Risk Disclaimer

Last Updated: December 2024
Effective Date: January 1, 2025

CRITICAL RISK WARNING

Trading foreign exchange (forex) and contracts for difference (CFDs) carries a high level of risk and may not be suitable for all investors. You could lose substantially more than your initial investment.

Before deciding to trade, you should carefully consider your investment objectives, level of experience, risk appetite, and financial circumstances. You should seek independent financial advice if you have any doubts.

1. Nature of This Service

PipsPal is a technology platform that provides broker comparison and matching services. We are:

NOT a licensed broker or financial institution
NOT an investment advisor or financial consultant
NOT providing investment advice, trading recommendations, or signals
NOT responsible for your trading decisions or outcomes

Important: All information on PipsPal is for educational and comparison purposes only. This is not investment advice.

2. Trading Risks

2.1 High Risk of Loss

Substantial Loss Potential: You may lose some or all of your invested capital
Leverage Risk: High leverage can amplify both gains and losses
Margin Calls: You may be required to deposit additional funds to maintain positions
Market Volatility: Currency markets can move rapidly against your position

2.2 Market Risks

Currency Fluctuations: Exchange rates can change rapidly due to economic, political, or market factors
Interest Rate Changes: Central bank policies can significantly impact currency values
Economic Events: News releases, elections, and geopolitical events create volatility
Liquidity Risk: Markets may become illiquid, making it difficult to close positions

2.3 Leverage and Margin Risks

Leverage Warning: High leverage available in forex trading (up to 500:1 or higher) means:

Small market movements can result in large gains OR losses
A 1% adverse move could result in losing your entire deposit
You may lose more than your initial investment
Margin calls may force you to close positions at unfavorable prices

3. Platform-Specific Disclaimers

3.1 AI Matching Algorithm

Our AI algorithms provide broker suggestions based on your profile
Algorithm recommendations do not guarantee broker suitability
You must conduct your own due diligence on recommended brokers
Matching scores are for comparison purposes only
We cannot guarantee the accuracy of all broker data

3.2 Broker Information

Data Accuracy: Broker information is provided in good faith but may not always be current
Regulatory Status: You must verify broker licensing in your jurisdiction
Terms and Conditions: Each broker has its own terms, fees, and policies
Performance Claims: Past performance data does not predict future results

3.3 Spread Monitoring

Live spread data is provided for informational purposes only
Spreads can change rapidly and may differ from displayed values
Actual trading spreads may vary based on market conditions and account type
We are not responsible for spread accuracy or trading outcomes

4. Regulatory and Legal Considerations

4.1 Regulatory Compliance

Forex trading regulations vary significantly by jurisdiction
Some brokers may not be authorized in your country
You are responsible for ensuring compliance with local laws
Regulatory protection may not apply to offshore brokers

4.2 Tax Implications

Trading profits may be subject to capital gains tax
Tax treatment varies by jurisdiction and individual circumstances
You should consult a qualified tax advisor
Record-keeping requirements may apply to your trading activities

5. Psychological and Behavioral Risks

5.1 Emotional Trading Risks

Overtrading: Excessive trading can increase losses and costs
Revenge Trading: Attempting to recover losses can lead to greater losses
FOMO (Fear of Missing Out): Impulsive trades based on market movements
Addiction Potential: Trading can become compulsive for some individuals

Mental Health Notice: If trading is causing financial stress, relationship problems, or other life issues, please seek help from a qualified professional or consider stopping trading.

6. Technical and Operational Risks

6.1 Technology Risks

Platform Downtime: Technical issues may prevent trading when needed
Internet Connectivity: Connection problems can impact order execution
System Failures: Hardware or software malfunctions may cause losses
Cybersecurity: Online platforms face hacking and security risks

6.2 Execution Risks

Slippage: Orders may execute at different prices than expected
Requotes: Price changes between order placement and execution
Partial Fills: Large orders may not execute completely
Stop Loss Failures: Stop orders may not execute at intended levels

7. Specific Risk Categories

7.1 Beginner Trader Risks

If you are new to trading, be especially aware of:

Lack of experience leading to poor decision-making
Insufficient understanding of market mechanics
Unrealistic profit expectations
Inadequate risk management skills
Susceptibility to marketing claims and "get rich quick" schemes

7.2 Advanced Strategy Risks

Scalping: High-frequency trading with tight profit margins and significant risks
Carry Trading: Interest rate differential strategies subject to sudden reversals
News Trading: High volatility around economic announcements
Grid Trading: Strategies that can compound losses in trending markets

8. Before You Start Trading

Essential Prerequisites

Before engaging in forex or CFD trading, you should:

Understand that you can lose more than your initial investment
Only trade with money you can afford to lose completely
Educate yourself about forex markets and trading strategies
Practice on demo accounts before risking real money
Develop and stick to a comprehensive risk management plan
Consider seeking advice from qualified financial professionals
Verify that your chosen broker is properly regulated
Understand all fees, spreads, and costs involved

9. Risk Management Recommendations

9.1 Essential Risk Controls

Position Sizing: Never risk more than 1-2% of capital per trade
Stop Losses: Always use stop-loss orders to limit potential losses
Diversification: Don't put all capital in a single trade or currency pair
Leverage Limits: Use conservative leverage, especially when starting

9.2 Ongoing Risk Assessment

Regularly review and adjust your risk management strategy
Monitor your emotional state and trading behavior
Keep detailed records of all trades and outcomes
Continuously educate yourself about market developments

10. Limitation of Liability

PipsPal Disclaimers:

We provide information and comparison services only
We are not responsible for your trading decisions or outcomes
We do not guarantee the accuracy of all broker or market data
We are not liable for any losses incurred through trading activities
Our AI matching service does not constitute investment advice

11. Seeking Help

11.1 Professional Advice

Consider consulting with:

Licensed Financial Advisors: For investment planning and strategy
Tax Professionals: For tax implications of trading activities
Legal Counsel: For regulatory compliance questions
Mental Health Professionals: If trading is causing personal issues

11.2 Educational Resources

Reputable financial education websites and courses
Books by established trading professionals
Regulatory authority educational materials
Demo trading accounts for practice without risk

12. Final Warning

REMEMBER

High Risk: Most retail forex traders lose money
No Guarantees: Past performance does not predict future results
Substantial Losses: You may lose more than you invest
Your Responsibility: All trading decisions and outcomes are yours alone

If you cannot afford to lose your investment, do not trade forex or CFDs.

13. Contact Information

For questions about this disclaimer:

General Inquiries: support@pipspal.com
Risk Management Questions: risk@pipspal.com
Platform Issues: technical@pipspal.com