Risk Disclosure Statement
Sponsio Trading Ltd
Last Updated: [Jan 2026]
1. General Risk Warning
Trading financial instruments involves a high level of risk and may not be suitable for all individuals. You may lose all or more than your initial investment.
Before trading, you should carefully consider your financial situation, level of experience, and risk tolerance. You should never trade with funds you cannot afford to lose.
Participation in financial markets is speculative and involves substantial uncertainty.
2. Leverage Risk
Trading leveraged instruments such as forex, CFDs, and options magnifies both gains and losses.
Leverage allows you to control large positions with a small deposit. While this increases potential returns, it also increases exposure to loss.
Rapid market movements may result in losses exceeding your deposited funds. You may be required to deposit additional capital at short notice.
3. Market Volatility
Financial markets can move rapidly and unpredictably.
Prices may change due to:
Economic events
Political developments
Interest rate changes
Market sentiment
Global crises
Regulatory announcements
Volatility may cause extreme price swings, gapping, or liquidity shortages.
Orders may execute at prices significantly different from expected levels.
4. Liquidity Risk
Some instruments may experience reduced liquidity.
During periods of low liquidity:
Orders may not execute immediately
Slippage may increase
Markets may gap
Positions may become difficult to close
Liquidity risk is especially relevant during market stress.
5. Cryptocurrency Risk
Digital assets are highly volatile and speculative.
Cryptocurrency markets are influenced by:
Technology risks
Cybersecurity threats
Regulatory uncertainty
Market manipulation
Exchange failures
Network congestion
Prices may fluctuate dramatically within minutes.
Cryptocurrency trading carries risks beyond traditional markets.
6. Options Risk
Options trading involves complex financial instruments.
Risks include:
Time decay
Volatility exposure
Expiration risk
Leverage amplification
Strategy complexity
Options may expire worthless, resulting in total loss of premium.
7. CFD Risk
CFDs are complex instruments and carry a high risk of rapid financial loss due to leverage.
You do not own the underlying asset when trading CFDs.
CFD prices may differ from the underlying market due to spread and execution mechanics.
8. Execution Risk
Orders may not execute at requested prices due to:
Slippage
Market gaps
System latency
Network disruptions
Volatility
Stop-loss orders are not guaranteed protection.
9. Technology Risk
Trading platforms depend on technology.
Risks include:
Internet failure
Server outages
Power disruption
Software errors
Data feed interruptions
Technical failures may delay or prevent trade execution.
10. Counterparty Risk
Trading involves reliance on service providers including liquidity partners and infrastructure vendors.
Failure of a counterparty may impact platform operations.
11. Regulatory Risk
Financial markets are subject to evolving regulation.
Changes in laws may:
Restrict trading
Affect asset availability
Impact pricing
Limit platform access
Cryptocurrency regulation is particularly uncertain.
12. No Guarantee of Profit
There is no guarantee of profit or performance.
Past performance is not indicative of future results.
All trading outcomes are uncertain.
13. Suitability Responsibility
Sponsio Trading Ltd does not assess suitability.
You are responsible for determining whether trading is appropriate for your financial situation.
Independent professional advice may be appropriate.
14. Acknowledgment of Risk
By trading on our platform, you acknowledge that:
You understand the risks described
You accept full responsibility
You are trading voluntarily
You can afford potential losses