Risk Disclosure and Warning Notice Policy

1. INTRODUCTION

This Risk Disclosure and Warning Notice is provided to you (the “Client” or “you”) by YWO (PTY) Ltd (the “Company”, “we”), operating under the brand name “YWO” in compliance with the FAIS Act. The Company was incorporated in South Africa with registration number 2024/339763/07, and acts as an authorised Financial Services Provider licensed and regulated by the Financial Sector Conduct Authority (“FSCA”) under license number 54357.

The Company does not conduct market making nor will it be the counterparty to your trades in CFDs. The Company merely provides a website through which you may visit the product supplier’s website in order to decide whether you wish to open a trading account. In this respect, you are advised to carefully read and understand the product supplier’s Risk Disclosure statement and any other relevant disclosures and documents.

2. APPROPRIATENESS TEST

Before opening a trading account with the product supplier, the product supplier is required to assess whether trading in CFDs or other derivative products is appropriate for you. This process is known as the appropriateness test. If the information you provide indicates that these products may not be appropriate for you, the product supplier will issue a warning.

Passing the appropriateness test does not relieve you of your responsibility, given the risks involved, to carefully consider, both initially and on an ongoing basis, whether trading in CFDs and other derivative products is suitable for you.

While the product supplier is obliged to assess appropriateness based on the information you provide, the decision of whether or not to open an account, and whether or not you fully understand the risks involved, is solely yours. You are also responsible for assessing whether your financial resources are adequate and what level of risk you are willing and able to take.

3. GENERAL RISK WARNING FOR COMPLEX FINANCIAL INSTRUMENTS

Trading CFDs is highly speculative, involves a significant risk of loss and is not suitable for all investors but only for those customers who:

• understand and are willing to assume the economic, legal and other risks involved;
• are experienced and knowledgeable about trading in derivatives and in underlying asset types; and
• are financially capable of sustaining losses up to their entire investment.

CFDs are not appropriate for retirement or long-term conservative investment objectives.

CFDs are leveraged, complex instruments that carry a high degree of risk. Significant losses may occur rapidly due to market movements, and you may lose all your deposited funds.

You should not engage in this form of investing unless you understand the nature of the Transaction you are entering into and the true extent of your exposure to the risk of loss. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. If you are in any doubt you should seek independent professional advice.

4. LEVERAGE AND MARGIN RISK

Leverage allows you to take positions larger than your deposit, magnifying both gains and losses. Before opening positions, you must deposit sufficient margin into your trading account with the product supplier. A relatively small change in market price can result in a disproportionately large gain or loss due to leverage.

You are responsible for monitoring your open positions and ensuring your margin levels remain adequate.

If your equity falls below the margin requirements, the product supplier may issue a margin call or automatically close one or more of your positions. Losses cannot exceed your account balance due to the product supplier’s negative balance protection; however, substantial losses may still occur very quickly.

5. MARKET RISK

Market volatility can significantly impact pricing, especially during economic events, geopolitical developments, regulatory changes, or market sentiment. High volatility can result in sharp price movements, gapping, and slippage, which may affect the ability to enter or exit positions at expected levels. Maintaining positions overnight exposes you to additional risks, as markets may open at prices significantly different from previous closing levels.

6. CURRENCY RISK

When a client’s trading account or traded instrument is denominated in a currency other than the client’s base currency, fluctuations in exchange rates can impact the overall return or loss. Clients should consider how currency movements may affect the value of their trades.

7. ORDER EXECUTION AND GAPPING (SLIPPAGE)

The Company does not execute orders. All orders are transmitted to and executed by the product supplier.

Under certain market conditions, including low liquidity or high volatility, orders may experience:

• Slippage (executed at a different price than requested);
• Delays in execution;
• Wider spreads;
• Rejection or partial fills.

These execution outcomes are normal in OTC derivative markets and may impact your trading results.

8. TECHNICAL RISK

The Client is solely responsible for the operation and security of their own hardware, internet connection, trading platform, and any software used. Technical failures may prevent you from placing or modifying orders. The Company is not liable for delays, failures, or malfunctions affecting your ability to access the product supplier’s platform or execute trades.

Common risks include but are not limited to:

• Internet connectivity disruptions;
• Software or hardware failure;
• Incorrect settings on trading terminals;
• Delayed updates to trading platforms;
• Interruptions in communication networks.

9. COUNTERPARTY AND OPERATIONAL RISK

CFDs are Over-the-Counter (OTC) products. When you trade, you enter into an OTC contract directly with the product supplier.

Positions cannot be transferred or closed with any other entity.

The product supplier may face operational, technical, or financial issues.

Additionally, client funds may be held with third-party payment institutions.

Should any of these institutions fail, malfunction, or default, you may experience delays, partial losses, or total loss of funds.

10. BANKRUPTCY RISK

In the event of insolvency or financial distress of the product supplier, clients may face the risk of partial or total loss of their assets. Clients may become unsecured creditors of the failed institution and may not be able to recover the full amount of their funds or profits.

11. NO INVESTMENT ADVICE

The Company does not provide personal recommendations or investment advice and has not considered any of your personal circumstances or your investment objectives. Each decision by you to enter into a CFD or Forex contract with the product supplier, and each decision as to whether a transaction is appropriate or proper for you, is an independent decision made solely by yourself. The Company is not acting as an advisor or serving as a fiduciary to you. You agree that the Company has no fiduciary duty to you and no liability in connection with, and is not responsible for, any liabilities, claims, damages, costs, and expenses, including attorneys’ fees, incurred in connection with you taking any action based upon any generic recommendation or information provided by the Company.

12. FORCE MAJEURE

Unforeseeable events such as natural disasters, war, terrorism, cyberattacks, or regulatory changes may impact the financial markets or the or the product supplier’s ability to deliver its services. The Company and the product supplier shall not be held liable for any loss, damage, or disruption resulting from such events that are beyond its reasonable control.

13. NO GUARANTEES OF PROFIT

There are no guarantees that you will make a profit or avoid losses when trading in CFDs. You have received no such guarantees from the Company or from any of its representatives.

14. ACKNOWLEDGMENT AND ACCEPTANCE OF RISK

By opening and operating a trading account with the product supplier through the Company’s website, you acknowledge and agree that:

• Trading CFDs involves a high level of risk and may not be suitable for all investors;
• The value of the CFD can decline, and you might get back less than your initial investment, or the financial instrument may experience significant volatility. There is a risk that the capital you invested could lose all its value;
• Past performance of financial instruments is not a reliable indicator of future performance;
• Market conditions may lead to rapid price movements and result in significant losses;
• Stop-loss orders may not be executed at the intended price during volatile or closed-market conditions;
• You have independently assessed your financial circumstances and risk tolerance; and
• You accept full responsibility for all trading decisions.