1. You are considering to enter into Financial Contracts trading on the trading platform of Daweda Exchange Limited («we», «our», «us» or the «Company»). Financial Contracts are high risk financial products, which are not suitable to many members of the general public.

2. This notice is meant to inform the user of potential high financial risks by engaging in Financial Contracts trading. This notice should be read in conjunction with the Company’s Terms and Conditions («User-Agreement»).

3. If you choose to enter into Financial Contracts trading with us, it is important that you remain aware of the risks involved, that you have adequate financial resources to bear such risks and that you monitor your trading carefully.

4. Trading in Financial Contracts may result in a substantial or complete loss of funds and therefore should only be undertaken with risk capital. Risk capital means funds which the client can afford to lose and are not for his well-being. We strongly recommend that a client, who is considering trading financial products, read through all the content of our website (www.daweda.com) so that he/she may obtain a clearer and more accurate understanding of the risks inherent in trading.

5. All Clients and prospective Clients should read carefully the following risk disclosure and warnings contained in this document, before applying to the Company for a trading account and before they begin to trade on the Company’s trading platform. However, it is noted that this document cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in Financial Instruments. The notice was designed to explain in general terms the nature of the risks involved when dealing in Financial Instruments on a fair and non-misleading basis.
Charges and Taxes
6. The Provision of Services by the Company to the Client is subject to fees, available on the Company’s website or as customary under the applicable law. Before the Client begins to trade, he/she should obtain details of all fees, commissions, charges for which the Client will be liable. It is the Client’s responsibility to check for any changes in the charges.

7. The Company, may change its applicable charges at any time and without prior notice.

8. There is a risk that the Client’s trades in any financial instruments may be or become subject to tax and/or any other duty for example because of changes in legislation or his/her personal circumstances. The Company does not warrant that no tax and/or any other stamp duty will be payable. The Company does not offer tax advice and recommends that the Client seeks advice from a competent tax professional if the Client has any questions.

9. The Client is responsible for any taxes and/or any other duty which may accrue in respect of his/her trades.

10. It is noted that taxes are subject to change without notice.

Financial Contracts are Over-the-Counter (OTC) Derivatives
11. Our Financial Contracts are not listed and/or traded on any exchange. The prices and other conditions are set by the Clients, and the calculation of the price to be paid (or the payout to be received) at the time the financial contract is purchased or sold, will be based on the contract terms.

12. Each Financial Contract position you open (including any and all derivative actions enabled by our platform, for instance, hedging of a position), constitutes a contract with other clients in accordance with the User Agreement.

Trading Platform
13. The Client is warned that when trading in an electronic platform he assumes risk of financial loss which may be a consequence of amongst other things:
13.1. Failure of Client’s devices, software and poor quality of connection.
13.2. The Company’s or Client’s hardware or software failure, malfunction or misuse.
13.3. Improper work of Client’s equipment.
13.4. Wrong setting of Client’s Terminal.
13.5. Delayed updates of Client’s Terminal.

Fluctuations in the Underlying Market
14. Financial Contracts are financial instruments that allow you to speculate on price movements in underlying markets. It is important therefore that you understand the risks associated with trading in the relevant underlying market because fluctuations in the price of the underlying market will affect the profitability of your trade. Such risks include inter alia:

14.1. Volatility: movements in the price of underlying markets can be volatile and unpredictable. This will have a direct impact on your profits and losses. Knowing the volatility of an underlying market will help guide you how to trade.

14.2. Market liquidity: Market conditions can change significantly in a very short period of time, so that if you wish to close a contract, such action may not be executed in the event no counter-party exists. Some of the Underlying Assets may not become immediately liquid as a result of reduced demand for the Underlying Asset and Client may not be able to obtain the information on the value of these or regarding the extent of the associated risks.

Third Party Risks
15. The Company may pass money received from the Client to a third party (an intermediate broker, a bank, a market, a settlement agent, a clearing house or OTC counterparty located outside Cyprus) to hold or control in order to effect a Transaction through or with that person or to satisfy the Client’s obligation to provide collateral (e.g. initial deposit requirement) in respect of a Transaction. The Company has no responsibility for any acts or omissions of any third party to whom it will pass money received from the Client.

16. The legal and regulatory regime applying to any such third party person may be different from that of Cyprus and in the event of the insolvency or any other equivalent failure of that person, the Client’s money may be treated differently from the treatment which would apply if the money was held in a segregated account in Cyprus. The Company will not be liable for the solvency, acts or omissions of any third party referred to in this clause.

17. The third party to whom the Company will pass money may hold it in an omnibus account and it may not be possible to separate it from the Client’s money, or the third party’s money. In the event of the insolvency or any other analogous proceedings in relation to that third party, the Company may only have an unsecured claim against the third party on behalf of the Client, and the Client will be exposed to the risk that the money received by the Company from the third party is insufficient to satisfy the claims of the Client in respect of the relevant account. The Company does not accept any liability or responsibility for any resulting losses.

18. The Company has the right to hold Client money on the Client’s behalf outside the EEA. The legal and regulatory regime applying to any such bank or person will be different from that of Cyprus and in the event of the insolvency or any other analogous proceedings in relation to that bank or person, the Client money may be treated differently from the treatment which would apply if the money was held with a bank in an account in Cyprus. The Company will not be liable for the insolvency, acts or omissions of any third party referred to in this paragraph.

19. The Company may deposit Client money with a depository who may have a security interest, lien or right of set-off in relation to that money.

20. A Bank or Broker through whom the Company deals with could have interests contrary to the Client’s Interests.
21. The Company’s insolvency or default, may lead to positions being liquidated or closed out without the Client’s consent.
Investor Compensation Fund
22. The Company participates in the Investor Compensation Fund for clients of Investment Firms regulated in the Republic of Cyprus. Certain clients will be entitled to compensation under the Investor Compensation Fund where the Company fails. Compensation shall not exceed twenty thousand Euro (EUR 20.000) for each entitled Client. For more details please refer to the “Investor Compensation Fund” found on our website.

Internet and Electronic Communication
23. We offer you to trade via our websites which relies on Internet connection. Although Internet communication is often reliable, no electronic communication is entirely reliable or always available. If you choose to trade with us, you should be aware that electronic communications can fail, can be delayed, may not be secure and/or may not reach the intended destination.

24. The Client nor the Company shall be responsible for the risks of financial losses caused by failure, malfunction, interruption, disconnection or malicious actions of information, communication, electricity, electronic or other systems.

25. If the Client undertakes transactions on an electronic system, he/she will be exposed to risks associated with the system including the failure of hardware, software, servers, communication lines and internet failure. The result of any such failure may be that his order is either not executed according to his instructions or it is not executed at all. The Company does not accept any liability in the case of such a failure.

26. The Client acknowledges that the unencrypted information transmitted by e-mail is not protected from any unauthorized access.

27. At times of excessive deal flow the Client may have some difficulties to be connected to the Company’s Platform(s)/system(s), especially in fast Market (for example, when key macroeconomic indicators are released).

28. The Client acknowledges that the internet may be subject to events which may affect his/her access to the Company’s Website and/or the Company’s trading Platform(s)/system(s), including but not limited to interruptions or transmission blackouts, software and hardware failure, internet disconnection, public electricity network failures or hacker attacks. The Company is not responsible for any damages or losses resulting from such events which are beyond its control or for any other losses, costs, liabilities, or expenses (including, without limitation, loss of profit) which may result from the Client’s inability to access the Company’s Website and/or Trading System or delay or failure in sending orders or Transactions.

29. In connection with the use of computer equipment and data and voice communication networks, the Client bears the following risks amongst other risks in which cases the Company has no liability of any resulting loss:
29.1. Power cut of the equipment on the side of the Client or the provider, or communication operator (including voice communication) that serves the Client.
29.2. Physical damage (or destruction) of the communication channels used to link the Client and provider (communication operator), provider, and the trading or information server of the Client.
29.3. Outage (unacceptably low quality) of communication via the channels used by the Client, or the channels used by the provider, or communication operator (including voice communication) that are used by the Client.
29.4. Wrong or inconsistent requirements settings of the Client Terminal.
29.5. Untimely update of the Client Terminal.
29.6. When carrying out transactions via the telephone (land or cell phone lines) voice communication, the Client runs the risk of problematic dialing, when trying to reach an employee of the broker service department of the Company due to communication quality issues and communication channel loads.
29.7. The use of communication channels, hardware and software, generate the risk of non-reception of a message (including text messages) by the Client from the Company.
29.8. Malfunction or non-operability of the Platform, which also includes the Client Terminal.
30. The Client may suffer financial losses caused by the materialization of the above risks, the Company accepts no responsibility or liability in the case of such a risk materializing and the Client shall be responsible for all related losses he/she may suffer.
Force Majeure Events
31. In case of a Force Majeure Event the Company may not be in a position to arrange for the execution of Client Orders or fulfill its obligations under the User Agreement with the Client. As a result the Client may suffer financial loss.
32. The Company will not be liable or have any responsibility for any type of loss or damage arising out of any failure, interruption, or delay in performing its obligations under this Agreement where such failure, interruption or delay is due to a Force Majeure event.
Communication between the Client and the Company
33. The Client shall accept the risk of any financial losses caused by the fact that the Client has received with delay or has not received at all any notice from the Company.
34. The Company has no responsibility if unauthorized third persons have access to information, including electronic addresses, electronic communication and personal data, access data when the above are transmitted between the Company and the Client or when using the internet or other network communication facilities, telephone, or any other electronic means.
35. The Client is fully responsible for the risks in respect of undelivered Company Online Trading System internal mail messages sent to the Client by the Company as they are automatically deleted within 3 (three) calendar days.
Foreign Currency
36. When a Contract is traded in a currency other than that of USD, or the client open an account in a currency other than USD, any changes in the exchange rates may have a negative effect on its value, price and performance and may lead to losses for the Client.
Advice and Recommendations
37. The Company will not advise the Client about the merits of a particular Transaction or give him/her any form of investment advice and the Client acknowledges that the Services do not include the provision of investment advice in Financial Contracts or the Underlying Markets. The Client alone will enter into Transactions and take relevant decisions based on his own judgment. In asking the Company to enter into any Transaction, the Client represents that he has been solely responsible for making his own independent appraisal and investigation into the risks of the Transaction. He represents that he has sufficient knowledge, market sophistication, professional advice and experience to make his own evaluation of the merits and risks of any Transaction. The Company gives no warranty as to the suitability of the products traded under this Agreement and assumes no fiduciary duty in its relations with the Client.
38. The Company will not be under any duty to provide the Client with any legal, tax or other advice relating to any Transaction. The Client should seek independent expert advice if he is in any doubt as to whether he may incur any tax liabilities. The Client is hereby warned that tax laws are subject to change from time to time.
39. The Company may, from time to time and at its discretion, provide the Client (or in newsletters which it may post on its Website or provide to subscribers via its Website or the Trading Platform or otherwise) with information, recommendations, news, market commentary or other information but not as a service. Where it does so:
39.1. the Company will not be responsible for such information;
39.2. the Company gives no representation, warranty or guarantee as to the accuracy, correctness or completeness of such information or as to the tax or legal consequences of any related Transaction;
39.3. this information is provided solely to enable the Client to make his own investment decisions and does not amount to investment advice or unsolicited financial promotions to the Client;
39.4. if the document contains a restriction on the person or category of persons for whom that document is intended or to whom it is distributed, the Client agrees that he will not pass it on to any such person or category of persons;
39.5. the Client accepts that prior to dispatch, the Company may have acted upon it itself to make use of the information on which it is based. The Company does not make representations as to the time of receipt by the Client and cannot guarantee that he will receive such information at the same time as other clients.
40. It is understood that market commentary, news, or other information provided or made available by the Company are subject to change and may be withdrawn at any time without notice.
No Guarantees of Profit