Risk Disclosure Statement
Margined Trading
Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with CashmonsteR allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity). The funds in an account that is being traded at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value. For example, if one chooses to leverage up to the maximum 400 times account equity, then a margin of $1,000 may control an investment of $400,000. While a 1% upward swing of the positions held in the account may multiply into a $4,000 profit, a 1% downward swing multiplies into a $4,000 loss, i.e. greater than the initial investment. Thus, an account could lose more than the equity it contains. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital that, if lost, will not significantly affect the investor’s financial well-being.
Internet Trading Risks
Furthermore, there are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, hardware malfunction, software failure, and Internet connection problems. Because CashmonsteR does not control signal power, reception or routing via Internet, the configuration of your equipment or the reliability of its connection, we cannot be responsible for communication failures, distortions or delays you may experience while trading via the Internet
Market Risks
Placing contingent orders, such as “stop-loss” or “stop-limit” orders, "Hedged positions" will not necessarily limit your losses to the intended amounts, since market conditions, which can become extraordinarily volatile, may make it impossible to execute such orders. All positions involve risk, and strategies using combinations of positions, such as “spread” and “straddle” positions, may be as risky as taking simple “long” or “short” positions.
This program permits you to trade foreign currencies on a highly leveraged basis. For example, an investment of $1,000 would permit you to trade up to $100,000 of any particular currency. If you trade using the maximum available leverage, and if the exchange rate of a specific currency against other currency changes by 1% or more, then your entire investment is at risk of loss.
Cashmonsters Investment Club is less than $400,000 in aggregate capital contributions and have no more than 15 participants in any one pool, pools are only open to persons meeting certain sophistication.
"Unique experiences and past performances do not guarantee future results! Testimonials herein are unsolicited and are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss."