MARKET SYSTEMS LIMITED

Issuer: MARKET SYSTEMS LIMITED (“Market Systems”, “we”, “us”, “our”)
Company number / FCA reference: 07115124
Registered office / correspondence address: 49 Long Lane, Cambridge, United Kingdom
Email: info@marketsystems.org

Version: 1.2
Effective from: 01 July 2024
Last reviewed: 01 April 2025

1. Purpose and status of this document

1.1 This Risk Disclosure Statement (the “Risk Disclosure”) sets out material risks associated with trading Contracts for Difference (“CFDs”) and other leveraged products (together, “Leveraged Products”) and with using our Platform, signals/analytics, and related services.

1.2 This Risk Disclosure is not investment advice, a personal recommendation, or an assurance of performance. It does not explain every risk or how risks relate to your personal circumstances.

1.3 This Risk Disclosure should be read together with the Customer Agreement, product specifications, order execution disclosures, fees/charges schedule, and any other documents we provide to you.

1.4 You should trade only if you understand the nature of CFDs and Leveraged Products and the extent of your exposure to risk. If you are unsure, obtain independent professional advice.

2. High-level warning

2.1 CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. You may lose all the money you deposit and, depending on your client classification and applicable protections, you may lose more than your deposit.

2.2 Leverage amplifies outcomes. Small market movements can produce disproportionately large profits or losses.

2.3 Past performance is not a reliable indicator of future results. This includes any backtests, hypothetical results, simulated performance, or examples.

2.4 You should not trade with money you cannot afford to lose, nor rely on trading profits to meet living expenses, debt obligations, or essential costs.

3. Execution-only and client responsibility

3.1 Unless we expressly agree otherwise in writing under a separate advisory mandate, our services are provided on an execution-only and self-directed basis. You are solely responsible for:

• evaluating whether trading is appropriate for you;
• understanding product features, margin requirements, and costs;
• monitoring Positions and risk exposure; and
• deciding whether, when, and how to place Orders.

3.2 Any content, market commentary, signals, analytics, educational materials, or AI-assisted outputs are provided for general information purposes and do not take account of your objectives, financial situation, or needs. They may be wrong, incomplete, delayed, or based on assumptions.

3.3 Nothing in this Risk Disclosure transfers to us responsibility for your trading decisions. We do not accept responsibility for losses arising from your investment decisions, except to the extent such responsibility cannot be excluded under applicable law.

4. Key risks of CFDs and leveraged trading

4.1 Leverage and margin risk

(a) CFDs typically require you to post Margin rather than paying the full value of an exposure. This means your market exposure can be much larger than your deposit.
(b) Losses can accumulate quickly and may exceed the funds available in your Account (subject to any mandatory protections applicable to your classification).
(c) If your Account equity falls below required levels, we may require additional funds and/or close out Positions without prior notice where permitted by the Customer Agreement and applicable law.
(d) Margin requirements can change at short notice due to volatility, liquidity conditions, concentrated exposure, or regulatory requirements.

4.2 Stop-loss orders are not guaranteed

(a) Stop-loss and take-profit orders may not execute at your specified price.
(b) During fast markets or price gaps, execution may occur at the next available price, which can be materially worse than expected.
(c) Stop orders may reduce risk, but cannot eliminate the risk of loss.

4.3 Gapping and extreme market moves

Markets can gap due to news, macroeconomic events, earnings releases, geopolitical shocks, trading halts, or low liquidity. A gap can cause:

• immediate losses beyond your intended risk limit;
• orders executing far from requested levels; and/or
• forced liquidation at unfavourable prices.

4.4 Financing/rollover and holding costs

(a) Positions held overnight may incur financing/rollover charges (or credits).
(b) Holding costs can be significant and can turn an otherwise profitable trade into a loss.
(c) Funding rates and financing methodologies may change.

4.5 Spread widening and pricing risk

(a) CFD pricing typically includes a spread. Spreads may widen materially during volatility, illiquidity, market opens/closes, or disruptions.
(b) Quoted prices may differ from prices available elsewhere due to data latency, venue differences, and our execution arrangements.
(c) Indicative prices may not be executable prices.

4.6 Short selling risk

CFDs can provide short exposure. If the underlying price rises, losses on a short position can be substantial and may accumulate rapidly.

5. Liquidity, execution, and order-handling risks

5.1 Liquidity risk. Some instruments may trade infrequently or become illiquid. Illiquidity may cause:

• inability to open/close a Position at a desired time;
• partial fills (where applicable);
• execution at materially worse prices; and
• wider spreads and increased slippage.

5.2 Volatility risk. Increased volatility can lead to rapid equity changes, stop-outs, and forced closures.

5.3 Trading halts and extraordinary events. Underlying markets may be halted or suspended; instruments may be delisted; trading hours may change. In such cases we may:

• restrict new Orders;
• close Positions where continued quoting is not practicable; and/or
• determine a fair price using reasonable methodologies consistent with the Customer Agreement and applicable requirements.

5.4 Queued or delayed orders. Orders placed outside trading hours, during outages, or during exceptional conditions may be queued, rejected, or executed at the next available opportunity, which may be at a materially different price.

6. Counterparty, conflicts, and credit risk

6.1 Counterparty risk. CFDs are typically over-the-counter contracts. If we are your counterparty (principal), your exposure includes the risk that we fail to meet our obligations.

6.2 Conflicts of interest. Where we act as principal, we may earn revenue from spreads, financing, commissions (if applicable), and other charges. We maintain policies designed to identify and manage conflicts, but conflicts cannot be eliminated entirely.

6.3 Client money and insolvency considerations. Where applicable, client money is held in accordance with relevant rules and arrangements described in the Customer Agreement and related disclosures. However, no safeguarding arrangement can eliminate all risk in insolvency scenarios, and recovery may be delayed and may be affected by legal and administrative processes.

7. Operational, technology, and cyber risks

7.1 Trading via an electronic platform involves operational and technology risks, including:

• platform outages, latency, system errors, maintenance downtime;
• connectivity failures (your internet, device, or network);
• third-party service disruptions (hosting, market data, payment processors);
• cyber incidents, malware, credential theft, SIM swap, phishing, or unauthorised access.

7.2 These risks can result in:

• inability to place, modify, or close Orders/Positions;
• delayed execution, erroneous execution, or missed trading opportunities;
• incomplete information display (prices, charts, account data).

7.3 You are responsible for maintaining adequate security hygiene, including safeguarding credentials and devices.

8. Currency and conversion risks

8.1 If your Account is denominated in one currency and your Positions, fees, or funding are in another currency, you are exposed to foreign exchange risk.

8.2 Currency conversion rates and conversion costs can affect returns, Margin, and liquidation outcomes, including during adverse moves.

9. Fees, charges, and the effect of costs

9.1 Trading returns are affected by costs including spreads, financing/rollover, commissions (if applicable), market data fees (if applicable), currency conversion costs, and subscription fees for analytics/signals.

9.2 High-frequency trading and short-term strategies can generate substantial cumulative costs that materially impair performance even when individual trades appear profitable.

10. Asset-class specific risks

This section highlights additional risks commonly associated with underlying markets. The precise product specification and trading conditions for each instrument are shown on the Platform.

10.1 Foreign exchange (FX)

• FX markets can be highly volatile and are sensitive to interest rate decisions, central bank interventions, macroeconomic releases, and geopolitical events.
• Liquidity can deteriorate sharply around major announcements, widening spreads and increasing slippage.
• In extreme events, FX can gap significantly, producing rapid losses.

10.2 Indices

• Index levels can move sharply due to macro events, constituent earnings, and rebalancing.
• Volatility spikes can widen spreads and trigger rapid margin depletion.
• Trading hours and holiday schedules may differ from your local time, affecting execution.

10.3 Commodities (including energy and metals)

• Commodity prices can be driven by supply shocks, weather, geopolitics, OPEC decisions, inventory data, and transportation constraints.
• Certain commodity reference markets can be subject to limit moves, suspensions, or extraordinary volatility.
• Some commodity exposures reflect futures market dynamics (including roll effects), which can influence pricing and holding costs.

10.4 Shares / equities and equity-related instruments

• Equity prices can gap on earnings, corporate actions, or news releases, including outside regular market hours.
• Corporate actions (dividends, splits, mergers, rights issues, delistings) can affect pricing and may require adjustments to Positions.
• Single-stock instruments can become illiquid or subject to trading halts; in extreme cases values can decline to near-zero.

10.5 ETFs and exchange-traded products (where referenced)

• ETFs can trade at a premium/discount to net asset value.
• Liquidity depends on both the ETF and its underlying holdings; stressed markets can impair execution.
• Leveraged/inverse products (if referenced) can behave differently than expected over time and can amplify volatility.

10.6 Interest rate products (where referenced)

• Rate expectations can change quickly due to inflation data, central bank communications, and macro developments.
• Liquidity may be concentrated in specific maturities and can vary across sessions.

10.7 Cryptoasset-related products (restricted; where permitted and available)

• Cryptoasset markets can be extremely volatile, with rapid and large price swings.
• Regulatory treatment of cryptoassets and cryptoasset derivatives can change quickly and may restrict availability.
• Cryptoassets may be exposed to heightened fraud, cyber risk, market manipulation, and operational failures in the broader ecosystem.
• Certain cryptoasset products may be unavailable to retail clients or offered only where permitted by Applicable Law and your client classification.

11. Subscription services, signals, analytics, and AI-assisted features

11.1 If you subscribe to signals/analytics, you acknowledge that:

• signals and analytics are not guarantees of profit and may result in losses;
• any levels (entries, targets, invalidation) are informational only;
• model-driven outputs can fail in regime shifts, abnormal volatility, or illiquid markets.

11.2 AI-assisted features may generate outputs that appear confident but are incorrect or incomplete. You must independently verify any information used to make trading decisions.

11.3 You remain solely responsible for deciding whether to act on any signal, alert, insight, or AI output.

12. Regulatory, legal, and tax risks

12.1 Legal and regulatory changes may affect product availability, margin requirements, trading hours, taxation, and reporting obligations.

12.2 You are responsible for understanding and meeting your own tax obligations arising from trading and subscriptions. Tax treatment depends on individual circumstances and may change.

13. Appropriateness, restrictions, and our right to intervene

13.1 We may:

• require you to complete assessments and provide information;
• restrict products, leverage, or trading functionality;
• refuse Orders or close Positions;
• change margin requirements or risk limits, where permitted by the Customer Agreement and Applicable Law, including to manage risk, comply with regulatory requirements, or protect platform integrity.

13.2 Any risk controls we apply do not guarantee protection from losses and do not shift responsibility for trading outcomes from you to us.

14. Acknowledgement

By opening an Account, trading, and/or using the Platform, you confirm that:

• (a) you have read and understood this Risk Disclosure;
• (b) you understand CFDs and Leveraged Products may result in rapid losses and that you may lose all invested capital (and potentially more, depending on applicable protections);
• (c) you understand that stop-loss orders are not guaranteed and that gaps and slippage can occur;
• (d) you understand that signals, analytics, and AI tools are informational only and are not investment advice; and
• (e) you accept responsibility for your trading decisions and risk management.

15. Contact

Questions about this Risk Disclosure may be directed to: info@marketsystems.org

MARKET SYSTEMS LIMITED
49 Long Lane, Cambridge, United Kingdom