Risk Disclosure

PT Smartin Advisor Sistem presents this Risk Disclosure Document to you, as the Client, in accordance with Law Number 32 of 1997 concerning Commodity Futures Trading, as amended by Law Number 10 of 2011, and its derivative regulations.

This document is provided to inform you of the potential for losses or profits in Commodity Futures Trading. Therefore, you must exercise caution in selecting and accepting advisory services from a Futures Advisor.

The points of risk disclosure are explained as follows:

  1. Potential for Substantial Loss: You may suffer losses in a large amount within a short period. The losses experienced may result in the loss of the entire Margin or additional Margin placed with your Futures Broker. The amount of monetary loss may exceed the initial amount you deposited (Initial Margin) to your Futures Broker.

  2. Automated Systems Risk: All systems, robots, and tools in Commodity Futures Trading contracts still hold the same potential for substantial losses. No trading strategy can guarantee the elimination of risk.

  3. Losses Exceeding Expectations: Commodity Futures Trading contracts carry risks and the possibility of losses far greater than the estimated amount of money. You should not risk funds that you are not prepared to lose.

  4. Strategy Risks: All Commodity Futures Trading contracts carry risk, and no trading strategy can guarantee the elimination of such risk. Scalping and single-entry strategies still carry risk. Engaging in Commodity Futures Trading contracts requires knowledge regarding said contracts.

  5. System Failure: You may suffer losses caused by information system failures. As with any financial transaction, if an information system failure occurs, it may cause a discrepancy between the planned order and the actual execution.

  6. Liquidity Risk: During illiquid market conditions caused by unusual trading activities in Commodity Futures Trading contracts, you may need to liquidate positions to realize profits or prevent higher losses.

  7. Leverage Risk: Losses can be caused by the leverage mechanism and the nature of Commodity Futures Trading contract transactions. You may feel the impact of losses rapidly. Both profits and losses will be directly deducted from your account margin by the futures broker.

  8. No Guarantees of Profit: Be wary of statements claiming that you will definitely earn huge profits from Commodity Futures Trading contracts. Although current investments may yield profits, such outcomes are uncertain, and at some point, may result in losses. Like other financial products, there is no such thing as “guaranteed profit.”

  9. Risk Capital Only: You should not risk funds that you are not prepared to lose, such as retirement savings, healthcare funds, emergency funds, funds set aside for education or home ownership, funds obtained from educational loans or mortgages, or funds used to meet daily living necessities.

  10. Commodity Futures Trading contracts contain general risks such as:

  • Market Risk: The potential for loss arising from commodity price movements in the market that do not favor the contract position held.

  • Regulatory Compliance Risk: Futures Advisors must comply with applicable rules and regulations in Futures Trading. If a Futures Advisor violates these rules or regulations, they may be subject to sanctions.

  • Inaccurate Information Risk: The Futures Advisor may provide advice based on inaccurate or incomplete information, which may cause the client to make wrong decisions that are potentially detrimental.

  • Conflict of Interest Risk: The Futures Advisor may have their own interests that conflict with the client’s interests. This may cause the Futures Advisor to provide advice that is not fully objective or aligned with the client’s investment needs and goals.

  • Capital Loss Risk: Advice given by a Futures Advisor is not always correct or accurate. If a Futures Advisor provides incorrect advice causing the Client to lose capital, the Futures Advisor cannot be held responsible for such losses.

  • Liquidity Risk: The potential for loss due to difficulty in selling or closing contract positions because of a lack of buyers or an inactive market.

  • Operational Risk: The potential for loss arising from system failures, human error, technological disruptions, or ineffective internal processes.

Therefore, it is important for you to understand the specific risks of each type of Commodity Futures Trading contract and manage risk carefully to achieve your investment goals.

CLOSING

  1. The Futures Advisor will always observe and comply with applicable rules and regulations, as well as be transparent in reporting their activities and performance to clients and regulators.

  2. You, acting as the Client, must read carefully and understand the Risk Disclosure Agreement with the Futures Advisor before conducting Commodity Futures Trading Contract transactions in accordance with recommendations from the Futures Advisor Representative.

  3. This statement cannot contain in detail all risks or other important aspects regarding Commodity Futures Trading contracts. Therefore, you as the client must study Commodity Futures Trading contract activities carefully before deciding to transact.

  4. This Risk Disclosure Document is made in the Indonesian Language.

I hereby make this statement consciously and without coercion from any party.

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