Risk Warning

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Risk Warning

1. Introduction

This website is owned and operated by Quantum Growth Capital, located at Avenue des Morgines 12, Geneva, Switzerland. The Company conducts its business under the Quantum Growth Capital International brand and is governed by the laws of Switzerland.

2. General Risk Warning

Clients should not engage in investment activities involving Financial Instruments unless they fully understand the nature and extent of the risks involved. Prior to opening an account, Clients should carefully assess whether investing in a particular Financial Instrument is appropriate, considering their personal financial situation and experience. If a Client is uncertain about the risks, they are strongly advised to seek independent financial advice. If the risks remain unclear, the Client should refrain from trading.

3. General Risks and Acknowledgements

The Client acknowledges and accepts the following non-exhaustive list of risks:

  • Clients may incur substantial losses due to the purchase or sale of Financial Instruments and must be prepared to bear this risk.
  • Historical performance is not a reliable indicator of future performance.
  • Trading in Financial Instruments may involve significant volatility and speculative characteristics.
  • Some Financial Instruments may lack liquidity, making it difficult to sell or determine their market value.
  • Trading in foreign markets may carry additional risks due to exchange rate fluctuations and differing regulatory frameworks.
  • Derivative Financial Instruments (such as futures, swaps, CFDs) carry high risk and may result in the total loss of the invested capital, and potentially additional liabilities due to fees or leverage.
  • Under certain market conditions (e.g., force majeure, technical failure, low liquidity, breaking news), execution of orders may be delayed or impossible.
  • Stop-loss orders are not always effective and may be executed at less favorable prices than intended.
  • Clients may be required to deposit additional funds on short notice to maintain open positions. Failure to do so may result in liquidation and losses exceeding the initial investment.
  • Illiquid currencies or instruments may lack consistent price quotations or counterparties.
  • Online trading carries its own set of risks and does not eliminate inherent market risks.
  • Clients are responsible for any applicable taxes resulting from their trading activity.
  • Clients should ensure full understanding of all costs and fees prior to trading, including those not directly expressed in monetary terms.
  • Price gaps may occur during weekends or after major news events, affecting execution prices significantly.

4. Third-Party Risks

4.1. The Company holds Client funds in segregated bank accounts, separate from the Company’s own funds, in accordance with applicable regulations. This segregation is intended to provide protection against the Company’s creditors and ensures that Client funds cannot be used for any purpose other than those specified by the Client. Therefore, deductions, including brokerage commissions or other charges, cannot be made directly from these segregated accounts.

4.2. The Company may pass money received from the Client to a third party (e.g., a bank or broker) to hold or control for the purpose of executing transactions or satisfying collateral requirements. The Company is not responsible for any acts or omissions of such third parties.

4.3. The third party holding the funds may keep them in omnibus accounts, where Client funds might not be individually identifiable. In the event of insolvency or similar proceedings affecting the third party, Clients may face risks of loss, and the Company may only have an unsecured claim on behalf of the Client.

4.4. Conflicts of interest may arise between the Company, third parties, and the Client.

4.5. If the Client fails to meet the Company’s or the market’s margin or other requirements, the Company reserves the right to close any or all of the Client’s open positions or accounts, even if such action is against the Client’s wishes.

5. Trading Platform Risks

5.1. Electronic trading involves risks such as system failures, connectivity issues, or data transmission delays.

5.2. Only one instruction can be processed at a time; others will be rejected until the first is complete.

5.3. The only reliable quote source is the Company’s live server feed. Delays may result in outdated or inaccurate data on the Client terminal.

5.4. Orders being executed or closed cannot be cancelled or modified.

5.5. Margin trading can result in complete loss of capital. Orders like stop-loss or limit orders may not always protect against large losses.

5.6. Clients may use the cancel feature for up to 25% of their last 30 transactions; exceeding this will disable the feature automatically.

6. Technical Risks

6.1. Clients are responsible for any financial losses resulting from equipment or systems failure, including viruses or cyberattacks.

6.2. The Company is not liable for third-party unauthorized access to data transmitted over the Internet or other networks.

6.3. Unencrypted emails are not secure and may be accessed by unauthorized parties.

6.4. High market activity may cause delays or failures in phone or platform access.

6.5. Internet-based services are vulnerable to outages, disconnections, or cyber interference, potentially resulting in order failures or delayed executions.

6.6. Clients assume risks related to the performance of their hardware/software and connection quality.

6.7. Additional technical risks include:

  • Power outages on the Client’s or provider’s end.
  • Physical damage to communication channels.
  • Network congestion or poor-quality connections.
  • Outdated software or misconfigured terminals.
  • Incomplete or undelivered communications (email, SMS, etc.).
  • Delays or failure in telephone-based trading due to line congestion.
  • Malfunctioning trading platforms or client terminals.
  • Low-quality communication channels subject to third-party disruption.

7. Risks Specific to Financial Instruments

7.1. Leverage or gearing amplifies both gains and losses. Small market movements can significantly affect the value of positions and may result in the loss of the entire margin deposit and more.

7.2. Transactions may occur off-exchange and be governed solely by the Company’s platform rules, which may involve increased risk. The Client may only be able to close positions with the same counterparty, and only during platform operating hours.

This document is intended to provide a general overview of the key risks involved in trading Financial Instruments. It does not disclose or explain all possible risks. Clients should consult the full Risk Disclosure for Financial Instruments available on the Company’s website before commencing trading activity.