Risk Disclosure Statement

This Risk Disclosure Statement is provided by Atlas Market Exchange to ensure that all clients and prospective clients are fully aware of the risks involved in trading and investing in financial instruments. Please read this document carefully and in its entirety before opening an account or placing any trades on our platform.

Trading and investing in financial markets involves a significant degree of risk. The value of investments can go down as well as up, and you may lose some or all of the capital you invest. Past performance is not a reliable indicator of future results, and no representation is made that any account will achieve profits or avoid losses similar to those discussed in any promotional material or market commentary.

Atlas Market Exchange is a fully licensed Danish bank operating under the supervision of the Danish Financial Supervisory Authority (FSA). This Risk Disclosure Statement forms part of our Terms and Conditions and should be read alongside our Privacy Policy and all other applicable documentation provided by Atlas Market Exchange.

If you do not fully understand the risks involved, we strongly recommend that you seek independent financial, legal, and tax advice before proceeding.

1. General Investment Risk

All forms of investment and trading carry inherent risk. Before engaging with any financial product available on our platform, you should carefully consider the following general risks:

• Capital Loss: The value of any financial instrument can fall as well as rise. You may receive back less than the amount you originally invested, or lose your entire investment.
• Market Risk: Financial markets are subject to constant fluctuations driven by economic data, geopolitical events, corporate earnings, changes in interest rates, and other unpredictable factors. These fluctuations can result in significant losses.
• Liquidity Risk: Under certain market conditions, it may be difficult or impossible to execute orders at desired prices due to insufficient market liquidity. This may result in orders being filled at worse prices than anticipated.
• Concentration Risk: Investing a significant portion of your capital in a single asset, sector, or geographic region increases the risk of substantial loss if that asset, sector, or region underperforms.
• Inflation Risk: The real value of your investments may be eroded over time if the rate of inflation exceeds the rate of return on your portfolio.
• No Guaranteed Returns: Atlas Market Exchange does not guarantee any returns on investments. All projections, forecasts, and performance data are indicative only and should not be relied upon as a guarantee of future performance.

2. Risks Associated with Stocks

Investing in equities involves specific risks that you should understand before trading individual stocks on our platform:

• Company-Specific Risk: The performance of individual stocks is directly influenced by the financial health, management decisions, and competitive position of the underlying company. Poor corporate performance, earnings disappointments, or management failures can lead to significant declines in share price.
• Sector Risk: Stocks within a specific industry or sector may be affected by sector-wide events, regulatory changes, or shifts in consumer demand that can cause broad declines across related companies.
• Dividend Risk: Dividends are not guaranteed and may be reduced or cancelled at the discretion of the issuing company. A reduction in dividends may negatively affect the value of a stock.
• Delisting Risk: A company's shares may be delisted from the exchange on which they are traded, which may result in a significant loss of value or difficulty in selling the investment.
• Foreign Market Risk: Investing in stocks listed on foreign exchanges exposes you to additional risks, including currency fluctuations, different regulatory standards, and political or economic instability in the relevant country.
• Volatility Risk: Individual stock prices can be highly volatile, particularly for smaller companies or those operating in high-growth sectors, and may experience significant price movements in short periods of time.

3. Risks Associated with ETFs

Exchange-traded funds (ETFs) offer a cost-effective way to gain diversified market exposure, but they carry specific risks that investors should be aware of:

• Tracking Error: An ETF may not perfectly replicate the performance of the index or benchmark it is designed to track. Fees, transaction costs, and rebalancing activities can result in a divergence between the ETF's performance and its underlying index.
• Market Price vs. NAV Risk: ETFs are traded on exchanges and their market price may differ from their net asset value (NAV). During periods of high market volatility, the difference between the market price and NAV may widen significantly.
• Underlying Asset Risk: The value of an ETF is directly linked to the performance of its underlying assets. If the assets tracked by the ETF decline in value, the ETF will also lose value.
• Counterparty Risk: Certain ETFs, particularly synthetic ETFs, use derivative instruments such as swaps to replicate index performance. These instruments introduce counterparty risk, which is the risk that the other party to the contract fails to fulfil its obligations.
• Liquidity Risk: Some ETFs, particularly those that track niche markets or less liquid asset classes, may have lower trading volumes and wider bid-ask spreads, making it harder to buy or sell at favourable prices.
• Currency Risk: ETFs that invest in assets denominated in a foreign currency expose investors to currency fluctuation risk, which can positively or negatively affect returns when converted back to your base currency.

4. Risks Associated with Forex Trading

Foreign exchange (Forex or FX) trading is one of the most complex and high-risk forms of financial trading. You should only trade FX if you fully understand the risks involved and can afford to sustain significant financial losses:

• Leverage Risk: Forex trading typically involves the use of leverage, which amplifies both potential gains and potential losses. A small adverse movement in the exchange rate can result in losses that significantly exceed your initial deposit.
• High Volatility: Currency markets can be extremely volatile and can move rapidly in response to economic data releases, central bank decisions, geopolitical developments, and other unexpected events.
• Overnight and Weekend Risk: FX markets are open 24 hours a day, five days a week. Holding positions overnight or over weekends exposes you to the risk of significant price gaps if major news events occur during market closure.
• Counterparty Risk: When trading FX, you are entering into a contract with Atlas Market Exchange as your counterparty. Although we operate under strict regulatory oversight, there is an inherent counterparty risk in all over-the-counter (OTC) transactions.
• Interest Rate Risk: Changes in interest rates by central banks can have a significant impact on currency valuations and may cause rapid and unexpected movements in FX markets.
• Execution Risk: During periods of extreme market volatility or low liquidity, orders may not be executed at the requested price, resulting in slippage and potentially larger-than-anticipated losses.
• Retail Client Warning: A significant proportion of retail investor accounts lose money when trading FX products. You should carefully consider whether FX trading is appropriate for your financial situation and risk tolerance.

5. Risks Associated with Cryptocurrencies

Cryptocurrency markets are among the most volatile and high-risk financial markets in the world. The following risks are particularly relevant to digital asset trading:

• Extreme Volatility: Cryptocurrency prices can experience dramatic increases and decreases over very short periods of time. It is not uncommon for digital assets to lose a significant portion of their value within hours or days.
• Regulatory Risk: Cryptocurrencies are subject to varying and rapidly evolving regulatory frameworks across different jurisdictions. Regulatory changes, bans, or restrictions can have a sudden and severe impact on the value and tradability of digital assets.
• Technology Risk: Blockchain networks and cryptocurrency platforms are subject to technical risks, including software bugs, hacking, network failures, and vulnerabilities that may result in the loss or theft of digital assets.
• Liquidity Risk: Some cryptocurrencies have limited market depth and liquidity, which can result in significant price slippage when executing large orders or trading in less liquid assets.
• Valuation Risk: Unlike traditional financial assets, many cryptocurrencies do not have underlying earnings, cash flows, or tangible assets that can be used to determine their fundamental value. Their prices are largely driven by speculation and market sentiment.
• Market Manipulation: Cryptocurrency markets may be susceptible to price manipulation, pump-and-dump schemes, and other fraudulent practices, particularly in smaller or less established digital assets.
• No Deposit Protection: Unlike traditional bank deposits, cryptocurrency holdings are not covered by the Danish Guarantee Fund or any equivalent deposit protection scheme. You may lose the entire value of your cryptocurrency investment.

6. Risks Associated with CFDs

Contracts for Difference (CFDs) are complex leveraged financial instruments that carry a high risk of rapid financial loss. The following risks apply specifically to CFD trading:

• Leverage Amplification: CFDs are leveraged products, meaning you can gain a large market exposure with a relatively small initial margin. While leverage can magnify profits, it equally amplifies losses, which can exceed your initial investment.
• Margin Call Risk: If the market moves against your position and your account equity falls below the required margin level, you may receive a margin call requiring you to deposit additional funds. Failure to meet a margin call may result in the automatic closure of your position at a loss.
• Overnight Financing Costs: Holding CFD positions overnight incurs financing charges. These costs can accumulate significantly over time and may erode the profitability of long-term positions.
• Gap Risk: Markets can gap — meaning prices can jump significantly from one level to another without trading in between — particularly when markets open after a period of closure. This can result in your position being closed at a price significantly worse than your stop-loss level.
• Counterparty Risk: CFDs are OTC instruments traded directly with Atlas Market Exchange as the counterparty. While we operate under regulatory supervision, this relationship involves an inherent counterparty risk.
• Complexity Risk: CFDs are complex instruments that require a thorough understanding of the underlying asset, leverage mechanics, margin requirements, and market dynamics. Inadequate knowledge significantly increases the risk of financial loss.
• Retail Client Warning: CFDs are not suitable for all investors. A significant proportion of retail investor accounts lose money when trading CFDs. You should not trade CFDs unless you fully understand how they work and can afford to sustain significant losses.

7. Risks Associated with Mutual Funds

While mutual funds are generally considered a more diversified form of investment, they are not without risk. The following risks apply to investing in mutual funds through our platform:

• Market Risk: The value of a mutual fund's underlying assets is subject to market fluctuations. A broad market downturn can negatively affect the value of your investment regardless of the fund's management quality.
• Fund Manager Risk: The performance of an actively managed mutual fund depends on the skill and decisions of the fund manager. Poor investment decisions by the fund manager can lead to underperformance relative to the benchmark or loss of capital.
• Fee and Cost Risk: Mutual funds charge management fees and other costs that reduce the overall return on your investment. In periods of low or negative market performance, fees can further erode the value of your investment.
• Liquidity Risk: Some mutual funds may have restrictions on redemption frequency or notice periods. You may not be able to access your investment immediately, particularly in funds with limited liquidity or during periods of market stress.
• Concentration Risk: Certain mutual funds may have concentrated exposure to specific sectors, geographies, or asset classes, which may increase the risk of significant losses if those areas underperform.
• Currency Risk: Funds that invest in assets denominated in currencies other than your base currency expose you to exchange rate fluctuations that can affect the value of your investment when converted back to your home currency.
• Regulatory and Tax Risk: Changes in regulation or tax treatment applicable to mutual funds in your jurisdiction may adversely affect the value or accessibility of your investment.

8. Leverage and Margin Risk

Certain products available on our platform, including CFDs and forex, involve the use of leverage and margin. It is essential that you understand how leverage works before trading leveraged products:

• Leverage allows you to control a larger position than your deposited margin. While this can amplify gains, it equally amplifies losses and can result in losses that exceed your total account balance.
• Margin requirements may change at any time based on market conditions, regulatory requirements, or Atlas Market Exchange's internal risk management policies.
• If your account equity falls below the required margin level, Atlas Market Exchange reserves the right to close open positions without prior notice in order to protect both the client and the firm from further losses.
• Retail clients trading under ESMA regulation are entitled to negative balance protection, which ensures that your losses cannot exceed the funds held in your trading account. However, this protection does not eliminate the risk of losing your entire account balance.

9. Currency and Exchange Rate Risk

When you trade or invest in financial instruments denominated in a currency other than your account's base currency, you are exposed to currency risk:

• Fluctuations in exchange rates can increase or decrease the value of your investments when converted back to your base currency, independently of the performance of the underlying asset.
• Currency conversion fees of 0.25% apply when trading in a currency different from your account's base currency, based on the relevant FX spot mid-price at the time of the transaction.
• Exchange rate movements can be unpredictable and may be influenced by macroeconomic factors, central bank policies, geopolitical events, and market sentiment.

10. Technology and Operational Risk

The use of electronic trading platforms and digital systems introduces a range of technology and operational risks that may affect your ability to trade:

• System Downtime: Our platform may experience periods of downtime due to maintenance, technical failures, or unforeseen circumstances. During these periods, you may be unable to access your account, monitor positions, or execute orders.
• Internet and Connectivity Risk: Trading via the internet is subject to connectivity disruptions, latency, and other technical issues that may result in delayed or failed order execution.
• Cybersecurity Risk: Despite our robust security measures, our platform and your personal account may be exposed to cybersecurity threats, including hacking, phishing, and malware attacks. You should ensure that your devices and internet connections are secure at all times.
• Data Accuracy: Market data, prices, and other information displayed on our platform are provided for informational purposes and may be subject to delays or inaccuracies. Atlas Market Exchange does not guarantee the accuracy or completeness of any data displayed on the platform.
• Order Execution Risk: During periods of high market volatility, orders may not be executed at the requested price or may be partially filled, resulting in slippage or unintended exposure.

11. Regulatory and Legal Risk

Changes in laws, regulations, and government policies can have a significant impact on financial markets and your investments:

• Regulatory changes may affect the availability of certain financial products and services in your jurisdiction, potentially requiring the closure of open positions or the restriction of account activity.
• Tax laws and reporting requirements applicable to your investments may change, resulting in increased tax liabilities or administrative obligations.
• Atlas Market Exchange operates under the supervision of the Danish Financial Supervisory Authority (FSA) and is subject to applicable European Union financial regulations. Changes to these regulatory frameworks may affect how we operate and the products we are able to offer.
• Legal disputes, sanctions, or enforcement actions against a company or market in which you have invested may adversely affect the value of your investment.

12. No Investment Advice

Atlas Market Exchange does not provide personalised investment advice, financial planning services, or tax advice. Any information, market commentary, research, or analysis provided on our platform is for informational and educational purposes only and does not constitute a recommendation to buy, sell, or hold any financial instrument.

All investment decisions are made solely by you as the client. You are responsible for conducting your own due diligence and for assessing whether any particular investment or trading strategy is appropriate for your individual financial circumstances, investment objectives, and risk tolerance.

We strongly encourage all clients, particularly those who are new to investing or trading, to seek independent financial advice from a qualified and regulated financial advisor before making any investment decisions.

13. Suitability and Appropriateness

Certain financial products available on our platform, including leveraged products such as CFDs and forex, are complex and may not be suitable for all investors. Before opening an account or trading in any product, you should honestly assess:

• Your level of knowledge and experience with the financial products you intend to trade.
• Your financial situation and whether you can afford to sustain losses, including the potential loss of your entire invested capital.
• Your investment objectives and whether the products you intend to trade are aligned with those objectives.
• Your risk tolerance and emotional ability to manage losses without making impulsive trading decisions.

Atlas Market Exchange may conduct suitability and appropriateness assessments as required by applicable regulations. If a product is deemed unsuitable or inappropriate for you based on the information you provide, we will inform you accordingly. However, the final responsibility for all investment decisions remains with you as the client.

14. Acknowledgement

By opening an account and using the Atlas Market Exchange platform, you confirm that:

• You have read and understood this Risk Disclosure Statement in its entirety.
• You acknowledge that trading and investing in financial instruments involves significant risk and that you may lose some or all of your invested capital.
• You have considered your financial situation, investment objectives, and risk tolerance before proceeding.
• You understand that Atlas Market Exchange does not provide personalised investment advice and that all trading decisions are your sole responsibility.
• You agree to seek independent financial advice if you are uncertain about any aspect of trading or investing on our platform.

This Risk Disclosure Statement does not disclose all of the risks and other significant aspects of trading in financial instruments. You should undertake such trading only if you understand the nature of the products you are entering into and the extent of your exposure to risk.

15. Contact Us

If you have any questions about this Risk Disclosure Statement or require further clarification on the risks associated with any of our products or services, please contact us through the following channels:

• Email: info@atlasmarketexchange.com
• Client Support: Available through the Platform's live chat and help centre.
• Registered Address: Atlas Market Exchange, Hong Kong.

We are committed to ensuring that all clients have access to the information they need to make informed and responsible investment decisions.