RISK DISCLOSURE
Commission of Mauritius
1. INTRODUCTION
We Azul Capital. want you to be fully informed about the risks associated with our products and servicesbefore you decide to invest. This risk disclosure statement is intended to help you better understand therisks involved, but it does not represent a comprehensive list of all potential risks. Before making anyinvestment or trading decisions, you should carefully consider your financial situation, investmentobjectives, and risk tolerance, as well as seek advice from an independent financial advisor if necessary.
Please note that the risks associated with our products or services may vary depending on a number offactors, including market conditions, economic factors, and regulatory changes. We will make our bestefforts to provide you with timely and accurate information regarding any material changes that mayaffect the risks associated with our products or services, but we cannot guarantee that such informationwill be complete or accurate.
Investing in our products or services involves risks, including but not limited to market risks, credit risks,liquidity risks, and regulatory risks. The value of your investment may rise or fall due to a variety of factors,including market conditions, economic events, and geopolitical risks. We will make our best efforts tomanage these risks on your behalf, but we cannot guarantee the performance or safety of any investment.
By using our products or services, you acknowledge that you have read and understood this risk disclosurestatement, and that you accept the risks associated with investing in our products or services. If you haveany questions or concerns about the risks associated with our products or services, please contact ususing the information provided in this policy.
2. RISK STATEMENTS WITH LEVERAGE
Trading in financial markets involves a high level of risk, including the risk of losing your entire investment.When trading on margin or using leverage, your losses may exceed your initial investment, and you couldbe required to deposit additional funds to maintain your position. Leverage can amplify both gains andlosses, and may not be suitable for all investors.
If you use leverage or margin trading, you are essentially borrowing money to trade. This can magnifyboth potential profits and losses, and can result in rapid losses that can exceed your original investment.It's important to carefully consider your investment objectives, risk tolerance, and financial situationbefore using any leveraged products or trading on margin.
Leverage is typically expressed as a ratio, such as 10:1 or 100:1, which means that for every dollar youdeposit, you can control ten or one hundred dollars of the underlying asset. While leverage can potentiallyincrease your profits, it can also increase your losses. You should be aware that even a small movementin the market can result in a significant gain or loss when using leverage.
In addition to the risks associated with leverage, you should also be aware of the risks associated withthe underlying asset or security. These risks can include market risks, credit risks, and liquidity risks, andcan vary depending on the specific asset or security you are trading.
Our platform provides access to leveraged products and margin trading, and we offer educationalresources and tools to help you better understand the risks involved. However, you should be aware thattrading in financial markets is inherently risky, and you should not invest more than you can afford tolose.
By using our platform, you acknowledge that you have read and understood this risk statement, and thatyou accept the risks associated with trading in financial markets. If you have any questions or concernsabout the risks associated with our products or services, please contact us using the information providedin this policy.
2.1 TECHNICAL RISKS
Our Company relies on technology to provide access to financial markets and execute trades. While wetake steps to ensure the stability and security of our platform, there are inherent technical risks involvedin using any online system.
These technical risks include, but are not limited to:
Network or system failures, which can disrupt or delay access to our platform or affect theexecution of trades.
Cybersecurity threats, such as hacking, viruses, and malware, which can compromise theconfidentiality, integrity, and availability of information on our platform.
Third-party service provider failures, which can affect the performance or availability of ourplatform or the services we provide.
Connectivity issues, which can prevent or delay access to our platform or the services we provide,and may be caused by factors outside of our control, such as internet service provider issues orgeographic location.
Software or hardware malfunctions, which can affect the performance or reliability of our platformor the services we provide.
We take these technical risks seriously and have implemented a range of measures to help mitigate them,including:
Continuous monitoring and testing of our platform and systems to identify and addressvulnerabilities and performance issues.
Implementation of security controls, such as firewalls, encryption, and multi-factor authentication,to protect against cybersecurity threats.
Establishment of redundant systems and backup procedures to help ensure the availability andcontinuity of our services.
Collaboration with third-party service providers who share our commitment to security andreliability.
Provision of educational resources and support to help users understand and address technicalrisks.
However, it's important to recognize that technical risks are inherent in any online system and cannot becompletely eliminated. By using our platform, you acknowledge and accept these technical risks, andunderstand that we cannot guarantee the uninterrupted or error-free operation of our platform or theservices we provide.
If you have any questions or concerns about the technical risks associated with our platform or services,please contact us using the information provided in this policy.
2.2 TRADING PLATFORM RISK
Our trading platform is designed to provide access to financial markets and execute trades. While we take
steps to ensure the stability and security of our platform, there are inherent risks involved in trading
financial instruments, which can result in financial loss.
These trading risks include, but are not limited to:
Market volatility, which can cause rapid price movements and increase the risk of losses.
Counterparty risk, which is the risk of financial loss resulting from the default of another party ina transaction.
Liquidity risk, which is the risk that a financial instrument cannot be bought or sold quickly enoughto prevent or minimize a loss.
Regulatory risk, which is the risk of financial loss resulting from changes in laws, regulations, orpolicies that affect financial markets or instruments.
Operational risk, which is the risk of financial loss resulting from human error, system failures, orother internal factors.
We provide tools and resources to help our clients manage these risks, including:
Risk management features, such as stop loss orders, to help limit potential losses.
Educational resources, such as tutorials and webinars, to help clients understand the risksassociated with trading financial instruments.
Access to market analysis and research to help inform trading decisions.
However, it's important to recognize that trading financial instruments carries inherent risks, and that it'spossible to lose more than the initial investment. By using our trading platform, you acknowledge andaccept these trading risks and understand that we cannot guarantee profits or prevent losses.
If you have any questions or concerns about the trading risks associated with our platform or services,please contact us using the information provided in this policy
2.3 EXPOSURE TO RISK COMMUNICATION
Communication risk refers to the risks associated with the electronic transmission of information,including but not limited to email, SMS, instant messaging, and other electronic communication methods.While we take appropriate measures to protect our electronic communications, there are inherent risksinvolved in using electronic communications, which can result in financial loss.These risks include, but are not limited to:
Interruption, interception, or manipulation of electronic communications by unauthorized thirdparties.
Transmission errors, which can lead to incorrect or incomplete information being received ortransmitted.
Delay or failure of electronic communications due to technical issues, such as server downtime ornetwork connectivity problems.
We use secure communication protocols and encryption technologies to protect the confidentiality andintegrity of electronic communications. However, it's important to recognize that electroniccommunication systems can never be completely secure, and there is always a risk that confidentialinformation could be compromised.
To help manage communication risks, we provide the following measures:
Use of secure electronic communication methods, including secure email and instant messaging.
Implementation of strict procedures and controls to ensure the secure transmission ofinformation.
Regular monitoring and assessment of our electronic communication systems to identify andaddress potential vulnerabilities.
We also recommend that clients take appropriate measures to protect their own electroniccommunication devices, such as using anti-virus software and firewalls, and not sharing login credentialswith anyone.
By using our electronic communication systems, you acknowledge and accept these communication risksand understand that we cannot guarantee the security or confidentiality of electronic communications. Ifyou have any questions or concerns about the communication risks associated with our services, pleasecontact us using the information provided in this policy.
2.4 LIQUIDITY RISK
Liquidity risk refers to the risk that a financial instrument cannot be sold or bought on the market quicklyenough to prevent a loss or to meet financial obligations. Our trading services involve financialinstruments that are subject to liquidity risk, and it's important for clients to understand this risk beforetrading.
The following factors can contribute to liquidity risk:
Market conditions: Liquidity can be affected by changes in market conditions, such as increasedvolatility, reduced trading volumes, and market disruptions.
Trading hours: Some financial markets may be open only during specific trading hours, which canlimit the ability to buy or sell financial instruments at desired times.
Size of the trade: Large trades may be difficult to execute, and may have a greater impact on themarket, affecting the liquidity of the financial instrument.
Financial instrument type: Certain financial instruments, such as options, may be less liquid thanother types of financial instruments, which can impact their ability to be bought or sold on themarket.
We manage liquidity risk by:
Monitoring market conditions and trading volumes to ensure that there is sufficient liquidity toexecute client trades.
Limiting the maximum trade size to avoid negatively impacting the market.
Providing clients with access to multiple liquidity providers to increase the probability of executinga trade at the desired price.
It's important for clients to be aware of the potential for liquidity risk and to consider this when makingtrading decisions. Clients should also consider the size of their positions relative to the liquidity of thefinancial instrument to ensure that they can exit their positions in a timely manner.By trading with our services, clients acknowledge and accept the risk of liquidity and understand that wecannot guarantee the ability to execute trades at desired prices or times. If you have any questions orconcerns about liquidity risk, please contact us using the information provided in this policy.
3. COMMISSION AND TAX RISK
Before you start trading, it's important to understand all the commissions and charges that you may beresponsible for. Some charges may not be expressed in monetary terms but as a percentage of thecontract value. Make sure you understand the actual monetary value of the charges.
Please be aware that your trades in financial instruments, including derivatives, may be subject to taxesor duties due to changes in legislation or your personal circumstances. The Company cannot guaranteethat no taxes or duties will be owed. It's your responsibility to pay any taxes or duties that may arise fromyour trades.
You are also responsible for managing your own tax and legal obligations, such as making regulatory filingsand payments and complying with applicable laws and regulations. We do not offer tax, legal, or regulatoryadvice. If you are unsure about the tax treatment or liabilities of any investment products offered by us,we recommend that you seek independent advice.