Risk Disclosure

This Risk Disclosure statement is provided to you in accordance with applicable regulations and is intended to inform you of the general risks associated with trading financial instruments through Hikari Nova's platform. This disclosure cannot and does not disclose all risks and other significant aspects of trading in financial instruments.

Trading in financial instruments involves a high degree of risk and is not suitable for all investors. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

Trading financial instruments carries a high level of risk and can result in the loss of all your invested capital. You should only trade with funds that you can afford to lose. Past performance is not indicative of future results, and the value of your investments can go down as well as up.

Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. If you have any doubts about trading, you should seek advice from an independent financial advisor.

Market risk refers to the possibility of experiencing losses due to factors that affect the overall performance of financial markets. These factors include:

• Economic factors (interest rates, inflation, economic growth)
• Political events and geopolitical tensions
• Natural disasters and public health crises
• Market sentiment and investor psychology

Markets can be volatile and prices can fluctuate rapidly in response to unexpected events. This volatility can lead to significant losses in a short period of time.

When trading through an electronic platform, you are exposed to risks associated with the system, including:

• Hardware and software failures
• Internet connectivity issues
• Delays in order execution
• Data security breaches

These technical issues may prevent you from executing trades, result in orders not being executed according to your instructions, or lead to other unexpected outcomes. While we strive to maintain a reliable and secure platform, we cannot guarantee uninterrupted access to our services.

Liquidity risk refers to the possibility that you may not be able to buy or sell a financial instrument quickly enough or at a desired price due to limited market activity. Low liquidity can lead to:

• Wider spreads between bid and ask prices
• Difficulty in executing orders at desired prices
• Partial execution of orders
• Increased slippage (difference between expected and actual execution price)

Certain markets or instruments may be more susceptible to liquidity risk, particularly during periods of market stress or volatility.

Trading on margin or using leverage involves borrowing funds to increase your trading position beyond your actual capital. While leverage can amplify profits, it also magnifies losses and increases risk. Key risks include:

• Potential to lose more than your initial investment
• Margin calls requiring additional funds to maintain positions
• Forced liquidation of positions if margin requirements are not met
• Increased sensitivity to market movements

You should carefully consider the use of leverage and ensure you fully understand the implications before trading on margin.

Trading activities are subject to laws, regulations, and policies that may change over time. These changes may affect your ability to trade certain instruments or use specific features of our platform. Regulatory risks include:

• Changes in regulatory requirements or restrictions
• Tax law changes affecting investment returns
• Cross-border regulatory conflicts
• Regulatory actions against trading platforms or financial institutions

It is your responsibility to comply with all applicable laws and regulations in your jurisdiction when using our Services.

If you trade cryptocurrencies through our platform, you should be aware of the following additional risks:

• Extreme price volatility
• Regulatory uncertainty and potential for regulatory changes
• Security vulnerabilities in blockchain technology
• Limited history and lack of traditional valuation methods
• Potential for market manipulation
• Risk of permanent loss due to cyber attacks or technical failures

Cryptocurrency trading is particularly high-risk and may not be suitable for many investors.

We recommend implementing risk management strategies to help mitigate potential losses, including:

• Setting stop-loss orders to limit potential losses
• Diversifying your investment portfolio
• Only investing funds you can afford to lose
• Regularly monitoring your positions and market conditions
• Educating yourself about trading strategies and market dynamics

While these strategies may help reduce risk, they cannot eliminate it entirely. Trading always involves the risk of loss.

By using our Services, you acknowledge that you have read and understood this Risk Disclosure statement. You accept the risks associated with trading financial instruments and agree that you are solely responsible for your trading decisions and their outcomes.

If you do not understand any aspect of this Risk Disclosure or are unsure about the risks involved in trading, we strongly recommend seeking advice from an independent financial advisor before using our Services.