1. The risk of loss in undertaking Precious Metals and Related Transactions on a Down Payment or Leveraged basis can be substantial. The Customer shall be solely responsible for all losses arising from such Transactions. These risks include but are not limited to the following:
1.1 The Customer may sustain a total loss of the cash or other assets that the Customer has placed with 24Gold as security to establish or maintain a position(s) in Precious Metals. If the respective market moves against the Customer’s positions, the Customer may be called upon by 24Gold to make further down payments of money, which may be substantial, as additional security at short notice, in order to support the Customer’s positions. 24Gold has the right to, but is not obliged to, close out the Customer’s positions without prior notice to the Customer at its sole discretion in any circumstances, including but not limited to cases where the Customer does not provide the required funds to meet a call for additional funds within the prescribed time. The Customer’s positions may be closed out at a loss without any further notice being given to the Customer and the Customer will be liable to pay to 24Gold further sums to cover any shortfall if the loss exceeds the down payments made.
1.2 Under certain market conditions, the Customer may find it difficult or impossible to liquidate a position. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily cap the Customer’s loss to the intended amounts, since market conditions may make it impossible to execute such orders at the designated price in time or at all.
1.3 The high degree of leverage that trading in physical Precious Metals Transactions on the basis of a down payment can provide because of the relatively small initial up-front payment requirements can work against the Customer’s best interests as well as for the Customer. The use of leverage can lead to substantial losses as well as gains. Therefore, before trading, the Customer should carefully consider whether any such physical Precious Metals Transactions are suitable in the light of the Customer’s own financial position and investment objectives.
2. 24Gold computerized machinery, which is accessed by the Customer via internet, might become inaccessible for periods of time due to whatever reason on both sides. This could prevent the Customer from executing a transaction which he/she/it would otherwise have made. System or component failure may result in the loss of orders or order priority. Although the Customer can leave orders with the dealer on recorded telephone lines yet have a chance to miss the desired price level or priority. This risk is not a 24Gold responsibility.
3. If the Customer’s Trading Account number and password are compromised, the Customer is at risk of unauthorized access to such account. The most serious risk arising from the theft of a password are (i) loss of privacy and (ii) the entering of mischief orders on trading platform. Thus, 24Gold advises the Customer to keep these passwords within their access only. 24Gold does not take any responsibility of mishandling of your account unless the breach of such privacy is its error.
4. 24Gold system contains data in electronic from which could conceivably be lost in a widespread and catastrophic machinery failure. 24Gold operates a redundant machinery policy which means that every component of its data storing capability is protected by both local and remote data duplication. The likelihood of a simultaneous loss of all data copies is extremely low. It is worth to mention that in addition to this the system prints out a complete system balance once a week, sends an encrypted copy to remote data vaults, and during each week logs in paper format all transactions, ensuring that data loss is a temporary inconvenience. However, the Customer is advised to save the published reconciliation of the account/property on his/her/its own computer, thereby duplicating that part of the records which relates to the Customer’s own property.
5. The Customer hereby irrevocably confirms that it has a complete understanding of the risks involved and accepts the above risk disclosure statements.