Risk Disclosure

Last updated: 26 April 2026 · Version 2026-04

This Risk Disclosure forms part of, and is subject to, our Terms of Service. Read both before using the Service. Where this document and the Terms differ, the Terms control.

1. Nature of Forex Trading

Forex trading is the speculative buying and selling of currencies. Its core characteristics:

• Leverage — small price moves produce large P&L swings; losses scale with leverage
• Volatility — currencies move on rates, news, geopolitics, sentiment
• 24×5 market — continuous Mon–Fri, with weekend price gaps
• Counterparty risk — your broker is your trading counterparty and is exposed to its own balance-sheet, regulatory, and operational risks

2. Performance Reality

NikiFX uses proprietary, automated trading methods. Specific instruments, timeframes, win rates, entry/exit logic, and parameter tuning are confidential — you accept the Service without disclosure of mechanics or warranty of past results.

• Expect losing trades, losing days, and losing weeks as part of normal operation.
• Drawdowns (periods of cumulative losses) can and will occur — sometimes for extended periods.
• Performance varies materially based on prevailing market conditions, liquidity, news, and broker execution quality.

3. Market Risks

3.1 Economic & geopolitical events

Currency and metals prices can be significantly affected by:

• Central bank decisions (rates, QT/QE, intervention)
• Macro releases (CPI, employment, GDP, PMIs)
• Political events, elections, and policy shocks
• Geopolitical tension, conflict, and sanctions regimes
• Natural disasters, pandemics, and supply-chain shocks

3.2 Gap risk

Prices can "gap" — jumping from one level to another without trading at intermediate prices. Consequences include stop losses executing at worse prices than set, larger losses than anticipated, and inability to exit positions at desired prices. Weekend gaps (Sunday open) and event-driven gaps (e.g., FOMC, NFP, central-bank surprises) are especially common.

3.3 Liquidity & spread risk

Spreads widen during low-liquidity periods (Asian session lows, public holidays, news black-outs). Wider spreads can turn a winning setup into a loser purely on transaction cost.

3.4 Slippage

Market orders may execute at prices different from the quoted price at signal time, especially during fast moves.

4. Leverage

Brokers offer leverage that magnifies both gains and losses. With 100:1 leverage, a 1% adverse move erases 100% of margin. Some brokers offer 500:1 or higher — risk scales accordingly.

• Small market moves can result in large gains OR losses
• Losses can exceed your initial margin/deposit (subject to broker negative-balance protection, where offered)
• You may be required to add funds to maintain positions, or your broker may stop you out
• NikiFX does NOT control your broker's leverage settings — you do

5. Risks Specific to NikiFX

5.1 Automated execution

• System failures (networking, cloud, bridge processes) can interrupt signal delivery and execution
• Latency between signal generation and broker fill may produce price slippage
• Strategy may underperform in unusual market regimes

5.2 Broker connection

• We cannot guarantee continuous connection to your broker
• cTrader OAuth: tokens expire periodically; expired tokens pause trading until you re-authorize
• MT5 connector: requires the Windows app to be running on your machine. If your machine sleeps, restarts, loses internet, or you close the app, trading on that account stops
• Broker-side issues (margin call, server outage, account barred) interrupt trading and are outside our control
• Brokers may change their APIs, fees, leverage, or symbol availability without notice

5.3 Operating Deposit risk

• Profit-share is deducted from your NikiFX Profit-Share Operating Deposit — not from your broker account
• If your Operating Deposit is depleted, NikiFX may pause trading until you top up — you may miss profitable setups during the pause
• Your Operating Deposit is separate from your broker trading capital; they do not cross-fund automatically

5.4 Manual trading conflicts

If you also manually trade on the same broker account NikiFX is connected to, your trades may conflict with ours. We are not responsible for losses arising from conflicting orders, manual stop modifications, or premature manual closes. We strongly recommend a separate broker sub-account if you wish to trade manually. Profit-share on NikiFX trades remains payable regardless of the outcome of your manual trades.

5.5 Strategy retirement

NikiFX may retire or rotate strategies per (profile × time-window × symbol) at any time. You cannot dictate which strategies run on your account.

5.6 News & black-out pause

NikiFX may pause trading during high-impact news, central bank events, war, regulator halts, broker outages, or unscheduled crises, without prior notice. Resumption is at our discretion.

6. Operational & Technology Risk

• Cloud / infrastructure outages: AWS, Cloudflare, or other cloud-provider outages may interrupt the Service
• SMS / OTP delivery: Africa's Talking, Safaricom, or your carrier may fail to deliver an OTP — phone changes and payouts may be delayed
• Payment-rail outages: M-Pesa Daraja outages can prevent deposits and payouts
• Hub VPS failure: our internal trading hub may fail; Guardian auto-remediation aims to recover, but recovery is not instantaneous
• Cyber risk: despite security measures (encryption, secrets rotation, role-based access), a breach is possible — see Privacy Policy §5

7. Money-Movement Risk

• FX conversion: KES↔USD rates fluctuate; the rate at deposit time may differ from the rate at refund/payout time. NikiFX bears no FX risk; you do
• Transaction fees: M-Pesa, bank, mobile-money, and card-processor fees apply on every transfer and are charged to you
• Mistaken deposits: paying us via manual paybill with a wrong reference can route money incorrectly; recovery requires a written request and a recovery fee
• Failed payouts: line off, wrong number, or daily-limit breach can fail a payout; the failed amount is returned to your wallet, but the M-Pesa charge on the original failed attempt is not recovered
• Refund fee: refunds of unused Operating Deposit incur a 3% / $200-cap processing fee (see Terms §5.3)

8. Regulatory & Compliance Risk

• Forex trading is restricted or prohibited in some jurisdictions; you are responsible for complying with your local laws
• Sanctions screening may flag and freeze your account if you are or become OFAC-, EU-, or UN-listed
• AML monitoring may freeze your account during investigation; if Suspicious Transaction Reports are filed, you are not informed (POCAMLA)
• Regulatory changes (CBK, CMA, FRC, KRA) may force NikiFX to alter, suspend, or terminate the Service

9. No Guarantees

NikiFX makes NO guarantees regarding:

• Profitability, returns, or capital preservation
• Strategy performance matching any historical or backtested figure
• Continuous service availability or 100% uptime
• Execution quality, fill price, or timing
• Protection against any kind of trading or operational loss

10. Suitability

Before using NikiFX, ensure:

• You understand forex trading, leverage, and the risks above
• You can afford to lose all the money you place at risk
• Forex trading is legal in your jurisdiction
• You have considered seeking independent legal, tax, and financial advice
• You understand our profit-share model, refund flow, and the two-deposit canon (see Terms §3 and §4)

11. Acknowledgment

By using NikiFX, you acknowledge that:

• You have read and understood this Risk Disclosure
• You accept the risks of forex trading and the additional service-specific risks above
• You are trading with funds you can afford to lose
• Past performance does not guarantee future results
• NikiFX is not liable for trading losses, broker failures, market events, or third-party outages, subject only to the liability cap in Terms §10.1