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Freedom Finance Global PLC PC (hereinafter referred to as the Company, Broker) hereby notifies you of the following features of concluding transactions that are derivative financial instruments (hereinafter referred to as Derivatives Transactions).
When concluding transactions that are derivative financial instruments (derivatives), including options and futures, the investor bears not only the general risks associated with transactions on financial markets (systemic, banking, operational, technical, market, currency, issuer risks, etc.), but also specific risks associated with the characteristics of derivative financial instruments. For example, in addition to the general market (price) risk, an investor, in the event of sending an order to a Broker for making a transaction with a derivative financial instrument, will bear both the risk of an adverse change in the price of financial instruments that are the underlying asset of the derivative financial instrument, and the risk in relation to the assets that serve as collateral for the relevant derivative financial instruments. Changes in the market indicators of the underlying assets and their economic effect on the investor’s financial result from Derivatives Transactions cannot be predicted with a sufficient degree of reliability. More detailed information on the risks associated with the Derivatives Transactions can be found in the Declaration on risks associated with the transactions on the securities market in the Annex 4 to the Regulations for the provision of brokerage (agency) services on the Company's securities market, as well as in the information materials posted on the websites of exchanges, trading platforms and clearing organizations where transactions with exchange-traded derivative financial instruments are concluded and executed.
The conditions of the Derivatives Transactions do not contain a guarantee of a certain profitability. The Broker does not guarantee that the execution of a Derivatives Transaction will ensure that the investor receives income or achieves the desired financial result from the relevant transaction. The Broker makes no representations or warranties and assumes no responsibility regarding the actual achievement of specific financial results by the investor or other goals, intentions or expectations of the investor in connection with the execution of the Derivatives Transactions. Even if Derivatives Transactions lead to a positive or expected result, the investor’s financial result from such a transaction may be significantly lower than the financial result that, other things being equal, the investor could have received as a result of transactions directly with an asset that is the underlying asset of a derivative financial instrument. Investors, being the customers of the Broker, may conclude Derivatives Transactions, including for the purpose of hedging their risks on other investments, however, the Broker does not adjust the amount of Derivatives Transactions depending on changes in the size of the risk hedged by the investor. The broker does not verify or assess the presence/absence of hedged risks and/or underlying assets associated with the specified risks of the investor. When accepting an instruction from an investor to conclude a Derivatives Transaction, the Broker does not request or verify the economic purposes and need of the investor for concluding a Derivatives Transaction.
Please note that “writing” options, i.e. selling option contracts, whereby the seller receives a fee, or premium, in exchange for assumption of an obligation to buy or sell the financial instrument, which is the underlying asset of the option, at a predetermined price at a certain date in the future, may only be recommended to the experienced investors with significant financial capacity and practical knowledge of investment strategies. Writing options, as well as entering into futures contracts, when there are relatively small adverse price fluctuations in the market may expose the investor to the risk of significant losses, and in some cases the amount of such losses may be unlimited. In view of the above, please note that such transactions are available only to the customers who have been previously assigned the status of Professional Customer by the broker.
Retail customers have fewer derivatives trading options available to them than Professional clients due to regulatory and regulatory requirements, as well as
There are fewer derivatives trading opportunities available to Retail Customers than to Professional Customers due to regulatory and statutory requirements, as well as differences in training and experience between the two categories of customers. The list of derivatives available for trading for Retail Customers and for Professional Customers may change regularly in accordance with applicable regulation and/or at the Broker’s own discretion. Retail Customers may only purchase option contracts and submit orders to close a position in previously purchased option contracts (when executing such orders, the Customer sells his previously purchased right to another person, but does not "write" the option himself and does not become a seller under the option contract). When purchasing an option contract, the investor's losses do not exceed the amount of the option premium paid by the investor and the Broker's remuneration.
The Broker provides Retail Customers with access only to a limited list of derivative financial instruments in on-exchange trading. The Investor hereby confirms that he/she understands, acknowledges and accepts that the procedure for conclusion, as well as certain conditions of execution of transactions with derivative financial instruments at on-exchange trading are determined by the documentation of the respective trading organizer and clearing organization (if applicable) and not all relevant conditions may be known as of the date of submission by the Investor and acceptance by the Broker of the order for conclusion of the respective transaction with derivative financial instruments.
The use of derivative financial instruments is recommended only to investors who have special knowledge and understanding of their economic and legal nature. To increase the level of knowledge and prepare customers for derivatives trading, the Broker recommends to undergo special training provided by the Broker on the website (https://ffin.kz/). Completion of training does not guarantee successful trading and does not exclude the risk of capital loss. The Broker has the right to require customers to undergo regular testing in the field of derivatives at its discretion or at the request of the regulator. In addition, the Broker has the right to restrict or prohibit access to derivatives trading or opening of new positions in case of failure to pass the specified testing.
Freedom Finance Global PLC Public Company is not liable for possible losses of the investor in case the investor decides to execute a PFI Transaction. The Investor is recommended to perform investment analysis and obtain professional advice before each Derivatives Transaction. By submitting an order for execution of a Derivatives Transaction, the Customer acknowledges and agrees that he/she makes all decisions independently and is fully aware of all possible risks disclosed in this Disclaimer, as well as in the Annex 4 to the Regulations, information materials posted by exchanges and intermediaries (NYSE, Options Clearing Corporation (OCC), etc.). The Customer also acknowledges and accepts that the Broker is not liable for possible risks and losses of the Customer related to conclusion of Derivatives Transactions.