Risk Disclosure Statement

1. Introduction

This Risk Disclosure Statement is provided by Velovestor Ltd.in accordance with our commitment to transparent client communication. It is designed to give you a clear understanding of the specific risks associated with trading fixed-return financial instruments through our platform.

This statement does not purport to disclose all risks associated with trading. It is intended to highlight key risk factors. You should not commence trading unless you fully understand all risks and have independently concluded that trading is appropriate for your personal financial situation, objectives, and risk tolerance.

2. High Risk of Capital Loss

Fixed-return trading instruments are high-risk products. On any individual trade, you stand to lose 100% of the amount invested. There is no partial loss mechanism — if your trade expires out of the money, the entire invested amount is forfeited.

Unlike conventional investment products, there is no potential for a trade to “recover” over time. The outcome is determined solely by the price of the underlying asset at the precise moment of trade expiry. A small adverse price movement is sufficient to result in a complete loss of the invested amount.

3. Leverage and Margin Risk

Whilst our standard fixed-return instruments do not utilise traditional leverage, the all-or-nothing nature of these products means that losses can be sustained rapidly. In any given trading session, repeated losses can deplete your entire account balance.

We do not permit trading on margin or credit. You may only trade with funds that have been deposited into your account. However, the rapid loss mechanism of fixed-return instruments means that your account balance can reach zero within a short period.

4. Market Risk

The value of underlying assets — including foreign exchange rates, cryptocurrency prices, commodity prices, and equity index levels — can fluctuate rapidly and unpredictably. These fluctuations are influenced by a wide range of factors including macroeconomic data releases, geopolitical events, regulatory changes, and market sentiment, many of which are impossible to predict with certainty.

Even professional traders with significant experience and resources regularly incur losses on individual trades and over extended trading periods. Past performance of a trading strategy, asset, or trader is not indicative of future results.

5. Liquidity Risk

Certain assets available on our platform, particularly Over-the-Counter (OTC) instruments, may exhibit reduced liquidity compared to exchange-traded equivalents. Reduced liquidity can result in wider price spreads and less predictable price behaviour, particularly during periods of market stress or low trading activity.

6. Technology and Operational Risk

Trading through an electronic platform carries inherent technology risks. These include system failures, software errors, internet connectivity disruptions, and cyber-attacks. Whilst we maintain robust technical infrastructure and redundancy measures, we cannot guarantee uninterrupted platform availability.

In the event of a technical failure at or near the time of trade expiry, our procedures for determining trade outcomes under such circumstances are detailed in our Terms of Service. We strongly recommend that you familiarise yourself with these procedures before trading.

7. Regulatory and Legal Risk

The regulatory environment for online trading products continues to evolve. Changes in applicable laws, regulations, or the regulatory status of our Services in any jurisdiction may affect your ability to access and use our platform. We operate in accordance with all applicable laws and regulations, but we cannot guarantee that our Services will remain available in all jurisdictions in perpetuity.

Clients are responsible for ensuring that their use of our Services complies with all laws and regulations applicable in their jurisdiction of residence. If you are uncertain about the legal status of online trading in your country, you should seek independent legal advice before registering an account.

8. Currency Risk

Our platform operates primarily in US Dollars (USD). If your local currency is not USD, you may be exposed to currency exchange rate risk when depositing funds, trading, and withdrawing profits. Adverse movements in exchange rates may reduce the value of your returns when converted to your local currency.

9. Counterparty Risk

When you trade on our platform, Velovestor Ltd. acts as the counterparty to your trades. This means that your ability to realise profits is dependent on our ability to meet our financial obligations. Whilst we maintain adequate capital reserves and conduct regular financial reviews, we cannot guarantee our solvency in all future circumstances.

Client funds are held in segregated accounts, separate from our operational funds, to provide a degree of protection in the event of our insolvency. However, segregation does not guarantee the full recovery of client funds in all insolvency scenarios.

10. Psychological Risk

Trading can be psychologically demanding. The rapid pace of fixed-return trading and the binary nature of outcomes can lead to emotional decision-making, which frequently results in financial losses. Common psychological pitfalls include “chasing losses”, overconfidence following a period of success, and trading with amounts that exceed your pre-defined risk tolerance.

We encourage all traders to establish and adhere to a clear trading plan, including pre-defined loss limits per session and per day. We offer a free Demo Account facility that allows you to practise trading without financial risk.

11. Not Suitable for All Investors

These products are not appropriate for all investors. You should not trade fixed-return instruments if:

• You cannot afford to lose the total amount invested.
• You do not fully understand how these instruments work.
• You have limited or no prior experience in trading financial instruments.
• You are seeking a reliable source of income or a substitute for conventional savings or investment products.
• You are in financial difficulty or are trading with money required for essential living expenses.

12. No Financial Advice

Velovestor Ltd. does not provide financial, investment, or tax advice. Nothing on our platform, in our communications, or in any educational materials we provide constitutes financial advice or a recommendation to trade. All trading decisions are made solely by you, on an execution-only basis.

We strongly recommend that you seek independent financial advice from a qualified, regulated financial adviser before commencing trading, particularly if you are new to financial markets.

13. Acknowledgement

By using our Services, you acknowledge that:

• You have read and understood this Risk Disclosure Statement in its entirety.
• You are aware that trading involves a high risk of loss and that you may lose your entire invested capital.
• You are trading voluntarily and with funds you can afford to lose.
• You have not been induced to trade by any guarantee, promise, or representation of profit.
• You are solely responsible for all trading decisions made on your account.

14. Contact

If you have any concerns about your trading or the risks described in this statement, please contact our Client Support team before continuing to trade:

Email: support@velovestor.com
Post: Compliance Department, Velovestor Ltd., 1 Canada Square, Canary Wharf, London, E14 5AB, United Kingdom