Risk Disclosure Statement
1. Important Warning
Financial instruments involve risk. The value of an investment or position may fall as well as rise. A Client may lose some or all of the capital committed and, for certain leveraged arrangements where legally and contractually applicable, losses can be amplified.
This statement is not exhaustive and should be read before using the Company’s services.
2. Market Risk
Prices can move rapidly because of economic data, interest rates, company events, geopolitical events, market sentiment, regulation, liquidity or unforeseen events. Stop-loss or limit orders do not guarantee a particular execution price.
3. Leverage and Margin Risk
Leverage magnifies exposure. A relatively small market movement can create a disproportionately large gain or loss. Margin requirements can increase and positions may be reduced or closed if sufficient margin is not maintained.
4. Gap Risk
Markets can open at prices materially different from previous closing prices, particularly following weekends, holidays, political events or major announcements. Orders may therefore execute at a substantially different price from that requested.
5. Liquidity Risk
Liquidity can deteriorate quickly. Wide spreads, partial fills, delayed execution, price discontinuities or inability to close a position may occur, particularly during stressed markets or in less liquid instruments.
6. Execution Risk
Orders may not execute at the best displayed price or may be rejected because of market conditions, size, venue rules, system failure, latency, liquidity-provider action or other factors. Specific client instructions can limit the Company’s ability to apply its normal execution process.
7. Counterparty and Credit Risk
A Client may be exposed to the financial condition of the Company and to institutions or counterparties involved in execution, settlement, banking, custody or payment. Insolvency or default can cause delay or loss.
8. Client Money Risk
Segregation or safeguarding arrangements reduce certain risks but do not necessarily eliminate all risks, particularly in insolvency or where third-party banks or payment providers fail. The applicable Client Money Disclosure should be reviewed carefully.
9. Foreign Exchange Risk
Positions, account balances or instruments denominated in a currency different from the Client’s base currency create exchange-rate risk. Conversion charges may also apply.
10. Interest Rate and Financing Risk
Financing, rollover, borrowing or swap costs may change. Holding leveraged positions for extended periods can materially affect performance.
11. Corporate Action Risk
Dividends, rights issues, splits, mergers, takeovers, suspensions, delistings and other corporate actions may alter the value, terms or availability of positions. Adjustments may be made in accordance with product terms.
12. Technology and Cyber Risk
Trading and account access depend on technology. Internet, device, platform, API, telecommunications, market data, cybersecurity or third-party outages can prevent or delay access and execution.
13. Model and Algorithmic Trading Risk
Automated strategies can malfunction, overtrade or behave unexpectedly. Backtests and simulations can be misleading and do not represent guaranteed future results. Clients using APIs or algorithms remain responsible for their instructions and controls.
14. Regulatory and Legal Risk
Laws, market rules, tax treatment and regulatory requirements can change, sometimes quickly. A product may become restricted or unavailable.
15. Political, Country and Sanctions Risk
Government action, capital controls, sanctions, conflict or political instability can affect markets, settlement or access to funds.
16. Product-Specific Risk
Different instruments have different risks. Where required, Montrock Ltd provides additional product-specific risk disclosures applicable to the relevant financial instrument, client classification and jurisdiction.
17. No Guarantee
No statement by the Company, its employees or agents constitutes a guarantee of profit, return, execution quality or preservation of capital.
18. Client Responsibility
Clients should ensure that they understand the products, costs and risks, and that their trading is appropriate to their financial circumstances and capacity for loss. Independent professional advice should be obtained where necessary.
Contact and Regulatory Information
Montrock Ltd is incorporated in Mauritius under Company No. 231276 GBC and is regulated by the Financial Services Commission, Mauritius (FSC) as an Investment Dealer (Full Service Dealer, Excluding Underwriting), FSC Licence No. GB25205688. Registered office: Suite 201, Level 2, The Catalyst, 40 Silicon Avenue, Cybercity, Ebene 72201, Mauritius.
Compliance enquiries: compliance@mont-rock.com
Website: https://mont-rock.com
Risk warning: Transactions in financial instruments, particularly leveraged or derivative instruments where offered, involve significant risk and may result in substantial loss. Nothing on the website constitutes a guarantee of profit or investment performance.