The risk of loss in trading foreign exchange can be substantial. You should therefore carefully consider whether such trading is suitable in light of your financial condition. You may sustain a total loss of funds and any additional funds that you deposit with your broker to maintain a position in the foreign exchange market. Actual past performance is no guarantee of future results. Simulated performance results also have certain limitations unlike actual performance records, simulated results do not represent composite trading. Also, since trades have not actually been executed for this composite, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity, simulated trading results, in general are also subject to the fact they are designed with the benefit of hindsight. No representation can or is being made that any trading system will, or is likely, to achieve profits or losses similar to those that have been achieved in the past.

The risk of loss in trading the foreign exchange markets can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. In considering whether to trade or authorize someone else to trade for you, you should be aware of the following:

If you purchase or sell a foreign exchange option you may sustain a total loss of the initial margin funds and additional funds that you deposit with the broker to establish or maintain your position. If the market moves against your position, you could be called upon by your broker to deposit additional margin funds, on short notice, in order to maintain your position. If you do not provide the additional required funds within the prescribed time, your position may be liquidated at a loss, and you would be liable for any resulting deficit in you account.

Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example when a currency is deregulated or fixed trading bands are widened. Potential currencies include, but are not limited to the Thai Baht, South Korean Won, Malaysian Ringitt, Brazilian Real, Hong Kong Dollar.

The placement of contingent orders by you or Genius Forex Limited, such as a “stop-loss” or “stop-limit” orders, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.

A “spread” position may not be less risky than a simple “long” or “short” position.

The high degree of leverage that is often obtainable in foreign exchange trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains.

In some cases, managed accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets.

Currency trading is speculative and volatile
Currency prices are highly volatile. Price movements for currencies are influenced by, among other things: changing supply-demand relationships; trade, fiscal, monetary, exchange control programs and policies of governments; United States and foreign political and economic events and policies; changes in national and international interest rates and inflation; currency devaluation; and sentiment of the market place. None of these factors can be controlled by any individual advisor and no assurance can be given that Genius Forex Limited’s advice will result in profitable trades for a participating customer or that a customer will not incur losses from such events.

Currency trading can be highly leveraged
The low margin deposits normally required in currency trading (typically between 3%-20% of the value of the contract purchased or sold) permit an extremely high degree leverage. Accordingly, a relatively small price movement in a contract may result in immediate and substantial losses to the investor. Like other leveraged investments, in certain markets, any trade may result in losses in excess of the amount invested.

Currency trading presents unique risks
The interbank market consists of a direct dealing market, in which a participant trades directly with a participating bank or dealer, and a brokers’ market. The brokers’ market differs from the direct dealing market in that the banks or financial institutions serve as intermediaries rather than principals to the transaction. In the brokers’ market, brokers may add a commission to the prices they communicate to their customers, or they may incorporate a fee into the quotation of price.

Trading in the interbank markets differs from trading in futures or futures options in a number of ways that may create additional risks. For example, there are no limitations on daily price moves in most currency markets. In addition, the principals who deal in interbank markets are not required to continue to make markets. There have been periods during which certain participants in interbank markets have refused to quote prices for interbank trades or have quoted prices with unusually wide spreads between the price at which transactions occur.

Frequency of trading; degree of leverage used
It is impossible to predict the precise frequency with which positions will be entered and liquidated. Foreign exchange trading , due to the finite duration of contracts, the high degree of leverage that is attainable in trading those contracts, and the volatility of foreign exchange prices and markets, among other things, typically involves a much higher frequency of trading and turnover of positions than may be found in other types of investments. There is nothing in the trading methodology which necessarily precludes a high frequency of trading for accounts managed.

Execution of orders
In entering orders for clients’ accounts, Genius Forex Limited does not intend to limit itself to any particular kind of order. At times it may enter market orders intended to obtain the prevailing market price in a particular market. Genius Forex Limited may, however, at times use limit orders and other kinds of qualified orders if, in its judgment, that appears appropriate in the given market circumstances. In addition, when liquidating a position, Genius Forex Limited may effect a reversal order, i.e., the current position is liquidated and an opposite one established for the market in question, if signaled by the program.

The effect of dealing spreads and terms
Each client could be subjected to various kinds of transactional costs, even if the account ultimately is not profitable. Genius Forex Limited bases compensation on profitability, hence it is important to domicile the account managed by Genius Forex Limited with a competitive dealing center. Since dealing spreads vary from dealing center to dealing center. Genius Forex Limited reserves the right for final approval of the dealing center chosen by the client. Genius Forex Limited may refuse or suspend order entry with certain dealing centers if it is determined the dealing center in question refuses to make competitive markets.

Failure of a client’s dealing center
Under regulation, dealing centers are required to maintain a clients assets in a segregated account. If a client’s dealing center fails to do so, the client may be subject to a risk of loss of his funds on deposit with the dealing center in the event of its bankruptcy. In addition, under certain circumstances, such as the inability of another client of the dealing center or the dealing center itself to satisfy substantial deficiencies in such other client’s account, a client may be subject to a risk of loss of his funds on deposit with his dealing center, even if such funds are properly segregated. In the case of any such bankruptcy or client loss, a client might recover, even in respect of property specifically traceable to the client, only a pro rata share of all property available for distribution to all of the dealing center’s clients. With this information in mind Genius Forex Limited reserves the right for final approval of the dealing center chosen by the client.

Bankruptcy Protections

The transactions you are entering into with a market maker such as Capital Market Services, LLC (“CMS”) are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, customer funds do not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Because same priority has not been given to funds used for off-exchange forex trading, in the event CMS becomes insolvent and a customer has a claim for amounts deposited or profits earned on transactions with CMS, the customer’s claim may not receive a priority. Without a priority, a customer is a general creditor and his/her claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Please note that customer funds that CMS keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors.

Potential conflicts of interest
Genius Forex Limited trades for its own proprietary accounts, it is possible that orders of the Genius Forex Limited could compete for execution with the orders of other customers, even if said orders are placed with differing dealing centers around the world. There is therefore, a potential that orders executed by a particular dealing center chosen by the client, could receive better or worse price fills than orders executed for and by the Genius Forex Limited for its own proprietary accounts.

Genius Forex Limited when acting as an introducing foreign exchange broker for its customers, could receive a portion of the commission charged by the dealing center for the execution of client trades. Genius Forex Limited's receipt of a portion of such commissions could create a potential conflict of interest for it by creating an incentive to execute trades in such client accounts on a more frequent basis than would be appropriate in the unbiased application of a particular trading program and in the best interest of clients. It is the advisor’s intention to manage all accounts within each particular program with the same principles, techniques and market evaluations applicable to the particular program and not have more frequent transactions in those accounts for which Genius Forex Limited acts as an introducing foreign exchange broker.

Independent introducing foreign exchange brokers and dealing centers who are unaffiliated with the Genius Forex Limited, but introduce clients to Genius Forex Limited, may receive compensation, either directly from the client or through the Genius Forex Limited in the form of a shared portion of the advisory incentive fee charged. Such introducing foreign exchange brokers also may share a portion of the dealing spread charged by the client’s dealing center. Such brokers may charge their own management, administrative or other fees in connection with introducing the client. These forms of compensation to the broker create a potential conflict of interest for the broker by creating a financial incentive potentially for them to recommend an Genius Forex Limited.

No warranties are given by Genius Forex and no warranties are implied regarding the content of the suggested reading material or the content of the website(s) which can be accessed through this website. Genius Forex shall not be liable in any way for losses or liability of any kind to any person resulting directly or indirectly through the use in any way by such person of the information referred to and/or use of the suggested reading material or the website(s), however such loss or liability occurs, and whether financial or otherwise. The pages and the opinions or information contained in the suggested reading material or these website(s) are the creation of outside parties and do not necessarily reflect the opinions or representations of Genius Forex.

This brief statement cannot disclose all the risks and other significant aspects of the foreign exchange markets. You should therefore carefully study all documents and foreign exchange trading before you trade, including the description of the principle risk factors of the investment.