1.1 Purpose. This notice describes the principal risks of trading leveraged foreign exchange and contracts for difference (CFDs) with AvexFx (“AvexFx”, “we”). It cannot describe every risk. You should not trade these products unless you understand how they work and can afford to lose the money you put in.

1.2 The headline. CFDs and leveraged forex are complex instruments carrying a high risk of losing money rapidly through leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.

Pending completion of our own first annual calculation, the figure shown is the current published industry average. It will be replaced by our own figure, drawn from all retail client accounts that traded with us over the preceding 12 months, and reviewed quarterly thereafter.

1.3 Leverage. Leverage means a small deposit controls a much larger position. A market move of 1% against a position leveraged 30:1 costs 30% of the margin committed. Gains and losses are both magnified, and losses can exceed your initial deposit unless negative balance protection applies to your account. Maximum leverage available to you depends on which AvexFx entity holds your account and on your classification as a retail or professional client. Retail clients of the CySEC-regulated entity are subject to the European caps: 30:1 on major currency pairs; 20:1 on non-major pairs, gold and major indices; 10:1 on other commodities and non-major indices; 5:1 on individual equities; and 2:1 on cryptocurrencies. Retail clients of the Seychelles FSA and Mauritius FSC entities may be offered leverage up to 500:1. Higher leverage does not improve your expected return – it shortens the time your account can survive a move against you.

1.4 Margin and close-out. You must maintain sufficient margin at all times. Margin requirements can change without notice, including intraday and ahead of known events. If your margin level falls to 50% of the initial margin required for your open positions, we may close any or all open positions without further notice and without regard to your view of the market. Closure may happen at a worse price than the level that triggered it. The 50% level is the mandatory close-out for retail clients of the CySEC entity; clients of the Seychelles and Mauritius entities are closed out at 20%.

1.5 Market risk, gapping and slippage. Prices move continuously and can gap – jumping from one price to another with no trading in between – at market open, on news, and during illiquidity. A stop-loss order is not a guarantee of execution price. In gapping markets your order may be filled materially worse than the level you set. Slippage can be positive or negative.

1.6 Liquidity. In thin or disorderly markets, spreads widen, order sizes available at a given price shrink, and a position may not be closeable at any reasonable price. This is most likely around market opens and closes, public holidays, major economic releases, and periods of stress.

1.7 Counterparty and credit risk. Your contract is with AvexFx as counterparty, not with an exchange. You are exposed to our ability to meet our obligations. Client money is held in segregated client accounts with regulated credit institutions, kept separate from our own funds and not used in the course of our business, and compensation scheme coverage differs by entity: clients of the CySEC-regulated entity fall within the Cyprus Investor Compensation Fund, which covers eligible claims up to EUR 20,000 per client if the firm fails; the Seychelles FSA and Mauritius FSC entities have no equivalent scheme, so if one of them fails you rely on the segregation above and on the insolvency process in that jurisdiction.

1.8 Currency risk. Where a position is denominated in a currency other than your account base currency, your result is affected by the exchange rate as well as the instrument. Accounts are available in USD, GBP, EUR, AED, JPY, SAR and JOD; converting between them carries a cost and a rate risk.

1.9 Overnight financing and swap-free accounts. Positions held past the daily rollover incur a swap charge or credit. Swaps can be negative on both sides of a currency pair, are set by us, change with market rates, and over time can exceed any trading gain on a long-held position. Triple swap is applied on Wednesday nights, because spot FX settles two business days forward and a Wednesday position carries value date over the weekend.

Where you hold a swap-free (Islamic) account, no interest-based swap is applied. No charge applies for the first 5 nights a position is held. From the 6th night a fixed administration fee of US$5 per standard lot per night applies on exotic currency pairs; no fee applies on major pairs. Any administration fee applying to your account is set out in your account terms before you trade. Swap-free status may be withdrawn where we reasonably consider it is being used to carry positions for arbitrage rather than for the purpose it was granted.

1.10 Technology and connectivity. Trading is dependent on your device, your internet connection, and on platform and data-feed availability. Outages, latency and errors can prevent you from opening, modifying or closing a position. Where the platform is unavailable you may contact us on WhatsApp or by email at hello@avexfx.com, 24 hours a day, six days a week, and our support team can place, modify or close orders on your instruction. We are not liable for losses caused by events outside our reasonable control.

1.11 Negative balance protection. Negative balance protection applies to all retail accounts. Your losses cannot exceed the funds held in your trading account: if a position closes at a level that would leave the account in deficit, the deficit is written off and you will not be asked to pay more than you deposited. This reflects clause 6.1 of our Terms and Conditions and, for clients of the CySEC entity, is a regulatory requirement.

1.12 No advice. We provide execution-only services. Nothing on our website, platforms, market commentary, educational material or communications from our staff constitutes investment advice, a personal recommendation, or an assurance about any outcome. Any decision to trade is yours. Where a member of our staff discusses a market, an instrument or a strategy with you, that is information and not a personal recommendation, and it must not be relied on as one.

1.13 Suitability and appropriateness. Before opening an account we assess whether these products are appropriate for you, based on the knowledge and experience you declare. A warning that a product may not be appropriate is a serious statement and should not be dismissed.

1.14 Tax. Treatment of trading gains and losses depends on your personal circumstances and residence, and can change. We do not provide tax advice.

1.15 Past performance. Simulated results, backtests, demo-account results and any historical figures are not a reliable indicator of future results.

1.16 Third parties. If an introducing broker, affiliate or money manager brought you to us or acts for you, their interests are not necessarily aligned with yours; they may be paid by volume you generate. See the Conflicts of Interest Policy.

1.17 Costs and charges. Before you trade we provide an itemised illustration of the costs of a representative transaction, and annually a statement of the costs actually incurred on your account. Costs include the spread, any commission, overnight financing, currency conversion where a position is not in your base currency, and any payment or administration charges. Costs reduce your return and are payable whether a position is profitable or not. Standard accounts carry no commission, with average spreads of 1.4 pips. Premier accounts carry commission of US$3.50 per lot per side, with spreads from 0.0 pips and a minimum deposit of US$3,000. The full schedule is set out in your account terms.

1.18 Automated trading and expert advisors. MT4 and MT5 permit automated strategies, expert advisors, scripts and signal subscriptions. These execute without your intervention and can open, modify and close positions rapidly, including while you are not watching. We do not write, test, endorse or monitor third-party automated tools and are not responsible for their behaviour or their results. A malfunctioning or poorly configured tool can exhaust your margin in minutes. You remain responsible for every order placed from your account, including orders placed automatically.

1.19 Inactivity. Where an account has no trading activity, deposit or withdrawal for 6 consecutive months we may apply an inactivity fee of US$10 per month, or the equivalent in your account currency, limited to the remaining balance and never creating a debit. We notify you before the first charge. An account with a nil balance and prolonged inactivity may be closed.

1.20 Acknowledgement. By opening an account you confirm you have read and understood this notice. AvexFx operates through several entities: one authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), one by the Financial Services Authority (FSA) of Seychelles, and one licensed by the Financial Services Commission (FSC) of Mauritius. The entity that holds your account, and its licence number, are stated in your account agreement. Contact: hello@avexfx.com, Business Bay, Dubai. Last reviewed 20 September 2026.