INVESTMENT RISK STATEMENT – Valid from December 11, 2023
1. General Provisions
1.1 This Statement (“Statement”) informs the Client of the most important, but not all, risks associated with trading Financial Instruments and Fractional Shares in the over-the-counter market (OTC) and OMI (in the Regulated Market).
1.2 This Statement outlines essential risks, but not all types of risks related to trading financial instruments.
1.3 This document is an integral part of the Rules regarding services for executing buy/sell orders, maintaining property rights accounts, and cash accounts by Wall Street US LLC. Capitalized terms have the meanings specified in the Rules.
1.1 This Statement (“Statement”) informs the Client of the most important, but not all, risks associated with trading Financial Instruments and Fractional Shares in the over-the-counter market (OTC) and OMI (in the Regulated Market).
1.2 This Statement outlines essential risks, but not all types of risks related to trading financial instruments.
1.3 This document is an integral part of the Rules regarding services for executing buy/sell orders, maintaining property rights accounts, and cash accounts by Wall Street US LLC. Capitalized terms have the meanings specified in the Rules.
2. Some Risks Associated with Trading Financial Instruments
2.1 Trading financial instruments based on the value of shares, futures, currencies, commodities, stock indices, or any other underlying carries specific market risk.
2.2 Specific market risks for a particular organized market instrument, as well as its underlying, include political risk, economic policy changes, and other factors that can significantly and permanently affect trading and valuation conditions.
2.3 In periods of high volatility or limited market liquidity, Wall Street US LLC may increase spreads without notice. Typically, this occurs on Sunday market openings (11:00 pm UTC). Spreads return to normal as volatility and liquidity stabilize, usually within 10–20 minutes.
2.4 For financial instruments with variable or floating spreads chosen by the Client, section 2.3 does not apply. Floating spreads reflect the market price of the underlying and are part of market risk.
2.5 Shares are issued indefinitely. Foreign securities may carry additional rights under local regulations.
2.6 Standard market order confirmations occur within 90 seconds, except in cases of high volatility, low liquidity, or events beyond our control.
2.1 Trading financial instruments based on the value of shares, futures, currencies, commodities, stock indices, or any other underlying carries specific market risk.
2.2 Specific market risks for a particular organized market instrument, as well as its underlying, include political risk, economic policy changes, and other factors that can significantly and permanently affect trading and valuation conditions.
2.3 In periods of high volatility or limited market liquidity, Wall Street US LLC may increase spreads without notice. Typically, this occurs on Sunday market openings (11:00 pm UTC). Spreads return to normal as volatility and liquidity stabilize, usually within 10–20 minutes.
2.4 For financial instruments with variable or floating spreads chosen by the Client, section 2.3 does not apply. Floating spreads reflect the market price of the underlying and are part of market risk.
2.5 Shares are issued indefinitely. Foreign securities may carry additional rights under local regulations.
2.6 Standard market order confirmations occur within 90 seconds, except in cases of high volatility, low liquidity, or events beyond our control.
3. Leverage Risk (CFDs)
3.1 CFDs use significant leverage; the notional value may greatly exceed the deposit, causing small price changes to have a major impact on the Client’s Account Balance.
3.2 Clients must monitor open positions and invest only funds they can afford to lose.
3.3 Margin covers only part of the transaction, potentially leading to high gains or significant losses. Losses may exceed the Client’s account resources under extreme conditions.
3.1 CFDs use significant leverage; the notional value may greatly exceed the deposit, causing small price changes to have a major impact on the Client’s Account Balance.
3.2 Clients must monitor open positions and invest only funds they can afford to lose.
3.3 Margin covers only part of the transaction, potentially leading to high gains or significant losses. Losses may exceed the Client’s account resources under extreme conditions.
4. Price Volatility and Liquidity Risk
4.1 Investing in CFDs exposes Clients to market risk due to price volatility, especially with leverage. Crypto-based CFDs often carry very high volatility.
4.2 Gaps occur when the price jumps between levels, with no intermediate values.
4.3 Clients may face liquidity risk in extreme market conditions, requiring additional costs or delayed access to investments.
4.1 Investing in CFDs exposes Clients to market risk due to price volatility, especially with leverage. Crypto-based CFDs often carry very high volatility.
4.2 Gaps occur when the price jumps between levels, with no intermediate values.
4.3 Clients may face liquidity risk in extreme market conditions, requiring additional costs or delayed access to investments.
5. Risks Related to Organized Market Instruments (Shares)
5.1 Price volatility risks arise from company-specific, market, or financial results factors, as well as capitalization and free float.
5.2 Liquidity risk occurs when it’s difficult to buy or sell securities without affecting market prices.
5.3 Exchange rate risk applies when trading in currencies different from the account currency.
5.4 Gaps and unexecuted pending orders may result from sudden price changes.
5.1 Price volatility risks arise from company-specific, market, or financial results factors, as well as capitalization and free float.
5.2 Liquidity risk occurs when it’s difficult to buy or sell securities without affecting market prices.
5.3 Exchange rate risk applies when trading in currencies different from the account currency.
5.4 Gaps and unexecuted pending orders may result from sudden price changes.
6. Risks Related to ETFs
6.1 Tracking errors may occur; ETF returns may deviate from the reference index.
6.2 Market risk depends on the overall market situation.
6.3 Currency risk applies when ETFs are in a different currency.
6.4 Gaps and unexecuted pending orders apply as with shares.
6.1 Tracking errors may occur; ETF returns may deviate from the reference index.
6.2 Market risk depends on the overall market situation.
6.3 Currency risk applies when ETFs are in a different currency.
6.4 Gaps and unexecuted pending orders apply as with shares.
7. Risks Related to Fractional Shares
7.1 Fractional Shares grant the Client a fiduciary right to a fraction of an OMI.
7.2 Transactions in Fractional Shares establish fiduciary relations and are not considered executed in an Organized Market.
7.3 Risks are equivalent to investing in the underlying OMI, including issuer risk, political/legal changes, currency risk, and unspecified risks.
7.4 Historical performance does not guarantee future results.
7.5 Fractional Shares are not direct ownership of the instrument; Wall Street US LLC remains the formal owner.
7.6 The fiduciary nature exposes Clients to Wall Street US LLC credit risk.
7.7 Market risk exposure mirrors the underlying OMI.
7.8–7.15 Additional terms explain rights, ownership, and potential losses.
7.1 Fractional Shares grant the Client a fiduciary right to a fraction of an OMI.
7.2 Transactions in Fractional Shares establish fiduciary relations and are not considered executed in an Organized Market.
7.3 Risks are equivalent to investing in the underlying OMI, including issuer risk, political/legal changes, currency risk, and unspecified risks.
7.4 Historical performance does not guarantee future results.
7.5 Fractional Shares are not direct ownership of the instrument; Wall Street US LLC remains the formal owner.
7.6 The fiduciary nature exposes Clients to Wall Street US LLC credit risk.
7.7 Market risk exposure mirrors the underlying OMI.
7.8–7.15 Additional terms explain rights, ownership, and potential losses.
8. Tax Risk
8.1 Local tax regulations may affect actual returns.
8.2 Wall Street US LLC does not provide tax advice.
8.1 Local tax regulations may affect actual returns.
8.2 Wall Street US LLC does not provide tax advice.
9–21. Other Risks and Conditions
These sections cover currency translation, execution delays, margin requirements, force majeure, stop-out mechanisms, account maintenance, technology limitations, Beta services, additional information, and final declarations. Clients acknowledge all risks and confirm understanding before signing the agreement.
Wall Street US LLC
www.wallstreetus.com
www.wallstreetus.com
Registered in New York, Manhattan, Reg. No. 0244909. Authorized by the National Futures Association (NFA) Reg. No. 0244909.
In case of discrepancy between Spanish and English versions, the English version prevails.