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General Information
This Risk Warning Statement (RWS) does not take into account your financial situation, personal objectives or needs. Before using the products referred to in this RWS you should read it carefully, and then consider your objectives, financial situation and needs and take all reasonable steps to fully understand the possible outcomes of trades and strategies that can be employed using the Hantec Bullion Limited (HBL, us, we, our) trading platform. HBL recommends you seek independent financial advice to ensure that a particular product is suited to your financial situation and requirements.
HBL is one of the members of Hantec Group.
This Risk Warning Statement (RWS) does not take into account your financial situation, personal objectives or needs. Before using the products referred to in this RWS you should read it carefully, and then consider your objectives, financial situation and needs and take all reasonable steps to fully understand the possible outcomes of trades and strategies that can be employed using the Hantec Bullion Limited (HBL, us, we, our) trading platform. HBL recommends you seek independent financial advice to ensure that a particular product is suited to your financial situation and requirements.
HBL is one of the members of Hantec Group.
Warning： Trading in bullion, particularly margin trading, involves the potential for profit as well as the risk of loss which may vastly exceed the amount of money you commit to any trade or transaction. Movements in the price of bullion rates are influenced by a variety of factors of global origin many of which are unpredictable. Violent movements in the price of bullion rates may result in action by the market as a result of which you may be unable to settle adverse trades. Placing contingent orders, such as stop-loss or stop-limit orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. Staff of HBL are unable to guarantee the accuracy of any market predictions (should they offer such predictions) and cannot guarantee a maximum loss that you may suffer.
Bullion Trading
The underlying asset of Bullion trading is either Loco London Gold (LLG) or Loco London Silver (LLS), both of which have prices quoted in US currency, unless otherwise specified.
When using our services, you can only trade on the quoted spot rate for Gold (LLG) and Silver (LLS) contracts. We do not deliver the physical underlying assets (ie. gold or silver), but settlement is made by cash based on the difference between the buy and sell rates of the contracts.
Conversion of Currency
Your trading account with HBL is normally denominated in a “Base Currency” which is often HKD or USD. In order to engage in bullion trading, you may need to convert existing funds into HKD or USD or another Base Currency. For example, you can only buy or sell bullion using HKD. If you deposit other currencies into your account, you will be required to convert it to HKD before trading bullion.
You can use your own bank to convert your currency into HKD or USD, if you wish.
Alternatively, HBL can convert your funds by first quoting you a spot price pursuant to its usual terms and conditions which you will have already signed. If you choose to accept HBL’s quoted prices, then the transaction will usually take place immediately, upon receipt of your cleared funds. The new currency will be delivered to your HBL account.
HBL will also convert the realized trading profit or loss in your account into HKD or USD or another Base Currency at the closing price of the relevant currency immediately preceding to the trade day.
Trading Facilities
HBL is able to provide bullion trading facilities through the dealers in our trading room or through our online trading platform.
Our online trading platform is an internet based tool for the order-routing, execution, matching, registration or clearing of trades of bullion contracts. In this Statement, when we refer to bullion trading, we are referring to both our online trading platform and phone calls to the dealers in our trading room.
Providing Instructions by Telephone
When providing instructions by telephone, you will need to provide us with adequate identification information.
We are not liable for any loss that arises from incorrect identification information being provided.
You will be required to indemnify us for any loss that occurs as a result of us acting in good faith on your verbal instructions.
You agree to pay any charges incurred by us as a result of our acting on your verbal instructions.
Risks
There are a number of risks in using our bullion trading facilities. These risks may lead to unfavourable financial outcomes. Monitoring of any risks associated with our trading facilities is your responsibility. You should seek independent legal, financial and taxation advice prior to commencing trading activities and should not use our services unless you fully understand the products, and the benefits and risks associated with them. Some of the risks associated with using our bullion trading facilities include:
(i) Unforeseen Circumstances
There is a risk that your money may be delayed or lost due to unforeseen circumstances. HBL will not provide a refund due to catastrophic disasters, terrorist attacks and other unforeseen events that affect our services.
(ii) Market Volatility
Bullion markets are subject to many influences which may result in rapid price fluctuations. Because of this market volatility, no bullion transaction which is available via our trading facilities can be considered “risk free”.
Given the potential levels of volatility in bullion markets, it is recommended that you closely monitor your transactions at all times.
You can eliminate some of the downside risk by the use of stop loss orders. If you use a stop loss order we will enter into a position opposite to your existing position if the price reaches a level specified by you in advance. However, in a volatile market, HBL does not guarantee that the stop loss order will be successful in limiting your downside risk.
(iii) Market Risk
If you enter into a transaction for the purpose of trading an asset, you will be exposed to changes in the relevant asset market. These changes may result in losses to you which are in addition to any gains or losses resulting from fluctuations on bullion markets.
(iv) Leverage Risk
The use of our margin bullion facilities involves a high degree of leverage. You can outlay a relatively small initial margin which secures a significantly larger exposure to an underlying asset. The use of margin trading facilities magnifies the size of your trade, consequently your potential gain and your potential loss is equally magnified. You should closely monitor all of your open positions. If the market moves against you and your initial margin deposit is diminished, we may automatically close out your position by entering into an equal and opposite position once pre-set limits are triggered.
(v) Counterparty Risk
Given you are dealing with us as a counterparty to every transaction, you will have an exposure to us in relation to each transaction. In all cases, you are reliant on our ability to meet our obligations to you under the terms of each transaction. This risk is sometimes described as counterparty risk.
We may choose to limit our exposure to our clients by entering into opposite transactions as principal in the wholesale market.
You are also subject to our credit risk. If our business becomes insolvent we may be unable to meet our obligations to you.
(vi) Transactions in other Jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should enquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.
(vii) Market Information
We may in the future make available to you a broad range of financial information generated internally or obtained from agents, vendors or partners (“Third Party Providers”). This includes, but is not limited to, financial market data, quotes, prices, news, analyst opinions and research reports, graphs or data (”Market Information”).
Market Information provided by us by telephone, or through our website is not intended as advice and we do not endorse or approve the Market Information. We make it available to you only as a service for your own convenience. We and any Third Party Providers do not guarantee the accuracy, timeliness, completeness or correct sequencing of the Market Information or warrant any results from your use or reliance on the Market Information.
Market Information may quickly become unreliable for various reasons including, for example, changes in market conditions or economic circumstances. Neither us nor the Third Party Providers are obligated to update any information or opinions contained in any Market Information and we may discontinue offering Market Information at any time without notice.
(viii) Systems Risks
There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since HBL does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. HBL employs back up systems and contingency plans to minimize the possibility of system failure, and trading via telephone is available.
(ix) Use and Access to our Website
You are responsible for providing and maintaining the means by which you access our website. These may include, without limitation, a personal computer, modem and telephone or other access system available to you.
While the internet is generally reliable, technical problems or other conditions may delay or prevent you from accessing our website. If you are unable to access the internet and thus, our online facility, it may mean you are unable to enter into asset transactions when desired and you may suffer a loss as a result.
(x) Accuracy of Information
The content on this Web site is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. HBL has taken reasonable measures to ensure the accuracy of the information on the Web site. However, we do not guarantee its accuracy, and will not accept liability for any loss or damage that may arise directly or indirectly from the content or your inability to access the Web site, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this Web site.
There is a risk that your money may be delayed or lost due to unforeseen circumstances. HBL will not provide a refund due to catastrophic disasters, terrorist attacks and other unforeseen events that affect our services.
(ii) Market Volatility
Bullion markets are subject to many influences which may result in rapid price fluctuations. Because of this market volatility, no bullion transaction which is available via our trading facilities can be considered “risk free”.
Given the potential levels of volatility in bullion markets, it is recommended that you closely monitor your transactions at all times.
You can eliminate some of the downside risk by the use of stop loss orders. If you use a stop loss order we will enter into a position opposite to your existing position if the price reaches a level specified by you in advance. However, in a volatile market, HBL does not guarantee that the stop loss order will be successful in limiting your downside risk.
(iii) Market Risk
If you enter into a transaction for the purpose of trading an asset, you will be exposed to changes in the relevant asset market. These changes may result in losses to you which are in addition to any gains or losses resulting from fluctuations on bullion markets.
(iv) Leverage Risk
The use of our margin bullion facilities involves a high degree of leverage. You can outlay a relatively small initial margin which secures a significantly larger exposure to an underlying asset. The use of margin trading facilities magnifies the size of your trade, consequently your potential gain and your potential loss is equally magnified. You should closely monitor all of your open positions. If the market moves against you and your initial margin deposit is diminished, we may automatically close out your position by entering into an equal and opposite position once pre-set limits are triggered.
(v) Counterparty Risk
Given you are dealing with us as a counterparty to every transaction, you will have an exposure to us in relation to each transaction. In all cases, you are reliant on our ability to meet our obligations to you under the terms of each transaction. This risk is sometimes described as counterparty risk.
We may choose to limit our exposure to our clients by entering into opposite transactions as principal in the wholesale market.
You are also subject to our credit risk. If our business becomes insolvent we may be unable to meet our obligations to you.
(vi) Transactions in other Jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should enquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.
(vii) Market Information
We may in the future make available to you a broad range of financial information generated internally or obtained from agents, vendors or partners (“Third Party Providers”). This includes, but is not limited to, financial market data, quotes, prices, news, analyst opinions and research reports, graphs or data (”Market Information”).
Market Information provided by us by telephone, or through our website is not intended as advice and we do not endorse or approve the Market Information. We make it available to you only as a service for your own convenience. We and any Third Party Providers do not guarantee the accuracy, timeliness, completeness or correct sequencing of the Market Information or warrant any results from your use or reliance on the Market Information.
Market Information may quickly become unreliable for various reasons including, for example, changes in market conditions or economic circumstances. Neither us nor the Third Party Providers are obligated to update any information or opinions contained in any Market Information and we may discontinue offering Market Information at any time without notice.
(viii) Systems Risks
There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since HBL does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. HBL employs back up systems and contingency plans to minimize the possibility of system failure, and trading via telephone is available.
(ix) Use and Access to our Website
You are responsible for providing and maintaining the means by which you access our website. These may include, without limitation, a personal computer, modem and telephone or other access system available to you.
While the internet is generally reliable, technical problems or other conditions may delay or prevent you from accessing our website. If you are unable to access the internet and thus, our online facility, it may mean you are unable to enter into asset transactions when desired and you may suffer a loss as a result.
(x) Accuracy of Information
The content on this Web site is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. HBL has taken reasonable measures to ensure the accuracy of the information on the Web site. However, we do not guarantee its accuracy, and will not accept liability for any loss or damage that may arise directly or indirectly from the content or your inability to access the Web site, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this Web site.
Terms and Conditions
Our Terms and Conditions (and Additional Terms and Conditions) of the Client’s Agreement (and Additional Client’s Agreement) are provided to you at the beginning of the registration process and must be read and signed before a contract is entered into.
In addition to the terms set out in this RWS, when you use our services you will be bound to HBL’s terms and conditions as amended from time to time. To the extent permitted by law, those terms and conditions will override any variance to terms and conditions described in this document.
The information in this RWS is subject to change from time to time. Where new information arises which affects the information in this RWS, we will either issue a new RWS or a supplementary RWS setting out the updated information. You will also be able to find the updated information by visiting our website or calling us.
All bullion contracts with HBL are agreed verbally or through our online trading platform. The applicable phone conversation or submission of an order on the online trading platform in addition to the terms and conditions constitutes the entire contract between HBL and the client with respect to that particular transaction.
HBL only provides general advice. That means that, unless stated otherwise, it does not take into account your financial objectives, financial situation or needs, and you will need to decide yourself whether the product is appropriate for you. You should read this document in detail to help you form that decision.
There is no cooling off period for any product offered by HBL
You must provide all information to us which we reasonably require of you to comply with any law in Hong Kong or any other country. In particular, you must provide adequate identification before you can use our products or services.
We may delay, block or refuse to enter, adjust or complete a transaction if we believe on reasonable grounds that making the payment may breach any law in Hong Kong or any other country, and we will incur no liability if it does so.
We may disclose any information that you provide to a relevant authority where required by any law in Hong Kong or any other countries.
Unless you have disclosed to us that you are acting in trustee capacity or on behalf of another party, you warrant that you are acting on your own behalf when obtaining this service from HBL.
When you use our services, you are promising that you will not breach any law in Hong Kong or any other country.
We reserve the right to suspend the operation of our website and online facility or any part or sections of them. In such an event, we may, at our sole discretion (with or without notice), close out your open positions at prices we consider fair and reasonable.
We may impose volume limits on client accounts, at our sole discretion.
The costs involved in using bullion trading facilities
Before you begin to trade, you should obtain a clear explanation of all commission, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
(i) The Spread
Bullion transactions incur costs relating to the spread between the bid price and ask price. The “bid price” is the price at which we are willing to buy bullion from clients and the “ask price” is the price at which we are willing to sell to clients. This price difference is called the “spread”. The price difference of this spread will depend on factors such as the size and value of the transaction and prevailing market rates. This spread is paid by you, but is incorporated into the quoted rates and is not an additional charge or fee payable by you above those quoted rates.
(ii) Conversion Cost
If you instruct HBL to effect a transaction denominated in a foreign currency, you will need to convert your Hong Kong dollars or other currencies into the required foreign currency through a bank and deposit the money into your HBL trading account. The bank will charge you for this service.
Alternatively, HBL may convert your funds by first quoting you a spot price. If you choose to accept HBL’s quoted prices, then the transaction will usually take place immediately, upon receipt of your cleared funds. The new currency will be delivered to your HBL account. We will be remunerated by the difference between the rate at which we buy and sell to you the currency (also called the “Spread” – see above).
(iii) Administrative Charges
HBL will charge a fee for the administrative services when they are requested by you or people authorised to trade on your behalf. For details, please contact our Customer Services Department.
The administrative charges will be deducted from your account shortly after the relevant event happens (eg. if you request a particular document from us). These fees are subject to change. There may be other fees charged by third party banks (eg. your own bank) which we are not aware of. We are not responsible for these charges.
(iv) Rollover Interest
You may earn or pay interest, (“rollover interest”) by entering and holding a margined bullion contract overnight. The interest rate you earn or pay depends on the type of contract and size of products that you buy or sell, the interest rate differential between the bullion you have bought/sold and the duration of the rollover period. Interest rates are calculated on an on-going basis and subject to change due to many macroeconomics factors including but not limited to: the monetary policies of central banks and the liquidity in the international banking system. HBL may adjust interest rates at any time based on the market conditions and its own positions in the market without notice to the client.
(v) Commission
A commission may be charged to you in addition to the spread, particularly if you use our services via a third party (see below). If you do use a third party, you may be charged a commission by us, on their behalf, in one of two ways:
Bullion transactions incur costs relating to the spread between the bid price and ask price. The “bid price” is the price at which we are willing to buy bullion from clients and the “ask price” is the price at which we are willing to sell to clients. This price difference is called the “spread”. The price difference of this spread will depend on factors such as the size and value of the transaction and prevailing market rates. This spread is paid by you, but is incorporated into the quoted rates and is not an additional charge or fee payable by you above those quoted rates.
(ii) Conversion Cost
If you instruct HBL to effect a transaction denominated in a foreign currency, you will need to convert your Hong Kong dollars or other currencies into the required foreign currency through a bank and deposit the money into your HBL trading account. The bank will charge you for this service.
Alternatively, HBL may convert your funds by first quoting you a spot price. If you choose to accept HBL’s quoted prices, then the transaction will usually take place immediately, upon receipt of your cleared funds. The new currency will be delivered to your HBL account. We will be remunerated by the difference between the rate at which we buy and sell to you the currency (also called the “Spread” – see above).
(iii) Administrative Charges
HBL will charge a fee for the administrative services when they are requested by you or people authorised to trade on your behalf. For details, please contact our Customer Services Department.
The administrative charges will be deducted from your account shortly after the relevant event happens (eg. if you request a particular document from us). These fees are subject to change. There may be other fees charged by third party banks (eg. your own bank) which we are not aware of. We are not responsible for these charges.
(iv) Rollover Interest
You may earn or pay interest, (“rollover interest”) by entering and holding a margined bullion contract overnight. The interest rate you earn or pay depends on the type of contract and size of products that you buy or sell, the interest rate differential between the bullion you have bought/sold and the duration of the rollover period. Interest rates are calculated on an on-going basis and subject to change due to many macroeconomics factors including but not limited to: the monetary policies of central banks and the liquidity in the international banking system. HBL may adjust interest rates at any time based on the market conditions and its own positions in the market without notice to the client.
(v) Commission
A commission may be charged to you in addition to the spread, particularly if you use our services via a third party (see below). If you do use a third party, you may be charged a commission by us, on their behalf, in one of two ways:
The precise commission which will be payable by you will depend on a number of factors, including the volume of trading you undertake and the products and services you acquire from or through us.
Deposited money & property
The funds in your account will be held in a designated account. Funds deposited by HBL’s clients are segregated from HBL’s money and held in a designated account. You relinquish the right to any interest on funds deposited with HBL. Individual client accounts are not separated from each other but instead are pooled into the one single designated account.
You should familiarise yourself with the protections given to money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.
Stopping or Cancelling a payment
Should you wish to cancel or alter any bullion trading contract you have entered into with HBL, it will be at our complete discretion. If, at your request, we cancel or alter your contract, you may have to pay any costs incurred.
Tax Implications
Bullion transactions can result in significant tax consequences. These are often complex, and may be specific to your circumstances. You should discuss any taxation questions you may have with your tax adviser before using our products or services.
Distribution
This site is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or investments referred to in this Web site is available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of visitors to this Web site to ascertain the terms of and comply with any local law or regulation to which they are subject.
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Copyright © 2010 Hantec Bullion Limited. All rights reserved.
Disclaimer | Privacy Policy | Site Map
Copyright © 2010 Hantec Bullion Limited. All rights reserved.
