increases exposure to adverse movements in those specific markets.
Users are encouraged to consider the risks of concentration when determining the composition and size of their trading portfolio. Diversification does not guarantee against loss.
11. Technology and Platform Risk
The Services are delivered through electronic systems, including websites, mobile applications, APIs, and third-party platforms.
Users acknowledge the risk of system failures, connectivity issues, latency, hardware or software malfunctions, and other technical disruptions that may affect access to the Services or execution of transactions.
12. Third-Party Service Risk
The Services may rely on third-party service providers, including liquidity providers, technology vendors, and infrastructure providers.
Failures, delays, or disruptions affecting such third parties may impact the availability or performance of the Services.
13. Regulatory and Legal Risk
Changes in laws, regulations, regulatory guidance, or enforcement practices may affect the availability, legality, or terms of the Services.
Users are responsible for ensuring that their use of the Services complies with applicable laws in their jurisdiction.
14. No Guarantee of Profit
There is no guarantee that users will achieve profits through the use of the Services.
Trading results may vary, and losses may be substantial.
15. No Investment Advice
The Services are provided on an execution-only basis.
Nothing in the Services or this Disclosure constitutes investment advice, trading recommendations, or an offer to manage investments on behalf of users.
16. Suitability and Independent Advice
Users are solely responsible for assessing the suitability of the Services and the risks associated with trading.
Users should seek independent professional advice where appropriate.
17. Amendments
The Company may amend this Disclosure from time to time to reflect changes in:
- Applicable laws or regulations
- Regulatory guidance or platform governance requirements
- Products, services, or operational practices
Any amendments shall take effect upon publication, as indicated by the updated Last Updated date.
18. Contact Information
For enquiries relating to this Risk Disclosure Statement, please contact:
Kohle Capital Markets Limited
Email: CS@kcmtrade.com
Website: https://www.kcmtrade.com
By accessing or using the Services, you acknowledge that you have read, understood, and accepted the risks described in this Risk Disclosure Statement.