Last updated: 29 September 2026
1. Introduction
This Risk Disclosure Policy describes the principal risks of trading the financial products offered by Eight-Cap. It does not list every risk that may arise. Please read it carefully, together with our Terms and Conditions, before opening an account. If you do not fully understand these risks, you should seek independent financial advice before trading.
Trading leveraged products such as contracts for difference (CFDs) on forex, indices, commodities, shares, ETFs and cryptocurrencies carries a high level of risk and may result in the loss of all of your invested capital. You should only trade with money you can afford to lose.
2. Nature of CFDs
A CFD is an agreement to exchange the difference in the value of an underlying asset between the time a position is opened and the time it is closed. When you trade CFDs you do not own, and have no rights to, the underlying asset. CFDs are complex instruments and are traded over the counter with us as your counterparty, not on a regulated exchange.
3. Leverage and margin
Leverage allows you to open positions larger than your deposited funds. While this can magnify gains, it equally magnifies losses. A small market movement against your position can have a large impact on your account, and you may lose your entire deposit quickly.
- You must maintain sufficient margin to support your open positions at all times.
- If your equity falls below the required margin level, you may receive a margin call and your positions may be closed automatically (stop-out) without further notice.
- Margin requirements can change, including during periods of high volatility or ahead of major events.
4. Market volatility
Financial markets can move rapidly and unpredictably due to economic data, central bank decisions, political developments, natural disasters and other events. Volatility can cause prices to change sharply, spreads to widen and liquidity to decline, which may make it difficult to open or close positions at the price you want.
5. Cryptocurrency risk
Crypto-asset prices are exceptionally volatile and can rise or fall significantly within very short periods. The crypto market operates around the clock, is subject to evolving and uncertain regulation, and can be affected by technology failures, security breaches at third-party venues, liquidity shortages and market manipulation. Crypto CFDs may be unsuitable for many retail clients.
6. Gapping and slippage
Prices may jump from one level to another without trading at the levels in between, particularly over weekends, market closures or major announcements. This is known as gapping. As a result, stop-loss orders are not guaranteed and may be executed at a worse price than requested (slippage). Slippage can also occur in fast markets during normal trading hours.
7. Execution and technology risk
Online trading depends on hardware, software, internet connectivity and third-party systems. Delays, interruptions, errors or failures may prevent orders from being placed, modified or executed as intended. We are not responsible for losses arising from failures of your equipment or internet service, or from events outside our reasonable control.
8. Costs and charges
Trading involves costs including spreads, commissions where applicable, overnight financing (swap) charges and currency conversion fees. These costs reduce your returns and can turn a profitable position into a loss. Full details of our charges are available on our website and in your client area. Please make sure you understand them before trading.
9. Currency risk
If you trade instruments denominated in a currency other than your account currency, changes in exchange rates will affect the value of your positions, profits and losses when converted.
10. Counterparty and insolvency risk
When you trade CFDs, Eight-Cap acts as your counterparty. You are therefore exposed to the risk that we, or a third party we rely on such as a bank or liquidity provider, may be unable to meet our obligations. Client funds are held in segregated accounts to reduce this risk, but segregation may not provide full protection in every circumstance.
11. No advice and no guarantees
Eight-Cap provides execution services. Any market commentary, analysis, signals, educational material or other information we provide is for general information only and does not constitute investment, tax or legal advice, nor a recommendation to buy or sell any instrument. Past performance, simulated results and forecasts are not reliable indicators of future results. We do not guarantee profits or protection from losses.
12. Suitability
Before you open an account we may ask about your knowledge, experience and financial situation to assess whether our products are appropriate for you. Our assessment does not relieve you of responsibility for your trading decisions. If we warn you that a product may not be appropriate and you choose to proceed, you do so at your own risk.
13. Negative balance protection
Where applicable, we provide negative balance protection so that your losses from trading do not exceed the funds in your account. This protection does not prevent you from losing your entire balance.
14. Your responsibilities
You are responsible for monitoring your positions and account at all times, for setting risk management orders where appropriate, for keeping your login credentials secure and for ensuring that trading is lawful in your country of residence.
15. Questions
If you have any questions about the risks described in this Policy, contact us at support@eight-cap.io before placing any trade.