Risk Disclosure Notice

In this notice, "we", "our", and "the firm" refer to TFC Global Markets, a trading name of TFC Funder Ltd (Company No. 17173699), a company incorporated in England and Wales. "You" and "the client" refer to the natural person who holds, or who applies to open, an account with the firm. Capitalised terms not defined here have the meanings given to them in the Client Agreement (see /legal/client-agreement).

This notice sets out material risks associated with trading contracts for difference ("CFDs"), rolling-spot foreign exchange ("FX"), proprietary synthetic Volatility Indices and Surge Indices, and any other product made available through our platform (together, the "Products"). It is not a comprehensive statement of every risk that may arise. Financial markets are inherently uncertain, and risks not described in this notice may materially affect the value of your positions or the return of your funds.

You must ensure that you understand each Product before you place any order. You must satisfy yourself, having regard to your own financial circumstances, investment objectives, experience, and appetite for loss, that trading the Products is appropriate for you. The firm does not assess suitability or appropriateness on your behalf, and no communication from us should be treated as such an assessment. Trading the Products is speculative, involves a high degree of risk, and is not suitable for every person. You should not commit funds that you cannot afford to lose in full.

All Products offered by the firm are leveraged. Leverage means that a comparatively small deposit of margin controls a notional exposure many times larger than that deposit. Small adverse movements in the underlying price of an instrument therefore translate into disproportionately large changes in the value of your position, and can produce losses that exceed the margin initially posted for that position.

2.1 CFDs. A CFD is a bilateral contract between you and the firm to exchange, at the close of the position, the difference between the opening price of the contract and its closing price, multiplied by the contract size. You do not acquire, and have no right to acquire, any interest in the underlying instrument. You have no voting, dividend, delivery, or other rights that a holder of the underlying instrument would have. Any economic adjustment for corporate actions or dividends on the underlying instrument is made at the firm's discretion in accordance with the Client Agreement.

2.2 Rolling-spot FX. Rolling-spot FX contracts settle continuously against the deposit of margin and do not deliver the underlying currencies. Rollover, adverse price movement, and financing charges may cause the value of your position to decline materially even when the headline price of the currency pair appears stable.

2.3 Synthetic Volatility Indices and Surge Indices. The firm offers twelve proprietary Volatility Indices in the Alpha, Delta, and Sigma families and four proprietary Surge Indices in the SRU and SRD 300 and 600 families (together, the "Synthetic Indices"). These are Products whose prices are generated by the firm's own price engine according to a documented stochastic process with fixed parameters. They do not track, and are not derived from, any external market, exchange, index, or reference price. Section 12 sets out the specific risks that apply to these instruments.

2.4 Cryptocurrency CFDs. Cryptocurrency CFDs are CFDs referencing digital assets that trade on external venues. They are subject to the specific risks set out in section 13.

2.5 Available leverage. Maximum available leverage varies by instrument and ranges from up to 1:500 on major FX pairs to 1:20 on cryptocurrency CFDs. The firm may vary maximum leverage on any instrument at any time and without prior notice, including in response to market conditions, weekends, scheduled economic events, or the firm's own risk management.

Market risk is the risk that the price of an instrument moves against your open position. Adverse movement in the price of any Product will reduce the equity attributable to that position. Where the equity in your account falls to or below the applicable margin requirement, the firm may close, in whole or in part, one or more of your open positions without further notice.

You may lose the entire margin allocated to a position. You may also lose more than the margin allocated to a position if the market moves against you faster than the firm is able to close it, or if the firm is unable to close it at prevailing prices for the reasons described in sections 5, 6, and 8. Any resulting debit balance is a debt owed by you to the firm, payable on demand under the Client Agreement.

Prices in the underlying markets that inform CFD and rolling-spot FX pricing, and the prices generated by the firm's Synthetic Indices, may move sharply and without warning. Volatility may be triggered by scheduled events (such as central bank decisions, economic releases, and corporate earnings), by unscheduled events (such as geopolitical developments, natural disasters, and market infrastructure incidents), and by session-open or session-close conditions during which liquidity in the underlying market is thin.

During periods of elevated volatility, spreads may widen materially, margin requirements may be increased, and the price at which an order is executed may differ substantially from the price displayed on the platform at the moment the order was submitted. You should not assume that historical volatility is a reliable guide to future volatility.

Liquidity risk is the risk that you cannot open, close, or modify a position at the price displayed on the platform, or at any price within a range you consider acceptable. Liquidity conditions differ materially between instruments, sessions, and market states.

5.1 Slippage. Market orders are executed at the next available price. Where the market has moved between the moment your order was submitted and the moment it reached the firm's execution engine, the price at which the order is filled may be worse (or, less commonly, better) than the price displayed at submission. This is known as slippage. The Order Execution Policy (see /legal/order-execution-policy) sets out how the firm handles execution.

5.2 Requotes and rejections. On illiquid instruments, in fast-moving markets, or where the firm's risk management so requires, orders may be requoted at a revised price or rejected. There is no obligation on the firm to accept, execute, or maintain any order.

5.3 Partial fills. Large orders relative to available liquidity may be filled in part, at multiple prices, or over an extended interval.

Markets do not price continuously. Prices may gap between the close of one session and the open of the next, over weekends, over scheduled holidays, and around material announcements. Gap risk applies to all Products whose price references an external market, and it applies to Synthetic Indices to the extent that the price engine incorporates parameter changes at defined times.

Stop-loss orders are instructions to close a position when the market reaches a specified price. They are not guarantees that the position will be closed at that price. Where the market gaps through your stop-loss level, the order will be executed at the next available price, which may be materially worse than the level you set. The firm does not offer guaranteed stop-loss orders. You should size positions on the assumption that the actual loss on a stopped position may exceed the loss implied by the distance between your entry and your stop.

Positions held over a weekend or over any period during which the firm's trading engine is closed for that instrument are exposed to the risk that the instrument will reopen at a price materially different from the price at which it closed, without any opportunity for you to reduce or close the position in the interim.

Positions held past the daily rollover time incur financing charges. Financing charges may be positive or negative to you, are calculated separately for the long and short sides of each instrument, and are subject to change at the firm's discretion in accordance with the Client Agreement. Rates applied to your positions may reflect underlying wholesale funding costs, an administration margin, and, for FX, the interest differential between the two currencies in the pair.

Financing charges accumulate for as long as the position is open. On leveraged positions held for extended periods, cumulative financing may materially exceed any profit generated by favourable price movement and may itself cause the account equity to fall below the applicable margin requirement. Applicable financing rates are made available on the platform; you are responsible for reviewing them before opening or extending a position.

Access to the firm's platform depends on the operation of the firm's systems, your own device and software, and the internet, mobile network, and payment infrastructure that connects the two. Any of these may fail or degrade without warning, and any such failure or degradation may prevent you from opening, modifying, or closing a position at the time of your choosing.

Circumstances in which order entry, modification, or closure may be impaired include, without limitation: scheduled or emergency maintenance of the firm's platform; connectivity loss on your device or network; disruption of a third-party service on which the firm relies (including quote feeds, execution venues, payment providers, and identity verification providers); denial-of-service attacks or other security incidents; and the operation of the firm's risk controls, which may pause trading in an instrument in the circumstances described in the Order Execution Policy (see /legal/order-execution-policy).

The firm operates the platform on a commercially reasonable basis and does not guarantee uninterrupted, error-free, or continuously available service. Where the platform is unavailable, you may not be able to prevent a loss on an open position. You should not open positions whose ongoing management assumes that the platform will be continuously accessible.

Positions may be denominated in a currency different from your account base currency. Realised and unrealised profit and loss, financing charges, and any fees payable in a non-base currency are converted to the base currency at rates prevailing when the conversion is applied, together with a conversion margin that may be levied by the firm.

Movements in the exchange rate between the currency of the position and your base currency will affect the base-currency value of your position independently of any movement in the underlying instrument. On multi-currency accounts and on positions in instruments quoted in a foreign currency, currency movement is a separate source of P&L that you should model explicitly.

Concentration risk arises where a significant portion of your account equity is allocated to a single instrument, a single sector, a single underlying asset class, or a small number of positions with a common driver. A single adverse event, whether specific to an instrument or common to a sector, may cause the value of a concentrated book to decline sharply and rapidly.

The firm does not impose diversification requirements and does not monitor whether your book is diversified relative to your circumstances. You are responsible for determining the level of concentration you are willing to accept.

Correlation risk arises where two or more positions in your account are exposed to common factors that cause them to move together. Positions that appear to diversify a book at the level of the individual instrument may be materially correlated at the level of the underlying driver, and the aggregate risk of the book may be substantially greater than the sum of the risks of each position considered in isolation.

Correlations are not constant. Instruments that behaved as diversifying positions during ordinary market conditions may become highly correlated during stressed conditions, at precisely the times when diversification would otherwise be most valuable. You should consider correlation risk when sizing positions and when constructing a book.

The Synthetic Indices are Products of a different character from CFDs and rolling-spot FX. The following risks apply specifically to the Synthetic Indices in addition to the risks described elsewhere in this notice.

12.1 Proprietary pricing. The prices at which the Synthetic Indices are quoted and traded are generated exclusively by the firm's own price engine. There is no external liquidity provider, no external exchange, and no external market or reference price against which the price of a Synthetic Index can be verified. Prices are produced by a documented stochastic process with fixed parameters; the documentation of that process is published by the firm and forms part of the disclosure for these Products.

12.2 No external market. Because there is no external market for the Synthetic Indices, there is no independent source of liquidity into which the firm can hedge exposure, and no independent source of pricing against which the client can benchmark a fill. All positions in Synthetic Indices are, from the firm's perspective, principal risk retained by the firm and managed within the firm's own risk framework.

12.3 Dispute resolution. Where a client disputes a price at which a Synthetic Index order was quoted or filled, that dispute is resolved by reference to the audit log of the firm's price engine for the relevant instrument and interval. The audit log is the definitive record of the prices generated by the engine at each tick. The firm will make relevant extracts of the audit log available to a client on reasonable request in the context of a genuine dispute.

12.4 24/7 operation. The Synthetic Indices trade continuously. Financing, margin, and risk-management events may occur at times when you are not able to monitor the platform. Positions in Synthetic Indices held across long periods without active management are exposed to the accumulated effect of the stochastic price process, which over sufficient time can produce large excursions in either direction irrespective of any external event.

12.5 Product changes. The firm may add, suspend, adjust the parameters of, or discontinue any Synthetic Index in accordance with the Client Agreement. Any such change may materially affect the value of open positions and the strategies that clients have deployed on the affected instrument.

Cryptocurrency CFDs reference digital assets that trade on external venues. In addition to the risks described elsewhere in this notice, the following risks apply.

13.1 Extreme volatility. Prices of the underlying digital assets are historically more volatile than those of conventional financial instruments. Intraday movements of magnitudes rarely seen in FX or equity markets are common. Positions of a given notional size in cryptocurrency CFDs are correspondingly more likely to result in the loss of the margin allocated to that position.

13.2 24/7 markets. The underlying markets operate continuously. Adverse price movements can occur, and margin requirements can be triggered, at times when you are not able to monitor the platform or to fund an account to meet a call.

13.3 Underlying market events. Underlying digital-asset venues may halt trading, delist an asset, suffer security incidents, be subject to enforcement action, or otherwise become unavailable. In such circumstances, the firm may be unable to quote or execute cryptocurrency CFDs referencing the affected asset, may widen spreads materially, may increase margin requirements, or may suspend the instrument entirely, in each case in accordance with the Client Agreement.

13.4 Reduced leverage. Maximum available leverage on cryptocurrency CFDs is materially lower than on FX or index instruments and may be reduced further without prior notice.

The firm may offer functionality that allows a client (a "follower") to mirror the trading activity of another client (a "leader"). Copy trading does not reduce, diversify, or transfer the risks described in this notice, and it introduces additional risks specific to that functionality.

14.1 No delegation of responsibility. When you follow a leader, you place orders in your own account, on your own margin, in your own name, and at your own risk. The firm does not act as an investment manager on your behalf, and the leader does not act as your agent, adviser, or fiduciary. You remain fully responsible for your account, including for every order placed by the copy engine on your behalf.

14.2 Leader risk. A leader's past performance is not a reliable indicator of future performance. Leaders may take positions of a size or character that is inappropriate to your circumstances, may fail to close positions in time, and may change strategy without notice. A leader may themselves suffer catastrophic loss; a follower who mirrors that leader will suffer loss proportionate to their allocation.

14.3 Execution differences. Prices, spreads, financing, and slippage on the follower's account may differ from those on the leader's account. The follower's realised P&L on a copied trade will not, in general, be identical to the leader's realised P&L on that trade.

14.4 Suspension and unwind. The firm may suspend or terminate copy-trading functionality, or the relationship between a specific leader and follower, at any time in accordance with the Client Agreement. Any resulting need to close positions falls to the follower.

The firm acts as principal to every position you open. When you trade a Product with us, we are your counterparty. Your economic exposure on that Product is an exposure to the firm's ability and willingness to meet its obligations to you, and not an exposure to any external market maker or exchange.

The firm holds client funds separately from its own operating accounts as a matter of operational practice. That practice is not a client-money segregation regime imposed or supervised by a financial services regulator. Client funds held with the firm are not protected by any statutory investor compensation scheme, deposit guarantee scheme, or comparable arrangement. In the event of the firm's insolvency, client funds and open positions would rank as unsecured claims against the firm's estate, and clients could lose the whole or part of the balance and unrealised P&L attributable to their account, together with the ability to close or transfer open positions.

You should not deposit funds with the firm that you would not be prepared to lose in the event of the firm's failure. You should also consider counterparty risk in the context of the overall exposure you have to the firm across account balances, open positions, and pending payment instructions.

TFC Funder Ltd is incorporated in England and Wales under Company No. 17173699. TFC Funder Ltd is not authorised or regulated by the Financial Conduct Authority. It does not hold, and has not applied for, any authorisation, permission, or licence from the Financial Conduct Authority for the conduct of retail contracts-for-difference business, and it does not represent or imply that it holds any such authorisation, permission, or licence. It does not participate in the Financial Services Compensation Scheme or the Financial Ombudsman Service, and it does not conduct business under the Markets in Financial Instruments Directive II or under the retail-CFD framework operated by the European Securities and Markets Authority.

The firm operates on the basis that its retail brokerage activity is not subject to Financial Conduct Authority authorisation requirements. That position depends on the current interpretation of applicable law in each jurisdiction in which the firm accepts clients. Applicable law and its interpretation may change, whether in the United Kingdom, in a jurisdiction from which the firm accepts clients, or in a jurisdiction into which the firm has previously accepted clients. Any such change may require the firm to alter the Products and services it makes available, to restrict access to specific jurisdictions, or to terminate services in specific jurisdictions with limited notice. The firm may take any of those steps at any time without a specific regulatory event, and any such step may require the closure of open positions and the return of client funds on terms determined by the firm in accordance with the Client Agreement.

The firm does not solicit clients in jurisdictions where the marketing or provision of retail CFDs is prohibited, and does not accept United States persons. It remains your responsibility to determine whether it is lawful for you, in your jurisdiction of residence and any other jurisdiction whose law applies to you, to open an account with the firm and to trade the Products.

You are solely responsible for determining the tax consequences of trading with the firm and for the timely and accurate reporting and payment of any taxes payable in respect of your trading. The firm does not provide tax advice, does not act as a withholding agent, and does not calculate or report your tax liabilities to any tax authority except where required to do so by law. The tax treatment of leveraged trading depends on your circumstances and on the law of your jurisdiction of tax residence, and it may change. If you are in any doubt, you should take advice from an appropriately qualified tax professional.

The firm does not provide investment advice, personal recommendations, portfolio management, or any other regulated advisory service. Nothing displayed on the platform, contained in any communication from the firm, or produced by any tool, calculator, chart, indicator, market commentary, educational material, or similar feature constitutes a recommendation to open, hold, or close any position or to enter into any transaction. All content of that nature is provided for general information only and should not be relied on as a basis for any trading decision. Any decision to trade is yours alone.

Before opening an account and before placing any order, you should carefully consider your financial circumstances, your investment objectives, your experience of leveraged trading, your understanding of the specific Products you intend to trade, and the proportion of your net worth that you are able and willing to expose to those Products. Trading the Products is not appropriate for every person. In particular, trading the Products is not appropriate for you if any of the following is true: you cannot afford to lose the funds you would deposit; you do not understand how leverage magnifies both gains and losses; you would rely on realising a specific return from trading to meet a financial commitment; or you would be exposed to material hardship in the event that the firm became unable to return your funds.

Free unlimited-reset demo accounts are available and are the appropriate environment in which to develop familiarity with the platform and the Products before committing real money. Trading in a demo environment does not, however, replicate the psychological, funding, or execution conditions of live trading, and demonstrated performance in a demo environment is not a reliable indicator of performance on a real-money account.

By opening an account with the firm, by funding an account, or by placing any order through the platform, you acknowledge and confirm that you have read this notice in full, that you have had a reasonable opportunity to seek independent professional advice on any matter set out in it, that you understand and accept the risks of trading the Products as described in it, and that you have read, understood, and accepted the Client Agreement (see /legal/client-agreement), the Order Execution Policy (see /legal/order-execution-policy), the Privacy Notice (see /legal/privacy), and the AML and KYC Policy (see /legal/aml-kyc) that together with this notice govern your relationship with the firm.