RISK DISCLOSURES

1. INTRODUCTION

Following the implementation of the Markets in Financial Instruments Directive (MiFID II) and in accordance to the provisions of the Financial Services and Activities and
Regulated Markets Law of 2017 (N.87(I)/2017), A-Conversio Capital Ltd (hereinafter
called the “Company”) aims to provide information to its clients about general
Investment Risks and Risks associated with different categories of Financial Instruments.

2. GENERAL

Every type of Financial Instrument has its own characteristics and entails different risks depending on the nature of each investment. A general description of the nature and the
risks of financial instruments is summarized below. However, this document does NOT
disclose all the associated risks or other important aspects of the Financial Instruments
and it should NOT be considered as investment advice or recommendation for the
provision of any service or investment in any Financial Instrument.

The Client should NOT carry out any transaction in these or in any other Financial Instruments unless he is fully aware of their nature, the risks involved and the extent of his exposure in these risks. In case of uncertainty as to the meaning of any of the warnings
described below, the Client must seek an independent legal or financial advice before
taking any investment decision.

The Client should also be aware that:

  • The value of any investment in Financial Instruments may fluctuate downwards or upwards and the investment may even become worthless,
  • Previous results do not constitute an indication of a possible future return,
  • Trading in Financial Instruments may impose tax and/or any other duty,
  • Placing contingent orders, such as “stop-loss” orders, will not necessarily limit
    losses to the intended amounts, as it may be impossible to execute such orders under certain market conditions, and
  • Changes in the exchange rates, may negatively affect the value, price and/or performance of the Financial Instruments traded in a currency other than the Client’s base currency (currency of the Client’s country of residence).

Investing in some Financial Instruments and particularly derivatives entails the use of “leverage”. Leverage generally means the use of borrowed capital to multiply gains and
losses. Trading in such financial instruments can amplify losses as well as gains with
relatively small movement in the underlying market. High degrees of leverage can result
to a quick loss of the entire capital or even expose the Client to an additional loss. In
considering whether to engage in this form of investment, the Client should be aware of
the following:

  • The Client may be requested at short notice to deposit additional margin to maintain his investment. If the Client fails to provide such additional funds within the time frame required his investment position may be closed at a loss,
  • With regards to transactions in derivative financial instruments, the Company is entitled at its discretion to start closing positions when the margin level drops to 30%, and
  • Such transactions may not be undertaken on a regulated market which can expose the Client to greater risks than transactions on a regulated market.

3. INVESTMENT RISKS

3.1 Market Risk: is the risk that the value of a portfolio will decrease due to the change in value of the market factors such as stock prices, interest rates, exchange rates and commodity prices. In case of a negative fluctuation in prices, investors in financial
instruments run the risk of losing part or all of their invested capital.

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