Risk Disclosure

1. Introduction & Purpose of Disclosure

This Risk Disclosure Statement is provided by Stocknet FX Limited, the operator of SFX Proprietary, to inform individuals engaging with our proprietary trading services of the potential risks associated with trading financial instruments.

Trading financial markets involves a high level of risk, and it is imperative that all participants understand the potential for substantial financial loss. Trading is not suitable for all individuals, and participants should only engage if they have a full understanding of the risks involved and the financial ability to withstand losses.

This document is provided in accordance with the UK Financial Conduct Authority (FCA) guidance and relevant financial regulations, including but not limited to:

  • The Financial Services and Markets Act 2000 (FSMA)

  • The Financial Services Act 2012

  • The FCA Conduct of Business Sourcebook (COBS)

  • The Markets in Financial Instruments Directive II (MiFID II) as retained in UK law

SFX Proprietary is a proprietary trading firm operated by Stocknet FX Limited that trades exclusively with its own capital. We do not offer brokerage services, accept client funds, or manage investments on behalf of external parties. We are not a broker-dealer, investment advisor, or financial services provider as defined under the Financial Services and Markets Act 2000 (FSMA) and are therefore not regulated by the UK Financial Conduct Authority. The information provided on this website is for educational and informational purposes only and should not be construed as financial or investment advice of any kind. We do not recommend, solicit, or endorse any financial transactions, securities, or trading decisions. Any trading activities conducted by SFX traders are executed using the firm’s private capital under a structured risk management framework. Trading financial markets involves substantial risk, and past performance is not indicative of future results. We do not guarantee profitability or success in trading. By using this website, you explicitly acknowledge that you are responsible for your own financial decisions and that SFX does not provide any financial products or investment services to the public.

2. High-Risk Nature of Trading

2.1 Market Risk

Financial instruments—including but not limited to equities, FX, commodities, derivatives, and crypto-assets—can experience significant price fluctuations. These price movements can be unpredictable and may be influenced by:

  • Economic reports and data releases

  • Geopolitical events and policy changes

  • Supply and demand imbalances

  • Central bank actions and interest rate adjustments

  • Unexpected global financial crises

Due to these factors, traders may experience significant losses, including the loss of all allocated capital.

2.2 Leverage Risk

Leveraged trading allows traders to control larger positions with a smaller initial margin, which magnifies both potential gains and losses. The impact of leverage means that:

  • A relatively small market movement can result in disproportionately large losses.

  • Losses can exceed the initial margin amount.

  • Many traders using leveraged financial instruments (such as CFDs, futures, or margin trading) lose all of their capital.

SFX Proprietary enforces strict risk management rules to limit trader exposure; however, leverage still carries significant risk even with proper risk controls.

2.3 Liquidity Risk

Certain financial instruments may experience low market liquidity, which can:

  • Impact trade execution speed and quality

  • Result in higher slippage (executing orders at worse-than-expected prices)

  • Make it difficult to exit positions without significant price impact

2.4 Execution Risk

Market conditions can cause delays, slippage, and partial order fills, leading to trades executing at different prices than expected. Execution issues may arise from:

  • High market volatility and price gaps

  • Delayed order transmission due to internet or software issues

  • Rapid liquidity changes in order books

SFX Proprietary aims to provide institutional-grade execution, but traders must be aware that execution risk is an inherent part of trading.

2.5 Regulatory & Political Risk

  • Changes in financial regulations or tax policies may impact market conditions and trading strategies.

  • Governments or central banks may introduce interventions, restrictions, or bans on certain trading activities or financial instruments (e.g., cryptocurrency regulations).

  • Other geopolitical events may affect financial markets and cross-border trading.

3. No Guarantee of Profitability

Any historical trading performance, backtesting, or simulated results are for educational purposes only and do not guarantee future success. Trading conditions in live financial markets differ significantly from historical or simulated trading environments. Traders must accept the possibility of losing their entire allocated capital. Trading success requires skill, risk management, and discipline—none of which guarantee profitability.

4. Trader Responsibilities & Independent Decision-Making

By engaging in trading activities with SFX Proprietary, traders confirm that they:

  • Fully understand the risks associated with trading leveraged financial instruments.

  • Accept that market conditions may result in significant or total financial losses.

  • Have the financial ability to withstand drawdowns and potential capital loss.

  • Take full responsibility for their trading decisions, strategy execution, and risk exposure.

SFX Proprietary does not act as an investment advisor, nor do we provide personalised trading advice. Traders are expected to make independent trading decisions and should consider seeking independent financial or legal advice before engaging in high-risk trading activities.

5. Simulated vs. Live Trading Performance

Unlike an actual performance record or live trading, simulated results do not represent actual trading. Simulated trading environments:

  • Do not experience the same market forces as live trading (e.g., liquidity constraints, real slippage, psychological pressures).

  • May overestimate trading success due to the absence of live execution challenges.

  • Cannot fully replicate the unpredictability of real-world market movements.

Traders should be aware that transitioning from simulated to live trading requires additional risk considerations.

6. Acknowledgement of Risk

By engaging in proprietary trading with SFX Proprietary, traders acknowledge and accept that:

  • They fully understand the inherent risks of trading financial markets.

  • They are aware that leveraged trading can result in significant or total financial loss.

  • They are responsible for all trading decisions, risk exposure, and capital management.

  • They have the financial stability to absorb potential losses without financial hardship.

SFX Proprietary operates under strict risk management policies, but trading remains a high-risk endeavour that requires careful strategy execution and discipline.

7. Compliance with UK Regulations

Stocknet FX Limited, as the operator of SFX Proprietary, complies with UK financial regulations and best practices, including:

  • Financial Services and Markets Act 2000 (FSMA) – Governing financial activities and market conduct.

  • Markets in Financial Instruments Directive II (MiFID II) – Outlining transparency and risk standards for trading firms.

  • FCA Conduct of Business Sourcebook (COBS) – Setting rules on risk disclosures, fair trading practices, and trader conduct.

  • Consumer Rights Act 2015 – Ensuring transparency in business dealings.

Traders are expected to adhere to all applicable financial laws, compliance guidelines, and ethical trading standards.

8. Contact & Further Inquiries

For any risk-related concerns, regulatory questions, or compliance inquiries, please contact us at: hello@sfxproprietary.com