This notice provides you with information about the risks associated with investment products, in which
you may invest, through services provided to you by Empire Trades Hub Group entities.
Investment products offered by Empire Trades Hub include stocks, Exchange-Traded Funds (ETFs) and
cryptocurrencies, in which you gain ownership of the underlying asset. In addition, Empire Trades Hub offers
contracts for differences (CFDs) that offer exposure to currencies, commodities and indices.
Any transactions relating to stocks, ETFs or cryptocurrencies in which Empire Trades Hub offers you
leverage (which is not currently available for cryptocurrencies) or allows you to enter into short
transactions, and/or some copy trading transactions (including CopyPortfolios), shall be considered CFD
transactions.
Empire Trades Hub also offers investors the opportunity to buy the underlying cryptocurrencies, stock or
ETFs (i.e., BUY transactions for said assets using leverage 1) hold such assets and subsequently sell such
assets. All transactions relating to cryptocurrencies are subject to the Cryptocurrencies Trading Addendum
(“Cryptocurrencies Trading Addendum”).
Since Cryptocurrency markets are decentralised and non-regulated, our Cryptocurrencies Trading Services
as such term is defined in the Cryptocurrencies Trading Addendum, are unregulated services which are not
governed by any specific European regulatory framework (including MIFID). Therefore, when Empire Trades Hub
(Europe) Ltd. customers use our Cryptocurrencies Trading Service, they will not benefit from the
protections available to clients receiving regulated investment services such as access to the Investor
Compensation Fund for Customers of Cypriot Investment Firms and the UK Financial Ombudsman Service for
dispute resolution. Empire Trades Hub (Europe) Ltd. customers will continue to benefit from the rules
relating to best execution and client money and safekeeping of client assets. Empire Trades Hub (UK) Ltd.
customers using the Cryptocurrencies Trading Service only will not benefit from the protections available
to clients receiving regulated investment services such as access to the Financial Services Compensation
Scheme (FSCS) and the Financial Ombudsman Service for dispute resolution. We will endeavour to enable you
to benefit from rules relating to best execution and safekeeping of client assets.
All of these products carry a high degree of risk and are not suitable for many investors. This notice
provides you with information about the risks associated with these products, but it cannot explain all of
the risks nor how such risks relate to your personal circumstances. If you are in doubt, you should seek
professional advice. It is important that you fully understand the risks involved before deciding to trade
with Empire Trades Hub , that you have adequate financial resources to bear such risks and that you monitor
your positions carefully. Trading involves risk to your capital. You should not invest money that you
cannot afford to lose, however, you cannot lose more than the equity in your account.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE TERMS AND CONDITIONS AND/OR THIS GENERAL RISK
DISCLOSURE, FRENCH RESIDENTS SHALL BE ELIGIBLE TO INTRINSIC PROTECTION. ACCORDINGLY AND INDEPENDENTLY OF
MARKET VOLATILITY, THEIR MAXIMUM LOSS WITH RESPECT TO EACH TRANSACTION SHALL BE THE TOTAL AMOUNT INVESTED
IN SUCH TRANSACTION, AS UPDATED BY SUCH USER FROM TIME TO TIME.
CFDS
CFD stands for “Contract For Difference,” meaning you are not buying the underlying asset, but, rather,
purchasing a contract to settle the difference in the initial and ending price of the asset. When trading
CFDs, you generally trade on margin, which means you only have to deposit a small percentage of the
overall value of your position. This is known as “Leverage”, and even small market movements may have
great impact, negative or positive, on your trading account.
If the market moves against you, you may sustain a total loss greater than the funds invested in a
specific position. You are responsible for all losses in your account up to the equity in your account.
Before deciding to trade on margin, you should carefully consider your investment objectives, level of
experience, and risk appetite. Our CFDs are not listed on any exchange. CFDs involve greater risk than
investing in on-exchange products, as market liquidity cannot be guaranteed and it may be more difficult
to liquidate an existing position. The prices and other conditions are set by us in accordance with our
obligation to provide best execution as set out in our order execution policy, to act reasonably and in
accordance with the applicable Terms and Conditions. The characteristics of our CFDs can vary
substantially from the actual underlying market or instrument. Full details of all of our CFDs are set out
on our website. In respect of corporate events, with respect to the underlying assets, we do not aim to
make a profit from our clients from the outcome of corporate events such as rights issues, takeovers,
mergers, share distributions or consolidations and open offers. We aim to reflect the treatment we
receive, or, would receive if we were hedging our exposure to you in the underlying market. Ultimately,
however, you are not dealing in the underlying market and, therefore, in relation to our CFDs, the
treatment you receive may be less advantageous than if you owned the underlying instrument.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of
retail investor accounts lose money when trading CFDs with this provider. You should consider whether you
understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are not suited to the long-term investor. If you hold a CFD open over a long period of time, the
associated costs increase (such as overnight fees), and it may be more beneficial for you to buy the
underlying asset instead. Sudden market movements, known as “gapping” may occur, causing a dramatic shift
in the price of an underlying asset. Gapping may occur when the underlying market is closed, meaning the
price on the underlying market may open at a significantly different level, and at a less advantageous
price for you.
At all times during which you have open positions, you must ensure that your account meets our margin
requirements, which may change from time to time. Therefore, if our price moves against you, or if our
margin requirements have changed, you may need to provide us with significant additional funds to meet
your margin requirement at short notice, to maintain your open positions. If you do not do this, we will
be entitled to close one or more or all of your positions and you alone will be responsible for any losses
incurred as a result.
Appropriateness
Before we open an account for you, we are required to make an assessment of whether the product(s)
and/or services you have chosen are appropriate for you, and to warn you if, on the basis of the
information you provide us, any product or service is not appropriate. If you decide to continue and open
an account with us, you are confirming that you are aware of and understand the risks.
Position Monitoring
You should further ensure that you are able to monitor positions on your account at all times, as you
are solely responsible for this. We are not responsible for monitoring positions on your account.
Copy Trading
Empire Trades Hub offers Social Trading Features. In making a decision to copy a specific trader or
traders and/or follow a particular strategy, you must consider your entire financial situation, including
financial commitments. You must understand that using Social Trading Features is highly speculative and
that you could sustain significant losses exceeding the amount used to copy a trader or traders. The risks
associated with Social Trading Features include, but are not limited to, automated trading execution
whereby the opening and closing of trades will happen in your account without your manual intervention.
Trading risks
Since Cryptocurrency markets are decentralised and non-regulated, our Cryptocurrencies Trading Services
are unregulated services which are not governed by any specific European regulatory framework (including
MIFID). This means that there is no central bank that can take corrective measures to protect the value of
Cryptocurrencies in a crisis or issue more currency. Therefore, when Empire Trades Hub (Europe) Ltd.
customers use our Cryptocurrencies Trading Services, they will not benefit from the protections available
to clients receiving regulated investment services such as access to the Investor Compensation Fund for
Customers of Cypriot Investment Firms and the Financial Ombudsman Service for dispute resolution.
Empire Trades Hub (Europe) Ltd. customers will continue to benefit from the rules relating to best execution
and client money and safekeeping of client assets.
Empire Trades Hub (UK) Ltd. customers using Cryptocurrencies Services will not benefit from the
protections available to clients receiving regulated investment services such as access to the Financial
Services Compensation Scheme (FSCS) and the Financial Ombudsman Service for dispute resolution. We will
endeavour to enable you to benefit from rules relating to best execution and safekeeping of client assets.
CRYPTOCURRENCY MARKETS ARE DETERMINED BY DEMAND AND SUPPLY ONLY. The Cryptocurrency market is a dynamic
arena and its respective prices are often highly unpredictable and volatile. The Cryptocurrency prices are
usually not transparent, highly speculative and susceptible to market manipulation. In the worst-case
scenario, the product could be rendered worthless.
It is important to make a distinction between indicative prices which are displayed on charts and
dealable prices which are displayed on our trading platform. Indicative quotes only give an indication of
where the market is. Because Cryptocurrency markets are decentralised, meaning they lack a single central
exchange where all transactions are conducted, each market maker may quote slightly different prices.
Therefore, any prices displayed on any chart made available by us or by a third party will only reflect
“indicative” prices and not necessarily actual “dealing” prices where trades can be executed.
Cryptocurrency trading is prone to being misused for illegal activities due to the anonymity of
transactions and investors would be adversely affected if law enforcement agencies were to investigate any
alleged illicit activities.
ACCORDINGLY, CRYPTOCURRENCIES SHOULD BE SEEN AS AN EXTREMELY HIGH-RISK ASSET AND YOU SHOULD NEVER
INVEST FUNDS THAT YOU CANNOT AFFORD TO LOSE.
Given the foregoing, Cryptocurrencies are not appropriate for all investors. You should not deal in
these products unless you have the necessary knowledge and expertise, understand these products’
characteristics and your exposure to risk. You should also be satisfied that the product is suitable for
you in light of your circumstances and financial position. In addition, use of our Services can never be
considered a safe investment, rather, only an investment with a high risk of loss inherently associated
with them.
Furthermore, our own spread is added to online quotes which makes a trade on our websites even more
volatile.
The risk of loss in trading Cryptocurrencies can be substantial. You should, therefore, carefully
consider whether such trading is suitable for you in light of your circumstances and financial resources.
You should be aware that you may sustain a total loss of the funds in your account. If the market moves
against your position, we may ask you to provide a substantial amount of additional margin funds on short
notice, in order to maintain your position. If you do not provide the required funds within the time frame
required by us, your position may be liquidated at a loss, and you will be liable for any resulting
deficit in your account.
Empire Trades Hub currently allows trading in cryptocurrencies over the weekend and it reserves the right
not to do so. Should Empire Trades Hub so elect, trading in cryptocurrencies shall be allowed only from
Monday through Friday. Given that the Cryptocurrency exchanges may operate over weekends, there may be a
significant difference between Friday’s close and Sunday’s open. All such factors may result in you either
not completing an order on a specific trading day or completing an order on a substantially less
favourable price.
Under certain market conditions, you may find it difficult or impossible to liquidate a position. This
can occur, for example, when the market reaches a daily price fluctuation limit (“limit move”), if there
is insufficient liquidity in the market. Certain crypto assets may carry additional or specific risks.
Newly issued cryptocurrencies might carry additional risks you need to consider. Limited liquidity or
difficulties to trade the asset after you’ve bought it. This means prices could be volatile, going up and
down quickly, and liquidity may be limited, all depending on supply and demand. Empire Trades Hub cannot
control these external factors.
Blockchain Risks
Since blockchain is an independent public peer-to peer network and is not controlled in any way or
manner by Empire Trades Hub , Empire Trades Hub shall not be responsible for any failure and/or mistake and/or
error and/or breach which shall occur in blockchain or in any other networks in which the Cryptocurrencies
are being issued and/or traded. You will be bound and subject to any change and/or amendments in the
blockchain system and subject to any applicable law which may apply to the blockchain. We make no
representation or warranty of any kind, express or implied, statutory or otherwise, regarding the
blockchain functionality nor for any breach of security in the blockchain.
Operation of Cryptocurrency Protocols
Empire Trades Hub does not own or control the underlying software protocols which govern the operation of
Cryptocurrencies available for trading on our platform. In general, the underlying protocols are open
source and anyone can use, copy, modify, and distribute them. Empire Trades Hub is not responsible for the
operation of the underlying protocols and Empire Trades Hub makes no guarantee of their functionality,
security, or availability. The underlying protocols are subject to sudden changes in operating rules
(“Forks”), and such Forks may materially affect the value, function, and/or even the name of the
Cryptocurrency Empire Trades Hub holds for your benefit. In the event of a Fork, Empire Trades Hub may
temporarily suspend Empire Trades Hub operations (with or without advance notice) and Empire Trades Hub may (a)
configure or reconfigure its systems or (b) decide not to support (or cease supporting) the Forked
protocol entirely. Empire Trades Hub may, but is not obligated to do so, adjust your account in respect of a
Fork, depending on the circumstances of each event attributable to any specific Cryptocurrency which you
hold.
Third-party Risks.
We may elect to execute any order and/or hold any fiat money and cryptocurrencies via a Third Party.
Such Third Parties are not banks that hold their fiat money/virtual currency as a deposit. If any such
Third Party loses any money, fails or goes out of business, there is no specific legal protection that
covers you for losses arising from any funds you may have held with such a Third Party, even when such
party is registered with a national authority. Depending on the structure and security of the
Empire Trades Hub Money crypto wallet, some individuals may be vulnerable to hacks, resulting in the theft of
virtual currency or loss of customer assets. Empire Trades Hub will not be responsible in the event of losses
caused by those Third Parties.
Delisting and/or unsupported Cryptocurrencies: if at any time any of the Cryptocurrencies form the
subject of your order are delisted and/or we no longer support the trading in such Cryptocurrencies for
any reason, then the applicable order will be immediately closed. If Empire Trades Hub is notified that a
Cryptocurrency you hold in your account is likely to be delisted and/or removed and/or cancelled from any
of the exchanges (some of them or all) and Empire Trades Hub believes that it shall not be able to trade in
such Cryptocurrencies, Empire Trades Hub shall make an effort to sell the Cryptocurrencies on your behalf at
such time and price, and in such manner, as it determines.
Automated Trading & Internet Risks
While trading on our website and/or applications, system errors may occur. You should be aware of the
risks that may result from any system failure which could mean that your order may be delayed or fail.
You acknowledge that there are risks associated with utilising an Internet-based trading system
including, but not limited to, the failure of hardware, software, and Internet connections, the risk of
malicious software introduction, the risk that third parties may obtain unauthorized access to information
and/or assets (including your Cryptocurrencies) stored on your behalf, cyber attack, Cryptocurrency
network failure (such as blockchain), computer viruses, communication failures, disruptions, errors,
distortions or delays you may experience when trading via the Services, howsoever caused, spyware,
scareware, Trojan horses, worms or other malware that may affect your computer or other equipment, or any
phishing, spoofing or other attack. You should also be aware that SMS and email services are vulnerable to
spoofing and phishing attacks and should use care in reviewing messages purporting to originate from
Empire Trades Hub .
Fees and Costs
Our fees and charges are set out on our website empiretradeshub under the ‘Fees’ section. Please be
aware of all costs and charges that apply to you, because such costs and charges will affect your
profitability.
Information
Any opinions, news, research, analyses, prices, or other information contained on this website are
provided as general market commentary, and do not constitute investment advice. Empire Trades Hub shall not
be responsible for any loss arising from any investment based on any recommendation, forecast or other
information provided.
SPAC Risks
Investing in SPACs carries different risks to investing in other stocks on Empire Trades Hub . Unlike other
listed companies, SPACs are shell companies when they become public and, therefore, they do not have an
underlying operating business. This means that you are relying on the managers of the SPACs to realise
your investment. There is no guarantee that SPACs will be managed by individuals and firms that may not be
competent or qualified to do so. You should read the SPAC’s IPO prospectus and any reports or other key
information documents filed or published to understand the terms of your investments and the economic
interests and motivations of the SPAC you are investing in. Moreover, SPACs that do not carry out an
acquisition within a certain time period will be liquidated. As a result, there is a risk that you may not
recover some or all of the money directly invested by you into the SPAC.
