Risk Disclosure
Last updated: March 1, 2026
Important Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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.
1. General Risk Warning
Trading Contracts for Difference (CFDs) and other leveraged financial instruments involves significant risk and may not be suitable for all investors. You could lose all of your invested capital. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.
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 and seek advice from an independent financial advisor if you have any doubts.
2. Leverage and Margin Risk
Leverage allows you to control a large position with a relatively small amount of capital. While leverage can amplify your profits, it can equally amplify your losses. A small market movement can result in proportionally larger losses relative to your deposited funds.
Margin calls may require you to deposit additional funds at short notice to maintain your positions. If you fail to meet a margin call, your positions may be automatically closed at a loss. The use of high leverage is particularly risky and should only be considered by experienced traders who fully understand the implications.
3. Market Risk
Financial markets are subject to rapid and unpredictable price movements. Prices can be affected by economic events, political developments, natural disasters, market sentiment, and other factors beyond anyone's control.
Gaps in pricing can occur, particularly over weekends and during periods of high volatility. This means that stop-loss orders may not be executed at the specified price, resulting in larger losses than anticipated. Market conditions can change rapidly, and past price behavior is not a reliable indicator of future performance.
4. Liquidity Risk
Some financial instruments may become illiquid under certain market conditions, making it difficult or impossible to close positions at desired prices. Liquidity can vary significantly between different instruments and at different times of the trading day.
During periods of extreme market volatility or during off-market hours, spreads may widen significantly, and execution may be delayed. This can result in slippage, where your order is executed at a price different from the one you requested.
5. Technology Risk
Online trading relies on technology, including internet connectivity, hardware, and software systems. Technical failures, system outages, internet disruptions, or cyber attacks could prevent you from accessing the platform, executing trades, or managing your positions.
While we implement robust security measures and redundancy systems, we cannot guarantee uninterrupted access to our services. You should have contingency plans in place, such as alternative means of contacting us to manage your positions in the event of a technical failure.
6. Regulatory Risk
Changes in laws, regulations, or government policies can affect the value of your investments and your ability to trade certain instruments. Regulatory changes may occur without prior notice and could restrict or prohibit certain types of trading activity.
Different jurisdictions have different regulatory frameworks, and the level of protection available to you may vary depending on your country of residence. It is your responsibility to ensure that your trading activity complies with the laws and regulations applicable in your jurisdiction.
7. Currency Risk
If you trade instruments denominated in a currency different from your account currency, exchange rate fluctuations can affect the value of your positions and your overall profit or loss. This currency risk applies in addition to the market risk of the underlying instrument.
Exchange rates can be volatile and are influenced by many factors including interest rate differentials, economic data, and geopolitical events.
8. Counterparty Risk
When you trade CFDs with ZenGuard Markets, we act as the counterparty to your trades. This means you are exposed to our credit risk. While we maintain segregated client funds and adhere to strict regulatory requirements, there is a risk that we may be unable to meet our financial obligations in extreme circumstances.
We mitigate this risk through prudent risk management, adequate capitalization, and compliance with regulatory capital requirements.
9. Cryptocurrency-Specific Risks
Cryptocurrency markets are particularly volatile and subject to rapid price swings. Cryptocurrencies are not backed by any government or central authority, and their value is determined solely by market supply and demand.
Additional risks specific to cryptocurrency trading include regulatory uncertainty, potential for market manipulation, technology risks (including blockchain vulnerabilities), and the irreversibility of transactions. Cryptocurrency markets operate 24/7, which means prices can move significantly at any time.
10. Funded Account Risks
Funded trading accounts are subject to specific rules and restrictions, including maximum drawdown limits, profit targets, and trading period requirements. Failure to comply with these rules may result in the termination of your funded account.
Funded account evaluation fees are non-refundable. There is no guarantee that you will pass the evaluation or maintain a funded account. The rules governing funded accounts may be modified at our discretion.
11. Past Performance Disclaimer
Past performance is not a reliable indicator of future results. Any trading results, statistics, or examples presented on our platform or in our marketing materials are for illustrative purposes only and do not represent a guarantee of future performance.
Simulated or hypothetical trading results have inherent limitations. Unlike actual trading, simulated results do not represent real trading and may not account for factors such as liquidity, slippage, and emotional decision-making.
12. Suitability
Trading CFDs and other leveraged products is not suitable for everyone. You should only trade if you have sufficient knowledge and experience to understand the risks involved, can afford to lose the money you invest, are comfortable with the level of risk associated with leveraged trading, and have considered whether trading is appropriate for your financial situation and goals.
If you are unsure whether trading is suitable for you, we strongly recommend seeking independent financial advice before opening an account.