1.0 Introduction
Renovox is a brand that operates through the website www.renovox.com (referred to as the “Website”).
2.0 Risk Warnings
2.1. The Client should have a thorough understanding of and acknowledge the risks associated with each Financial Instrument offered by Renovox before engaging in any direct or indirect investments. Prior to opening a trading account with Renovox, the Client should carefully consider whether investing in a specific Financial Instrument is suitable based on their personal circumstances and financial resources.
2.2. If the Client lacks a full understanding of the risks involved, it is advisable to seek independent advice from a financial advisor before entering into any transactions with Renovox. If the Client still cannot comprehend the risks associated with trading Financial Instruments, it is recommended that they refrain from trading altogether.
3.0 General Risks and Acknowledgments
By entering into a CFD trading business relationship with Renovox, the Client acknowledges, understands, agrees to, and accepts the following risks, among others:
3.1. Renovox cannot guarantee the preservation of funds deposited in the Client’s Trading Account and that they may be lost due to the Client’s transactions.
3.2. The Client acknowledges that the value of any investment in Financial Instruments may fluctuate, potentially resulting in a loss of value.
3.3. The Client acknowledges and understands that there is a significant risk of incurring losses and damages through the purchase and/or sale of any Financial Instrument and accepts this risk willingly.
3.4. Past performance information regarding Financial Instruments does not guarantee or serve as a reliable indicator of their current and/or future performance. Historical data should not be considered a definitive or secure forecast for the future performance of the Financial Instruments referenced.
3.5. The Client is advised that transactions conducted through the dealing services of Renovox may involve speculative nature. Significant losses can occur within a short period, potentially equaling the total value of funds deposited with Renovox.
3.6. Some Financial Instruments may not be easily converted to cash immediately due to factors such as reduced demand. As a result, the Client may face difficulties in selling them or obtaining accurate information about the value of funds deposited with Renovox.
3.7. When a Financial Instrument is traded in a currency different from the Client’s country of residence, fluctuations in exchange rates can have a negative impact on its value, price, and performance.
3.8. Investing in Financial Instruments on foreign markets carries risks that may differ from those in the Client’s home country. In some cases, these risks may be greater. Additionally, profits or losses from transactions on foreign markets can be influenced by fluctuations in exchange rates.
3.9. Derivative Financial Instruments, such as options, futures, forwards, swaps, and contracts for difference, involve non-delivery spot transactions that allow for potential profits based on changes in currency rates, commodity prices, stock market indices, or share prices (referred to as the underlying instrument).
3.10. The value of a Derivative Financial Instrument can be directly affected by the price of the underlying security or asset being acquired.
3.11. Clients should only purchase Derivative Financial Instruments if they are willing to accept the risks of potentially losing all their invested capital, along with any additional commissions or expenses incurred.
3.12. Certain market conditions, such as force majeure events, technical failures, communication or network failures, low liquidity, market news, or announcements, can make it difficult or even impossible to execute an order.
3.13. Placing “Stop-Loss” Orders can help limit losses; however, under certain market conditions, the execution of such orders may result in prices worse than the specified level, leading to larger-than-expected losses.
3.14. If the Client’s Equity is insufficient to maintain open positions, they may be required to deposit additional funds promptly or reduce exposure. Failure to do so within the required timeframe may result in forced liquidation of positions at a loss, and the Client will be responsible for any resulting deficit.
3.15. Clients should be aware that there are currencies traded with irregular or infrequent activity, making it uncertain whether prices will be quoted at all times or if executing transactions at quoted prices may be challenging due to the absence of counterparties.
3.16. Trading online, despite its convenience and efficiency, does not automatically reduce the risks associated with currency trading.
3.17. There is a possibility that the Client’s trades in Financial Instruments may be subject to taxes and/or stamp duties due to changes in legislation or their personal circumstances. Renovox cannot guarantee that no taxes or stamp duties will be payable. The Client is solely responsible for any taxes and/or duties that may apply to their trades.
3.18. Before the Client begins to trade, they should obtain details of all commissions and other
charges for which the Client will be liable. If any changes are not expressed in monetary
terms (but, for example, a dealing spread), the Client should ask for a written
explanation, including appropriate examples, to establish what such changes are likely
to mean in specific money terms.
3.19. If the Client has any questions or concerns regarding changes in terms, such as a dealing spread, they are advised to request a written explanation that includes specific examples illustrating the potential impact on financial terms.
3.20. It is important to note that over the weekend, at the start of the week, or during intra-day trading after significant macroeconomic or political news releases, currency markets may open at prices significantly different from previous levels. This introduces a substantial risk wherein orders meant to protect or open positions may be executed at prices that differ significantly from the ones intended.
4.0 Third Party Risks
4.1. In compliance with current regulations, Renovox may be required to hold the Client’s funds in a segregated account separate from its own funds and other clients’ funds. However, it should be noted that this segregation may not provide complete protection.
4.2. Renovox may transfer funds received from the Client to a third party, such as a bank, for the purpose of executing a transaction or meeting collateral obligations (e.g., initial margin requirement). In such cases, Renovox bears no responsibility for the actions or omissions of these third parties.
4.3. The third party receiving the Client’s funds may hold them in an omnibus account, making it difficult to distinguish them from other clients’ or the third party’s funds. If the third party experiences insolvency or similar proceedings, Renovox may only have an unsecured claim on behalf of the Client, and there is a risk that the funds received from the third party may be insufficient to cover relevant claims. Renovox disclaims any liability or responsibility for resulting losses.
4.4. It is possible that a company, bank, or broker with which Renovox conducts business may have interests that conflict with the Client’s interests.
4.5. In the event of Renovox’s insolvency or the insolvency of a bank or broker used by Renovox for its transactions, the Client’s positions may be closed against their preferences.
5.0 Cash Settlements
CFD trading can only be resolved with cash payments.
6.0 Conflicts of Interest
Renovox serves as the counterparty for all transactions made under the Client Agreement, which the client has accepted. As a result, there may be conflicts of interest between Renovox and the client. For more information, the client should refer to Renovox’s Conflicts of Interests Policy, which is available on their website and subject to periodic amendments. This policy is an integral part of the Client Agreement, along with the current Risk Disclosure Statement.
7.0 Prices are determined by Renovox and may differ from prices reported elsewhere
Renovox establishes the prices used for trading and valuing client positions based on its trading policies and practices. The rates for the assets displayed on the website are the prices at which Renovox is willing to sell CFDs to its customers at the specific time of sale. Consequently, these prices may not directly align with real-time market levels when the CFD sale occurs.
8.0 Rights to underlying assets
The client acknowledges and accepts that they have no rights or obligations regarding the underlying assets associated with their CFD trading.
9.0 Trading Platform Risks
9.1 Clients who engage in transactions on an economic trading system face risks associated with the system, including potential hardware and software failures (e.g., internet or server issues). Such system failures could result in orders not being executed as instructed or not executed at all. Renovox assumes no liability in the event of such failures. Additionally, the use of wireless or unstable connections at the client’s end may lead to poor or interrupted connectivity, causing delays in data transmission between the client and Renovox when using their electronic trading platform(s). These delays or disruptions may result in the client submitting outdated “Market Orders.” In such cases, Renovox will update the price and execute the order at the best available “market price.”
9.2 The Client acknowledges that only one instruction can be in the queue at a time. If the Client sends additional instructions after the initial one, they will be ignored, and a “order is locked” notification will appear until the first instruction is executed.
9.3 The Client acknowledges and accepts that the live Server’s Quotes Base is the only reliable source of quotes information. The Quotes Base in the Client Terminal is not reliable because the connection between the Client Terminal and the Server may be disrupted, causing some quotes to not reach the Client Terminal.
9.4 The Client acknowledges that once an Order is closed or being executed, it cannot be canceled or modified.
9.5 The Client may lose any amounts they have deposited with Renovox as margin. Placing certain orders on the Trading Platform, such as “stop-loss” or “limit” orders, intended to limit losses, may not always be effective due to market conditions or technological limitations. The Client acknowledges that they may sustain losses in a short period of time, even with the use of orders like take profit and stop loss, and that the execution of a “StopLoss” Order may result in losses larger than expected.
10.0 Technical Risks
10.1 Renovox is not responsible for financial losses caused by failures, malfunctions, interruptions, disconnections, or malicious actions of information, communication, electricity, electronic, or other systems, whether directly or indirectly.
10.2 Renovox bears no responsibility if authorized third parties gain access to transmitted information, including electronic addresses, electronic communication, and personal data, when transmitted between Renovox and any other party, using the Internet or other network communication facilities, telephone, or any other electronic means.
10.3 The Client acknowledges that unencrypted information transmitted by email is not protected from unauthorized access.
10.4 During periods of high deal flow, the Client may experience difficulties in connecting over the phone or Renovox Trading Platform/system, particularly in fast markets, such as when key macroeconomic indicators are released.
10.5 The Client acknowledges that events affecting internet access, such as interruptions, transmission blackouts, software and hardware failures, internet disconnection, public electricity network failures, or hacker attacks, may occur. Renovox is not responsible for any damages or losses resulting from such events beyond its control, including the inability to access the Website and/or Trading System(s), or delays or failures in sending orders or transactions. This includes any other losses, costs, liabilities, or expenses, such as loss of profit, that may result from these circumstances.
10.6 The Client is cautioned that when trading on electronic platforms, there is a risk of financial loss resulting from various factors, including:
10.7 Regarding the use of computer equipment and communication networks, the Client assumes the following risks, among others, for which Renovox is not liable for any resulting losses:
11.0 Risks associated with Financial Instrument transactions (CFDs)
11.1. Investing in certain Financial Instruments involves the use of “gearing” or “leverage.” When considering this type of investment, the Client should be aware that Derivative Financial Instruments are characterized by a high level of “gearing” or “leverage.” This is due to the margining system used in such trades, which typically requires a relatively small deposit or margin compared to the overall contract value. As a result, even a small movement in the underlying market can have a significantly amplified impact on the Client’s trade. While a favorable market movement can lead to a substantial profit, a similarly small adverse market movement can not only result in the loss of the Client’s entire deposit but also expose them to additional significant losses. In the case of derivative Financial Instruments, these are non-deliverable spot transactions that offer an opportunity to profit or incur losses based on changes in currency rates, commodity prices, stock market indices, or share prices, which are referred to as the underlying instrument. The Client should not purchase derivative Financial Instruments unless they are willing to accept the risks of potentially losing all of their invested capital as well as incurring additional commissions and expenses.
11.2. Transactions may not take place on a recognized or designated investment exchange, which exposes the Client to greater risks compared to exchange transactions. The terms, conditions, and trading rules may be solely established by the Execution Venue. Additionally, the Client may be required to close any position with the same counterparty with whom the transaction was initially entered into. In the case of transactions in Financial Instruments with Renovox, Renovox utilizes a Trading Platform for Financial Instrument transactions that does not meet the definition of a recognized exchange or a Multilateral Trading Facility.
12.0 Renovox is not an advisor or fiduciary to the Client
When Renovox provides general market recommendations, these recommendations do not constitute personalized investment advice or recommendations considering any specific circumstances or investment objectives of the Client. They also do not represent an offer or solicitation to trade in CFDs. Each decision made by the Client to trade in CFDs with Renovox and to determine the appropriateness of a transaction is an independent decision made solely by the Client. Renovox does not act as an advisor or fiduciary to the Client. The Client acknowledges and agrees that Renovox has no fiduciary duty towards the Client and is not liable for any liabilities, claims, damages, costs, and expenses, including attorney’s fees, incurred as a result of the Client following Renovox’s general trading recommendations or taking or refraining from any action based on such recommendations or information provided by Renovox.
13.0 Recommendations are not guaranteed
The general market recommendations provided by Renovox are solely based on the judgment of Renovox personnel and/or associates, and the Client should consider them as such. The Client acknowledges and agrees that they enter into transactions relying solely on their own judgment. Any market recommendations provided are generic in nature and may or may not align with the market positions or intentions of Renovox and/or its affiliates. Renovox ‘s generic recommendations are based on information believed to be reliable, but Renovox cannot guarantee their accuracy or completeness, nor can it represent that following such recommendations will eliminate or reduce the inherent risks involved in trading CFDs.
14.0 No profit guarantees
There are no guarantees of profit or protection against losses when trading in CFDs. The Client has not received and will not receive any such guarantees from Renovox or its representatives. The Client must be aware of the risks inherent in trading CFDs and must be financially capable of bearing such risks and withstanding any losses incurred.
Important Notice: This document does not disclose, contain, or explain all the risks and other significant aspects involved in dealing with all types of Financial Instruments and Investment Services. The purpose of this document is to provide a fair and non-misleading explanation in general terms of the nature of the risks associated with dealing in Financial Instruments, in accordance with relevant legal and regulatory requirements.
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