What can go wrong, stated in full.

This disclosure is provided so that you can make an informed decision. It cannot describe every risk that may arise, and it is not a substitute for your own judgement or for professional advice appropriate to your circumstances. It should be read together with the Terms & Conditions, the Order Execution Policy and the Privacy Policy.

1. The nature of leveraged CFDs

A contract for difference is an agreement to exchange the difference in the value of an instrument between the time a position is opened and the time it is closed. You do not own the underlying asset. Buying a CFD on gold gives you no gold; buying a CFD on a currency pair delivers you no currency. You have no ownership rights, no voting rights, and no entitlement to anything the underlying asset might produce.

CFDs are traded on margin, meaning you commit only a fraction of the position’s full value. This is what makes them capital-efficient and it is also what makes them dangerous: your profit and loss is calculated on the full value of the position, not on the amount you committed. A position many times larger than your deposit can move against you by a small percentage and erase a large proportion of your account.

CFDs are generally intended for short-term positioning. They are not a long-term investment vehicle, and the financing costs described in section 7 make them structurally unsuited to being held indefinitely.

2. Leverage amplifies losses as well as gains

Leverage is the single most important risk in this document. It is presented in marketing across the industry as an opportunity; it is more accurately a multiplier applied in both directions, and losses arrive faster than gains because a losing position also consumes the margin that keeps it open.

A worked example. Suppose you commit $500 of margin to a position with a notional value of $50,000, leverage of 1:100.

• A 1% move in your favour produces roughly $500 of profit, a 100% return on the margin committed.
• A 1% move against you produces roughly $500 of loss. The entire margin committed.
• A 2% move against you would represent twice the margin committed, and your position would ordinarily be closed out before that point, but not necessarily, as section 4 explains.

A 1% intraday move is unremarkable in major currency pairs and trivially common in cryptocurrency. The higher the leverage, the smaller the adverse move required to eliminate your position. Traders are frequently correct about direction and still lose, because the position was sized such that ordinary noise removed them before the move happened.

The practical consequence: position size, not market opinion, is what determines whether you survive to be right.

3. Margin requirements

Margin is the amount of your balance reserved to support an open position. Two figures matter: required margin, the amount that must be held against your open positions, and equity, your balance adjusted for unrealised profit and loss. Their relationship is your margin level.

As a position moves against you, unrealised losses reduce equity while required margin remains. Your margin level falls. It is your responsibility to monitor it. We may not be able to contact you before action is required, and you should never rely on receiving a warning.

Margin requirements are not fixed. They may be increased, including on positions you already hold, in response to volatility, ahead of major scheduled events, over weekends, or where an instrument’s liquidity deteriorates. An increase raises the equity needed to keep your existing positions open and can bring forward a close-out you were not anticipating.

4. Margin close-out

If your margin level falls below the applicable threshold, some or all of your open positions may be closed automatically to limit further loss. This may happen without prior notice and at whatever price is available at that moment, not at the price at which the threshold was breached.

Close-out is a protective mechanism and it is a real protection, but you should understand its limits clearly:

• It does not guarantee your loss is limited to any particular amount. In a fast or gapping market, the price available at close-out may be far worse than the threshold price.
• It may close positions you would have preferred to keep, at a moment you would not have chosen, potentially crystallising a loss immediately before the market reverses.
• It may execute in a sequence you did not select, and it takes no account of your strategy or your view.

In extreme conditions, a gap through your levels, a sudden loss of liquidity, an unexpected policy announcement. It is possible for an account to close out at a level that leaves the balance materially lower than the trader expected. Close-out reduces the risk of catastrophic loss; it does not eliminate it.

5. Market volatility and price gapping

Prices can move sharply and unpredictably. They do not move continuously through every intervening level: they can gap, jumping from one price to another with no opportunity to trade in between.

Gapping commonly occurs:

• at the weekly market open, where the price reflects news that arrived while the market was closed;
• on scheduled economic releases, central bank decisions, inflation prints, employment data;
• on unscheduled events, geopolitical shocks, policy interventions, exchange or institutional failures;
• in cryptocurrency at any hour, including when you are asleep.

The critical consequence is that a stop-loss is not a guaranteed exit price. It specifies the level at which an exit is triggered; if the market gaps through that level, your position is closed at the next available price, which may be substantially worse. A stop-loss placed at a 2% loss can, in a gap, be filled at a much larger one. Your intended risk and your actual risk are not the same number.

6. Liquidity risk

Liquidity is the availability of counterparties willing to trade at or near the displayed price. It is not constant. It falls at session boundaries, around public holidays, in the hours before a major announcement, and dramatically during periods of stress, precisely when you are most likely to want to exit.

In thin liquidity, spreads widen, orders may fill at prices materially away from those displayed, and in extreme cases an instrument may be temporarily untradeable. A position you assumed you could close at will may prove difficult or expensive to exit at exactly the moment closing it matters most.

7. Overnight financing and swap costs

Holding a leveraged position past the daily rollover incurs a financing adjustment reflecting the interest differential between the two currencies or assets involved. This may be a debit or a credit depending on the instrument and the direction of your position; in most cases for retail traders it is a cost.

Swap charges accumulate every day the position is held. Over weeks or months they can meaningfully erode, or entirely consume, an otherwise profitable position. Rollovers at certain points in the week may be charged at a multiple to account for weekend days. Rates are not fixed and may change with market interest rates.

Applicable swap rates are disclosed per instrument in the terminal. Before holding a position for an extended period, check what it costs to carry, a directional view that is correct over three months can still lose money after financing.

8. Spreads and spread widening

The spread is the difference between the buy and sell price, and it is the embedded cost of entering a position. Every trade begins at a small unrealised loss equal to the spread; the market must move in your favour by at least that amount before you are at break-even.

Spreads are variable. They widen when liquidity thins, around economic releases, at session rollover, at the weekend re-open and in volatility events. Widening has two consequences that frequently surprise traders:

• the cost of opening and closing a position rises, sometimes sharply, exactly when you most want to act;
• a widened spread can trigger a stop-loss even though the mid-price never reached your level, because the price relevant to your exit moves with the spread.

The live spread is displayed in the terminal at all times. For strategies that depend on very small price movements, spread cost may make the strategy unviable irrespective of how accurate it is.

9. Execution and slippage

Slippage is the difference between the price displayed when you submit an order and the price at which it is executed. In fast markets the price can change in the interval between the two. Slippage may be positive or negative, and is most pronounced around scheduled releases and in the first moments of a volatility event.

Orders may also be rejected, where margin is insufficient, where the instrument is not trading, where the price has moved beyond a permitted tolerance, or where a technical fault prevents processing. A rejected order is not executed. After any interruption, check your position ledger rather than assume what did or did not happen.

Our approach to order handling, including the factors we take into account, is set out in the Order Execution Policy. We do not guarantee execution at a requested price, zero slippage, or any specific latency.

10. Technology and connectivity risk

The platform depends on hardware, software, internet connectivity, data feeds and third-party infrastructure. Any of these can fail, and some are entirely outside our control.

Failures can result in:

• inability to open, modify or close a position at the moment you wish to;
• delayed, frozen or inaccurate price display;
• orders not reaching us, or reaching us later than intended;
• uncertainty about whether an order was executed.

Your own connection, device and power supply are your responsibility. If you hold leveraged positions, consider what happens if your connection fails while they are open, a position you cannot reach is a position you cannot manage. Stop-loss orders held on the platform continue to operate if your device disconnects, subject to the limitations in sections 5 and 9, which is a reason to place them rather than to rely on watching the screen.

The platform is provided “as is” and “as available”, and continuous availability is not guaranteed, as set out in section 10 of the Terms & Conditions.

11. Cryptocurrency-specific risks

Cryptocurrency carries every risk described above, and several that are peculiar to it. Treat it as a distinct risk category rather than as another instrument on the list.

Continuous trading and extreme volatility

Cryptocurrency markets trade 24 hours a day, every day of the year, including when traditional markets are closed and when you are asleep. Moves of ten per cent or more within a single day are routine, and larger moves occur without warning. A leveraged crypto position left unattended overnight is exposed to the full range of what can happen in that period, and there is no closing bell to interrupt it.

Structural and market-integrity risks

Crypto markets are less mature and, in many jurisdictions, less regulated than traditional financial markets. Liquidity can be concentrated in a small number of venues, and the failure, suspension or insolvency of a major exchange, custodian or stablecoin issuer can affect pricing and liquidity across the market. Regulatory announcements can change the tradability or value of an asset abruptly. Market manipulation is more prevalent than in mature regulated markets.

Network and transfer risk

Deposits reach NOVEDOX over public blockchain networks. Networks can become congested, causing delays that are outside our control and depend on the chain rather than on us. Fees can rise sharply during congestion. A network may fork, halt or be otherwise disrupted.

Irreversible transfers, read this twice

Blockchain transfers cannot be reversed. There is no chargeback, no recall and no administrator who can undo a completed transaction. If you send funds to the wrong address, on the wrong network, or in an unsupported asset, those funds are very likely lost permanently, and neither NOVEDOX nor our payment partner can recover them. This is stated in section 5 of the Terms & Conditions and it is not a formality.

Before sending any deposit:

• confirm the network shown on the deposit page matches the network you are sending on, TRC-20, BEP-20 and ERC-20 are not interchangeable;
• check the destination address character by character, including the last several characters, and beware of clipboard-hijacking malware that silently substitutes addresses;
• confirm the asset is one we support on that network;
• check the displayed minimum, an amount below it may not be creditable;
• send a small test amount first when using an address for the first time.

Stablecoin risk

Deposits are made in USDT, a stablecoin intended to track the US dollar. That peg is a commercial arrangement, not a guarantee. Stablecoins have historically deviated from their intended value, and the failure of an issuer or of its reserves would be a material event affecting anyone holding the asset.

12. Differences between demo and live trading

Your demo account uses live prices and the same interface, and it is a genuinely useful way to learn the mechanics. It is not a reliable predictor of live results, and the gap between the two is where a great many traders are caught out.

• Execution conditions differ. A simulated environment cannot fully reproduce slippage, rejections and spread behaviour under real stress.
• Psychology differs entirely. Watching simulated money move is not the same experience as watching your savings move. Discipline that holds effortlessly in demo frequently collapses in live conditions. Positions are held too long, stops are widened, losses are chased.
• Risk appetite differs. Traders take positions in demo they would never take with real capital, which inflates apparent returns and teaches habits that are expensive to unlearn.
• Demo funds have no value. They cannot be withdrawn, transferred or converted under any circumstances.

Treat a profitable demo record as evidence that you understand the mechanics, not as a forecast of live performance. When you do move to live, start with a size small enough that a losing run is instructive rather than damaging.

13. Currency conversion risk

Where you trade an instrument denominated in a currency other than your account currency, your profit or loss is subject to the exchange rate applied at conversion. Exchange-rate movement between opening and closing a position affects your realised result independently of whether the trade itself was correct: a profitable position can produce a smaller gain, or a loss, after conversion.

Deposits and balances denominated in cryptocurrency carry a further layer of this risk, since the value of the deposited asset may itself move relative to your account currency.

14. Counterparty and platform risk

When you trade a CFD you are exposed to the counterparty to that contract rather than to an exchange. Client funds are held separately from our operating funds, as described on our compliance page, and are not used to meet business expenses.

Segregation is an important protection but it is not a deposit-guarantee scheme, and it does not protect you against trading losses. You should also satisfy yourself which legal entity you are contracting with and what protections apply to you in your own jurisdiction before you deposit, protections are not uniform, and the absence of a familiar compensation scheme is a material consideration.

15. Taxation is your responsibility

The tax treatment of trading profits and losses depends on your country of residence and on your personal circumstances, and it changes over time. NOVEDOX does not provide tax advice and does not calculate, withhold or report tax on your behalf except where a specific legal obligation requires it.

You are responsible for determining what you owe, for keeping adequate records, and for meeting your obligations. Consult a qualified tax adviser in your own jurisdiction. Cryptocurrency in particular is treated very differently across jurisdictions, and assumptions carried over from another country are frequently wrong.

16. No investment advice

Nothing provided by NOVEDOX is investment advice or a personal recommendation. This includes market analysis, educational material, commentary, webinars, instrument lists, tools, calculators, anything published on this website, and anything said by our staff.

All such material is general information. It takes no account of your financial situation, your objectives, your existing holdings or your tolerance for loss, and it should not be treated as a suggestion that any particular instrument or strategy is suitable for you.

Past performance is not a reliable indicator of future results. Simulated or hypothetical results carry additional and well-documented limitations, since they are constructed with the benefit of hindsight. No forecast, target or scenario presented anywhere on the platform is a promise of any outcome.

If you require advice on whether trading is appropriate for you, obtain it from an independent professional who is authorised to provide it and who knows your circumstances.

17. Appropriateness and suitability

Leveraged trading is not appropriate for everyone, and it is emphatically not appropriate for most people who are drawn to it by advertising. Before you deposit, consider honestly:

• Do you understand what leverage, margin and close-out actually do to an account, well enough to explain them to someone else?
• Could you lose the entire amount you deposit without it affecting your housing, your obligations or your dependants?
• Are you trading with money that is genuinely discretionary, rather than borrowed, or needed for something else, or intended for retirement?
• Do you have a defined approach to position sizing and risk, rather than an intention to “see how it goes”?
• Can you tolerate a sustained losing period without increasing size to recover it? This specific behaviour destroys more accounts than any other.
• Are you making this decision independently, rather than in response to a promotional claim, a social-media personality, or someone offering to trade on your behalf?

If the answer to any of these is no, do not deposit. Use the demo account, which is free and does not expire, and work through the education material until the answers change.

Be alert to a specific danger: nobody legitimate will ever ask you for your password, your one-time codes, or your wallet keys, and nobody legitimate will guarantee you returns. Anyone offering to trade your account for a share of profits, or promising a fixed return, is describing something that does not exist in this market.

18. Acknowledgement

By opening an account and trading on NOVEDOX you confirm that you have read and understood this disclosure, that you accept the risks described, that you are trading on your own judgement and at your own risk, and that you are financially able to bear losses up to the full amount you deposit.

This disclosure does not describe every risk. It is not advice, and it does not create rights beyond those set out in the Terms & Conditions, which govern your relationship with us. We may update this disclosure; material changes will be notified through the platform or by email.

Questions about anything in this document can be sent to support@novedox.com, raised through the in-app Support Center, or asked by telephone on +44 20 8089 0820. We would much rather answer a question now than a complaint later.

Last updated: 1 September 2026.