This Risk Disclosure Notice (the “Notice”) is provided to all Clients and/or prospective Clients (the “Client(s)”) of Ereus, operating and incorporated under the laws of Estonia , with registration code: 14651296.Ereus is regulated by the Estonian FIU Financial Intelligence Unit under the license No. FVT000506 and is in compliance with the Estonian Laws and Regulations , as subsequently amended from time to time (“the Law”).
Ereus executes Client(s)’ orders in relation to cryptocurrencies. Cryptocurrencies are not suitable for all investors.
Trading with Cryptocurrencies is considered as a high risk and the investment value can quickly, both increase and decrease, and can actually result in the loss of all invested capital. Client(s) should not engage in trading activities with Cryptocurrencies unless the risks involved are fully understood. Client(s) should not risk more than they are prepared and able to lose.
Prior to applying for a cryptocurrency account(s), with the Company, or making transactions, Client(s)should carefully consider which Cryptocurrencies are suitable, taking into account the circumstances, financial resources as well as the risk appetite. If Client(s) is unclear or does not understand the risks involved in trading in Cryptocurrencies, offered by the Ereus should refrain from trading. It is understood that the Ereus does not execute Client(s)’ orders on its own account basis, i.e. as principal to principal with Client(s).
Ereus receives, transmits and executes Client(s)’ orders with a third party (the Liquidity Provider/Execution Venue).Although the Ereus shall exercise due skill, care and diligence in the selection of the applicable regulatory requirement(s), it is understood that there are circumstances beyond the control of the Ereus and hence the Ereus does not accept any liability and/or responsibility for any resulting losses that Client(s) may be subjected to due to insolvency or any other analogous proceedings. and/or failure of the relevant financial institution(s) where Client(s)’ funds are held.
It is understood that the legal and regulatory regime applying to relevant financial institution(s), where Client(s)’ funds are held, are different from that of Estonia. As a result, in the event of insolvency or any other equivalent failure or preceding against the relevant financial institution(s), Client(s)’ funds may be treated differently from the treatment which would apply if the funds were held in . Specifically, the relevant financial institution(s) may hold Client(s)’ funds in an omnibus account. Hence, in the event of the insolvency or any other analogous proceedings related to the relevant financial institution(s),Ereus may only have an unsecured claim on behalf of Client(s) and as such, Client(s) will be exposed to the risk that the relevant financial institution(s) would not have sufficient funds for Client(s)’ claims. Charges and Taxes The Provision of Services by the Ereus to Client(s) is subject to charges/fees, displayed on the Company’s website and/or Trading Platform.
Before Client(s) begins to trade, Client(s) should obtain details of all fees, commissions and any other charges related to trading with cryptocurrencies and for which Client(s) will be liable. It is Client(s)’ responsibility to check for any charges and relevant changes to such charges that may be incurred.
Charges are not necessarily expressed in monetary terms. They may be, for example, expressed through a percentage formula whereby Client(s) should ensure to understand such charges as to their monetary value.
Ereus may change charges/fees, at any time, according to the provisions of the Client Agreement found on the Company's website.
There is a risk that Client(s)’ trades, in cryptocurrencies, offered by the Company, may be or become subject to tax and/or any other duty, due to legislation applicable to specific Client or Client(s)’ personal circumstances.Ereus does not warrant that no tax and/or any other stamp duty will be payable by Client(s).Ereus does not offer tax advice and therefore recommends that Client(s) seek advice from an independent tax advisor for that matter.
Client(s) is solely responsible for any taxes and/or any other duty which may occur in respect of trading in cryptocurrencies, offered by the Company.
If required by applicable legislative requirement(s),Ereus shall deduct, at source, from any payments due to the Client such amounts as required by the relevant authorities. Although it is Client(s)’ sole and entire responsibility to account for any tax due, without derogating from this obligation, Client(s) agrees that the Ereus may deduct tax, as may be required by the applicable law, with respect to trading activity incurred within Client(s)’ cryptocurrency account(s). Client(s) is aware that Ereus has a right of set-off against any amounts held by Client(s)’ cryptocurrency account(s), with respect to such tax deductions. It is possible that other costs, including taxes, relating to transactions carried out on the Trading Platform may arise for which the Client is liable and which are neither paid via the Ereus nor imposed by the Company. Ereus’s insolvency or default, may lead to positions being closed out without Client(s)’ consent and, as a result, Client(s) may suffer losses.
Ereus places significant importance on the execution of the Client(s)’ orders and, at all times, strives to provide the best execution possible, within the limitations of technology and communications links. Ereus strives, on a best effort basis, to provide Client(s) with a secure and smooth online experience.
If Client(s) undertakes transactions on an electronic system, Client(s) will be exposed to relevant risks and shall be responsible for the possible financial losses caused by the failure of information, communication, electronic or any other systems including but not limited to the interruptions, transmission blackouts, electricity network failure, failure of hardware, software, servers, communication lines, internet failure, overload of connection or hacker attacks. Client(s) is responsible for the security of Client(s)’ Access Data. If Client(s) undertakes transactions on an electronic system (“Trading Platform”), Client(s) will be exposed to risks associated with the system(s), including the failure of hardware and software (Internet/Servers), wrong settings in the Client Terminal, delayed Client Terminal updates, disregarding the applicable rules described in Client(s) Terminal etc.
Client(s) acknowledges that the internet may be subject to events which may affect access to the Company’s website and/or the Company’s Trading Platform(s)/system(s), for example, there may be a delay on the Company’s Trading Platform when receiving order(s) which may affect the execution price of the order(s). Consequently, the result of any system failure may be that the order is either not executed according to Client(s)’ instructions or it is not executed at all.
Ereus does not accept any liability in the case of such failure(s) and the Ereus shall not be held responsible for any damages or losses resulting from such events which are beyond its control or for any other losses, costs, liabilities, or expenses (including, without limitation, loss of profit) which may result from Client(s) inability to access the Company’s website and/or Trading Platform(s)/system(s) or delay or failure in sending orders for transactions, not owed to the Company’s gross negligence or willful default. Moreover, Client(s) acknowledges the risk of third parties (hackers) attack against the Company’s systems which may cause a disruption of services and respectfully may result in Client(s)’ losses. Ereus does not accept any liability resulting from such attacks to the extent that the Ereus has taken all reasonable measures, on a best effort basis, to be protected from such malicious actions. Client(s) furthermore acknowledges that the unencrypted information, transmitted by email, is not protected from any unauthorized access.
At times, Client(s) may have some difficulties connecting over the phone or directly to the Company’s Trading Platform(s)/system(s), especially in fast Market (for example, when key macroeconomic indicators are released). In connection with the use of computer equipment, data and voice communication networks, Client(s) bears the following risks, amongst other risks, in which cases the Ereus has no liability of any resulting loss:
- Power cut of the equipment on the side of Client(s) or the provider, or communication operator (including voice communication) that serves Client(s);
- Physical damage (or destruction) of the communication channels used to link Client(s) and the provider (communication operator) and the trading or information server of Client(s);
- Outage (unacceptably low quality) of communication via the channels used by Client(s), or the Company, or the channels used by the provider, or communication operator (including voice communication) used by Client(s);
- Wrong or inconsistent with requirements settings of the Client Terminal;
- Untimely update of the Client Terminal;
- When carrying out transactions via the telephone (land or cell phone lines), voice communication, Client(s) runs the risk of problematic dialing, when trying to reach the Company, due to communication quality issues and communication channel loads.
- The use of communication channels, hardware and software, generate the risk of non- reception of a message (including text messages) by Client(s) from the Company;
- Trading over the phone might be impeded by overload of connection.
- Malfunction or non-operability of the Trading Platform, including the Client Terminal. Client(s) may suffer financial losses caused by the materialization of the above risks and the Ereus is accepting no responsibility or liability in the case of such a risk materializing and Client(s)shall be responsible for all related losses that may be occured. Trading Platform When trading through an electronic platform, Client(s) assumes risk of financial loss which may be a consequence of, amongst other things:
- Failure of Client(s)’ devices, software and poor quality of connection;
- The Company’s or Client(s)’ hardware or software failure, malfunction or misuse;
- Improper work of Client(s)’ equipment;
- Wrong setting of the Client Terminal;
- Delayed updates of the Client Terminal. It is understood that the connection between the Client Terminal and the Company’s Server may be disrupted at some point and some of the Quotes/Instructions may not reach the Client Terminal. Client(s) acknowledges the following:
- If Client(s) send a request for transaction,such as order buy or sell the relevant request window, the instruction, which has been sent to the Trading Platform server shall not be cancelled;
- Orders may be executed one at a time, while being in the queue. Multiple orders from the same Client(s)’ trading account, at the same time, may not be executed;
- Once the order is executed, it cannot be cancelled;
- In cases where a request for an execution of an order has not been confirmed, and Client(s) send a new request, Client(s) accepts the risk of making two requests for transaction, instead of one;
Force Majeure Events In case of a Force Majeure Event, the Ereus may not be in a position to arrange for the execution of Client(s)’ orders. As a result, Client(s) may suffer financial loss.
According to the Client Agreement,Ereus will not be liable or have any responsibility for any type of loss and/or damage arising out of any failure, interruption, or delay in performing its obligations under the Client Agreement where such failure, interruption or delay is due to a Force Majeure Event. Communication between Client(s) and the Ereus Client(s) shall accept the risk of any financial losses caused by the fact that Client(s) has received with delay or has not received at all any notice from the Company. Client(s) further acknowledges that the unencrypted information transmitted by e-mail is not protected from any unauthorised access.Ereus has no responsibility if unauthorized third parties have access to information, including electronic addresses, electronic communication and personal data, access data when the above are transmitted between the Ereus and Client(s) or when using the internet or other network communication facilities, telephone, or any other electronic means. Client(s) is fully responsible for the risks in respect of any undelivered messages, sent to Client(s) by the Company.
Abnormal Market Conditions Client(s) acknowledges that under Abnormal Market Conditions, the execution of orders may be extended or it may be impossible for orders to be executed at requested level, or may not be executed at all. Abnormal Market Conditions include but not limited to times of rapid price fluctuations of the relevant financial instrument, price rises or falls in one trading session to such an extent that, under the rules of the relevant exchange(s), trading is suspended or restricted, there is lack of liquidity, or at the opening of trading sessions.
Foreign Currency When a financial instrument is traded in a currency other than the currency of Client(s) trading account, exchange rate is affecting the value of the relevant profit/loss.
Conflicts of Interest When dealing with Client(s), the Company, it’s associates and/or related parties may have interest, relationship and/or arrangement(s) that may be opposite to the interest of Client(s), which may lead to the conflicts of interest. The following constitutes the major circumstances which may give rise to a conflict of interest, entailing a material risk of damage to the interests of one or more Clients, when providing investment services:
The Ereus may receive/pay inducements from/to third parties for referring Client(s).
For more information about the conflicts of interest, please refer to the Company’s Summary of Conflicts of Risk Disclosure Interest Policy found on the Company's website
Cryptocurrencies are categorized as high risk, complex cryptocurrencies and Client(s) may lose the full amount invested.Trading Cryptocurrencies is not suitable for all investors.
The investment decisions made by Client(s) are subject to various markets, currency, economic, political, business risks etc., and will not necessarily be profitable.
Client(s) acknowledges and, without any reservation accepts that, notwithstanding any general information which may have been provided by the Company, the value of any investment in cryptocurrencies may fluctuate either upwards or downwards. Client(s) consent and, without any reservation, accepts the existence of a substantial risk of incurring losses and damages as a result of buying/selling financial instrument(s), offered by the Company, and acknowledges willingness to take such risk. Below is an outline of the major risks and other significant aspects related to Cryptocurrencies trading:
Trading in Cryptocurrencies is VERY SPECULATIVE AND HIGHLY RISKY and is not suitable for all members of the general public but only for those investors who:
- understand and are willing to assume the economic, legal and other risks involved;
- taking into account their personal financial circumstances, financial resources,
lifestyle and obligations, are financially able to assume the loss of their entire investment; • have the knowledge to understand Cryptocurrencies trading and the underlying assets and markets.
Ereus will not provide Client(s) with any advice relating to Cryptocurrencies or make investment recommendations, including occasions where Client(s) may request such advice and/or recommendation. However, the Ereus may provide Client(s) with information and tools, produced by third parties on an “asis” basis (i.e.the Ereus does not approve,endorse,or affect the said information and/ortools), which may be indicative of trading trends and/or opportunities.
Client(s) accepts and understands that taking any actions, based on the information and/or tools provided by third parties, may result in losses and/or general reduction of value of Client(s)’ assets.Ereus does not accept liability for any such losses resulting from actions taken by Client(s), based on the information and/or tools provided by third parties. It is important therefore that Client(s) understands the risks associated with trading in the relevant underlying assets because fluctuations in the price of the underlying asset will affect the profitability of relevant Cryptocurrencies transaction(s).
It is noted that the Company’s prices may be different from prices Risk Disclosure offered for trading elsewhere.
The prices displayed on the Company’s Trading Platform reflects the last known available price at the moment, prior to placing an order, however, the actual execution price of the order may differ. As such, the price that Client(s) receives when opening/closing a position may not directly correspond to real time market prices, at the point in time at which the transaction occurs. Information related to the past performance of financial instrument(s) does not guarantee current and/or further performance. The use of historical data should not be used as a guaranteed forecast of the corresponding future performance, for the relevant financial instrument(s). Volatility Some cryptocurrencies trade within wide “intraday ranges” with volatile price movements. Therefore, Client(s) must carefully consider trading since there is a high risk of losses. The price of cryptocurrencies, offered by the Company, is derived from the price of the relevant underlying assets. Some cryptocurrencies, due to the underlying assets and relevant markets can be highly volatile.The prices of cryptocurrencies may fluctuate rapidly and over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the Ereus or Client(s).
Under certain market conditions, it may be impossible for Client(s)’ order(s)to be executed at requested prices thus may lead to losses. The prices of cryptocurrencies are influenced by, amongst others, change in supply and demand relationships, governmental, agricultural, commercial, trade programs and policies, national and international political and economic events and the prevailing psychological characteristics of the relevant markets.
Liquidity risk refers to the capacity to readily monetize assets without suffering a significant discount in their prices. Client(s) accepts and acknowledges that the cryptocurrencies, offered by the Company, based on the relevant underlying assets, may be inherently illiquid or sometimes face persistent liquidity constraints due to adverse market conditions.
Off-exchange transactions in cryptocurrencies offered by the Company.The trading conditions of the relevant cryptocurrencies offered by the Ereus and are in line with the trading conditions received from the Company’s liquidity providers. The cryptocurrencies offered by the Ereus are in line with the legislative requirements and obligations to provide best execution to Client(s).The relevant transactions are not transferable to any other party. Some cryptocurrencies, offered by the Company, are based on exchange tradable underlined assets, which are highly liquid, however, the relevant cryptocurrencies involve greater risk considering being off-exchange or non- transferable, i.e. they can only be closed with the Company. On some occasions, it may be impossible to liquidate an existing open position, to assess the value of the position arising from an off-exchange transaction or to assess the exposure to risk.
The Trading Platform used by the Company, for transactions in Cryptocurrencies does not fall within the definition of a recognized exchange or Multilateral Trading Facility (“MTF”) or Organised Trading Facility (“OTF”). No Clearing House protection The transactions in the cryptocurrencies, offered by the Company, are not subject to an exchange or clearing house requirements/obligations however they are subjected to reporting obligations, under the applicable legislation. Suspensions of Trading Under certain trading conditions.Slippage often occurs during periods of higher volatility (for example due to news events) making an order, at a specific price and at the specific time, impossible to execute. In cases of market orders, as well as large in volume orders, the execution may be hard or impossible, at the requested priced due to the fact that there may be enough interest, from the other participants in the relevant market, to purchase/sell, for the order to be fulfilled at the desired price/time.
Non-deliverable It is understood that Client(s) has no rights and/or obligations related to the delivery of underlying assets traded as cryptocurrencies, with the Company. cryptocurrencies, offered for trading by the Company, are non-deliverable thus giving an opportunity to trade based on the price differences of the Cryptocurrencies.In other words, if the price of the underlying asset moves in Client(s)’ favor, Client(s) may achieve a profit, but an equally small adverse market movement can result in the loss of Client(s)’ entire investment, especially in cases of high volatility of the relevant financial instrument.
So, Client(s) should not enter into Cryptocurrencies transactions unless willing and capable to undertake the risks of losing entirely all the invested funds.Investing in Cryptocurrencies carries high risks and Client(s) should be aware of such risks before entering into transactions. Transactions in Cryptocurrencies may also have a contingent liability and Client(s) should be aware of such implications, as described further below.Usually a relatively modest proportion of the overall contract value.If the price of the underlying asset moves in Client(s)’ favour, Client(s) may achieve a considerable profit, but an equally small adverse market movement can not only quickly result in the loss of Client(s)’ entire investment.
Contingent Liability Investment Transactions Contingent liabilities are potential obligations that may be assumed by Client(s), depending on the outcome of an event that was beyond any person’s control and/or expectations. For example, in case whereby due to extreme volatility of the underlying asset, of the financial instrument offered by the Company, Client(s)may sustain losses that exceed the equity of relevant trading account(s.).Trading orders may not always be adequate, given that, in some cases, markets conditions make it impossible to execute such orders or their execution is based on slippage.Ereus is doing its utmost to deal with such orders fairly and promptly however filling of such order(s) depends on the underlying asset and relevant market conditions. In fast-moving markets, the price for the level of Client(s)’ order(s) might not be available, or the market might move quickly and significantly away from the price level, before the order is filled.The swap values are variable and depend on the relevant financial instrument.
Advice and Recommendations:
Ereus will not advise Client(s) about the merits of a particular transaction nor give any form of investment advice and Client(s) acknowledges that the Services, offered by the Company, do not include the provision of investment advice. Client(s) shall enter into a transaction based on Client(s)’ judgment and decisions. In requesting to enter into any transaction, Client(s) represents to be solely responsible for making its own/independent assessment of the risks related to the relevant transaction(s). Client(s) represents to have sufficient knowledge, market sophistication and experience to make own/personal evaluation of the merits and risks of any transaction.
Ereus gives no warranty as to the suitability of the cryptocurrencies, offered by the Company, and assumes no fiduciary duty in the relations with Client(s).
Ereus shall not provide Client(s) with any legal, tax or other advice relating to any transaction, performed within cryptocurrency account(s). Client(s) should seek independent advice if in any doubt as to whether there may be any tax liabilities related to transaction(s).Ereus may, from time to time and at its own discretion, provides Client(s) with information, news, market commentary or any other information related to the services for offer.
Where it does so:
- Ereus will not be responsible for such information;
- Ereus gives no representation, warranty or guarantee as to the accuracy, correctness or completeness of such information, including tax or legal consequences of any related transaction(s);
- The information is provided solely to enable Client(s) making own/personal investment decisions and does not amount to an investment advice or unsolicited financial promotions to Client(s);
- If the information contains a restriction on the person or category of persons for whom that information is intended to or distributed, Client(s) agrees not to not pass the relevant information to any such person or category of persons;
- Clients acknowledge that the Ereus may have acted upon the relevant information itself prior to the provision of the information to Client(s). The Company, furthermore, does not make representations as to the time that Client(s) received relevant information that being at the same time as other clients. It is understood that market commentary, news, or other information provided or made available by the Ereus are subject to change and may be withdrawn at any time, without prior notice.
No Guarantee of Profit Ereus provides no guarantees of profit nor avoidance of losses to Client(s), when trading in Cryptocurrencies, offered by the Company.
Ereus cannot guarantee the performance of Client(s) transactions nor make any promise regarding the performance of Client(s)’ investment decisions,strategies to be successful/profitable. Client(s) is aware of the risks inherent in trading in cryptocurrencies offered by the Company, and is able to bear such risks and financially withstand any losses incurred. Client(s) acknowledges and accepts that there may be other additional risks, apart from those mentioned herein.Ereus regularly raises and maintains awareness of risks with all its staff and counterparties to ensure the best management of possible risks the Ereus might be exposed to.