Risk Disclosure

1. What a CFD Is

A Contract for Difference (“CFD”) is an agreement to exchange the difference between the price of an instrument when a position is opened and its price when the position is closed. Fusion FX offers CFDs on forex, cryptocurrencies, stocks, index ETFs and commodities through its web-based trading platform.

CFDs are cash-settled. You never own, receive or deliver the underlying asset (for example, the currency, coin, share or commodity), and you have no voting, dividend or other rights attached to it. You are speculating on price movements only.

2. Leverage and Margin

CFDs are traded on margin: you deposit only a fraction of the full value of a position. We offer leverage of up to 1:50. At that ratio, a small deposit controls a position many times larger. Leverage magnifies both gains and losses. A small price move against you can wipe out the margin you have committed, and losses can build up very quickly.

Your margin, equity and free margin are shown on the platform in real time, and open positions are revalued (“marked to market”) continuously. It is your responsibility to monitor your account and keep enough funds in it to support your open positions.

3. Rapid Loss of Capital

Because of leverage, you can lose all the money in your trading account within a short time, sometimes within minutes. Only trade with money you can afford to lose. Do not trade with borrowed money or money you need for living expenses.

4. Margin Calls and Automatic Close-Out

If your equity falls below the margin required to keep your positions open, you may need to deposit more funds at short notice. We are not obliged to warn you before this happens. If your margin level falls to [STOP-OUT LEVEL]% or below, the platform may close some or all of your open positions automatically (“stop-out”).

Positions closed in this way are closed at the next available price, which may be significantly worse than the price at which the stop-out level was reached. You remain responsible for the resulting losses.

5. Negative Balance

In fast or gapping markets, losses on a position may exceed the funds in your account. [NEGATIVE BALANCE PROTECTION POLICY]

6. Market Gaps and Slippage

Prices can move suddenly from one level to another without trading at the prices in between (a “gap”). This often happens when a market reopens after a weekend or overnight closure, or around economic announcements and company news. When a price gaps, orders (including stop-loss orders) may be filled at a worse price than you requested (“slippage”). A stop-loss order does not guarantee that your loss will be limited to the amount you intended.

7. Volatility

All financial markets can move sharply in response to economic data, political events, interest-rate decisions and other factors outside our control. Cryptocurrencies are particularly volatile: their prices can rise or fall by large percentages within hours, they trade around the clock, and they can be affected by exchange outages, regulatory action and events specific to a single network or token.

8. Trading Hours, Liquidity and Out-of-Hours Risk

Some instruments, including US stocks, index ETFs and commodity ETFs, can only be traded during the trading hours of their US market. Outside those hours you cannot open or close positions in them, and the price may move substantially before the market reopens. Positions held over a closure carry gap risk (see section 6).

In thin or disorderly markets it may be difficult or impossible to close a position at a reasonable price, and spreads may widen.

9. Commodity CFDs Priced from ETFs

Our commodity CFDs, such as natural gas, corn, wheat, soybeans, copper, sugar and gasoline, are priced from exchange-traded funds (ETFs) that track those commodities, not from futures contracts or the physical market. An ETF may not follow the commodity's spot or futures price exactly: its price reflects the fund's own holdings, costs, roll schedule and trading on its exchange. The price of our CFD may therefore differ, sometimes materially, from commodity prices quoted elsewhere, and it is only available during the ETF's market hours.

10. Our Prices and Quotes

The prices shown on our platform are our own quotes, derived from third-party market data. Prices on our platform may differ from other sources. During market hours, in quiet periods, quotes may be generated between exchange prints within a band around the last traded price, so a quote you see may not correspond to an actual trade on the underlying market.

The difference between the buy and sell price (the “spread”) is a cost to you and may widen at market open, during news events or in periods of low liquidity.

11. Overnight (Swap) Charges and Other Costs

Positions held open past the daily rollover time may be charged (or, in some cases, credited) an overnight financing or “swap” amount. These charges accumulate over time and can significantly reduce, or exceed, the profit on a position held for a long period. Rates and other charges: [SWAP RATES / FEE SCHEDULE].

12. Counterparty Risk

CFDs are not traded on an exchange. When you trade with us, Fusion FX (UK) LTD is the counterparty to every one of your trades, so your profit is our loss and your loss is our gain. This creates a potential conflict of interest, which we manage as described in our [CONFLICTS OF INTEREST POLICY]. You are also exposed to the risk that we become insolvent or otherwise unable to meet our obligations to you. Protection of client funds: [CLIENT MONEY SEGREGATION / INVESTOR COMPENSATION SCHEME].

13. Currency Risk

If an instrument is priced in a currency other than your account currency, your profits and losses will be converted, and exchange-rate movements can change the value of your position and your margin requirement, independently of the instrument's own price.

14. Technology and Connectivity Risk

The platform is web-based and depends on your device, your browser, your internet connection, our servers and third-party market-data feeds. Any of these can fail or be delayed. You may be unable to log in, see current prices, or place, modify or close orders when you want to. Price alerts are provided for convenience only; they may be delayed or not delivered and you should not rely on them to manage risk. Keep your login credentials secure: you are responsible for all activity on your account.

15. No Investment Advice

Fusion FX provides an execution-only service. We do not give investment, tax or legal advice, and we do not assess whether a particular trade is suitable for you. Any market information, analysis or educational material we publish is general in nature and is not a recommendation to buy or sell. Past performance is not a reliable indicator of future results. If you are unsure, seek independent professional advice.

16. Not Suitable for Everyone

CFD trading is not suitable for everyone. It is intended for people who understand how leverage works, who have the knowledge and experience to assess the risks, and who can afford to lose the money they trade with. If you do not fully understand the risks described here, do not trade.

17. Regulatory Information

Fusion FX (UK) LTD, registered address 24th floor, One Canada Square, Canary Wharf, London E14 5AB. A Financial Services Company authorised and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.

The protections available to you depend on the law of the country in which you live and on our regulatory status. Questions about this disclosure can be sent to support@fusion-fx.net.