Risk DeclarationOur company is one of the leading investment companies. Due to the fact that each client is dear to us, we set ourselves the task of observing his rights to protect funds from risks that he is not informed about.
This Declaration was drawn up by us precisely to inform the client as much as possible about the risks associated with certain investments and to protect his rights as a consumer of our company's investment services.
All information in this Declaration has been drawn up in order to comply with the rights of our clients provided for in the UN General Assembly Resolution No. 70/186 of December 22, 2015 for consumer protection.
1. The objective of this Declaration is providing to the Client the information on the risks and conditions related to the conclusion of Agreement or performance of financial operations within the limits of this agreement and preventing about a possible income or losses while investing.
2. The risks of this declaration are understood as the situation that the Client will have financial losses (as a real damage and/or profit loss) which have direct or indirect relation to the fact that the Client will make Investments or Payments.
3. The Client is aware of the fact that the investment of funds is related to particular risks, responsibility which cannot be attributed to the Contractor or his daughter companies, Guarantor, as the possibility to foresee and prevent the consequences of these risks are limited. In this regard, the Client independently should appreciate the possibility on making investment and in this case the Contractor will make maximum effort for helping the Client to reduce the possible risks while investing the funds according to the Investment Agreement.
4. According to the economic consequences for the Client, the following risks are possible:
a) Risk of losing the planned income – the possible occurrence of the situation which includes a partial or full loss of the planned income from the Investment (lost profit);
b) Risk of losing the invested funds - the possible occurrence of the situation which includes the partial or full loss of funds (money);
c) Risk of losses which exceed the invested funds – the possible occurrence of the situation which will include not only the full loss of the planned income and the invested funds but also the losses which exceed the invested funds.
d) Risk of liquidation – the possibility of financial losses when receiving as the property the security shares in the project or the company due to the change of their quality (Security shares or shares can be not demanded by the market in the necessary volume and the reasonable terms without the loss in cost and/or their estimation can be become difficult).
е) Risk of not achieving the investment objectives – possibility of the financial losses which appear due to the fact that the Client does not achieve his investment objectives. Due to the fact that the Contractor offer no guarantee about the fact that the maintenance and the increase of the capital the Client wants to get will be achieved. The Client can lose a part or the whole capital proposed for Investment. The Client is fully aware of the risks specified in this paragraph, he independently choses the Package (quantity) for purchasing which fits the best to his goals and objectives for investment and he also is the sole who is responsible for his choice.
5. According to the factors, the following risks are possible:
a) Economic risk – the risk of appearance of unfavorable economic events for the Client. Through these risks it is necessary to emphasize the following risks:
b) Cost risk – risk in causing financial losses by the Client due to the unfavorable change of costs for the Security shares or shares;
c) Currency risk - risk in causing financial losses by the Client due to the unfavorable change of the exchange rates;
d) Inflation risk - risk in causing financial losses by the Client due to inflation:
e) Liquidation risk - risk in causing financial losses by the Client due to appearance of difficulties in selling the Security shares or shares in a given moment;
f) Risk of charging commissions and other fees – the possible financial losses of the Client related to the full or partial ignorance of the Client about the delays in relation to performance of operations in the Office. Before beginning performing particular operations, the Client has to undertake the necessary measures for getting the clear image about all the commissions or other fees which will be charged from the Client. The amount of such fees can be withheld from the Payments or may otherwise increase the costs of the Client.
g) Legal risk - risk in causing financial losses by the Client due to the fact that new legal norms enter in force or they are amended. The legal risk also includes the possibility of financial losses for the Client because of the lack or unclear legal norms which regulate directly or indirectly the activity on the security market. Through these risks it is necessary to emphasize:
h) Tax law risk – risk of financial losses for the Client related to the use of the current tax law, amendments in the existing taxation procedure for the securities market transactions. Point of view of the tax authorities about certain issues can be subject of important change, fact which increases the possibility of appearance of unfavorable consequences for the Client.
i) Social-political risk – risk in causing financial losses by the Client due to the change of the political and economic direction, risk of political instability, social instability, including the risk of declaring protests, beginning of war actions and others. The most radical changes can lead to refusal or postponement UFI in undertaking its obligations about the Security shares or shares, limiting particular (ex. foreign) investments and a possible seizure or nationalization of property of a particular category of the Clients.
iii) Criminal risk - risk in causing financial losses by the Client due to the unlawful actions of third parties, including the risk of fraud in relation to the assets of the Client (ex. cancellation of funds or Security shares or shares of the Client based on false documents, access to the Office which is unauthorized by the Client);
j) Operational risk – (technical, technological, staff risks) - risk in causing direct or indirect financial losses by the Client due to the fact that the information, electrical and other systems can’t be repaired, including the life support systems, remote access systems, software, telecommunication devices and other technical problems, because of the mistakes related to the imperfection of the market infrastructure, including the technologies for performing the operations, procedures of managing, registration and control.
6. The Contractor is not liable for the losses caused by the Client being not acquainted with the instructions specified in the User Agreement.
7. The Client assumes the risk of performing non-planned operations in the Office in case of the second submitted application before the moment of receiving the result of processing the previous application.
8. The Client is obliged to keep the password and to be sure that the third parties will not get the access to the Office.
9. The Client will be bound by the Company in relation to the affairs or the operations performed in the Office, even if it was unlawfully used by the third party.
10. The Client is aware that the information transmitted in encrypted form (by e-mail, instant message service) is not protected from the unauthorized access.
11. The parties consider all the risks related to the possible loss while sending messages between the Contractor and the Client via electronic files using e-mail systems.
12.The risk constitutes an integral part of any investment process.
13. This Declaration hasn’t the goal to make the Client to refuse to make investments, it is for helping the Client to assess the risks of this type of investment and acting responsibly in choosing the investment strategy.