Risk Disclosure Statement

1. General Risk Warning

1.1 Nature of Prop Trading

Proprietary trading involves significant financial risks. While LuxoraFX evaluation programs use simulated accounts with virtual funds, the transition to funded accounts involves real market exposure and potential losses.

1.2 No Guarantee of Success

• Approval for funded trading accounts
• Profitable performance in live market conditions
• Consistent income or returns
• Long-term trading success
• Recovery of evaluation program fees

1.3 Market Volatility

Financial markets are inherently volatile and unpredictable. Market conditions can change rapidly, leading to significant price movements that may result in substantial losses, even for experienced traders.

2. Evaluation Program Risks

2.1 Program Fees

Evaluation program fees are non-refundable in most circumstances. You may lose your entire program fee if you:

• Fail to meet profit targets within the specified timeframe
• Exceed maximum loss limits (daily or overall)
• Violate trading rules or program requirements
• Engage in prohibited trading practices
• Fail to complete minimum trading days

2.2 Simulated vs. Real Trading

• Absence of market impact from large orders
• Perfect execution without slippage
• Lack of emotional pressure from real money at risk
• Different liquidity conditions
• Potential technical differences in execution

2.3 Rule Compliance

Strict adherence to trading rules is required. Rule violations may result in immediate account termination without refund, regardless of trading performance.

3. Funded Account Risks

3.1 Capital at Risk

• Loss of funded account privileges
• Termination of profit-sharing arrangements
• Requirement to restart evaluation process
• Potential liability for excessive losses
• Impact on future funding opportunities

3.2 Performance Pressure

Trading with funded accounts may create psychological pressure that can negatively impact decision-making and trading performance.

3.3 Profit Sharing

• Minimum withdrawal thresholds
• Processing delays and verification requirements
• Potential changes in profit-sharing terms
• Tax implications in your jurisdiction
• Continued compliance with trading rules

4. Market-Specific Risks

4.1 Forex Market Risks

• Currency fluctuations and exchange rate volatility
• Interest rate changes and central bank policies
• Political and economic instability
• Liquidity variations during different market sessions
• Weekend gap risk and market closures

4.2 Leverage Risks

• High leverage amplifies both potential profits and losses
• Small market movements can result in significant account impact
• Margin calls and forced position closures
• Rapid account depletion during adverse market conditions
• Increased risk of exceeding loss limits

4.3 News and Economic Events

• Extreme price volatility and rapid market movements
• Widened spreads and reduced liquidity
• Slippage and execution delays
• Unexpected market gaps and price jumps

5. Technology and Platform Risks

5.1 Technical Failures

• Platform downtime and connectivity issues
• Order execution delays or failures
• Data feed interruptions or inaccuracies
• System maintenance and updates
• Cybersecurity threats and data breaches

5.2 Internet and Device Risks

• Internet connection failures or slow speeds
• Computer or mobile device malfunctions
• Power outages and infrastructure issues
• Software compatibility problems
• User error in platform operation

5.3 Limitation of Liability

LuxoraFX's liability for technical issues is limited as outlined in our Terms and Conditions. We are not responsible for losses resulting from platform failures or technical difficulties.

6. Regulatory and Legal Risks

6.1 Regulatory Changes

• Availability of services in your jurisdiction
• Program structure and requirements
• Leverage limits and trading restrictions
• Tax implications and reporting requirements
• Compliance obligations for participants

6.2 Jurisdictional Restrictions

Our services may not be available to residents of certain countries or jurisdictions due to local laws and regulations.

6.3 Tax Implications

Profits from funded trading may be subject to taxation in your jurisdiction. You are responsible for understanding and complying with all applicable tax obligations.

7. Psychological and Behavioral Risks

7.1 Emotional Trading

• Fear and greed affecting decision-making
• Overconfidence following successful trades
• Revenge trading after losses
• Analysis paralysis and missed opportunities
• Stress and anxiety impacting performance

7.2 Addiction Risk

• Excessive risk-taking and poor judgment
• Financial problems and debt accumulation
• Neglect of personal and professional responsibilities
• Social isolation and relationship issues
• Mental health problems

7.3 Overtrading

The pressure to meet profit targets may lead to overtrading, which can result in increased transaction costs, rule violations, and poor performance.

8. Risk Management Recommendations

8.1 Education and Preparation

• Thoroughly understand all program rules and requirements
• Develop and test your trading strategy
• Practice proper risk management techniques
• Ensure you have adequate financial resources
• Consider seeking professional financial advice

8.2 Ongoing Risk Management

• Never risk more than you can afford to lose
• Maintain strict position sizing and stop-loss discipline
• Monitor your emotional state and take breaks when needed
• Keep detailed trading records and analyze performance
• Stay informed about market conditions and news events

8.3 Warning Signs

Stop trading and seek help if you experience:

• Inability to control trading behavior
• Trading with money needed for essential expenses
• Lying about trading activities or losses
• Neglecting work, family, or health due to trading
• Persistent anxiety or depression related to trading

9. Acknowledgment and Consent

By participating in LuxoraFX evaluation programs or funded trading opportunities, you acknowledge that:

• You have read and understood this Risk Disclosure Statement
• You understand the risks associated with prop trading
• You have the financial capacity to bear potential losses
• You will not hold LuxoraFX liable for trading losses
• You are participating voluntarily and at your own risk
• You will comply with all program rules and requirements
• You understand that past performance does not guarantee future results

10. Questions and Support

If you have questions about these risks or need clarification on any aspect of our programs, please contact us at [email protected].