Risk Disclosure
Last updated: 1 June 2026
1. General Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A significant percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This Risk Disclosure Statement does not purport to be a comprehensive description of all risks associated with trading CFDs. It is designed to help you understand the principal risks and make an informed decision.
2. Leverage Risk
CFD trading involves the use of leverage, which means you can control a large position with a comparatively small deposit (margin). While leverage can magnify profits, it equally magnifies losses. A small adverse price movement can result in a loss that significantly exceeds your initial deposit. You may be required to make additional payments at short notice to maintain your positions. If you fail to meet margin requirements, your positions may be closed at a loss without prior notice.
3. Market Risk
Financial markets are subject to rapid and unpredictable price movements driven by economic data releases, geopolitical events, regulatory changes, central bank decisions, and other factors beyond our or your control. Past performance of any instrument is not indicative of future results. You should carefully consider your investment objectives, level of experience, and risk appetite before trading.
4. Liquidity Risk
Under certain market conditions — including but not limited to market openings, major news announcements, extreme volatility, or periods of low trading volume — it may be difficult or impossible to execute orders at desired prices. In such circumstances, orders may be filled at significantly different prices than quoted (slippage), or may not be filled at all. Stop-loss orders do not guarantee execution at the specified price.
5. Technology and System Risk
Online trading is subject to risks including internet connectivity failures, hardware malfunctions, software errors, server outages, and cyber-attacks. While we maintain robust infrastructure and contingency procedures, we cannot guarantee uninterrupted access to our platform. Trading system failures could result in your inability to monitor or close positions, which may result in financial losses.
6. Counterparty Risk
As a CFD provider operating on a matched principal basis, Vakto acts as the counterparty to your trades. While we maintain strict risk management policies and regulatory capital requirements, there is an inherent counterparty risk associated with trading with us. Client funds are held in segregated accounts, separate from our operating capital, to provide a degree of protection.
7. Currency Risk
If your account is denominated in a currency different from the base currency of instruments you trade, your profits and losses will be subject to currency conversion risk. Movements in exchange rates between your account currency and the instrument's base currency can adversely affect your trading results, even when the underlying trade was profitable.
8. Overnight and Swap Charges
Positions held overnight are subject to swap charges (rollover costs), which reflect the interest rate differential between the two currencies in a pair, or the financing cost of holding a leveraged position. These charges can be positive or negative and may accumulate significantly over extended holding periods. Full details of swap rates are available in the product specifications on our platform.
9. Regulatory and Legal Risk
Changes in applicable laws, regulations, or government policies may affect your ability to trade certain instruments, access your account, or conduct transactions. Tax treatment of CFD trading varies by jurisdiction and is your responsibility to understand. We strongly recommend obtaining independent tax and legal advice relevant to your specific circumstances.
10. No Investment Advice
Nothing on our website, platform, or communications constitutes investment advice, a recommendation to trade any particular instrument, or an assurance of any specific outcome. All information provided is for general informational purposes only. You should seek independent financial advice before making any trading decisions.
11. Acknowledgement
By opening and maintaining a trading account with Vakto, you confirm that: (i) you have read and understood this Risk Disclosure Statement; (ii) you understand and accept the risks associated with CFD trading; (iii) you are trading with funds you can afford to lose; and (iv) you accept sole responsibility for your trading decisions and their outcomes.
Important Notice: This document is provided for informational purposes only. By accessing or using Vakto's services, you confirm that you have read, understood, and agree to the contents of this document. For questions or clarifications, please contact us at compliance@vakto.com.