Risk Disclosure
By engaging in trading activities with B-Investor, the Client acknowledges, understands, and accepts the risks disclosed below.
1. Purpose
The purpose of this Risk Disclosure Statement (“the Statement”) is to provide the Client with appropriate guidance on the nature and risks of the specific types of financial instruments offered by B-Investor, in accordance with regulatory requirements under the Comoros MISA License.
2. Legal Framework
This Statement is prepared in compliance with the MISA (Mohéli International Services Authority) regulations governing brokerage firms operating under the jurisdiction of Comoros. While this document provides an overview of key risks, it does not disclose or discuss all possible risks and aspects of trading. Clients should ensure that they fully understand the risks associated with financial instruments before engaging in trading activities.
3. Statement
Trading in Contracts for Difference (CFDs) and other leveraged financial instruments is highly speculative and involves significant risk. CFDs are complex products with no fixed maturity, meaning that they remain open until the Client decides to close the position. Due to leverage, Clients may lose more than their initial investment.
1. Purpose
The purpose of this Risk Disclosure Statement (“the Statement”) is to provide the Client with appropriate guidance on the nature and risks of the specific types of financial instruments offered by B-Investor, in accordance with regulatory requirements under the Comoros MISA License.
2. Legal Framework
This Statement is prepared in compliance with the MISA (Mohéli International Services Authority) regulations governing brokerage firms operating under the jurisdiction of Comoros. While this document provides an overview of key risks, it does not disclose or discuss all possible risks and aspects of trading. Clients should ensure that they fully understand the risks associated with financial instruments before engaging in trading activities.
3. Statement
Trading in Contracts for Difference (CFDs) and other leveraged financial instruments is highly speculative and involves significant risk. CFDs are complex products with no fixed maturity, meaning that they remain open until the Client decides to close the position. Due to leverage, Clients may lose more than their initial investment.
- Before trading, Clients should evaluate whether they:
- Understand the economic, legal, and financial risks involved.
- Have sufficient financial resources to bear potential losses.
- Possess adequate knowledge about CFDs and their underlying assets.
- Key Risks Associated with CFDs
- Leverage Risk – Trading on margin amplifies both gains and losses. The use of high leverage (up to 1:300) can lead to rapid losses exceeding initial deposits. However, B-Investor applies negative balance protection, ensuring that Clients do not owe more than their deposited funds.
- Market Volatility – CFD prices are affected by market conditions. Fast price fluctuations can result in significant losses within a short time.
- Margin Requirements – Clients must maintain sufficient margin in their trading account. Failure to do so may result in automatic closure of open positions, without prior notice.
- Counterparty Risk – B-Investor is the counterparty to all transactions. Therefore, there is a risk of conflicts of interest. Clients should review the Conflicts of Interest Policy for more details.
- Pricing & Execution Risk – Prices quoted by B-Investor may differ from those reported in external markets. Slippage may occur due to high volatility or liquidity issues.
- Limited Investor Protection – Trading with a brokerage under MISA (Comoros) does not provide access to investor compensation schemes available in some other jurisdictions.
- No Ownership Rights: CFDs do not grant any rights to the underlying asset (e.g., shares, commodities, indices).
- Immediate Execution: Market orders placed via telephone or online are executed instantly and cannot be canceled once confirmed.
- No Investment Advice: B-Investor does not provide personal investment advice. Clients must make independent trading decisions.
- Operational Risks
- System Failures: Internet trading carries risks, including latency, disconnections, and software malfunctions.
- Telephone Orders: Availability of telephone services is not guaranteed.
- Abnormal Market Conditions: During periods of high volatility, execution delays, price gaps, or increased spreads may occur.
- Unreceived Messages: B-Investor is not responsible for missed notifications due to incorrect email addresses or spam filters.
- Confidentiality: Clients must ensure their trading account details remain secure.
- B-Investor shall not be liable for losses caused by force majeure events, including political instability, natural disasters, cyber-attacks, or regulatory changes.
- Clients are responsible for complying with tax laws applicable in their jurisdiction. B-Investor does not provide tax advice.
- Trading Costs: Clients must consider spreads, commissions, and swap rates before opening positions.
- Overnight Swaps: Holding positions overnight incurs swap charges, which are tripled on Wednesdays to account for weekend adjustments.
- System Errors: In the event of system malfunctions, trade expiries may be processed manually by B-Investor’s risk management team.