Risk Disclosure Statement
Engaging in trading activities carries the inherent risk of a complete loss of invested capital. This document is provided in compliance with regulatory mandates to ensure a comprehensive understanding of the risks associated with copy trading.
Capital at Risk Warning
Trading CFDs, Forex, and other leveraged products carries a high level of risk to your capital and you may lose more than your initial investment. These products may not be suitable for all investors. Only speculate with money you can afford to lose.
1. General Trading Risk
Participation in financial markets, encompassing Forex, Stocks, Commodities, and CFDs, is inherently speculative.
Total Loss
Investors may experience a complete loss of their initial deposit and, in certain jurisdictions or with specific account types, may incur liabilities exceeding their deposited funds.
No Guarantees
No trading strategy can guarantee positive returns. Market fluctuations are unpredictable and are influenced by global economic events, interest rate adjustments, and geopolitical instability.
2. Specific Risks of Copy Trading
Copy trading is a specialized service that automatically replicates the actions of a selected trader within your account. This service entails distinct risks:
Automated Execution
By electing to copy a trader, you authorize the platform to execute trades on your behalf without requiring further consultation. You bear full responsibility for any losses incurred as a result of these automated transactions.
Strategy Risk
You may inadvertently align with a trader whose strategy is incompatible with your financial objectives, or one who assumes excessive risks to achieve elevated rankings.
Trader Performance
A trader with a demonstrated history of success may still encounter a sudden and significant drawdown or a series of losses. Past performance should not be considered indicative of future results.
3. Leverage and Margin Risk
Many traders utilizing our platform employ leverage (borrowed capital) to amplify their position sizes.
Magnified Losses
While leverage can enhance potential profits, it equally magnifies potential losses. Even minor adverse market movements can trigger an immediate margin call and subsequent liquidation of your account.
Negative Balance
Depending on your account type and local regulatory framework, you may be obligated to remit the difference to the broker if your account balance falls below zero.
4. Digital Asset & Crypto Volatility
If your copy trading activities involve Cryptocurrencies or Digital Assets:
Extreme Volatility
Cryptocurrency markets are susceptible to significant price swings, potentially exceeding 20% within a single trading day.
Regulatory Shifts
Changes in digital asset regulations may impact the liquidity or availability of specific tokens, potentially leading to delays in trade execution or price gaps.
Technological Risk
Blockchain-based assets are exposed to risks such as network forks, congestion, and smart contract vulnerabilities.
5. Technical and Execution Risks
Slippage
The execution price for your account may differ from the price at which the "Strategy Provider" initiates a trade. This "slippage" can occur during periods of high market volatility or low liquidity.
Connectivity
System failures, internet service disruptions, or API delays may impede the timely closure of a trade, potentially resulting in unexpected losses.
Rounding
Due to variations in account balances, your trade sizes will be rounded to the nearest available lot size. This may result in minor performance discrepancies when compared to the copied trader.
6. Fiduciary Disclaimer
Platform Services
Mirroxen offers a platform for social engagement and automated trade replication. We do not furnish investment advice. We do not verify the personal financial circumstances of Strategy Providers.
Your Decision
The decision to replicate a specific trader rests solely with you.
No Profit Guarantee
We do not guarantee that any "Master Trader" or "Strategy Provider" will generate profits.
User Acknowledgement
By using the Mirroxen platform, you acknowledge that you have reviewed and comprehended the aforementioned Risk Disclosure Statement. You acknowledge your awareness of the inherent risks associated with copy trading, high leverage, and market volatility. You affirm that you are trading with risk capital—funds you can afford to lose without impacting your essential living standards.