Risk Disclosure

1. General Risk Warning

Trading in gold through spot trading carries a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider:

• Your investment objectives
• Your level of experience
• Your risk tolerance
• Your financial situation
• Your understanding of Shariah-compliant trading

You should not invest money that you cannot afford to lose. There is a possibility that you may sustain a loss equal to your entire investment. However, since we are a spot trading broker (not CFD), your losses are limited to the amount you invest - you cannot lose more than your investment.

2. Spot Trading Risks

2.1 Market Risk

Gold spot markets are volatile and unpredictable. Gold prices can move rapidly in response to:

• Economic news and events (inflation, interest rates, GDP)
• Political developments and geopolitical tensions
• Central bank decisions and monetary policy
• Market sentiment and investor behavior
• Supply and demand factors (mining, industrial use, investment demand)
• Currency fluctuations (especially USD)
• Unexpected events (black swan events, market crashes)

These price movements can result in significant losses. Since you own actual gold (not a derivative), price declines directly affect your investment value.

2.2 No Leverage Risk (Spot Trading Advantage)

• No Leverage: You trade with your own capital only
• Limited Loss: Your maximum loss is limited to your investment amount
• No Margin Calls: No risk of margin calls or forced liquidation
• No Negative Balance: You cannot lose more than you invest
• Ownership Protection: You own the actual gold, providing intrinsic value

While this limits your potential profits compared to leveraged trading, it also significantly reduces your risk exposure. This approach is more aligned with Shariah principles of avoiding excessive risk (Gharar).

2.3 Liquidity Risk

Market liquidity can affect your ability to:

• Enter or exit positions at desired prices
• Execute orders during volatile market conditions
• Close positions during market gaps or fast markets

During periods of low liquidity, spreads may widen significantly, and orders may be executed at less favorable prices.

2.4 Slippage Risk

Orders may be executed at prices different from expected prices due to:

• Market volatility
• Low liquidity
• Fast market conditions
• Gaps in price

2.5 Technical Risk

Technical issues may affect trading:

• Platform downtime or connectivity issues
• Delayed price updates
• Order execution delays
• System errors or bugs

While we strive to maintain system reliability, technical issues can occur and may impact your ability to trade or manage positions.

3. Gold Spot Trading Risks

3.1 Price Volatility

Gold spot prices are subject to significant volatility due to:

• Currency fluctuations (especially USD strength/weakness)
• Interest rate changes (affects opportunity cost of holding gold)
• Inflation expectations (gold as inflation hedge)
• Geopolitical events and uncertainty
• Supply and demand dynamics (mining production, central bank buying/selling)
• Central bank policies and monetary decisions
• Market sentiment and investor behavior

Since you own actual gold, price declines directly reduce the value of your investment. However, gold also has intrinsic value and serves as a store of wealth.

3.2 Spot Trading Specific Risks

Spot gold trading involves:

• Immediate Settlement Risk: Full payment required upfront
• Price Fluctuations: Between purchase and sale, prices can move against you
Storage Fees: Ongoing costs for secure vault storage
• Liquidity Risk: Ability to sell at desired prices depends on market liquidity
• Platform Dependency: Need for platform access to manage holdings
• Spread Risk: Difference between buy and sell prices affects profitability

3.3 Physical Gold Delivery Risks

If you opt for physical gold delivery, you face:

• Premium Over Spot: Physical gold often trades at premium to spot price
• Storage and Insurance: Costs for storing and insuring physical gold
• Shipping Risks: Potential loss or damage during transportation
• Market Price Changes: Price may change between order placement and delivery
• Liquidity: Physical gold may be harder to sell quickly compared to digital holdings

4. Investment Plan Risks

4.1 Mudarabah Plan Risks

Mudarabah investment plans carry the following risks:

• No Guaranteed Returns: Returns depend on actual profits, which are not guaranteed
• Capital Risk: You may lose part or all of your invested capital
• Liquidity Risk: Early withdrawal may incur penalties or be restricted
• Market Risk: Investment performance depends on market conditions
• Management Risk: Investment decisions are made by fund managers

4.2 Musharakah Pool Risks

Musharakah pool investments involve:

• Joint investment risk
• Profit and loss sharing
• Limited liquidity
• Pool-specific risks
• Management and operational risks

4.3 Investment Performance

5. Copy Trading Risks

5.1 Trader Performance Risk

Copy trading involves significant risks:

• Past trader performance does not guarantee future results
• Traders may experience losses
• Market conditions change, affecting trader performance
• You are responsible for all losses from copied trades

5.2 Strategy Risk

Trading strategies that worked in the past may not work in the future. Market conditions, volatility, and other factors can render strategies ineffective.

5.3 Execution Risk

Copied trades may be executed at different prices due to:

• Time delays
• Market conditions
• Liquidity constraints
• Technical issues

6. P2P Trading Risks

6.1 Counterparty Risk

P2P trading involves direct transactions with other users:

• Counterparty may default on obligations
• Disputes may arise
• Fraud risk from other users
• Payment delays or failures

6.2 Escrow Risk

While we provide escrow services, there are risks:

• Dispute resolution may take time
• Funds may be held during disputes
• Resolution may not be in your favor

7. Technology and Cybersecurity Risks

7.1 Cybersecurity Threats

Online trading platforms are subject to:

• Hacking and unauthorized access
• Data breaches
• Malware and phishing attacks
• Identity theft

While we implement security measures, no system is completely secure. You should:

• Use strong passwords
• Enable two-factor authentication
• Keep your devices secure
• Be cautious of phishing attempts

7.2 Technical Failures

Technical failures can occur:

• Server outages
• Network connectivity issues
• Software bugs
• Data loss

8. Regulatory and Legal Risks

8.1 Regulatory Changes

Financial regulations may change, affecting:

• Trading conditions
• Available instruments
• Leverage limits
• Account requirements

8.2 Jurisdictional Risks

Trading may be restricted or regulated differently in different jurisdictions. You are responsible for ensuring compliance with local laws.

9. Currency and Exchange Rate Risks

If you trade in currencies other than your base currency:

• Exchange rate fluctuations can affect returns
• Currency conversion fees apply
• Exchange rates may be unfavorable at withdrawal

10. Tax Implications

Trading and investment activities may have tax implications:

• Profits may be subject to taxation
• Tax laws vary by jurisdiction
• You are responsible for tax compliance
• Consult a tax advisor for guidance

11. Shariah Compliance Risks

11.1 Fatwa and Interpretation Changes

Shariah compliance is based on Islamic jurisprudence and scholarly opinions:

• Fatwa Changes: Shariah scholars' opinions may evolve over time
• Interpretation Differences: Different scholars may have varying interpretations
• Platform Policy Updates: We may need to adjust policies based on new Shariah guidance
• Your Personal Beliefs: If you disagree with our Shariah interpretations, you bear that risk

11.2 Shariah Board Oversight

While we maintain an independent Shariah Advisory Board and regular compliance audits, you should:

• Understand our Shariah compliance framework
• Consult with your own Shariah advisor if needed
• Be aware that Shariah compliance does not eliminate market risks
• Recognize that Shariah-compliant investments can still lose value

12. No Investment Advice

13. Risk Management Recommendations

To manage risks effectively:

• Only invest what you can afford to lose
• Use stop-loss orders to limit losses
• Diversify your investments
• Monitor your positions regularly
• Keep margin levels adequate
• Understand the instruments you trade
• Stay informed about market conditions
• Set realistic profit targets
• Don't trade with emotions
• Consider your risk tolerance

14. No Guarantees

We do not guarantee:

• Investment returns
• Trading profits
• Price movements
• System availability
• Order execution prices
• Loss prevention

15. Acceptance of Risks

16. Seek Professional Advice

Before engaging in trading or investment activities, consider consulting:

• Financial advisors
• Tax advisors
• Legal counsel
• Other qualified professionals

17. Contact Information