Risk Disclosure.

High-risk warning: Trading leveraged products carries a significant risk of loss. You may lose more than your initial deposit if you do not employ adequate risk management. You should not trade with money you cannot afford to lose. This document is not exhaustive — if any provision is unclear, seek independent financial advice before trading.

01Purpose of this disclosure

This Risk Disclosure (“Disclosure”) is provided by Xblu LTD to clients and prospective clients of the XBlu trading platform. It outlines the principal risks associated with trading the financial instruments offered through the Service. It does not constitute investment advice and does not disclose every risk — you should not trade unless you fully understand the nature of the products and the risks you are taking.

02Suitability

The instruments offered on XBlu are not suitable for everyone. They are complex, fast-moving, and require active monitoring. You should only trade if:

• You understand how leverage and margin work;
• You have a clear trading plan, including stop-loss discipline;
• You can afford to lose the capital you commit;
• You appreciate that past performance is not indicative of future results.

03Leverage risk

Leverage allows you to control a position larger than your initial deposit. While this magnifies potential profits, it equally magnifies losses. A small adverse move in the underlying price can wipe out your entire margin in seconds.

Example: With 1:100 leverage, a 1% adverse move on the underlying results in a 100% loss of the margin posted on that trade.

04Market risk

• Volatility: prices can move sharply in response to news, macroeconomic data, geopolitical events or thin liquidity, often outside trading hours.
• Gaps: markets may re-open at a price materially different from the previous close. Stop-loss orders may be filled at a worse price than requested (“slippage”).
• Liquidity: in fast or stressed markets, liquidity can evaporate. Your order may not execute, or may execute at an unfavourable price.

05Cryptocurrency-specific risk

Digital assets are subject to additional risks not present in traditional markets:

• 24/7 trading and extreme volatility — price swings of 20%+ in a day are routine;
• Regulatory uncertainty — rules vary by jurisdiction and can change rapidly;
• Network-level risk — forks, congestion, smart-contract vulnerabilities, custodian failure;
• Limited recovery in case of fraud or theft.

06Counterparty & execution risk

When you trade on XBlu you face Xblu LTD as your counterparty for CFD instruments. We mitigate this through hedging with tier-1 liquidity providers, segregation of client funds, and continuous capital monitoring. However, in the unlikely event of our insolvency, recovery of funds may be partial and subject to applicable insolvency law.

07Technology risk

Electronic trading is dependent on technology. Disruptions can be caused by:

• Internet, hardware or platform outages;
• Power failures or denial-of-service attacks;
• Software bugs or human error.

You should always have a contingency plan, including the ability to contact our dealing desk by phone to close positions.

08Margin calls & forced liquidation

If your account equity falls below the maintenance-margin threshold, we may close your open positions automatically, without notice, in the order our system deems appropriate. You are responsible for monitoring your margin level at all times.

09Currency & conversion risk

If your account currency differs from the currency of the instrument you trade, your profit or loss will be subject to foreign-exchange conversion. Exchange-rate fluctuations may increase or decrease your returns.

10Tax risk

The tax treatment of trading gains and losses depends on your country of residence and personal circumstances. XBlu does not provide tax advice. You should consult a qualified tax adviser before trading.

11Acknowledgement

By opening an account with XBlu, you acknowledge that you have read and understood this Risk Disclosure and accept the risks involved in trading the instruments offered.