Risk Disclosure

Monolith Market

Operated by Monolith Private Wealth Limited

Licensed and Regulated by the Financial Services Commission of Mauritius

Important — Please Read Carefully Before Trading

Trading in financial instruments carries a high level of risk and may not be suitable for all investors. You may lose some or all the money you invest. Before you decide to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. If you are unsure whether trading is right for you, seek independent financial advice.

This Risk Disclosure Statement does not cover all possible risks associated with trading. It is an overview intended to help you understand the key risks before you open an account or place a trade.

1. About This Document

This Risk Disclosure Statement (the "Statement") is issued by Monolith Private Wealth Limited ("MPW", "we", "us") and forms part of the Monolith Market terms and conditions and the documents incorporated into them. It is intended for retail investors and explains, in plain language, the main risks you face when trading financial instruments through the Monolith Market platform.

By opening an account, depositing funds, or placing a trade on Monolith Market, you confirm that you have read and understood this Statement.

2. General Investment Risk

All investments carry risk. The value of financial instruments can go up as well as down, and you may get back less than you invest. Past performance is not a reliable indicator of future results. Forecasts, projections, and market commentary are not guarantees.

You should only trade with money you can afford to lose. We strongly recommend that you:
Read the Terms and Conditions and all Incorporated Documents in full before you start trading.
Consider whether trading is appropriate for your financial situation, experience, and goals.
Seek independent financial, legal, or tax advice if you are unsure about anything.
Start with smaller amounts while you build experience.

3. Product-Specific Risks

Different financial instruments carry different risks. Below is a summary of the main risks for the products available on Monolith Market.

3.1 Forex (Foreign Exchange)

Forex trading involves buying one currency and selling another. Exchange rates can move rapidly and unpredictably.
Leverage amplifies both profits and losses. A small move in the market can result in a large gain or loss relative to your deposit.
Currency markets operate 24 hours a day, five days a week, and can move significantly overnight or over weekends.
Economic data, political events, and central bank decisions can cause sudden, sharp moves.

3.2 Contracts for Difference (CFDs)

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
When you trade a CFD, you do not own the underlying asset. You are agreeing to exchange the difference in price of the asset between the time the contract is opened and when it is closed.
Your losses can exceed your initial deposit if negative balance protection does not apply or is removed in specific circumstances described in the Leverage, Margin and Negative Balance Protection Policy.
CFDs may be subject to overnight financing charges, which can erode your position over time if held open for extended periods.

3.3 Equities and Equity CFDs

Share prices are affected by company performance, market sentiment, and broader economic factors. They can fall sharply and may never recover.
Equity CFDs carry the same leverage and overnight financing risks as other CFDs described above.
When trading equity CFDs, you do not receive dividends, voting rights, or any other shareholder entitlements. Corporate actions (such as dividends, stock splits, and mergers) will be reflected as adjustments to your account, as described in the Corporate Actions and Product Events Schedule.

3.4 Indices

Index products track the performance of a basket of shares or other assets. They are subject to the collective risks of all the assets in the basket.
Index prices can move sharply in response to macroeconomic data, geopolitical events, or market-wide sentiment shifts.
Index CFDs are subject to the same leverage and overnight financing risks as other CFDs.

3.5 Commodities

Commodity prices (such as oil, gold, silver, and agricultural products) are influenced by supply and demand, geopolitical factors, weather, and macroeconomic conditions. They can be highly volatile.
Commodity CFDs are subject to rollover risk when a contract approaches expiry. Rollovers may result in gaps between the closing price of the expiring contract and the opening price of the new one.
Energy commodities in particular can experience extreme price movements during supply disruptions or periods of geopolitical tension.

4. Leverage and Margin Risk

Leverage allows you to control a larger position than your deposit alone would support. While leverage can increase your profits, it also increases your losses by the same proportion.

For example, if you use 10:1 leverage and the market moves 1% against you, you lose 10% of your deposited margin. If the market moves 10% against you, your entire deposit is lost.

Key margin risks include:

Margin calls: if your account balance falls below the required margin level, MPW may ask you to deposit additional funds immediately.
Automatic close-out: if you do not top up your margin in time, MPW may close some or all of your open positions without further notice.
Negative balance: in extreme market conditions (such as price gaps), your losses may exceed your deposited funds. MPW provides negative balance protection in normal circumstances, but this may not apply in all situations — see the Leverage, Margin and Negative Balance Protection Policy for full details.
Leverage limits: MPW sets maximum leverage limits by product type and client category. These limits may change without notice in response to market conditions or regulatory requirements.

5. Market and Liquidity Risk

Market prices can change rapidly and without warning. Prices shown on the platform are indicative and may differ from the price at which your order is actually executed.
Slippage occurs when an order is executed at a different price than requested, typically because market conditions changed between the time you submitted the order and the time it was executed.
Gapping occurs when prices jump from one level to another without trading at the intermediate prices. This can happen overnight, over weekends, or after major news announcements. Stop-loss orders may not protect you from gaps.
In periods of low liquidity (such as public holidays or times of extreme market stress), spreads may widen significantly, making it more costly to enter or exit a position.
MPW may suspend trading in any instrument at any time in response to market conditions, technical issues, or regulatory requirements.

6. Counterparty and Settlement Risk

When you trade through Monolith Market, MPW may act as the counterparty to your trade, or it may transmit your order to a third-party executing broker or liquidity provider. In either case, MPW remains responsible to you for the proper handling of your order.
Settlement risk is the risk that a trade does not settle as expected. This can happen if a counterparty, broker, custodian, exchange, or payment system fails or is delayed.
Although MPW takes steps to manage counterparty risk, no arrangement eliminates it entirely.

7. Currency Risk

If you hold positions or a cash balance in a currency other than your account base currency, your returns will be affected by movements in exchange rates. A favourable trade outcome in the instrument currency may be offset or eliminated by an unfavourable exchange rate movement.

MPW converts balances and settlements at the exchange rates it determines, which may include a spread or conversion fee. See the Costs and Charges Schedule for details.

8. Platform and Technology Risk

Trading platforms can experience technical failures, outages, delays, or errors. During periods of high market volatility or heavy usage, platform performance may be affected.
Internet connections can fail. If your connection to the platform is interrupted while you have open positions, you may be unable to manage those positions until your connection is restored.
You are responsible for the security of your account credentials and devices. If your login details are compromised, unauthorised persons may be able to place trades in your account.
Automated trading tools, bots, or third-party applications connected to your account may act faster than you can intervene. You remain responsible for all activity in your account.

9. Copy Trading Risk

Monolith Market offers a Copy Trading service that allows you to automatically copy the trades of a selected Lead Trader.

Past performance of a Lead Trader is not a reliable indicator of future performance.
Copying a Lead Trader does not remove your responsibility for monitoring your account. You can stop copying at any time.
All of the other risks described in this Statement apply equally to positions opened through Copy Trading.

10. PAMM (Percentage Allocation Management Module) Risk

The PAMM service allows you to appoint MPW, acting through a designated PAMM Manager, to manage your account on a discretionary basis.

You are entrusting your funds to a PAMM Manager to trade on your behalf. Their decisions will directly affect your account balance.
Past performance of a PAMM Manager does not guarantee future results.
Withdrawals from a PAMM account may be subject to lock-up periods, redemption notice requirements, or other restrictions set out in the PAMM Mandate.
Performance fees may be charged even if the overall value of your account falls below your initial investment, depending on the High-Water Mark arrangements described in your PAMM Mandate.
All of the other risks described in this Statement apply equally to positions managed through PAMM.

11. Costs and Charges

The costs of trading reduce your net returns. Key costs include:

Spreads: the difference between the buy and sell price. You start each trade at a loss equal to the spread.
Overnight financing (swap rates): a charge or credit applied each day a leveraged position is held open overnight.
Commissions: may apply on certain instruments or account types.
Deposit and withdrawal fees: may apply depending on your payment method.
Inactivity fees: may be charged if your account is dormant for an extended period, as described in the Dormant Account Policy.

Full details of all costs and charges are set out in the Costs and Charges Schedule, which forms part of the Terms and Conditions.

12. Regulatory and Legal Risk

MPW is regulated by the FSC of Mauritius. Regulatory protections available under the laws of other jurisdictions (for example, the EU, UK, UAE, or USA) do not automatically apply to your relationship with MPW unless specifically stated in the Terms and Conditions.
Regulatory changes, new laws, sanctions, or government actions can affect the availability of certain instruments, restrict your ability to trade, or require MPW to close or freeze your account.
Tax treatment of trading income varies by jurisdiction and can change. You are responsible for your own tax obligations. MPW does not provide tax advice.

13. Your Responsibilities

Trading is your responsibility. By opening an account and placing trades on Monolith Market, you confirm that you:

Understand the nature of the instruments you are trading and the risks involved.
Have read and understood this Risk Disclosure Statement and the Terms and Conditions.
Are trading with money you can afford to lose.
Will monitor your open positions and account balance regularly.
Will keep your account credentials secure and notify MPW immediately if you suspect unauthorised use.
Accept full responsibility for all trades placed through your account.

14. Where to Get Help

If you have questions about this Statement or about the risks of trading, please contact us:

Through the Monolith Market platform help centre.
By submitting a query through the platform's contact or support function.
By following the Complaints Handling Procedure if you have a formal complaint.

This document is subject to periodic review and may be updated from time to time. The current version is available on the Monolith Market platform. Please check regularly for updates.