Risk Disclosure and Warning Notice
Risk Disclosure Notice – Solver99
Understanding the Risks of CFD Trading
At Solver99, we prioritize transparency and client awareness. Contracts for Difference (CFDs) are sophisticated financial instruments that come with inherent risks, including the potential loss of invested capital. Trading CFDs involves leverage, which can amplify both profits and losses. These products may not be suitable for all investors, and it is essential to fully comprehend the risks before engaging in trading.
Scope of This Disclosure
This Risk Disclosure Notice provides a clear, unbiased overview of the general risks associated with CFD trading. However, it does not cover every possible risk or how these risks may apply to your personal financial situation. We strongly advise seeking independent professional advice if you are uncertain about any aspect of CFD trading.
This document is informational only and should not be construed as solicitation or marketing material. Please review it alongside our Client Agreement and General Business Terms, available on our website.
Key Risks of CFD Trading
1. Leverage Risk
Leverage allows traders to control larger positions with a smaller initial margin. While this can enhance profits, it also magnifies losses—even minor market fluctuations can lead to significant losses. Solver99 provides negative balance protection for retail clients, ensuring you cannot lose more than your account balance.
Always trade with funds you can afford to lose.
2. Credit & Counterparty Risk
CFDs are over-the-counter (OTC) derivatives, meaning trades are executed directly with Solver99 and cannot be transferred to another provider. OTC trading carries counterparty risk, as there is no central clearinghouse. In the unlikely event of Solver99’s insolvency, open positions may be closed without consent.
3. Market Risk
CFD prices are influenced by global economic, political, and social events—such as interest rate changes, geopolitical instability, or natural disasters. Different underlying assets (stocks, forex, commodities, etc.) expose traders to varying market risks.
Assess your risk tolerance before trading.
4. Volatility Risk
Highly volatile markets can cause rapid price swings, increasing both profit and loss potential. During extreme volatility, order execution times may slow, and spreads may widen.
5. Currency Risk
If trading CFDs denominated in a currency different from your account’s base currency, exchange rate fluctuations can impact your realized P&L.
6. Liquidity Risk
Some assets may experience low liquidity, making it difficult to enter or exit positions at desired prices. This can lead to wider spreads and increased slippage.
7. Technical Risk
Online trading carries inherent technical risks, including:
Connectivity issues
Platform malfunctions
Cyber threats (hacking, DDoS attacks)
Delayed order execution
Mitigate risks by using secure devices, strong passwords, and stable internet connections.
8. Trading Platform Risks
Orders are executed sequentially—submitting multiple orders before confirmation may result in rejections.
Closing an order window does not cancel pending orders.
Only real-time quotes from Solver99’s servers are valid.
9. Communication Risk
Ensure your contact details are up to date to avoid missing critical account notifications.
10. Abnormal Market Conditions
During extreme volatility, trading may be suspended, and stop-loss orders may execute at worse-than-expected prices.
11. Force Majeure Events
Solver99 is not liable for losses caused by unforeseeable events, including:
Natural disasters
Wars, terrorism, or civil unrest
Regulatory interventions
Systemic failures (e.g., exchange shutdowns)
12. Slippage
Orders may execute at prices different from requested due to market volatility. Slippage can be positive, neutral, or negative.
13. Legal & Regulatory Risk
CFD trading may be restricted or prohibited in some jurisdictions. You are responsible for complying with local laws.
14. Third-Party Risk
Client funds may be held with third-party institutions. While we conduct due diligence, Solver99 is not liable for losses arising from third-party insolvency.
15. Margin Requirements
Failing to maintain sufficient margin may lead to automatic liquidation of positions.
16. No Ownership Rights
CFDs do not grant ownership of the underlying asset.
17. Tax Implications
Tax treatment of CFD trading varies by jurisdiction. Consult a tax advisor for guidance.
18. Impersonation Fraud
Beware of fraudulent individuals posing as Solver99 representatives. Always verify official communication channels before sharing sensitive information.
