Risk Disclosure

MONEYFEST LIMITED (hereinafter referred to as the Contractor), when carrying out activities to provide information and consulting services in the field of financial education, notifies the Customer (hereinafter referred to as the Party) of the risks associated with transactions in the financial market.

This Notice discloses the main risks accepted by the Party in connection with the execution of exchange and over-the-counter transactions with securities, derivative financial instruments and other financial instruments, including the risks associated with the execution of transactions leading to an uncovered position.

Before entering into any transactions, carefully consider whether the risks are acceptable to you, taking into account your personal circumstances and financial capabilities.

The purpose of this Notice is to provide individuals with the most comprehensive information possible about the risks that may arise in connection with transactions in financial markets (in particular, in the FOREX market), and to warn about possible losses (damages) when performing transactions with financial instruments, in particular Forex and CFDs.

Please note that due to the diversity of situations that arise in financial markets, including the Forex market, the list of risks in this Notice is not exhaustive and does not disclose information about all the risks associated with investing in financial instruments, including the Forex and CFD markets.

Investing in financial instruments, including the Forex and CFD markets, carries a high degree of risk as it involves leveraged transactions and may result in the loss of invested funds. For the purposes of this Notice, risk in transactions with financial instruments, including Forex and CFDs, means the possibility of an event that results in or may result in a Market Participant not receiving income or losing invested assets.

This Notice is not intended to discourage the Party from engaging in transactions with financial instruments, including Forex and CFDs, but is intended to help the Party understand and assess the risks associated with investing in these financial instruments and to responsibly approach the adoption of informed investment decisions.

When working in financial markets, the Party inevitably faces the need to take into account risk factors of a wide variety of nature.

Risk classification can be done as follows:

1. systemic risk is the risk associated with the functioning of the system as a whole and not related to a specific financial instrument. The main systemic risks include political risk, the risk of adverse (with regard to business conditions) changes in legislation, macroeconomic risks (sharp devaluation of the national currency, crisis in the government debt market, banking crisis, currency crisis, etc.). Systemic risks also include the risks of force majeure;

2. non-systemic (individual) risk is the risk of a specific participant in the financial market: an investor, a broker, an operating company, a trust manager, a trading system, etc.

1. economic risk is the risk of adverse economic events. The likelihood of economic risks occurring is usually higher than that of systemic risks. The following types of economic risks are distinguished:

2. price risk is the risk of losses from adverse price changes. A number of instruments have significant intra-day price fluctuation ranges, which implies a high probability of receiving both profits and losses from trading transactions;

3. currency risk is the risk of losses from adverse changes in exchange rates;

4. interest rate risk is the risk of losses due to negative changes in interest rates;

5. inflation risk is the risk of erosion of purchasing power;

6. liquidity risk is the possibility of difficulties in selling or buying a financial instrument at a certain point in time, which can also lead to an increase in the spread. A large spread makes it significantly more difficult to apply limit stop orders, which are placed to limit the scale of losses when opening a position (stop losses). In order to avoid serious losses, the Party must constantly independently monitor the situation in the financial market and exercise reasonable activity in managing their positions;

7. legal risk — the risk of legislative changes (legislative risk) — is the possibility of losses due to the adoption of new legislative acts or the amendment (cancellation) of existing ones, including tax acts. Legislative risk also includes the possibility of losses due to the lack of regulatory legal acts governing activities in the financial market, and, in particular, in the Forex market;

8. socio-political risk is the risk of a radical change in the political and economic situation, the risk of social instability, including strikes, the risk of the outbreak of hostilities;

9. criminal risk is the risk associated with illegal actions of third parties, such as fraud, unauthorized access to computer systems and confidential information, etc.;

10. operational (technical, process, personnel) risk is the risk of direct or indirect losses due to malfunctions of information, communication, electronic, electrical and other systems, or due to errors associated with imperfections in market infrastructure, including transaction technologies, management procedures, accounting and control, or due to actions (inaction) of personnel.

11. Thus, when working with the client terminal, failures may occur due to hardware malfunctions, software failures, incorrect settings, an outdated version of the software, or poor connection quality on the Party's end. During peak load periods (for example, when economic news is released), the Party must be aware of the possibility of communication channel overload and limited ability to contact the operator of financial market access services by telephone.

12. Natural risk is a risk that does not depend on human activity (risks of natural disasters: earthquake, flood, hurricane, typhoon, lightning strike, etc.).

13. Technology-related risk is a risk generated by human economic activity: emergencies, fires, etc.

1. risk of loss of income is the possibility of an event that entails a partial or complete loss of the expected income from investments;

2. risk of loss of invested funds is the possibility of an event occurring that entails partial or complete loss of invested funds;

1. direct risk — the source of risk is directly related to some relationship with a financial market participant;

2. indirect risk — the possibility of an adverse event occurring for a Party from a source not directly related to it, but which entails a chain of events that ultimately lead to losses of funds for the Party. When the Party enters into transactions, the following additional specific types of risks arise:

Transactions with financial instruments, including the Forex market and CFDs, are characterized by a high degree of risk, since, due to the leverage effect, a relatively small change in the exchange rate of an instrument can have a significant impact on the balance of a trading account.

In the event that a situation develops in the financial market that is unfavorable for the position occupied by the Party in this market, there is a possibility of incurring, in a relatively short period of time, a loss in the amount of the initial deposit and any additional funds deposited by the Party to maintain open positions, conclude Contracts and execute Transactions based on the Agreement.

In the event of price movements that are unfavorable for the Party, in cases stipulated by the Agreement and the Regulations on interaction between the company operating services for access to financial markets and the Party, the position may be forcibly liquidated, which may lead to occurrence of the risk of loss of income and the risk of loss of funds in the trading account. The Party shall be liable for any resulting losses incurred. The Party acknowledges that they have carefully studied the Regulations and the agreement on interaction of the company operating services for access to financial markets.

Due to conditions prevailing in the financial markets, including the Forex market, it may become difficult or impossible for the Party to close a previously opened position at the desired price. A similar situation may arise, for example, when prices change rapidly.

Stop orders, which are intended to limit losses, do not always limit losses to a pre-calculated level, since with rapid market price changes, the execution price may be significantly worse than the stop price.

The Party is also notified that the Contractor does not guarantee income and does not give any assurances regarding income from transactions performed by the Party or their authorized representative. The Party independently decides on participation in activities in the financial market, as well as independently determines the investment strategy.

Trading in the Forex and other financial markets may involve financial losses, and past experience does not determine future financial results. Any financial success of other persons does not guarantee the same results for the Party.

Taking into account the above, the Party shall carefully consider whether the risks arising from transactions with financial instruments of the Forex market and CFDs are acceptable to them in the light of their investment objectives and financial capabilities.

The Contractor is not an interested party in terms of profit making under contracts and agreements concluded by the Party with third parties, including companies operating services for access to financial markets, which the Contractor represents, advertises, or mentions.

The Contractor and their employees do not accept cash or non-cash funds from the Party for the purpose of replenishing the Party's trading accounts opened with companies operating services for access to financial markets. Any possible participation of the Contractor's employee in matters of replenishing trading accounts goes beyond the scope of their job description and is their personal initiative not authorized by the Contractor.

The Contractor, including the Contractor's employees, shall not be liable for the actions of the company operating services for access to financial markets, and other third parties regarding the execution/non-execution of agreements concluded between the Party and the company or a third party, or for the actions of any third party that has received access authorized or unauthorized by the Party to the trading account of the Party opened with the company operating services for access to financial markets, as well as under all agreements concluded between the Party and third parties.

The Contractor shall not be liable for the actions of any persons, including employees, who have provided any assistance at the request of the notified Party (including the search for funds) not provided for by job responsibilities; such actions are considered to be the actions of the Party.

The Party is independent in their decisions from any recommendations of other persons (including the Contractor's employees) and independently makes investment and trading decisions based on their own knowledge and beliefs. The Contractor shall not be liable for any possible losses of the Party caused by the Party's use of advice, information, or recommendations from third parties, including the Contractor's employees, in making investment and trading decisions.

The Party agrees that they will determine the amount of funds and search for funds for investment independently, taking into account their financial situation at the time of signing this document. The Contractor, as well as their employees, shall not be liable for information, advice or recommendations on the issue of finding funds for investment purposes.

The Party has been notified and is aware that working in the financial markets with borrowed funds, as well as with their own funds, may lead to the loss of these funds and, in the event of the inability to meet the demands of creditors, to their insolvency (bankruptcy), which in turn may lead to the loss of pledged assets, if any, with all the consequences that may ensue. The Customer acknowledges that they have adequately assessed their financial situation, income, and risks.

With this Notice, the Party is informed that a positive financial result under previous individual agreements does not determine a positive financial result for such agreements in the future.

The Party acknowledges that they are fully capable, are not under the influence of other persons, do not suffer from a psychiatric disorder in which they are unable to be aware of their actions, are of sound mind and are liable for their actions.

The Party acknowledges that they have not received any advertisements from the Contractor regarding the services of unlicensed brokerage companies.

The Party has been notified and understands that the possible loss of financial resources, both their own and borrowed ones, when working in the financial markets may be critical for the quality of life and health of the Party themselves, as well as persons dependent on them.