Dis document set out di terms and conditions wey specifically concern di risks wey you fit face by using our online services. E be part of di agreement between you and Deriv, and you suppose read am together wit our General Terms of Use for clients. Any defined terms wey dem use for dis risk disclosure go get di meaning wey dem give dem for di General Terms of Use.
Make you know say e no possible for risk disclosure document to contain all di risks and aspects wey dey involved for trading, and dis document no intend to cover everything. At minimum, you suppose consider di risks wey dey inside dis document and, if you choose to start trading relationship wit us, make you continue to dey aware of di risks wey dey involved.
1. General risks
1.1. You fit lose all di money wey you use trade. So, you no suppose trade money wey you no fit afford to lose. Di services wey Deriv dey offer only suitable for you if you fit carry dis losses and if you understand di risks wey dey involved for dis trades.
1.2. Di returns and losses wey you experience go differ based on plenty factors, including Market behaviour, Market movement, and your trade size. Markets fit dey volatile and unpredictable, meaning say prices fit change sharp sharp.
1.3. We dey provide our services on execution-only basis, meaning say we no dey give you financial advice about whether transaction good or any oda investment advice.
1.4. We fit provide information for our Website, emails, or oda platforms like social media. Di only purpose of dis information na to help you and oda traders make independent trading decisions. Dis information no consider your personal circumstances and objectives. You no suppose see am as personal recommendation or research. We recommend say make you do your own research before you make any trading decisions.
1.5. We no dey make any representation or give warranty about di accuracy or completeness of di information wey we provide for our Website, emails, or oda platforms like social media. Information wey we give fit dey accurate and correct when we publish am, but changes for circumstances afta di time wey we publish am fit affect di accuracy of di information. Performance figures wey we quote fit refer to di past, and past performance no dey guarantee future performance or serve as reliable guide to future performance.
1.6. Trading conditions, products, and platforms fit different based on di kontri wey you dey live.
1.7. Di decision to open account and use our products and services na completely your own. E important make you get enough money resources to carry such risks and monitor your positions carefully. You suppose make careful, well-considered, and independent decisions, both when you dey set up account and while you dey use our online services.
1.8. When you trade, you dey exposed to di performance of an underlying or reference instrument or asset (wey fit include foreign exchange, indices, and commodities), and each one get dia own features and risks. Make you ensure say you understand dis risks before you trade wit us.
1.9. International currency or commodity prices dey highly volatile and e hard to predict dem. So, no trade wey you purchase for our system fit be considered as safe trade, whether di payout pass di initial capital amount or not.
1.10. Trading our products no give you any right over di underlying instrument of di transaction. Our products only represent notional value.
1.11. You suppose know say all trades through Deriv dey happen for over-the-counter (OTC) markets. Dis mean say di trades wey we dey offer no dey happen under di rules of any recognised, designated, or regulated exchange. As a result, if you take part for dis trades, e fit expose you to risks wey plenty pass di risks of products wey dem trade under such rules.
1.12. Deriv na both di manufacturer and distributor of im products.
1.13. Make you note say prices for di market fit change very quickly, so di execution price no necessarily go show instantly once dem don fill your order.
1.14. Di value of di money wey you use trade fit go down or go up.
1.15. Na your responsibility to monitor all your positions well and make sure say your exposure match your risk appetite. We no get responsibility to notify you if dem close any of your positions because funds no dey available, for example, because you no get enough margin for your trading account to maintain an open position. During di time wey you get any open contracts, you suppose make sure say you fit access any accounts wey you get with Deriv.
1.16. We fit get access to information wey no dey available to you, don acquire trading positions for prices wey no dey available to you, and get interests wey different from your own interests. We no get any obligation to give you any information wey dey our possession or interfere with your trading or trading decisions in any way.
1.17. You dey responsible for managing your tax and legal affairs, including making any regulatory filings and/or payments wey dem require, and complying with any applicable laws and regulations. We no dey provide regulatory, tax, or legal advice. If you get any doubt about how tax go apply or di liabilities of di products wey dey available on our Website, make you seek independent advice.
1.18. If you no sure about how any of our products dey work or di risks wey concern dem, we recommend say you seek independent advice before you open an account with Deriv. You no suppose start trading until you understand di risks wey dey involved.
2. Risks wey dey for CFD trading
2.1. CFDs na complex financial instruments wey get high risk of losing money quickly because of leverage. You fit record significant losses within short time. You no suppose put more money at risk than wetin you ready to lose.
2.2. Di prices of di underlying instrument wey a CFD trade refer to fit fluctuate quickly and across wide ranges, and e fit even fall reach zero for cryptocurrencies. Unforeseeable events or changes for conditions wey neither you nor us fit control fit cause dis fluctuations. You fit lose di whole amount wey you don put, and for some cases, your loss fit even pass di amounts wey you don put and/or deposit with us.
2.3. Margin dey inversely proportional to leverage, which mean say if you choose lower leverage, di margin wey you require go increase. When you trade a leveraged product, your returns fit be many times higher than di margin, but your losses fit also be many times higher, and you need to know di risk.
2.4. Di system dey fill orders on a first-in, first-out basis, dat mean say na according to di sequence wey dem receive di orders. Di sequence wey dem use fill orders no dey under our control. As a result, e fit hard or impossible for you to close a position at di intended price wey dey your stop order during certain market conditions. For trading conditions wey get high volatility, a stop order no necessarily go limit your losses to di amount wey you intend because market conditions fit make am impossible to execute such orders. Therefore, your exit price no dey certain. In short, a stop order no be guarantee because e no fit work for all market circumstances. Nevertheless, stop orders na useful tool for managing risk.
2.5. Even though we dey try to close your open positions if and when di margin level for your Deriv MT5 real account reach or fall below di Stop Out level, we no dey guarantee say dem go close your open positions under such circumstances. To keep di trade open, you fit need to deposit additional funds so you fit retain enough margin to execute di trade.
2.6. Most CFDs no get fixed maturity date. A CFD position dey mature on di date wey you choose to close an existing open position. Pipo generally see CFDs as products wey no dey suitable for long-term trading. If you keep a CFD open for long time, di costs wey concern am go increase.
2.7. Copy Trading risks
2.7.1. Copy Trading na trading feature wey enable you automatically copy di trades and/or trading strategy of anoda client. Dis feature dey exclusive to Deriv cTrader and e get risks wey follow am, and dis section explain those risks.
2.7.2. When you automate trade execution, dem dey open and close trades for your account without your manual intervention.
2.7.3. When you dey decide to copy a particular trader, account, portfolio, or strategy, e important make you consider your complete financial situation, including your financial commitments. E important make you recognise say if you take part for Copy Trading, e involve high level of speculation, and e get possibility of substantial losses.
2.7.4. Di Copy Trading features wey we dey offer na only for informational purposes. We, together with our partners and dia employees and agents, no dey act as advisers for investment matters or as financial advisers. If you choose to make investment decisions based on di information wey dey available for our websites or through di use of Copy Trading, na at your own risk you dey do so. Neither we nor our partners, dia employees, or agents go dey liable for any losses wey you fit experience.
2.7.5. Before you make any trading decision, e very important make you do thorough research. Na only you get responsibility to decide weda any trade, strategy, product, or service dey suitable for you, based on your trading objectives, personal circumstances, and financial situation. Past performance data, risk scores, statistics, and oda user information wey dey our websites, applications, and platforms no suppose be seen as indicator of future results, and you suppose regard dem as hypothetical, as we explain am well below. We no dey make any representation or guarantee say any account go achieve similar profits or losses like wetin dem show, and di risk score of di user wey you copy fit dey higher. Wen you dey assess di content, portfolio, financial performance information, opinions, or advice of anoda client, e very important make you no assume say di client no get bias, dey independent, or qualify to provide financial information or opinions. We no dey guarantee any order, including di placement of stop orders like Copy Stop Loss. As a result, no matter di entry or closing designation, we no dey guarantee say trades go be executed at di order price or Stop Loss percentage, and e possible make you get losses wey pass di original amount wey you use copy one particular trader.
2.7.6. Di information and social trading features wey dey our websites no get intention to offer, and nobody suppose understand dem as say dem dey provide, any kind advice about trading, tax, or oda financial matter. E important make you no see dis content or features as replacement for professional financial or trading advice. If you decide to carry out transactions based on website content or platform information, or if you choose to copy particular traders or trades, na only you get responsibility for di decisions and transactions, including any consequences wey fit come from dem. Even though individual participants fit offer advice and opinions about trading or carry out trades wey oda pipo later copy, dis interactions na mainly exchanges between parties wey fit no reveal dia identity or wey nobody fit identify.
3. Risks wey dey for Cryptocurrency trading
3.1. Risk from price volatility and liquidity
3.1.1. Virtual assets dey highly speculative and dia prices fit change sharply. Di value of a virtual asset fit change well-well within very short time and fit fall reach zero. Unlike traditional financial instruments, virtual assets no get backing from any government or central bank, and dem no get guarantee of intrinsic value. Past performance no be reliable sign of future results. You suppose only use funds wey you fit afford to lose completely for trading.
3.1.2. You suppose know all di risks wey dey connected to cryptocurrency trading and seek advice from independent financial advisor and/or legal advisor if you get any doubt. Dis Risk Disclosure Statement no be financial, trading, legal, or tax advice. Make you read dis document well before you use any services wey Deriv dey provide.
3.1.3. Virtual asset markets fit get limited liquidity. You fit no fit sell a virtual asset for di price wey you want, or fit no fit sell am at all, especially when market conditions no good or for virtual assets wey pipo no dey trade widely. Market depth, trading volumes, and available counterparties fit change quickly. Deriv no dey guarantee execution for any particular price.
3.1.4. For plenty virtual assets, small number of addresses (whales) hold big part of di total supply. Di value of a virtual asset fit suffer if dis large holders decide to sell big part of wetin dem hold. Dis kind action fit create sudden and serious downward pressure on price, wey fit lead to high volatility and possible losses for oda traders.
3.2. Fraud risk
3.2.1. If cryptocurrency exchanges and wallet providers get compromise or become insolvent and, because of dat, you lose your cryptocurrencies, no guarantee dey say dem, or any funds wey you don put for trading, go return to you. Na your responsibility to store your cryptocurrencies securely. We no go accept any liability for any loss or damage wey come, directly or indirectly, from theft of your cryptocurrency or insolvency of any exchanges and wallet providers wey you use.
3.2.2. Deriv no go ever ask you for your password or private key. If you receive any message wey claim say e come from Deriv and e ask for account credentials, na fraud. You suppose activate all di security features wey dey available for your account, including two-factor authentication (2FA), and use strong, unique passwords.
3.2.3. Na your responsibility to check wetin rules and protections dey apply for your relevant jurisdiction before you put money for trading and/or trade virtual currency and/or trade CFDs wey relate to virtual currency.
3.2.4. You acknowledge and agree say, unless we clearly state otherwise for writing for a particular service, virtual assets wey dey your account no get protection from any insurance policy against loss, theft, or oda risks. Dis include any private commercial insurance we fit hold for our own business operations.
3.3. Legal and regulatory risk
3.3.1. Di legal and regulatory status of virtual assets no clear and e dey different depending on jurisdiction. Changes for laws, regulations, or requirements from regulators fit negatively affect di value, availability, or transferability of virtual assets. Deriv fit need to suspend or stop services for certain clients or for certain jurisdictions because of regulatory developments.
3.4. Conflict of interest
3.4.1. Deriv dey operate as both Broker-Dealer and Exchange Services provider. When e dey operate as principal (B-book), Deriv fit take di opposite side of your trade, wey fit create possible conflict of interest. Deriv get conflicts of interest policy and dey apply best execution obligations to reduce dis conflicts. Details dey available for our Best Execution Policy if you request am.
3.5. Risk wey concern protocol and technology
3.5.1. Virtual assets dey rely on distributed ledger technology (blockchain) and related cryptographic systems. Dis technologies fit get bugs, vulnerabilities, or fit experience technical failures, network congestion, forks or protocol changes. Deriv no fit guarantee di stability or continuous operation of any underlying blockchain network.
3.5.2. Di value and functionality of plenty virtual assets dey depend well-well on di continuous efforts of di founding team, developers, or decentralised community wey dey support di underlying protocol. Di project fit fail to achieve di goals wey e state, di development team fit disband, or di underlying protocol fit no get wide adoption. Problems for a virtual asset design, governance, or economic model (tokenomics) fit make am useless. Any failure like dis fit make di virtual asset lose its utility and most or all of its value, no matter how di wider market dey move.
3.5.3. Cryptocurrency transactions wey dem execute and record for blockchain dey go through decentralised network wey dey operate on im own, without di supervision and oversight of financial services and government regulators. Once dem confirm dis kind transactions for blockchain, nobody fit reverse dem, cancel dem, or recover dem, weda na us, any payment service provider, or any regulatory or government authority. If any loss happen from blockchain transaction wey don complete, including loss wey come from fraud, mistake, or any oda condition, no party fit intervene to reverse di transaction. You suppose carefully verify all transaction details before you start any cryptocurrency transfer.
3.5.4. Some virtual assets dey rely on smart contracts. Any flaw or vulnerability for di code of dis smart contracts fit be exploited, and e fit lead to total loss of di assets wey dem dey control.
3.5.5. Some virtual assets na “stablecoins,” wey dem design to maintain stable value compared to reference asset, like fiat currency. No guarantee dey say dem go maintain dis value. Market conditions, regulatory changes, or problems wit di issuer or im reserves fit make stablecoin lose im peg, wey fit cause serious price fluctuations and possible loss of value.
3.6. Risk wey concern custody and insolvency
3.6.1. Hackers fit target virtual assets. Even though we dey use security measures, including hot and cold wallets, risk dey say dem fit steal from our systems or from your own devices.
3.6.2. You na di person wey responsible for di security of your own wallets and devices wey you dey use access our Services. If you lose your account credentials, or if dem compromise am, you fit permanently lose access to your virtual assets.
3.6.3. If we or any of our third-party custodians become insolvent, you fit no fit recover all your virtual assets, even though we keep client assets separate (see Clause 3 of di General Terms).
3.7. Risks for Margin trading
3.7.1. Margin trading dey involve di use of leverage. Your losses fit pass your initial deposit. Margin trading no suitable for all clients. You no suppose do margin trade if you no understand dis risks.
3.7.2. If you trade virtual assets wit leverage, e dey involve very high level of risk and e no suitable for all clients. Even small market movement wey go against you fit get bigger and more immediate negative effect on your funds.
3.7.3. You fit lose all or part of di funds wey you deposit for your Margin Trading account. Deriv fit ask you for additional virtual assets or funds if di maintenance margin for your account fall below di level wey dem require (a "margin call"). If you no provide di required margin, Deriv reserve di right to sell all or part of di virtual assets for your account without informing you before, if e dey necessary to close positions to prevent more losses or meet margin requirements.
3.7.4. Leverage dey increase both potential profits and potential losses. You fit lose your full initial margin very quickly. Subject to Clause 9 of di General Terms, wia we offer negative balance protection, your losses on a leveraged position go dey limited to di funds wey you don allocate as margin.
3.7.5. If di market move against your position and your margin level fall below our required minimum, we fit force-close your position without informing you before. Dem dey call dis liquidation, and e mean say your losses don happen. For some situations, dem fit also close your position through an Auto-Deleveraging mechanism because of anoda client position, as dem explain for di Trading Terms.
3.8. Collateral wey we accept
3.8.1. Deriv dey accept approved virtual assets and fiat currency as margin collateral according to im Margin Trading Terms and Conditions. Anonymity-Enhanced Cryptocurrencies (AECs) — including privacy coins — no dey accepted as collateral, and dem no dey allowed at all for any activity.
3.9. Tax risk
3.9.1. Di way tax dey apply to virtual assets dey different well-well depending on jurisdiction, and e fit change as time dey go. Na your responsibility to understand and follow your tax obligations for virtual asset transactions. Deriv no dey provide tax advice. You suppose consult qualified tax adviser for your jurisdiction.
3.10. Compliance wit AML/CFT and activities wey dem restrict
3.10.1. Deriv must comply wit anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations. Deriv dey conduct Know Your Customer (KYC), Know Your Transaction (KYT), and sanctions screening for all clients and transactions. All transactions wey equal USD 1,000 or more (or equivalent) must follow Travel Rule requirements (identification and verification of originator and beneficiary information).
3.10.2. Deriv fit need to freeze, suspend, or terminate your account, or report transactions to di Financial Intelligence Unit (FIU), without informing you before where law require am.
4. Options and Multipliers trading risks
4.1. Di prices of di underlying instruments wey Options and Multipliers trades refer to fit change sharply and across wide ranges. Events wey nobody fit predict, or changes for conditions wey neither you nor us fit control, fit cause dis changes. If you trade dis products, e carry high level of risk and fit make you lose your full initial capital quickly.
4.2. Digital Options risks (Rise/Fall, Higher/Lower, Touch/No Touch): Digital Options na "all-or-nothing" contracts wia you dey speculate on weda an asset price go meet one specific condition within time wey dem don set before. If di market move against your prediction by even one tick when di contract expire, di Option go expire out-of-the-money, and you go lose 100% of your initial trade amount or premium.
4.3. Accumulator Options risks: Accumulator Options get payout wey dey grow exponentially for every consecutive tick wey di underlying asset price remain inside range wey dem don set. However, if di price touch or cross dis range boundaries (di slip condition), di trade go end automatically, and you go lose your full accumulated payout together wit your initial trade amount permanently.
4.4. Vanilla Options risks: Vanilla Options allow you to speculate on di direction and size of an asset price movement compared to di strike price wey you choose. If di underlying market price no pass di strike price before or when di fixed expiry time reach, di contract go expire without any value, and you go lose di full premium wey you pay to open di position.
4.5. Multipliers leverage and stop-out risks: Multipliers allow you increase your potential profit wit leverage without di risk of a margin call, because losses dey strictly limited to your initial trade amount. However, if you apply high multipliers, even small and brief price movements wey go against you fit trigger our automatic stop-out mechanism, wey go close di trade immediately and make you lose your full trade amount.
5. Risks wey dey for Deriv P2P
5.1. Deriv P2P na Deriv peer-to-peer exchange service, wey dem create as alternative method to make deposits and withdrawals to and from your Deriv account. Dem no create am for foreign currency exchange or currency speculation. You no suppose treat di use of Deriv P2P as investment activity, and you suppose know say if you do dis kind activity, e carry risk of loss.
5.2. You fully accept di risks wey dey connected to peer-to-peer transactions, including but no limited to credibility risks concerning di counterparties for your transactions and di risk say banks or oda financial intermediaries fit block di transactions. You also accept say once you place a 'sell order', as a seller, you no get di right to cancel di transaction.
5.3. You acknowledge and agree say all Deriv P2P transactions na only between di users wey dey do di transaction. We dey act only as platform provider to make dis interactions easy, and we no be party to, or guarantor for, any transaction. Subject to di Funds and Transfers Terms, and as far as law allow, we no dey responsible for any part of dose transactions.
6. Risks wey no be financial
6.1. Regulatory risk: Regulatory or legal changes for your kontri or for di jurisdiction wey concern Deriv fit affect whether product dey available, leverage limits, your ability to open or maintain positions, or di company right to offer im services. You fit no get prior warning about dis kind changes.
6.2. Operational risk: Any time you use system wey dey run for internet, e get risks, like hardware, software, and internet connection failure. We no control di strength of your signal, how dem dey receive am or route am through di internet, how you configure your equipment, or how reliable di connection be, and we no go dey responsible for any communication failure, distortion, or delay wen you dey use our online services. Make you note say:
6.2.1. Na your responsibility to configure and maintain your devices and internet services correctly.
6.2.2. Any interruption, weakness, or malfunction for your hardware, software, or communications infrastructure fit cause loss or delay for your trading activities.
6.2.3. We no dey responsible for any loss wey happen because communications wey we send to your registered contact details, including emails, notifications, or oda messages, no reach you on time or no reach you at all, as long as we use di contact information wey you give us and make reasonable efforts to deliver di communications. Na your responsibility to keep your contact details up to date and monitor your registered channels.
6.3. Third-party risk: Our business dey depend on external service providers, including banks, payment processors, cloud service providers, and vendors. Delays, failures, breaches, or insolvency from these third parties fit affect your ability to access accounts, funds, or trading services. Even though we dey conduct due diligence and dey continue to oversee these providers as law and regulation require, we no accept liability for losses or damages wey result from such third-party failures, except to di extent wey applicable laws and regulations require.
6.4. Operational digital resilience: Extraordinary events or circumstances wey dey outside our control, such as wars, natural disasters, cyber-attacks, regulatory actions, or major system failures, fit stop us from providing all or part of our services. Even though we get business continuity and disaster recovery plans, no plan fit guarantee uninterrupted access to our services for every situation. We no dey liable for any losses or damages wey come from such extraordinary events.
6.5. Cyber risk: Even though we dey put strong cybersecurity measures in place, no system dey completely safe from threats. Na your responsibility to maintain di security and confidentiality of your account credentials and to make sure say your devices and network dey secure and say dem configure well. If you no do so, e go increase your risk of loss from cyber threats, and we no dey liable for am. Especially:
6.5.1. You accept di risk of loss wey fit happen if unauthorised third parties gain access to your account because your security measures no dey adequate.
6.5.2. We no dey responsible for losses if unauthorised individuals access information wey you send to Deriv because dem transmit am without proper encryption.
6.6. We no dey responsible for losses wey result because you fail to protect your access credentials or respond properly to cyber threats wey you don know about, for example through phishing, malware, or social engineering tactics.
6.7. Scams, impersonation and unauthorised entities: Third parties fit target you through scams or fraudulent communications wey misuse Deriv name, logo, or oda details. Dis fit include clone or fake websites, social-media profiles, emails, messages, or phone calls wey falsely claim say dem represent Deriv or im staff. You suppose know say Deriv no authorise such persons or entities, and Deriv no dey responsible for any loss or damage wey you fit suffer because you deal with dem or follow dia instructions. To reduce di risk of scams, make you access your account only through official Deriv websites and apps, check website addresses well, and use contact details wey we publish for our official website wen you dey communicate with us. You must not share your password, PIN, one-time passcodes, or oda security credentials with anybody. Also, make you dey careful of any communication wey you no ask for wey dey offer guaranteed returns, ask you to transfer funds to accounts or wallets wey nobody clearly identify as accounts or wallets wey belong to Deriv, or pressure you to act quickly. You fit find more information about common scams, how to protect yourself, and wetin to do if you suspect fraudulent activity for di Fraud prevention page for our website. Di link dey here: deriv.com/fraud-prevention.
