Risk Disclosure — Trading Risks

1. General Risk Warning

Trading digital options (binary options) and other financial instruments on the Quotex platform involves significant risk and can result in the partial or complete loss of your invested funds. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk tolerance.

This Risk Disclosure does not purport to disclose all risks associated with trading. Rather, it provides a general overview of the nature and types of risks involved. You should not invest money that you cannot afford to lose. If you do not fully understand the risks involved, you should seek independent financial advice before trading.

2. Nature of Digital Options

Digital options are derivative financial instruments whose value is derived from the price of underlying assets (currency pairs, cryptocurrencies, commodities, stock indices). When you trade a digital option, you are predicting whether the price of an underlying asset will be above or below a specified level at the time of expiry.

If your prediction is correct, you receive a predetermined payout (typically 70-98% of the invested amount). If your prediction is incorrect, you lose the entire amount invested in that trade. There is no partial loss or partial profit — the outcome is binary.

2.1 Key Risk Characteristics

Risk Factor	Description	Impact
Total loss risk	Incorrect prediction results in 100% loss of invested amount	High
Asymmetric payouts	Maximum gain is capped (70-98%), but maximum loss is 100%	High
Short timeframes	Trades as short as 5 seconds leave little room for analysis	Medium-High
Market volatility	Rapid price movements can invalidate predictions	High
Liquidity risk	Some assets may have wider spreads during low-volume periods	Medium
OTC pricing risk	OTC instruments use synthetic pricing that may differ from market rates	Medium

3. Market Risks

Financial markets are subject to a wide range of risks that can cause rapid and unexpected price movements:

Economic data releases: Employment reports, GDP figures, inflation data, and central bank decisions can trigger sharp price movements within seconds.
Geopolitical events: Elections, trade disputes, armed conflicts, sanctions, and diplomatic developments can fundamentally alter market dynamics.
Market sentiment shifts: Sudden changes in investor confidence, risk appetite, or herd behavior can cause rapid reversals.
Flash crashes: Algorithmic trading and liquidity withdrawal can cause extreme price dislocations that may last only minutes but can result in significant losses.
Weekend gaps: Markets may open at significantly different levels after weekends or holidays due to events occurring while regular markets are closed.

4. Technology Risks

Online trading is subject to risks inherent in computer-based systems and internet connectivity:

Internet connectivity: Loss of internet connection during an open trade may prevent you from managing or closing positions. The Company is not liable for losses resulting from connectivity failures on your end.
Platform availability: While we strive for 99.9% uptime, scheduled maintenance, unexpected outages, or distributed denial-of-service (DDoS) attacks may temporarily disrupt access.
Execution delays: High server load during periods of extreme market activity may result in trade execution delays. The price at which your trade is executed may differ from the price displayed at the time of order submission.
Software errors: Despite rigorous testing, software bugs or glitches may occasionally affect platform functionality. Trades executed during known system errors may be voided.
Device security: Malware, keyloggers, or compromised devices may expose your account credentials. You are responsible for maintaining the security of your devices.

5. Psychological and Behavioral Risks

Trading psychology plays a critical role in outcomes. The following behavioral patterns frequently lead to losses:

Overtrading: Placing excessive trades, often driven by excitement or the desire to recover losses quickly.
Revenge trading: Increasing position sizes after losses in an attempt to recover, which often accelerates losses.
Confirmation bias: Seeking only information that supports your existing position while ignoring contradictory evidence.
Overconfidence: A string of winning trades can create a false sense of infallibility, leading to reckless risk-taking.
Fear of missing out (FOMO): Entering trades impulsively based on market movements rather than analysis.
Addiction: Trading can become compulsive. If you find yourself unable to stop trading despite persistent losses, seek professional help immediately.

6. Regulatory Risks

The regulatory landscape for digital options varies by jurisdiction and is subject to change:

Digital options trading is prohibited for retail clients in the European Economic Area (EEA) under ESMA regulations and in the United Kingdom under FCA rules.
Regulatory authorities in various jurisdictions have issued warnings about binary options providers, including general industry warnings that may reference Quotex.
Changes in regulation in your country of residence may affect your ability to use the platform or withdraw funds.
The Company operates under the laws of St. Kitts and Nevis and is not regulated by major financial authorities such as CySEC, FCA, ASIC, or SEC.

7. OTC Instrument Risks

Over-the-Counter (OTC) instruments available on the platform during non-market hours (evenings, weekends, holidays) use synthetic pricing algorithms. You should be aware that:

OTC prices are generated by the Company and may not correspond to any external market price.
Price behavior of OTC instruments may differ materially from the underlying asset's behavior during regular market hours.
Liquidity, volatility, and payout rates for OTC instruments may differ from regular-hours instruments.
Historical performance analysis of underlying assets may not be applicable to OTC price movements.

8. No Guarantee of Profit

Neither the Company, its employees, affiliates, nor any third-party signal providers, educators, or influencers associated with the platform guarantee profitable trading outcomes. Any claims of guaranteed returns or "risk-free" strategies (outside of specific promotional offers) should be treated with extreme skepticism.

Past trading performance — whether your own, that of other traders, or of any strategy — is not a reliable indicator of future results.

9. Responsibility

By using the Quotex platform, you acknowledge that:

All trading decisions are made at your own discretion and risk.
You have read and understood this Risk Disclosure in its entirety.
You accept that losses are a normal part of trading and do not constitute grounds for claims against the Company.
You will not invest funds that you cannot afford to lose.
You are solely responsible for any tax obligations arising from your trading activities.
You will seek independent professional advice if you have any doubts about the suitability of trading for your financial situation.

10. Contact

If you have questions about this Risk Disclosure or the risks of trading on the Quotex platform, please contact our support team through the platform's built-in support system or at ON SPOT GROUP LLC, Main Street, P.O. Box 625, Charlestown, St. Kitts and Nevis.