{
  "title": "FXFunds risk categories",
  "last_checked": "2026-10-19",
  "risks": [
    {
      "id": "market",
      "name": "Market risk",
      "consideration": "Prices can move quickly and losses may exceed expectations.",
      "example": "A currency pair gaps over a weekend and opens far from Friday's close.",
      "register_ids": [
        "REG-02",
        "REG-03"
      ],
      "what_to_check": "Risk disclosure / risk warning; Product or contract specifications"
    },
    {
      "id": "leverage",
      "name": "Leverage risk",
      "consideration": "Leverage amplifies both gains and losses.",
      "example": "At 1:100 leverage, a 1% adverse move equals 100% of the margin used.",
      "register_ids": [
        "REG-04",
        "REG-02"
      ],
      "what_to_check": "Leverage and margin terms; Risk disclosure / risk warning"
    },
    {
      "id": "digital-asset",
      "name": "Digital asset risk",
      "consideration": "Cryptocurrency prices and liquidity can change sharply, 24 hours a day.",
      "example": "A token falls 20% overnight while traditional markets are closed.",
      "register_ids": [
        "REG-03",
        "REG-09"
      ],
      "what_to_check": "Product or contract specifications; Crypto deposit and withdrawal instructions"
    },
    {
      "id": "stablecoin",
      "name": "Stablecoin risk",
      "consideration": "Peg stability and redemption depend on the issuer and market conditions.",
      "example": "USDT briefly traded below US$1 during market stress in May 2022.",
      "register_ids": [
        "REG-09"
      ],
      "what_to_check": "Crypto deposit and withdrawal instructions"
    },
    {
      "id": "blockchain",
      "name": "Blockchain risk",
      "consideration": "Transfers are generally irreversible and can be lost on an incompatible network.",
      "example": "USDT sent on Ethereum to an address expecting Tron cannot be credited normally.",
      "register_ids": [
        "REG-09"
      ],
      "what_to_check": "Crypto deposit and withdrawal instructions"
    },
    {
      "id": "operational",
      "name": "Operational risk",
      "consideration": "Outages, maintenance and processing delays can affect trading and payments.",
      "example": "A withdrawal is delayed during a platform or network outage.",
      "register_ids": [
        "REG-10",
        "REG-07"
      ],
      "what_to_check": "Terms and conditions / client agreement; Deposit and withdrawal terms"
    },
    {
      "id": "counterparty",
      "name": "Counterparty risk",
      "consideration": "You depend on the operator's ability to honour trades and return funds.",
      "example": "The operator acts as the counterparty to client trades.",
      "register_ids": [
        "REG-06",
        "REG-11"
      ],
      "what_to_check": "Conflicts of interest policy; Operator identity"
    },
    {
      "id": "regulatory",
      "name": "Regulatory risk",
      "consideration": "Legal requirements and protections differ by jurisdiction and product.",
      "example": "A product available in one country may be restricted in another.",
      "register_ids": [
        "REG-12",
        "REG-10"
      ],
      "what_to_check": "Licence and regulator disclosure; Terms and conditions / client agreement"
    }
  ]
}