Terms

Risk Disclosure Statement

This statement is provided by XIN WANG GOLDEN COMPANY LIMITED to explain the main risks of precious-metals margin trading and related account services. It should be read together with the client agreement, product information, trading rules and fee schedule. It cannot list every risk; reading and acknowledging it does not mean trading is suitable for you or that responsibility for any loss has been decided in advance.

1Product nature and market price risk

Precious-metals prices are affected by interest rates, exchange rates, inflation expectations, international politics, supply and demand, capital flows and unexpected events, and may move sharply in a short time. Prices may also move against your position for a long period. Gold or silver’s past performance, safe-haven status or long-term market views cannot guarantee a profit at any particular price, period or trading method.

The economic outcome of a margin contract differs from holding physical metal. Unless a clearly applicable delivery arrangement exists, holding a contract does not give you ownership, custody rights or withdrawal rights over the corresponding physical metal. Don’t treat a contract account, cash balance, gold holdings or bank deposits as the same kind of asset.

2Leverage and excess-loss risk

Margin is usually only part of the notional value of a contract. Leverage magnifies both profits and losses; when the market moves against you, losses may quickly use up your margin and other funds in the account available to absorb losses. Price gaps, fees or the inability to close in time may leave the account with a negative balance, and you may be liable to make good the shortfall under the client agreement. Unless your account has a clearly applicable negative balance protection clause, don’t assume your losses are capped at the amount you deposited.

The source and purpose of your trading funds also affect your ability to bear risk. Trading with living expenses, emergency funds, essential working capital or borrowed money may let market losses affect your daily spending and ability to repay debts. If you borrow, you remain liable for interest, repayment terms and any security, and cannot assume trading gains will cover those costs.

3Margin call and stop-out risk

You must continuously meet margin requirements under the applicable rules. A fall in equity, wider spreads, more positions, fees being charged or changes in margin requirements may all leave your margin level insufficient. When the agreed conditions are met, some or all positions may be closed without your being contacted individually beforehand. The order, volume, method and fill price of stop-outs follow the applicable rules and what is actually executable.

A stop-out is a risk-control measure, not a mechanism that guarantees a fill at a certain price or limits losses to a certain amount. Even if you have issued payment instructions to add funds, the funds may not yet be available margin because of verification, bank clearing or other processing. Don’t rely on a last-minute deposit to avoid a stop-out.

4Quote, spread and fill price risk

Quotes may differ between dealers, data sources, products and accounts. Prices shown on web pages, charts, third-party terminals and the trading platform may serve different purposes, such as reference, historical or executable prices. Buying and selling use different sides of the quote; closing and stop triggering must also be understood with the order direction and the applicable price.

Spreads may widen around major news, market open and close, settlement or when liquidity is thin. Even if a price on the chart seems not to have reached your expected level, the applicable other side of the quote or trigger condition may already have been met. Before ordering, understand the Company’s quote and trigger rules for the product and order.

5Slippage, gaps and non-execution risk

The price displayed when you submit an order, the trigger price and the final fill price may differ. Quote updates, price gaps, insufficient market depth, transmission delays and order processing may cause positive or negative slippage, partial fills, delayed execution, rejection or no fill. Sending an order, a screen showing it was submitted or receiving a message does not necessarily mean it has been filled. Check the final order status and trading records.

6Stop, limit, pending order and cancellation risk

Each order type has different trigger and execution conditions. Stop orders may fill at the executable price after triggering; limit orders may never be executed. Market closures, thin liquidity or technical problems may also affect orders. A modification or cancellation you have sent may be processed only after the original order has filled. Unless there is a clear written guarantee, setting a stop or pending order does not give you a guaranteed fill price, guaranteed execution or a fixed loss cap.

Pending orders may be subject to expiry, cancellation or holiday rules, and stops attached to positions may also be affected by specific arrangements. Check order status before the market closes and after it reopens. An unfilled pending order does not mean you hold a position, and once protective settings on a position lapse, the position may remain exposed to market risk.

7Locked and combined position risk

Holding buy and sell positions at the same time, or hedging with other products, does not remove all risk. Each side may be charged fees, and margin treatment may differ. Wider spreads, changing correlations, one side being closed first or unlocking at the wrong time may all cause additional losses. Understand the margin and fee rules for locked positions, and don’t treat offsetting directions on paper as meaning the account no longer needs managing.

Concentrating in a single product or direction, or in several positions affected by the same market factors, makes your account more sensitive to related price changes. Holding several orders, holding both gold and silver, or splitting across accounts does not by itself create effective diversification; assess overall notional exposure, same-direction risk and the losses you can bear, not just the margin used by each order.

8Liquidity, market closures and changes to trading arrangements

The market cannot always be traded at the volume and price you need. During closures, holidays, daily settlement, system maintenance or abnormal conditions, you may be unable to open or close positions or adjust orders while market factors keep changing. Prices may gap when the market reopens. Margin, volume limits and other conditions may also be adjusted under the applicable agreement and notices, affecting your ability to keep or exit positions.

9Holding costs and accumulated fees

Spreads, commission, swaps, conversion spreads and applicable service fees affect net P/L. Swaps may vary by direction, volume, date and market conditions, and a given settlement day may include charges for several calendar days. Short-term trading costs can also add up through frequent trading. Even if the market returns to your entry price, your account may still show a loss because of fees.

10Counterparty, client money and credit risk

Your rights and who you can claim against depend on the actual contracting entity, product structure and client-money arrangements. Default, insolvency, operational disruption or legal restrictions affecting counterparties, banks, payment institutions, platforms or other service providers may affect trading, asset records and recovery of funds. CGSE membership, trading records or any trading code do not automatically guarantee principal, returns or the Company’s debts.

Before depositing, understand who holds client money, how it is recorded, whether and how it is kept separate from other funds, the claims available to you and the scope of any protection. Unless the relevant documents provide a clear and applicable basis, don’t assume a margin account has bank deposit protection, government guarantees or any investor compensation arrangement.

11Electronic systems, network and information security risk

Trading depends on devices, software, communication networks, power and service providers’ systems. System faults, updates, capacity limits, cyber-attacks or problems with your device may prevent login, freeze quotes, delay orders, desynchronise statements or stop verification messages arriving. During an outage, unfilled orders and existing positions may remain open and exposed to the market. Backup contact channels also cannot guarantee immediate order execution.

No confirmation on screen, or an interrupted display, does not necessarily mean the original instruction was not received. Clicking repeatedly or placing another order straight after reconnecting may open extra positions. When reconnected, check your actual orders, positions, fills and account statements; your own estimate of the status may differ from the final records.

Revealing passwords, verification codes or remote-control access, or downloading fake software, may lead to unauthorised use of your account. Keep your credentials safe and check your trading records promptly; if anything looks wrong, contact the Company through official channels immediately and keep evidence. Responsibility for the trades and losses is determined by the facts, the client agreement and applicable law.

12Deposit, withdrawal, payment and verification risk

Fund transactions may involve identity and source-of-funds checks, bank clearing, payment institution rules, holidays or other lawful restrictions. A submitted request or funds debited from your paying account does not mean they are available in your trading account. Withdrawals may also be affected by unsettled trades, margin requirements and necessary checks. Allow reasonable time, and check the payer, payee and status of each transaction.

13Currency conversion and exchange-rate risk

If deposits, account settlement, charges or withdrawals are in different currencies, you may bear exchange-rate movements, conversion spreads and bank or payment-provider fees. A profit calculated in one currency may not remain a profit after converting back to your local currency. Check the rate source, the time it applies, fees and the final currencies paid and received.

14Additional risks of digital-asset channels (if applicable)

If the Company explicitly offers and allows you to use USDT or other digital-asset channels, these may involve blockchain networks, external wallets, exchange service providers and asset issuers. Network congestion, confirmation delays, wrong networks or addresses, lost private keys, platform restrictions, de-pegging, freezing or issuer risk may affect the amount, arrival and ability to recover funds. Being pegged to a fiat currency does not make an asset equivalent to cash or protected as a deposit.

On-chain transfers are usually difficult to reverse. In the official portal, check the asset, network, address, any required memo, fees and confirmation requirements supported for this transaction, and complete the applicable identity and wallet-ownership checks. Don’t treat a sending screenshot or an on-chain broadcast as confirmation that the Company has received or credited the funds. Using this channel does not change the nature or risks of the margin contract itself.

15Third-party authorisation, automated and copy trading risk

Third-party agents, trading signals, automated programs, copy trading or remote operation may suffer strategy failure, wrong settings, over-trading, software faults or conflicts of interest. Historical backtests and other people’s results cannot guarantee future results. Permission to use a technical feature does not mean the Company endorses the strategy, the agent or any promised returns. The scope of authorisation, how to revoke it and its effect on existing orders should be checked in writing beforehand.

Verify what authority anyone claiming to represent the Company has, and whether the service you intend to accept has been formally confirmed by the Company. Promises of guaranteed profit, loss sharing or managing your money in private chats or social-media groups do not become services endorsed by the Company just because the other party uses the Company’s name, logo or an introducer title. If you receive such promises, keep a record and verify through the official website channels.

16Information, demo trading and personal judgement risk

General explanations in website articles, analysis, charts, courses or from customer service may not take your financial situation and investment objectives into account. Forecasts may be wrong or out of date, and third-party information may be incomplete. Demo accounts usually use virtual funds, and their quote environment, execution, psychological pressure and funding conditions may differ from a live account; demo profits are not proof of future returns.

17Legal, regional restriction and tax risk

Rules on precious-metals contracts, cross-border services, fund transfers, digital assets and tax differ between regions and may change. You must understand the restrictions where you are and that apply to you; being able to access the website or submit an application does not mean the activity is permitted locally. Consult an independent legal or tax adviser where needed.

18Before you decide

1. Confirm that you understand the product mechanics, situations where losses may exceed margin, and how negative balances are actually treated.
2. Confirm that you have reviewed the current product parameters, fees, margin and stop-out rules, trading hours and funding arrangements.
3. Assess whether you can manage positions continuously, and the impact on your life, business and other financial obligations of losing your entire investment or more.
4. Ask through official channels about any term you don’t fully understand, and seek independent advice where needed.

Reading or acknowledging this statement means you have been alerted to the relevant risks; it does not unlimitedly extend or waive the actual rights and responsibilities of the Company, you or third parties. Any rights and liabilities that cannot be excluded or limited under applicable law are not excluded or limited by this statement.