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Risk Disclosure Statement

Last Updated: January 5, 2026

⚠️ CRITICAL WARNING

TRADING FOREX, CFDs, CRYPTOCURRENCIES, AND OTHER FINANCIAL INSTRUMENTS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. YOU MAY LOSE SOME OR ALL OF YOUR INVESTED CAPITAL. NEVER INVEST MONEY YOU CANNOT AFFORD TO LOSE.

Important Information

This Risk Disclosure Statement is provided by Alcara Capital to ensure that potential and current users fully understand the risks associated with trading financial instruments through our copy trading platform.

BY USING OUR SERVICE, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND ACCEPTED ALL RISKS DESCRIBED IN THIS DOCUMENT.

1. General Trading Risks

1.1 Risk of Total Loss

Trading in financial instruments carries a high level of risk. You may lose your entire investment within minutes or hours, especially when trading with leverage. Market conditions can change rapidly and dramatically.

1.2 Leverage and Margin Trading

Trading with leverage magnifies both potential profits AND losses. Even small market movements can result in significant losses that exceed your initial investment. Margin calls may force liquidation of your positions at unfavorable prices.

Example: With 1:100 leverage, a 1% adverse market movement can result in a 100% loss of your invested capital.

1.3 Market Volatility

Financial markets are subject to extreme volatility. Prices can fluctuate rapidly due to economic events, geopolitical developments, regulatory changes, or market sentiment. Past price movements are not indicative of future performance.

1.4 Liquidity Risk

During periods of market stress, liquidity may decrease significantly, making it difficult or impossible to execute trades at desired prices or close positions. This can result in substantial losses.

2. Copy Trading Specific Risks

2.1 Performance Dependency

When you copy a trader, your results depend entirely on their performance. Even experienced traders can experience significant losses. There is no guarantee that any trader will continue to be profitable.

2.2 Past Performance Warning

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

A trader's historical success does not guarantee future profitability. Market conditions change, strategies that worked previously may fail, and even consistently profitable traders can experience significant drawdowns.

2.3 Execution Delays and Slippage

Copy trading involves replicating trades automatically. However, there may be delays in execution, differences in pricing (slippage), or technical failures that result in your trades being executed at less favorable prices than the trader you're copying.

2.4 Lack of Control

By using copy trading, you delegate trading decisions to third parties. You may not have the opportunity to exit positions manually before significant losses occur.

2.5 Trader Strategy Changes

Traders may change their strategies, risk parameters, or trading styles without notice. These changes may increase risk exposure beyond your tolerance level.

3. Technology and Platform Risks

3.1 Technical Failures

Technology systems can fail. Internet connectivity issues, platform downtime, server failures, or software bugs may prevent you from executing trades, closing positions, or accessing your account.

3.2 Cybersecurity Risks

Despite security measures, no system is completely immune to hacking, unauthorized access, or cyber attacks. Such events could result in loss of funds or personal information.

3.3 Third-Party Integration Risks

Our platform integrates with third-party brokers and service providers. We are not responsible for failures, errors, or issues with these third-party systems.

4. Regulatory and Legal Risks

4.1 Regulatory Changes

Financial regulations are subject to change. Regulatory developments may restrict or prohibit certain trading activities, affect platform operations, or impact the availability of services in your jurisdiction.

4.2 Jurisdictional Restrictions

Our services may not be available or legal in all jurisdictions. It is your responsibility to ensure compliance with laws and regulations applicable to you.

4.3 Tax Implications

Trading profits may be subject to taxation. You are solely responsible for understanding and complying with tax obligations in your jurisdiction.

5. Specific Instrument Risks

5.1 Forex (Foreign Exchange) Trading

  • Extreme leverage (up to 1:500) can magnify losses exponentially
  • 24-hour markets with overnight gaps and weekend risk
  • Susceptible to geopolitical events and central bank decisions
  • High frequency of false signals and market noise

5.2 CFDs (Contracts for Difference)

  • You do not own the underlying asset
  • Overnight financing charges can erode profits
  • Corporate actions may affect positions unpredictably
  • Stop-loss orders do not guarantee execution prices

5.3 Cryptocurrency Trading

  • Extreme price volatility (20%+ daily swings are common)
  • Limited regulatory oversight and investor protection
  • Risk of exchange hacks, fraud, and loss of funds
  • Market manipulation and "whale" movements
  • Technology risks (blockchain forks, protocol changes)
  • Potential for total loss if projects fail

5.4 Commodities and Indices

  • Susceptible to supply/demand shocks
  • Weather, geopolitical events, and natural disasters
  • Storage costs and expiry dates for futures

6. No Guarantees or Warranties

ALCARA CAPITAL MAKES NO REPRESENTATIONS OR WARRANTIES REGARDING:

  • The profitability of any trading strategy or trader
  • The accuracy, reliability, or completeness of any information provided
  • The availability or continuity of the platform
  • The absence of errors, bugs, or technical issues
  • Protection against losses or negative outcomes

7. Your Responsibilities

As a user of our platform, you are responsible for:

  • Conducting your own due diligence and research
  • Understanding the risks before investing
  • Only investing capital you can afford to lose completely
  • Monitoring your account regularly
  • Setting appropriate risk management parameters
  • Seeking professional financial advice as needed
  • Complying with applicable laws and regulations
  • Managing your own tax obligations

8. Risk Management Recommendations

While we cannot eliminate risk, we recommend:

  • Never invest more than you can afford to lose
  • Diversify across multiple traders (do not put all capital with one trader)
  • Start with small amounts to test strategies
  • Use stop-loss orders where available
  • Regularly review and adjust your risk exposure
  • Maintain adequate capital reserves
  • Educate yourself continuously about markets and trading

9. Disclaimer of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW:

Alcara Capital, its officers, directors, employees, and affiliates shall not be liable for:

  • Any trading losses or investment losses
  • Losses resulting from trader performance
  • Technical failures or platform downtime
  • Execution delays, slippage, or pricing errors
  • Actions or failures of third-party brokers or service providers
  • Regulatory changes or legal restrictions
  • Any indirect, incidental, special, or consequential damages

10. Educational Purpose Only

Any information, analysis, statistics, or educational content provided through our platform is for informational and educational purposes only. It does not constitute investment advice, financial planning, or a recommendation to trade. You should not rely on such information as the sole basis for investment decisions.

11. Seek Professional Advice

Before engaging in trading activities, you should:

  • Consult with a licensed financial advisor
  • Obtain independent legal and tax advice
  • Ensure trading is suitable for your financial situation
  • Understand your personal risk tolerance
  • Assess your investment objectives and time horizon

12. Acknowledgment and Acceptance

REQUIRED ACKNOWLEDGMENT

By using Alcara Capital's platform and services, you acknowledge and confirm that:

  • You have read and understood this entire Risk Disclosure Statement
  • You accept all risks associated with trading financial instruments
  • You understand that you may lose your entire investment
  • You are investing only capital that you can afford to lose
  • You will not hold Alcara Capital liable for any losses incurred
  • You have sought professional advice or voluntarily chosen not to
  • Trading is suitable for your financial situation and objectives

⚠️ FINAL WARNING

Trading is inherently risky and not suitable for everyone. The high degree of leverage can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. Do not invest money you cannot afford to lose. If you are in any doubt, seek advice from an independent financial advisor.