Risk Warning

Risk Warning

This disclosure is a necessary addition to the Agent/Broker Client Agreement, Terms and Conditions (“GTC”) with ICM Limited (“ICM” or “the Firm”) and should be acknowledged and electronically confirmed by the Client (“You” or “your”). This disclosure may not include, identify or address all risks associated with the products provided to you by the Firm. The products and services provided to you by ICM are detailed in the GTC. In addition to the GTC, the Firm is required to provide you with this disclosure to outline the associated risks related to OTC Derivatives (“CFDs and margin FX” or “OTC Derivatives”) and other Futures and Options products while dealing with the Firm.

This notice is provided to you in compliance with FSRA requirements because you are proposing to undertake dealings in financial instruments in the form of OTC derivatives and other commodities products with a Firm which is carrying on dealing in investment activities related to this. This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in such products.

ICM does not (will not) provide you with investment advice relating to investments or possible transactions in investments or from making investment recommendations of any kind. We can give you factual market information or information, in relation to a transaction about which you have enquired, as to transaction procedures, potential risks involved and how those risks may be minimised.

OTC derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based.

For many members of the public, these Transactions are not appropriate. You should, therefore, consider carefully whether they are appropriate for you in light of your knowledge/experience, financial resources and investment objectives. In considering whether to engage in this form of investing, you should be aware of the following:

• The high degree of "gearing" or "leverage" (i.e., the funds required at the outset, compared with the size of the trade you can place) is a particular feature of this type of Transaction. Therefore, a relatively small movement in the underlying market can have a disproportionate effect on your Transaction.
• If the underlying market movement is in your favor, you may achieve a good profit, but an equally small adverse market movement can quickly result in the loss of your entire deposit.

You may be called upon to deposit substantial additional margin, at short notice, to maintain your position. If you do not provide such additional funds within the time required, your position may be closed at a loss and you will be liable for any resulting deficit.

If you are in any doubt, seek professional advice.

The purpose of an OTC derivatives and/or trading in commodities products is to secure a profit or avoid a loss by reference to fluctuations in the price of underlying property or an index (the "Underlying Market"). In the context of our activities, the Underlying Market may be a single security, a basket of securities, an exchange rate between two currencies, a treasury product, a bullion, a commodity or such other investment as we may from time to time agree in writing. It is an express term of each CFD or Margin FX Transaction that neither you nor us:

• acquire any interest in or right to acquire or is obliged to sell, purchase, hold, deliver or receive the Underlying Market; and
• that the rights and obligations of each party under the CFD or Margin FX Transaction are principally to make and receive such related payments.

Transactions with ICM in products that are listed on the recognized exchanges (i.e., when the Firm is dealing in investments as agent) are also subject to risk associated like the market volatility and other factors associated with it. Therefore, the clients must make prudent judgment while trading in the products that are offered by ICM.

Transactions with ICM in OTC derivatives are not transacted on a recognised or designated investment exchange ( i.e when the Firm is dealing in investments as Principal – matched Principal only) and, accordingly, they may expose you to greater risks than exchange transactions. The Transactions structure and rules will be established solely ICM in accordance with FSRA Conduct of Business rules. For example, if you wish to close the position earlier than the time at which it would otherwise automatically expire, you will have to close it at ICM’s quotation which may reflect a premium or discount to the Underlying Market. When the Underlying Market is closed, ICM's quotation can be influenced by the weight of other client's buying or selling with ICM. You will have to close any position with the same provider with whom it was originally entered into.

Where entering into such Transactions, ICM will do so under a two-way client agreement (i.e. ICM Terms and Conditions and documents incorporated by reference therein in accordance with the FSRA Conduct of Business rules unless exempted from doing so. You should satisfy yourself that dealing is conducted throughout in strict conformity with that client agreement. Asset out in the client agreement ICM will automatically add a 'stop loss' to positions in respect of certain Transactions (unless agreed otherwise). All market prices quoted by ICM include ICM's spread.

Slippage occurs when a stop loss does not get filled at the exact order price, but slips to a higher or lower price. This may be because the particular Underlying Market has become unusually volatile for a period of time. Where this happens a Stop Loss may not be effective and the Position will be closed at the current ICM Quote.

A gap is when the Market jumps overnight, resulting in your stop loss being missed and your trade closed at a much higher or lower price than intended. Accordingly, where you have an open Position in a volatile market environment you must understand the potential impact of these events.

Foreign markets will involve different risks from UK and European markets. In some cases, risks will be greater. The potential for profit or loss from transactions on foreign markets or in foreign currency denominated markets will be affected by fluctuations in foreign exchange rates, and also, potentially, time differences.

Under certain trading conditions it may be difficult or impossible to liquidate a Position. This may occur, for example at times of rapid price movement if the price rises or falls in one trading session to such an extent that trading is restricted or suspended.

No credit is extended to you. Neither a Variation Margin credit allocation, nor an Initial Margin credit allocation constitute a credit facility. ICM may maintain our financial stability by hedging against large trades or significant accumulations of trades.

ICM is required to hold your money in segregated accounts in accordance with the applicable regulations of FSRA, but this may not afford complete protection. Your business with ICM may be covered by the indemnity insurance covered by ICM. Client money will be deposited into a client money bank account opened at an approved bank. In the event that ICM were to become insolvent all client money held in the third-party bank account would be protected. In the event that the third-party bank was to become insolvent you may be entitled to compensation from the Indemnity Insurance cover if the third-party bank were unable to meet  their obligations. This depends on the type of business you undertake, your status, and the circumstances of the claim.

ICM will implement appropriate systems and controls for the safeguarding and segregation of client assets are in place to protect the clients’ monies. ICM shall follow the below process and will ensure that:

1. all client accounts are titled "Client Account:
2. adequate, prior assessment of the suitability of the bank at which the firm holds its client account(s), including assessing whether bank will ''provide protections equivalent to the protections conferred by client assets rules (“CASS”).
3. a written acknowledgement from the bank at which the firm ICM shall hold its client account(s) stating that all money standing to the credit of the account is held by the firm as ‘Agent’ and that the bank is not entitled to combine the account with any other account or to exercise any charge, mortgage, lien, right of set-off or counterclaim against money in that account in respect of any sum owed to it on any other account of the firm.
4. appropriate and good record keeping shall be followed in respect of reconciliations to validate those reconciliations have been properly undertaken.
5. the reconciliation is carried within 10 days of the end of the month of clients’ money in the bank account. Further, it will ensure such reconciliation reports are ready not later than 25 days of the end of the month of clients’ money.
6. ongoing suitability of the bank at which ICM shall hold its client account(s). This would typically involve a periodic review of the ongoing suitability of the bank and recording of the ICM Limited’s basis for considering the bank to remain suitable to hold client money.
7. In the event any discrepancies are observed ICM make good any shortfall in the client money account whilst any discrepancies are being resolved.

If you have reason to believe that ICM is not acting in accordance with representations that it has made to you, the terms of your client agreement or the rules of the FSRA, you should report it to the Financial Services regulatory Authority, ADGM Square, Abu Dhabi. UAE.