Last updated: January 15, 2025

1. General Risk Warning

The information provided on this website is for general informational purposes only and should not be considered as investment advice. Trading synthetic indices carries a high level of risk and may not be suitable for all investors. Before deciding to trade synthetic indices, you should carefully consider your investment objectives, level of experience, and risk appetite.

2. Financial Risk

The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading synthetic indices, and seek advice from an independent financial advisor if you have any doubts.

3. Volatility Risk

Synthetic indices, particularly those with high volatility levels like VIX 75, VIX 100, Boom 1000, and Crash 1000, can experience rapid price movements. These sudden changes can lead to substantial losses in a very short period of time. The higher the volatility of the index, the greater the risk of rapid and significant losses.

4. Leverage Risk

Trading synthetic indices often involves the use of leverage, which means you can gain exposure to large amounts of synthetic indices with a relatively small deposit. Trading with leverage can magnify both profits and losses, making it possible to lose more than your initial investment.

5. Technical Risks

There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since we do not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet.

6. Market Risks

While synthetic indices are designed to simulate real market movements, they operate according to predetermined algorithms. This means they may not always behave in ways that are predictable or that align with traditional market analysis techniques. Past performance is not indicative of future results.

7. Psychological Risks

Trading synthetic indices can be emotionally challenging. The rapid pace of trading, combined with the potential for quick profits or losses, can lead to emotional decision-making. Fear, greed, and other emotions can negatively impact your trading performance.

8. Risk of Addiction

The 24/7 availability of synthetic indices trading can lead to excessive trading and potentially addictive behavior. We encourage responsible trading practices and taking regular breaks from trading activities.

9. Regulatory and Legal Risks

Regulations regarding synthetic indices trading may vary by jurisdiction. It is your responsibility to ensure that you are complying with all applicable laws and regulations in your country of residence. Trading with unregulated brokers carries additional risks, including the potential for fraud or inability to recover funds.

10. Risk Management Recommendations

To help manage risks associated with synthetic indices trading, we recommend the following practices:

• Only trade with funds you can afford to lose
• Use stop-loss orders to limit potential losses
• Start with a demo account to practice without financial risk
• Develop and stick to a trading plan
• Never trade based on borrowed money
• Diversify your investments
• Continuously educate yourself about trading strategies and risk management
• Consider seeking advice from a financial professional

11. Disclaimer of Liability

Synthetic Indices South Africa shall not be held liable for any losses, damages, or costs that may result from the use of information provided on this website or from trading synthetic indices based on such information.

12. Contact Information

If you have any questions about this Risk Disclaimer, please contact us at:

Email: [email protected]
Postal address: P.O. Box 123, Cape Town, 8000, South Africa