Risk Disclosure

1. Introduction

This Risk Disclosure Statement is provided by AuroraEx Limited ("AuroraEx," "we," "our," or "us") to inform you of the risks associated with trading financial instruments through our platform. This document does not disclose all risks and other significant aspects of trading in financial instruments. You should not engage in trading unless you understand the nature of the transactions you are entering into and the extent of your exposure to risk.

Trading in financial instruments involves a high degree of risk, including the risk of losing substantially more than your initial investment. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, risk tolerance, and other relevant circumstances.

By using our Services, you acknowledge that you have read, understood, and accepted this Risk Disclosure Statement.

2. General Risk Warnings

Before you begin to trade, you should obtain a clear explanation of all commissions, fees, and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

Trading financial instruments involves significant risks, including but not limited to:

• The potential loss of your entire investment
• Volatility and unpredictability of financial markets
• Leverage, which can magnify both profits and losses
• Liquidity risks, which may affect your ability to enter or exit positions
• Counterparty risks, including the risk that AuroraEx or other parties involved in your transactions may default on their obligations
• Technical risks, such as system failures, connectivity issues, or other technological problems that may affect your ability to trade
• Regulatory and legal risks, including changes in laws or regulations that may adversely affect your positions or the markets in which you trade

3. Specific Risks by Product Type

3.1 Forex Trading Risks

Foreign exchange (forex) trading involves the buying of one currency and the selling of another currency simultaneously. The exchange rate between two currencies is the rate at which one currency will be exchanged for another.

Specific risks associated with forex trading include:

• High volatility, which can lead to rapid and significant price movements
• Leverage, which can magnify both profits and losses
• Interest rate fluctuations, which can affect currency values
• Political and economic events, which can cause sudden and dramatic market movements
• Liquidity risks, particularly for exotic currency pairs

3.2 Commodities Trading Risks

Commodities trading involves the buying and selling of raw materials or primary agricultural products, such as gold, oil, natural gas, coffee, and wheat.

Specific risks associated with commodities trading include:

• Price volatility due to supply and demand factors
• Weather conditions, which can affect agricultural commodities
• Geopolitical events, which can impact the production and distribution of commodities
• Storage costs and other carrying charges
• Contango and backwardation in futures markets

3.3 Precious Metals Trading Risks

Precious metals trading involves the buying and selling of metals such as gold, silver, platinum, and palladium.

Specific risks associated with precious metals trading include:

• Price volatility due to economic uncertainty and market sentiment
• Inflation and interest rate changes, which can affect precious metal prices
• Currency fluctuations, as precious metals are typically priced in US dollars
• Supply constraints and mining disruptions
• Changes in industrial demand for precious metals

3.4 Cryptocurrency Trading Risks

Cryptocurrency trading involves the buying and selling of digital or virtual currencies, such as Bitcoin, Ethereum, and other altcoins.

Specific risks associated with cryptocurrency trading include:

• Extreme price volatility
• Regulatory uncertainty and potential government restrictions
• Security risks, including hacking and theft
• Limited operating history and lack of historical data
• Technological vulnerabilities and potential software bugs
• Market manipulation and fraud
• Lack of central authority or government backing

4. Leverage and Margin Trading Risks

Trading on margin or using leverage involves borrowing funds to increase the size of your position. While leverage can magnify profits, it can also magnify losses.

Specific risks associated with leverage and margin trading include:

• Potential to lose more than your initial investment
• Margin calls, which may require you to deposit additional funds or close positions at unfavorable prices
• Forced liquidation of positions if margin requirements are not met
• Interest charges on borrowed funds
• Increased exposure to market volatility

You should carefully consider the level of leverage you use and ensure that you have sufficient funds to meet margin requirements at all times.

5. Technical and Operational Risks

Trading financial instruments online involves technical and operational risks, including:

• System failures or malfunctions
• Internet connectivity issues
• Delays in order execution
• Data security breaches
• Software errors or bugs
• Power outages or other disruptions

These risks may result in the inability to place or modify orders, delays in order execution, or other issues that could affect your trading activities and potentially lead to financial losses.

6. No Guarantee of Profit

There is no guarantee that you will make a profit from trading financial instruments. Past performance is not indicative of future results, and any examples or testimonials provided by AuroraEx or its representatives should not be considered as a guarantee of future performance or success.

You should be prepared to sustain a total loss of your initial investment and should not trade with funds that you cannot afford to lose.

7. Risk Management Strategies

To help manage the risks associated with trading financial instruments, consider implementing the following risk management strategies:

• Set clear trading goals and develop a trading plan
• Use stop-loss orders to limit potential losses
• Diversify your portfolio across different asset classes and markets
• Only trade with funds that you can afford to lose
• Regularly monitor your positions and account balance
• Stay informed about market developments and economic events
• Consider using lower leverage to reduce risk exposure
• Continuously educate yourself about trading strategies and risk management techniques

While these strategies may help reduce risk, they cannot eliminate risk entirely. Trading financial instruments always involves some level of risk.

8. Suitability

Before engaging in trading activities, you should carefully consider your investment objectives, level of experience, financial resources, risk tolerance, and other relevant circumstances. You should not trade with funds that you cannot afford to lose.

If you have any doubts about whether trading financial instruments is appropriate for you, we recommend that you seek advice from an independent financial advisor.

9. Changes to This Risk Disclosure

We may update this Risk Disclosure Statement from time to time. If we make material changes, we will notify you by email or by posting a notice on our website prior to the effective date of the changes. Your continued use of our Services after the effective date of the revised Risk Disclosure Statement constitutes your acceptance of the revised statement.

10. Contact Information

If you have any questions or concerns about this Risk Disclosure Statement, please contact us at:

AuroraEx Limited
Email: [email protected]