Risk Disclosure
Last updated: February 5, 2026
HIGH RISK WARNING
Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. You could lose some or all of your invested capital. Before deciding to trade forex, you should carefully consider your investment objectives, level of experience, and risk appetite.
1. Nature of Forex Trading
Forex trading involves buying and selling currencies in the foreign exchange market. Key characteristics include:
- Leverage: Forex trading typically uses leverage, which amplifies both potential profits AND losses
- Volatility: Currency prices can fluctuate rapidly due to economic, political, and market factors
- 24/5 Market: The forex market operates continuously during weekdays, with gaps possible at market open
- Counterparty Risk: Trades are executed through brokers who may face their own financial difficulties
2. Risk of Loss
You Can Lose Money
Trading forex involves substantial risk of loss. You should only trade with money you can afford to lose. There is no guarantee of profit, and losses can exceed your initial investment when using leverage.
2.1 Types of Loss
- Trading Losses: Losses from unfavorable price movements
- Slippage: Execution at prices different from expected due to market conditions
- Gap Risk: Price gaps at market open or during major news events
- Broker Execution: Delays or failures in trade execution
- Technical Failures: System outages affecting trade management
3. NikiFX Strategy Performance
Our WinningTrend strategy has shown the following backtested results:
Important Disclaimer: Backtested and historical performance does not guarantee future results. Market conditions change over time, and strategies that performed well historically may not perform similarly in the future.
3.1 Strategy Limitations
- The strategy trades only 3 currency pairs (USDJPY, EURUSD, EURJPY)
- Win rates are approximately 50% - losses are expected and normal
- Drawdowns (periods of losses) can and will occur
- Performance varies based on market conditions
- Backtests cannot account for all real-world trading conditions
4. Risks Specific to NikiFX
4.1 Automated Trading Risks
- System Reliability: Automated systems can experience technical failures
- Strategy Performance: Past performance does not guarantee future results
- Market Conditions: Strategy may underperform in certain market conditions
- Execution Delays: Delays between signal generation and trade execution
4.2 Broker Connection Risks
- We cannot guarantee continuous connection to your broker
- Broker token expiration may interrupt trading
- Broker-side issues may affect trade execution
- Different brokers may have different execution quality
4.3 Profit Share Model Risks
- Profit share is deducted from your deposit balance, not broker account
- If deposit balance is depleted, trading pauses (potentially missing opportunities)
- Deposit balance is separate from trading capital in your broker account
5. Leverage Warning
Forex trading typically involves leverage, which means:
- Small market movements can result in large gains OR losses
- Losses can exceed your initial margin/deposit
- You may be required to deposit additional funds to maintain positions
- Your broker may close positions if margin requirements are not met
Leverage Example
With 100:1 leverage, a 1% adverse move in the currency pair results in a 100% loss of your margin. Higher leverage = higher risk. Ensure you understand leverage before trading.
6. Market Risks
6.1 Economic Events
Currency prices can be significantly affected by:
- Central bank decisions (interest rates, monetary policy)
- Economic data releases (GDP, employment, inflation)
- Political events and elections
- Geopolitical tensions and conflicts
- Natural disasters and pandemics
6.2 Market Gaps
Prices can "gap" - jumping from one level to another without trading at intermediate prices. This can result in:
- Stop losses being executed at prices worse than set
- Larger losses than anticipated
- Inability to exit positions at desired prices
7. No Guarantees
NikiFX makes NO guarantees regarding:
- Profitability or returns on investment
- Strategy performance matching backtested results
- Continuous service availability
- Trade execution quality or timing
- Protection against market losses
8. Suitability
Before using NikiFX, you should ensure that:
- You understand forex trading and its risks
- You can afford to lose the money you invest
- Forex trading is legal in your jurisdiction
- You have considered seeking independent financial advice
- You understand our profit share model and fee structure
9. Seek Professional Advice
We recommend consulting with a qualified financial advisor before making any investment decisions. NikiFX does not provide personalized financial advice and should not be considered a substitute for professional guidance.
10. Acknowledgment
By using NikiFX, you acknowledge that:
- You have read and understood this Risk Disclosure
- You accept the risks associated with forex trading
- You are trading with funds you can afford to lose
- Past performance does not guarantee future results
- NikiFX is not responsible for trading losses
Final Warning
Forex trading is not suitable for everyone. If you do not fully understand the risks involved, or if you cannot afford to lose your investment, you should not use this service. Consider carefully whether forex trading is appropriate for your financial situation and investment goals.