Risk disclosure

This document sets out the terms and conditions that specifically deal with the risks you may be exposed to by using our online services. It forms part of the agreement between you and Deriv and should be read in conjunction with our General Terms of Use for clients. Any defined terms used in this risk disclosure shall have the meaning given to them in the General Terms of Use.

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Please note that it is not possible for a risk disclosure document to contain all risks and aspects involved in trading, and this document is not intended to be exhaustive. You should consider the risks set out in this document at a minimum and, if you choose to enter into a trading relationship with us, remain aware of the risks involved.

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1. General risks

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1.1. You may lose all the money you invest. Therefore, you should not trade or invest money that you cannot afford to lose. The services offered by Deriv are only suitable for you if you can afford to bear these losses and if you understand the risks involved in these trades.
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1.2. The returns and losses you experience will vary depending on many factors, including market behaviour, market movement, and your trade size. Markets may be volatile and unpredictable, which means that prices can change rapidly.
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1.3. Our services are provided on an execution-only basis, which means we do not give you financial advice on the merits of a transaction or any other investment advice.
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1.4. We may provide information on our Website, emails, or other platforms such as social media. The only purpose of this information is to help you and other traders make independent investment decisions. This information does not consider your personal circumstances and objectives. It should not be regarded as a personal recommendation or as research. We recommend you do your own research before making any trading decisions.
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1.5. We do not give any representation or warranty as to the accuracy or completeness of the information that we provide on our Website, emails, or other platforms such as social media. Information given may be accurate and correct at the time of publication, but changes in circumstances after the time of publication may impact the accuracy of the information. Performance figures quoted may refer to the past, and past performance is not a guarantee of future performance or a reliable guide to future performance.

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1.6. Trading conditions, products, and platforms may differ depending on your country of residence.
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1.7. The decision to open an account and use our products and services is entirely yours. It is important that you have adequate investment resources to bear such risks and monitor your positions carefully. You should make careful, considered, and independent decisions, both upon setting up an account and while using our online services.
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1.8. When you trade, you are exposed to the performance of an underlying or reference instrument or asset (which may include foreign exchange, indices, and commodities), each of which has its own features and risks. You should make sure you understand these risks before trading with us.

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1.9. International currency or commodity prices are highly volatile and difficult to predict. Therefore, no trade purchased in our system can be considered a safe trade, irrespective of whether the payout exceeds the initial capital amount or not.
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1.10. Trading our products does not give you any right to the underlying instrument of the transaction. Our products represent a notional value only.
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1.11. You should be aware that all trades through Deriv are made on over-the-counter (OTC) markets. This means that the trades we offer do not take place under the rules of any recognised, designated, or regulated exchange. As a result, engaging in these trades may expose you to substantially greater risks than the investments that are traded under such rules.

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1.12. Deriv is both the manufacturer and distributor of its products.
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1.13. Please note that prices in the market can change very quickly, so the execution price may not necessarily be instantly visible once your order has been filled.
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1.14. The value of your investments may go down as well as up.
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1.15. It is your responsibility to monitor all of your positions closely and make sure that your exposure matches your risk appetite. We have no responsibility to notify you of any instances where your positions are closed due to the unavailability of funds (for example, because you do not have sufficient margin in your trading account to maintain an open position). During the period that you have any open contracts, you should ensure that you have the ability to access any accounts you hold with Deriv.
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1.16. We may have access to information not available to you, acquired trading positions at prices not available to you, and interests different from your interests. We are not under any obligation to provide you with any information in our possession or interfere in your trading or trading decisions in any way.
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1.17. You are responsible for managing your tax and legal affairs, including making any required regulatory filings and/or payments and complying with any applicable laws and regulations. We do not provide any regulatory, tax, or legal advice. If you are in any doubt about the tax treatment or liabilities of the products available on our Website, please seek independent advice.

1.18. If you are uncertain about how any of our products work or the relevant risks, we recommend you seek independent advice prior to opening an account with Deriv. You should not commence trading until you understand the risks involved.

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2. CFD trading risks

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2.1. CFDs are complex financial instruments with a high risk of losing money rapidly due to leverage. Significant losses may be generated over a short period of time. You should not risk more than you are prepared to lose.
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2.2. The prices of the underlying instrument that a CFD trade refers to may fluctuate rapidly and over wide ranges, even dropping to zero in the case of cryptocurrencies. These fluctuations may be caused by unforeseeable events or changes in conditions that neither you nor we can control. You may lose the entire sum that you have invested, and in some cases, your loss may even exceed the sums you have invested and/or deposited with us. 
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2.3. Margin is inversely proportional to leverage, which means if you choose a lower leverage, your required margin will increase. When you invest in a leveraged product, your returns can be multiple times higher than the margin, but your losses can also be multiple times higher, and you need to be aware of the risk.

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2.4. The system fills orders on a first-in, first-out basis, i.e. based on the sequence of the orders received. The sequence in which orders are filled is beyond our control. As a result, you may find it difficult or impossible to close a position at the intended price stipulated in your stop order during certain market conditions. In highly volatile trading conditions, a stop order will not necessarily limit your losses to the amounts you intended because market conditions may make it impossible to execute such orders. Therefore, your exit price is not certain. In short, a stop order is not a guarantee because it cannot operate in all market circumstances. Nevertheless, stop orders are a useful risk management tool.

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2.5. While we try to close out your open positions if and when the margin level for your Deriv MT5 real account reaches or falls below the stop-out level, we do not guarantee that your open positions will be closed in such circumstances. To keep the trade open, you may need to deposit additional funds so as to retain sufficient margin for executing the trade.
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2.6. Most CFDs have no set maturity date. A CFD position matures on the date you choose to close an existing open position. CFDs are typically regarded as unsuitable for long-term investments. If you hold a CFD open over a long period of time, the associated costs increase.

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2.7. Copy trading risks

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2.7.1. Copy trading is a trading feature that enables you to automatically copy another client's trades and/or trading strategy. This feature is exclusive to Deriv cTrader and comes with inherent risks, addressed in this section.

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2.7.2. When you automate trading execution, trades are opened and closed in your account without your manual intervention.

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2.7.3. When deciding to copy a specific trader, account, portfolio, or strategy, it is essential to take into account your complete financial situation, including financial commitments. It is important to recognise that participating in copy trading involves a high level of speculation, and there is a potential for substantial losses.

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2.7.4. The copy trading features we offer are intended solely for informational purposes. We, along with our partners and their employees and agents, do not serve as investment or financial advisers. If you choose to make investment decisions based on the information available on our websites or through the use of copy trading, you do so at your own risk. Neither we nor our partners, their employees, or agents will be held liable for any losses you may experience.

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2.7.5. Before making any investment decisions, it is imperative that you conduct thorough research. Only you are responsible for determining whether an investment, strategy, product, or service is suitable for you based on your investment objectives, personal circumstances, and financial situation. Past performance data, risk scores, statistics, and other user information found on our websites, applications, and platforms should not be taken as indicators of future results and should be regarded as hypothetical, as described in detail below. We make no representation or guarantee that any account will achieve similar profits or losses as shown, and the risk score of a copied user may indeed be higher. When evaluating the content, portfolio, financial performance information, opinions, or advice of another client, it is crucial not to assume that the client is unbiased, independent, or qualified to provide financial information or opinions. We do not provide any guarantee regarding any order, including the placement of stop orders such as Copy Stop Loss. Consequently, irrespective of the entry or closing designation, we do not guarantee that trades will be executed at the order price/stop loss percentage, and it is possible to incur losses greater than the original amount used to copy a particular trader.

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2.7.6. The information and social trading features provided on our websites are not intended to offer, nor should they be interpreted as providing, any form of investment, tax, or other financial advice. It is important not to consider such content or features as a substitute for professional financial or investment advice. If you decide to engage in transactions based on website content or platform information, or if you choose to copy specific traders or trades, you hold the sole responsibility for the decisions and transactions, as well as any resulting consequences. While individual participants may offer investment advice and opinions or execute trades that others subsequently copy, these interactions are essentially exchanges between parties that may be anonymous or unidentifiable.

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3. Cryptocurrency trading risks

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3.1. Price volatility and liquidity risk

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3.1.1. Virtual assets are highly speculative and subject to extreme price fluctuations. The value of a virtual asset can change significantly within very short time periods and may fall to zero. Unlike traditional financial instruments, virtual assets are not backed by any government or central bank and do not have intrinsic value guarantees. Past performance is not a reliable indicator of future results. You should only invest funds that you can afford to lose in their entirety.

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3.1.2. You should be aware of all the risks associated with cryptocurrency trading and seek advice from an independent financial advisor and/or legal advisor if you have any doubts. This Risk Disclosure Statement does not constitute financial, investment, legal, or tax advice. Please read this document carefully before using any services provided by Deriv.

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3.1.3. Virtual asset markets may have limited liquidity. You may be unable to sell a virtual asset at your desired price or at all, particularly in adverse market conditions or for less widely traded virtual assets. Market depth, trading volumes, and available counterparties may change rapidly. Deriv does not guarantee execution at any particular price.

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3.1.4. For many virtual assets, a significant portion of the total supply is held by a small number of addresses (whales). The value of a virtual asset can be adversely affected if these large holders decide to sell a significant portion of their holdings. Such actions can create sudden and extreme downward price pressure, leading to high volatility and potential losses for other investors.

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3.2. Fraud risk

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3.2.1. If cryptocurrency exchanges and wallet providers become compromised or become insolvent and, as a result, you lose your cryptocurrencies, there is no guarantee that they, or any funds you may have invested, will be returned to you. It is your responsibility to store your cryptocurrencies securely. We will not accept any liability for any loss or damage that arises, directly or indirectly, from the theft of your cryptocurrency or the insolvency of any exchanges and wallet providers that you use.

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3.2.2. Deriv will never ask you for your password or private key. If you receive a communication purporting to be from Deriv asking for account credentials, it is fraudulent. You should enable all available security features on your account, including two-factor authentication (2FA), and use strong, unique passwords.

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3.2.3. It is your responsibility to check what rules and protections apply in your relevant jurisdiction before investing and/or trading in virtual currency and/or trading on CFDs relating to virtual currency. 

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3.2.4. You acknowledge and agree that, unless we explicitly state otherwise in writing for a specific service, virtual assets held in your account are not protected by any insurance policy against loss, theft, or other risks. This includes any private commercial insurance we may hold for our own business operations.

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3.3. Legal and regulatory risk

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3.3.1. The legal and regulatory status of virtual assets is uncertain and varies by jurisdiction. Changes in laws, regulations, or regulator requirements may adversely affect the value, availability, or transferability of virtual assets. Deriv may be required to suspend or terminate services to certain clients or in certain jurisdictions as a result of regulatory developments.

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3.4. Conflict of interest

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3.4.1. Deriv operates as both a Broker-Dealer and Exchange Services provider. When operating as principal (B-book), Deriv may take the opposing side of your trade, creating a potential conflict of interest. Deriv maintains a conflicts of interest policy and applies best execution obligations to mitigate these conflicts. Details are available in our Best Execution Policy upon request.

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3.5. Protocol and technology risk

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3.5.1. Virtual assets rely on distributed ledger technology (blockchain) and associated cryptographic systems. These technologies may contain bugs, vulnerabilities, or be subject to technical failures, network congestion, forks or protocol changes. Deriv cannot guarantee the stability or continuous operation of any underlying blockchain network.

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3.5.2. The value and functionality of many virtual assets are highly dependent on the ongoing efforts of the founding team, developers, or a decentralised community that supports the underlying protocol. The project may fail to achieve its stated goals, the development team may disband, or the underlying protocol may not be widely adopted. Flaws in a virtual asset's design, governance, or economic model (tokenomics) could render it useless. Any such failures could cause the virtual asset to lose its utility and most or all of its value, regardless of broader market movements.

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3.5.3. Cryptocurrency transactions that are executed and recorded on a blockchain are processed on a decentralised network that operates independently of the supervision and oversight of financial services and government regulators. Once confirmed on the blockchain, such transactions are irreversible and cannot be cancelled, reversed, or recovered, whether by us, by any payment service provider, or by any regulatory or government authority. In the event of any loss arising from a completed blockchain transaction, including loss resulting from fraud, error, or any other circumstance, no party is able to intervene to undo the transaction. You should verify all transaction details carefully before initiating any cryptocurrency transfer.

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3.5.4. Some virtual assets rely on smart contracts. Flaws or vulnerabilities in the code of these smart contracts can be exploited, potentially leading to a total loss of the assets they govern.

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3.5.5. Certain virtual assets are "stablecoins," designed to maintain a stable value relative to a reference asset, such as a fiat currency. There is no guarantee that they will maintain this value. Market conditions, regulatory changes, or issues with the issuer or its reserves can cause a stablecoin to lose its peg, resulting in significant price fluctuations and potential loss of value.

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3.6. Custody and insolvency risk

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3.6.1. Virtual assets can be a target for hackers. While we implement security measures, including the use of hot and cold wallets, there is a risk of theft from our systems or from your own devices.

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3.6.2. You are responsible for the security of your own wallets and devices used to access our Services. If you lose your account credentials or if they are compromised, you may permanently lose access to your virtual assets.

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3.6.3. If we or any of our third-party custodians become insolvent, there is a risk you may not be able to recover your virtual assets in full, despite our segregation of client assets (see Clause 3 of the General Terms).

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3.7. Margin trading risks

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3.7.1. Margin trading involves the use of leverage. Losses may exceed your initial deposit. Margin trading is not suitable for all clients. You should not margin trade if you do not understand these risks.

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3.7.2. Trading virtual assets with leverage involves a very high degree of risk and is not suitable for all clients. A relatively small, adverse market movement will have a proportionately larger and more immediate negative impact on your funds.

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3.7.3. You may lose all or part of the funds deposited in your Margin Trading account. Deriv may request additional virtual assets or funds from you if the maintenance margin on your account falls below the required level (a "margin call"). If you do not provide the required margin, Deriv reserves the right to sell all or part of the virtual assets in your account without prior notice to you if it is necessary to close positions to prevent further losses or to meet margin requirements.

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3.7.4. Leverage magnifies both potential profits and potential losses. You can lose your entire initial margin very quickly. Subject to Clause 9 of the General Terms, where we offer negative balance protection, your losses on a leveraged position will be limited to the funds you have allocated as margin.

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3.7.5. If the market moves against your position and your margin level falls below our required minimum, we may force-close your position without prior notice. This is known as liquidation, and results in the realisation of your losses. In certain circumstances, your position may also be closed through an Auto-Deleveraging mechanism as a result of another client's position, as described in the Trading Terms.

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3.8. Acceptable collateral

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3.8.1. Deriv accepts approved virtual assets and fiat currency as margin collateral in accordance with its Margin Trading Terms and Conditions. Anonymity-Enhanced Cryptocurrencies (AECs) — including privacy coins — are not accepted as collateral and are absolutely prohibited across all activities.

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3.9. Tax risk

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3.9.1. The tax treatment of virtual assets varies significantly by jurisdiction and may change over time. It is your responsibility to understand and comply with your tax obligations in respect of virtual asset transactions. Deriv does not provide tax advice. You should consult a qualified tax adviser in your jurisdiction.

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3.10. AML/CFT compliance and restricted activities

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3.10.1. Deriv is required to comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations. Deriv conducts Know Your Customer (KYC), Know Your Transaction (KYT), and sanctions screening on all clients and transactions. All transactions equal to or exceeding AED 3,500 are subject to Travel Rule compliance (identification and verification of originator and beneficiary information). 

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3.10.2. Deriv may be required to freeze, suspend, or terminate your account, or to report transactions to the Financial Intelligence Unit (FIU), without prior notice to you where required by law.

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4. Options and Multipliers trading risks

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4.1. The prices of the underlying instruments that Options and Multipliers trades refer to may fluctuate rapidly and over wide ranges. These fluctuations may be caused by unforeseeable events or changes in conditions that neither you nor we can control. Trading these products carries a high level of risk and may result in the rapid and total loss of your invested capital.

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4.2. Digital Options risks (Rise/Fall, Higher/Lower, Touch/No Touch): Digital Options are "all-or-nothing" contracts where you speculate on whether an asset's price will satisfy a specific condition within a predetermined timeframe. If the market moves against your prediction by even a single tick at expiration, the Option will expire out-of-the-money, resulting in a 100% loss of your initial stake or premium.

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4.3. Accumulator Options risks: Accumulator Options feature an exponentially growing payout for every consecutive tick that the underlying asset's price remains within a predefined range. However, if the price touches or breaches these range boundaries (the slip condition), the trade terminates automatically, and your entire accumulated payout alongside your initial stake is permanently forfeited.

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4.4. Vanilla Options risks: Vanilla Options allow you to speculate on the direction and magnitude of an asset's price movement relative to a chosen strike price. If the underlying market price fails to surpass the strike price before or at the fixed expiry time, the contract expires completely worthless, and you will lose the entire premium paid to open the position.

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4.5. Multipliers leverage and stop-out risks: Multipliers enable you to amplify your potential profit using leverage without the risk of a margin call, as losses are strictly capped at your initial stake. However, the application of high multipliers means that even minor, brief adverse price movements can trigger our automatic stop-out mechanism, instantly closing the trade and realising a total loss of your stake.

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5. Deriv P2P risks

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5.1. Deriv P2P is Deriv’s peer-to-peer exchange service, which is intended as an alternative method to make deposits and withdrawals to and from your Deriv account. It is not intended for foreign currency exchange or currency speculation. You should not treat the use of Deriv P2P as an investment activity, and you should be aware that engaging in such activity carries the risk of loss.

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5.2. You fully accept the risks associated with peer-to-peer transactions, including but not limited to the credibility risks concerning the counterparties to your transactions and the risk of obstructions by banks or other financial intermediaries.  You further accept that once a ‘sell order’ has been placed, as a seller, you are not entitled to cancel the transaction. 

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5.3. You acknowledge and agree that all Deriv P2P transactions are solely between the transacting users. We act only as a platform provider to facilitate these interactions and are not a party to, or a guarantor of, any transaction. Subject to the Funds and Transfers Terms, and to the fullest extent permitted by law, we are not responsible for any aspect of those transactions.

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6. Non-financial risks

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6.1. Regulatory risk: Regulatory or legal changes in your country or Deriv's jurisdiction may impact product availability, leverage limits, your ability to open or maintain positions, or the company's right to offer its services. You may not have prior warning of such changes.

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6.2. Operational risk: Using an internet-based system always involves risks, such as hardware, software, and internet connection failure. We do not control your signal power, its reception or routing via the internet, the configuration of your equipment, or the reliability of its connection, and we shall not be held responsible for any communication failures, distortions, or delays when using our online services. Please note:

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6.2.1. You are responsible for the correct configuration and maintenance of your devices and internet services.

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6.2.2. Any interruption, weakness, or malfunction in your hardware, software, or communications infrastructure may result in loss or trading delays.

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6.2.3. We bear no responsibility for any loss that arises as a result of communications (including emails, notifications, or other messages) sent by us to your registered contact details that are not received by you (in a timely manner or at all), provided we have used the contact information you have supplied and made reasonable efforts to deliver such communications. You are responsible for keeping your contact details up to date and monitoring your registered channels.

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6.3. Third-party risk: Our business depends on external service providers, including banks, payment processors, cloud service providers, and vendors. Delays, failures, breaches, or insolvency of these third parties may impact your ability to access accounts, funds, or trading services. While we conduct due diligence and ongoing oversight of these providers as required by law and regulation, we do not accept liability for losses or damages resulting from such third-party failures, except to the extent required under applicable laws and regulations.

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6.4. Operational digital resilience: Extraordinary events or circumstances beyond our control (such as wars, natural disasters, cyber-attacks, regulatory actions, or major system failures) may prevent us from providing all or part of our services. While we maintain business continuity and disaster recovery plans, no plan can guarantee uninterrupted access to our services in every situation. We are not liable for any losses or damages arising from such extraordinary events.

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6.5. Cyber risk: While we implement robust cybersecurity measures, no system is entirely immune to threats. You are responsible for maintaining the security and confidentiality of your account credentials and for ensuring the security and proper configuration of your devices and network. Failure to do so increases your risk of loss from cyber threats, for which we are not liable. In particular:

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6.5.1. You accept the risk of loss arising if unauthorised third parties gain access to your account due to inadequate security measures on your part.

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6.5.2. We bear no responsibility for losses if information you send to Deriv is accessed by unauthorised individuals because it was transmitted without proper encryption.

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6.6. We are not responsible for losses resulting from your failure to protect your access credentials or to properly respond to known cyber threats (for example, through phishing, malware, or social engineering tactics).

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6.7. Scams, impersonation and unauthorised entities: You may be targeted by third parties through scams or fraudulent communications that misuse Deriv's name, logo or other details, including clone or fake websites, social-media profiles, emails, messages or phone calls that falsely claim to represent Deriv or its staff. You should be aware that such persons or entities are not authorised by Deriv and that Deriv is not responsible for any loss or damage you may suffer as a result of dealing with them or following their instructions. To reduce the risk of scams, you should access your account only through official Deriv websites and apps, verify website addresses carefully, and use contact details published on our official website when communicating with us. You must not share your password, PIN, one-time passcodes or other security credentials with anyone, and you should be cautious of any unsolicited communication offering guaranteed returns, asking you to transfer funds to accounts or wallets not clearly identified as belonging to Deriv, or pressuring you to act quickly. Further information on common scams, how to protect yourself and what to do if you suspect fraudulent activity is available on the Fraud prevention page on our website, linked at deriv.com/fraud-prevention.

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