Risk Disclosure

Document owner: [RISK OR COMPLIANCE FUNCTION]

Version: [VERSION NUMBER]

Effective date: [EFFECTIVE DATE]

1 Purpose

This disclosure summarises material risks associated with BARS 8 accounts and services. It cannot describe every risk or how a risk will affect your circumstances. Read it with the Client Agreement, Order Execution Policy, product specifications, fee schedule and any copy trading or PAMM terms.

CFDs and other leveraged products are complex. You can lose money rapidly. You should trade only when you understand the product, can monitor the account and can bear the potential loss. Seek independent financial, legal and tax advice where appropriate.

MANDATORY JURISDICTIONAL WARNING

[INSERT PRESCRIBED RISK WARNING, RETAIL LOSS PERCENTAGE, CALCULATION PERIOD AND ENTITY-SPECIFIC WORDING]

2 No guaranteed outcome

Profit, capital preservation and execution at a selected price are never assured. Past performance, backtests, simulations, rankings, analyst commentary and provider histories do not predict future results. A strategy that performed well under one set of conditions can lose money when volatility, liquidity, correlation, financing or participant behaviour changes.

3 Product structure and counterparty risk

3.1 Derivative exposure

A CFD provides contractual exposure to a reference price. You do not own the underlying asset and generally receive no voting, custody, delivery or shareholder rights.

3.2 Over-the-counter transaction

Unless a product specification states otherwise, a CFD is entered into over the counter under the execution model described by BARS 8. It is not traded by you on a central exchange. Your ability to close, value or settle the position depends on BARS 8 and relevant providers.

3.3 Counterparty credit risk

If BARS 8, a bank, custodian, payment institution, liquidity provider or another relevant counterparty defaults, becomes insolvent or cannot perform, you may experience delay, reduction or loss. Any segregation or compensation arrangement applies only as verified and described in the Client Agreement.

3.4 Legal character

The legal treatment of a derivative, crypto reference, payment, client-money arrangement or protection can differ between jurisdictions and may change. A court, authority or insolvency officer can reach an outcome that differs from expectations.

4 Leverage risk

Leverage allows a position with a larger market value than the margin posted. It magnifies gains and losses. A relatively small adverse price move can consume available margin quickly and trigger close-out.

ILLUSTRATIVE EXAMPLE

If a client controls exposure of [ILLUSTRATIVE EXPOSURE] using margin of [ILLUSTRATIVE MARGIN], a [ILLUSTRATIVE PRICE MOVE] adverse move changes the position value by approximately [ILLUSTRATIVE LOSS], before spread, commission, financing, slippage, conversion and other charges. Counsel and risk must approve the assumptions and calculation before publication.

Higher leverage increases sensitivity to price movement and reduces the distance between the current position and possible close-out. The maximum ratio available is not a recommended level.

5 Margin and close-out risk

You must maintain required margin and monitor Account Equity and Free Margin. Margin requirements can increase for volatility, concentration, news, weekends, provider changes, regulation or other risk conditions.

BARS 8 may begin closing positions when the account reaches the Stop-Out Level or another contractual trigger. Closure can occur automatically, without a prior margin call, and in an order you did not expect. Prices may continue moving while positions are closed. The process can produce a deficit where negative-balance protection does not apply.

A platform alert or margin-call indicator is informational and may arrive late, fail to arrive or leave insufficient time to act.

6 Market and volatility risk

Prices can move rapidly because of economic releases, policy decisions, political events, corporate news, order imbalance, market sentiment, cyber incidents, natural events and other factors. Volatility can rise without warning.

During fast markets:

• quotes may update faster than an order can be processed;
• spreads can widen materially;
• liquidity can fall;
• orders can be rejected, delayed or partially filled;
• stop and market orders can execute away from the requested level; and
• margin and position limits can change.

7 Liquidity risk

Liquidity varies by instrument, size, time and market condition. A quoted price for a small amount may be unavailable for a larger position. Some instruments can become one-sided, suspended or unavailable.

Limited liquidity can prevent you from opening, reducing or closing a position when desired. It can increase slippage and lead to staged or partial execution. A position may remain open longer than planned and continue accruing financing or loss.

8 Gapping and slippage

A market can move between tradable prices, including after a close, over a weekend or around an announcement. When a stop or market order is triggered, it is generally executed at the next available price under the execution policy. This may be less favourable than the trigger or displayed price.

Positive and negative slippage can occur. The likelihood and size depend on liquidity, order type, size, technology and market conditions. Unless explicitly offered under separate terms, a stop loss is not guaranteed.

9 Spread, commission and financing risk

Trading costs reduce returns and can turn a gross gain into a net loss. Costs may include:

• the bid-ask spread;
• commission;
• overnight financing or swap;
• a multiple-day weekend adjustment;
• currency conversion;
• market-data or platform charges;
• account or inactivity charges;
• copy or PAMM performance and service fees;
• payment-provider charges; and
• tax or withholding.

Variable spreads and financing rates can change. A long position can receive a debit on one instrument and a credit on another, and the direction or amount can change. Review the current specification and account entries.

10 Pricing risk

BARS 8 prices can be derived from one or more market, liquidity or data sources and adjusted under the disclosed model. They may differ from an exchange, website, news service or another broker.

A source can become delayed, erroneous or unavailable. During disruption, BARS 8 may suspend quoting, use an alternative source, apply a correction or close a product under the Client Agreement and Order Execution Policy. Historical chart data can also contain gaps, adjustments or provider differences.

11 Order and execution risk

An order request is not an executed transaction. Execution depends on validation, available price, margin, size, session, liquidity, account controls and system availability.

Risks include:

• market orders executing at a different price;
• limits remaining unfilled despite a displayed price if available size or sequencing differs;
• stops executing beyond the trigger;
• partial fills or staged fills;
• rejection or cancellation;
• delay between submission and confirmation;
• a specific instruction constraining execution options; and
• closure by platform risk controls.

Review confirmations promptly and report a suspected discrepancy through the official channel.

12 Trading-session risk

Product sessions can differ from the underlying market and can change for holidays, daylight-saving time, corporate events, maintenance and provider schedules. A position can remain exposed when BARS 8 trading is closed. At reopening, the first available price may be far from the prior close.

References to 24-hour or extended access apply only to published sessions and system availability. Some daily maintenance, pricing breaks or liquidity gaps may occur.

13 Currency risk

If an instrument, profit, loss, fee or payment is denominated in a currency different from your account or home currency, exchange-rate movements affect the result. Conversion can occur at a rate and charge set out in the fee schedule.

Currency risk can arise even when the traded instrument itself is not a currency pair.

14 Concentration and correlation risk

Several positions can share the same underlying exposure. Currency pairs can repeat one currency; index and share positions can depend on the same companies or sector; commodities can respond to a common macroeconomic factor; and crypto references can move together during stress.

Correlations change and can strengthen abruptly. Multiple positions, managers or strategies do not establish diversification by themselves.

15 Hedging risk

Opposite positions or correlated instruments may reduce some exposure, but a hedge can be imperfect. Differences in size, price source, contract terms, trading hours, margin, financing and correlation can create residual or new risk.

Account settings may treat opposite positions on a net or hedged basis. Margin relief can be changed, and closing one leg can increase required margin for the remaining leg.

16 Foreign exchange CFD risks

Currency prices are affected by interest rates, central banks, inflation, trade, fiscal policy, political events, capital flows and liquidity. Some currencies are managed, restricted or subject to intervention.

Minor and exotic pairs can carry wider spreads, lower liquidity, higher financing, sharper gaps and limited execution. Currency controls or market closure can affect valuation and payment.

17 Commodity and metal CFD risks

Commodity prices can respond to weather, inventories, transport, production, geopolitics, regulation, demand and currency changes. Precious and industrial metals have different drivers and liquidity.

Where a price references a futures contract, expiry and roll conventions can affect the CFD. Forward curves can create adjustments that differ from spot-price movement. Physical delivery does not occur unless a specification expressly provides it.

18 Index CFD risks

An index is a calculated measure and cannot be owned directly. Index providers can change constituents, weights and methodology. Cash and futures references can produce different prices.

Dividends, rebalancing, market closures and constituent concentration can affect valuation. An index may trade during hours when some constituents are closed, increasing reliance on futures or indicative pricing.

19 Share CFD risks

Share CFDs are exposed to company-specific events, including earnings, guidance, dividends, corporate actions, suspension, insolvency and delisting. A single share can lose most or all of its value and can gap sharply.

Short positions can face theoretically unlimited loss as the share price rises. Borrow availability, short-sale restrictions and recall can lead to increased charges, trading limits or close-out.

Corporate actions may result in cash, price, size or instrument adjustments under the product specification. You do not receive shareholder voting rights.

20 Crypto CFD risks

Crypto-asset reference markets can be extremely volatile, fragmented and continuously active. Prices can differ significantly among venues. Market integrity, custody practices and oversight vary.

Additional risks include forks, protocol changes, cyberattack, key loss at a reference venue, stablecoin failure, market manipulation, concentrated ownership, regulatory action and delisting. Weekend or extended trading can have reduced liquidity and wider spreads.

A crypto CFD does not provide ownership or withdrawal of the underlying token. BARS 8 may change margin, restrict or close an affected instrument where the reference market becomes unreliable or legally unavailable.

21 Copy trading risks

When you copy a provider:

• you delegate day-to-day trade selection within the service settings;
• the provider can change strategy, instruments, frequency or risk;
• historical statistics can be incomplete, calculated under assumptions or affected by deposits and withdrawals;
• follower results can diverge because of price, timing, size, equity, limits and fees;
• a pause or stop instruction can take time and may leave positions open;
• provider errors, conflicts or misconduct can cause loss; and
• several providers may create overlapping exposure.

Rankings, labels, verification and risk scores do not amount to a guarantee or personal recommendation. You must monitor the account and provider continuously.

22 PAMM risks

A PAMM investor gives an approved manager limited trading authority under the service terms. Risks include:

• discretionary decisions by the manager;
• strategy change or style drift;
• proportionate allocation and valuation differences;
• subscriptions or redemptions being processed on a dealing schedule;
• open positions delaying or affecting redemption value;
• performance fees reducing returns;
• manager concentration and operational dependence;
• high-water-mark or fee calculations changing the timing of charges; and
• manager suspension, removal, death, incapacity or loss of eligibility.

Due diligence and account controls cannot prevent market loss or manager error.

23 Automated trading and API risks

Expert advisers, scripts, signals and APIs can place repeated or unintended orders because of faulty logic, settings, data, latency, version changes or connectivity. Backtests can omit costs, liquidity, slippage and regime changes.

You should test, apply hard limits, monitor live activity and maintain a shutdown process. BARS 8 may restrict automated activity that threatens platform stability, law or risk controls.

24 Technology and cybersecurity risk

Trading and account access rely on devices, internet, telecommunications, power, software, providers and credentials. A failure can prevent entry, modification, closure, deposit, withdrawal or communication while markets continue moving.

Phishing, malware, SIM swap, device theft, credential reuse and remote-access scams can lead to account takeover. Use multifactor authentication, official applications and unique credentials. Verify domains and payment instructions before acting.

Alternative support channels can also experience delay and do not assure execution.

25 Mobile trading risk

Mobile screens can omit context, display delayed information or make input errors harder to detect. Connectivity changes can create duplicate submissions or uncertain status. Confirm order details and execution in the account record.

Biometric device access may permit another enrolled user to open the application. Device security remains your responsibility.

26 Third-party information and tools

Calendars, news, charts, indicators, signals, research and social content may be delayed, inaccurate or incomplete. An impact label or forecast does not predict direction. Indicators derive from historical data and can generate false or late signals.

Third-party terms, outages and data methods can change. Verify important information with an authoritative source.

27 Payment risk

Banks and payment providers can reject, delay, reverse, charge back, freeze or convert a transaction. Provisional credits can be removed. A payment delay can leave insufficient margin.

Financial-crime, ownership and security checks can delay withdrawals. Fraudulent third-party payment instructions can cause irreversible loss. Use only verified BARS 8 channels and accounts.

28 Legal, regulatory and tax risk

Law, regulation, sanctions, tax, product classification and market rules can change. A product may be restricted, suspended or terminated, and reporting or withholding may apply.

Your own legal and tax position depends on residence, citizenship, entity, activity and other circumstances. BARS 8 does not provide legal or tax advice unless expressly agreed by an appropriately authorised person.

29 Operational and model risk

Processes, people, data and systems can fail. Examples include incorrect configuration, calculation, reconciliation, allocation, corporate-action treatment, fee application or account mapping. Controls reduce risk and cannot remove it.

Risk scores, margin models, fraud tools and analytics rely on assumptions and data that can become inaccurate. BARS 8 may correct affected records under the Client Agreement and applicable law.

30 Exceptional events

War, civil disorder, government action, disaster, pandemic, market closure, sanctions, infrastructure failure or another exceptional event can disrupt prices, liquidity, communications, payments and legal performance. BARS 8 may take the measures described in the Client Agreement. Those measures can affect open positions and available funds.

31 Risk-management considerations

Before trading, consider whether you can:

• explain the product, pricing and total cost;
• calculate exposure, margin and the effect of a price move;
• withstand loss without affecting essential financial commitments;
• monitor the account and respond during relevant sessions;
• maintain a margin buffer appropriate to volatility;
• identify correlated and concentrated exposure;
• plan for gaps, slippage and technology failure;
• verify information independently; and
• stop trading when circumstances or understanding change.

Risk tools such as stops, limits, alerts and diversification can support a plan. None removes the possibility of loss.

32 Confirmation

By using an applicable service, you confirm that you received this disclosure, had the opportunity to review it and understand that it is a summary. Contact [SUPPORT OR COMPLIANCE CONTACT] before proceeding if any product, term or risk remains unclear.

Appendix A Product approval fields

Item

Required approval

Mandatory risk warning

[JURISDICTION-SPECIFIC WORDING]

Retail loss percentage

[VALUE, ENTITY, METHOD AND DATE]

Negative-balance treatment

[CLIENT AND PRODUCT SCOPE]

Margin-close-out rule

[LEVEL, AGGREGATION AND SEQUENCE]

Guaranteed stop availability

[PRODUCTS, PRICE AND CONDITIONS OR NONE]

OTC counterparty model

[APPROVED DESCRIPTION]

Client-money model

[APPROVED DESCRIPTION]

Protection scheme

[SCHEME AND LIMIT OR NONE]

Product groups

[APPROVED LIST]

Restricted jurisdictions

[APPROVED LIST]