Risk Disclosure

Trading futures contracts involves substantial risk and may not be suitable for all investors. Before deciding to trade futures contracts, you should carefully consider the following risk factors:

Volatility and Market Risk: Futures markets can be highly volatile, with prices fluctuating rapidly. Market conditions, economic factors, geopolitical events, and other external factors can impact the price of futures contracts. These price fluctuations can result in substantial gains or losses.

Leverage Risk: Futures trading involves the use of leverage, which means that a small initial investment can control a much larger position. While leverage can amplify profits, it can also magnify losses. If the market moves against your position, you may be required to deposit additional funds to maintain your position.

Counterparty Risk: Futures contracts are typically traded on exchanges, and your trades are guaranteed by the clearinghouse associated with the exchange. However, there is still a risk of default by the clearinghouse or the counterparty to your trade. In the event of default, you may face difficulties in closing your positions and recovering your funds.

Liquidity Risk: Some futures contracts may have low trading volume, resulting in limited liquidity. Low liquidity can make it difficult to enter or exit positions at desired prices, and it may be harder to find a counterparty for your trades. Illiquid markets can increase the risk of price manipulation and wider bid-ask spreads.

System and Technology Risk: Trading futures contracts relies on electronic trading systems and technology infrastructure. System outages, network failures, or other technical issues can disrupt trading and result in execution delays, inaccurate order fills, or loss of data. You should be aware of the potential risks associated with technology failures.

Regulatory and Political Risk: Regulatory changes, governmental policies, or political events can impact futures markets. New regulations or changes in existing regulations may affect trading conditions, margin requirements, or other aspects of futures trading. Political instability or geopolitical tensions can also disrupt markets and impact prices.

Past Performance is Not Indicative of Future Results: Historical performance of futures contracts or trading strategies is not necessarily indicative of future performance. The market conditions and factors that influenced past performance may not repeat in the future. It is important to carefully evaluate the risks and potential rewards of trading futures based on your individual circumstances and risk tolerance.

This risk disclosure is not exhaustive, and there may be additional risks associated with futures trading. It is essential to educate yourself about the nature of futures contracts and seek advice from a qualified financial advisor or broker before engaging in futures trading