This Risk Warning Statement describes some, but not all, of the major risks of participating in the Currensee Trade Leader Program (“TLP”). Through the TLP, you may replicate the trades of a number of Trade Leaders in an account held by an over-the-counter foreign currency (“OTC foreign currency”) trading broker (“Broker”).
High Risk Investment
Trading in the OTC foreign currency market is high risk. Due to the ability to trade on leverage, you can rapidly lose all of your funds invested in the TLP. You should carefully consider whether trading, and participation in the TLP, is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. By participating in the TLP you acknowledge that you understand the risks associated with OTC foreign currency trading and the TLP and are willing and able, financially and otherwise, to assume the risks of OTC foreign currency trading.
DO NOT INVEST MONEY THAT YOU ARE NOT IN A POSITION TO LOSE ENTIRELY.
No Guarantee of Broker Activity
Currensee does not hold, or guarantee the safety of, your funds and does not execute your trades. Your funds are held by your Broker and may have no regulatory protections. Your trades are executed by your Broker. Your Broker is a third party and Currensee does not make any representations or guarantees as to the adequacy of your Broker, including whether your Broker is properly licensed to conduct OTC foreign currency transactions. Your Broker may refuse to accept any order for any or no reason, including but not limited to the failure of a customer to have sufficient funds on deposit with the Broker to margin the position, market volatility, and illiquidity in the related interbank foreign currency market. Currensee receives a fee from your Broker, as outlined in the IB Customer Agreement – this may create a conflict of interest.
No Investment Advice
No investment advice or recommendations are provided through the TLP, or by Currensee or Trade Leaders. You are solely responsible for determining which Trade Leaders to follow and for the performance of your account. You should not regard any transaction proposal, suggested strategy or other written materials or oral communications from Currensee or Trade Leaders as investment recommendations or advice. Trade Leaders are not employed by Currensee and receive a fee based on the profitability of their followers. You understand and agree that Currensee makes no representation as to the qualifications, experience or regulatory authorization of Trade Leaders or lack thereof, and will not control Trade Leaders’ actions. Trade Leaders may change their trading style or strategy at any time without notice to you or Currensee.
No Guarantee of Performance Results
Your results may materially vary from Trade Leaders’ performance due to a number of factors. You may not receive the same price as your Trade Leader due to the time it takes for your Trade Leader’s trade signal to be executed in your Broker’s account and due to your Trade Leader(s) using a different Broker than you. Other elements that may result in different performance include slippage, fees, volatility and other market conditions. Further, any self-directed trading or customization, such as use of different leverage levels than your Trade Leader or excluding particular currency pairs, may cause your performance to materially vary from your Trade Leaders’ performance.
Currensee’s Drawdown Protection does not guarantee that losses will be capped at the selected drawdown limit. Once the Drawdown Protection level is met, the TLP begins to close all open positions for that Trade Leader in your Broker’s account. Your realized loss may exceed the drawdown limit, particularly during times of low liquidity, market volatility, delayed execution by your Broker or hardware or software failure.
The TLP involves electronic trading system software and is exposed to risks including the failure of hardware and software and system downtime, with respect to the TLP platform, your computer system(s), your Broker’s platform, the Trade Leaders’ Brokers’ platforms, and the communications infrastructure (including, without limitation, the Internet). As a result of any system failure or other interruption, orders either may not be executed according to your instructions or may not be executed at all.