Last Updated: May 17, 2025

IMPORTANT: Investing involves significant risk of loss and is not suitable for all investors. Investors should carefully consider their investment objectives, risks, charges, and expenses before investing. Past performance is not indicative of future results.

1. Introduction

This Risk Disclosure Statement is provided by XR7 Trading LLC ("XR7 Trading," "we," "our," or "us") to help you understand the risks associated with our investment services and products. This document cannot and does not disclose all risks and other significant aspects of trading in financial instruments. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources.

2. General Investment Risks

2.1 Market Risk

The price or value of an investment will depend on fluctuations in the financial markets that are outside our control. Past performance is not a reliable indicator of future performance. The value of investments and the income from them may go down as well as up and you may not get back the amount originally invested.

2.2 Liquidity Risk

Liquidity risk exists when a particular investment is difficult to purchase or sell quickly enough to prevent or minimize a loss or to capture an opportunity. If a security becomes illiquid, you may not be able to sell your investment at an advantageous time or price.

2.3 Credit Risk

Credit risk is the risk that the issuer of a security or the counterparty to an investment will not meet its obligations. This risk is primarily associated with fixed-income securities, such as bonds and money market funds, but may also affect other investments.

2.4 Concentration Risk

If your portfolio is concentrated in a particular country, region, asset class, or sector, its value may be adversely affected by events specifically impacting that country, region, asset class, or sector.

2.5 Currency Risk

Investments in international securities may be subject to currency fluctuations, which may cause the value of your investment to decrease or increase regardless of the performance of the security itself.

2.6 Operational Risk

Operational risk, such as system failures or breaches, may disrupt our services, potentially leading to financial loss. We work to minimize operational risk, but it cannot be eliminated.

3. Specific Investment Risks

3.1 Equity Investments

Equity investments are subject to market fluctuations and may lose value rapidly and substantially. Equity investments may be affected by factors specific to an issuer, industry, or the general economic and political environment.

3.2 Commodity Trading

Commodity trading involves a high degree of risk, including substantial volatility and potential for rapid and large losses. The commodities markets are generally less regulated than the securities markets, which may lead to higher volatility and less investor protection.

3.3 International Markets

International investments involve special risks, including currency fluctuations, economic instability, and political developments. These risks may be enhanced in emerging markets, which may have less established legal, political, business, and social frameworks to support securities markets.

3.4 Algorithmic Trading

Algorithmic trading systems may be subject to system errors, design flaws, or unexpected market conditions that could lead to losses. The complexity of algorithmic trading models can make it difficult to identify and correct problems quickly.

4. Technology and System Risks

Our services rely on technology systems and electronic communications networks. Trading through an electronic system may differ from trading in a conventional or open market environment. Risks associated with electronic trading include:

  • Hardware or software failures
  • System connectivity issues
  • Delayed or failed trade executions
  • Cyber security breaches
  • Market data inaccuracies

During periods of high market volatility, the systems may experience delays or disruptions. In such cases, XR7 Trading is not responsible for any consequences resulting from system failures or abnormal market conditions.

5. Regulatory and Legal Risks

Changes in laws, regulations, and regulatory policies may adversely affect the value of your investments or the ability to invest in certain assets. These changes may occur in the United States or in foreign jurisdictions, and may impact:

  • Tax treatment of investments
  • Trading rules and restrictions
  • Reporting requirements
  • Market access
  • Investment restrictions

XR7 Trading cannot guarantee that regulatory changes will not adversely impact your investments.

6. Leverage and Margin Trading Risks

Trading on margin or with leverage involves borrowing funds to increase potential returns and can significantly increase risk. The potential for greater returns comes with the potential for greater losses that may exceed your initial investment. Margin requirements may change rapidly due to market volatility, and you may be required to provide additional funds with little or no notice.

7. Volatility Risk

Market volatility refers to the rate at which the price of a security increases or decreases. Higher market volatility generally means that security prices are changing rapidly, which may result in increased risk and potential for significant losses. During periods of volatility, market quotations may not accurately reflect the true market value of securities.

8. Risk of Using Trading Algorithms

Our services may utilize sophisticated trading algorithms and quantitative models to make investment decisions. These algorithms and models:

  • May have inherent limitations or flaws
  • May not perform as expected in all market conditions
  • Rely on historical data that may not predict future market behavior
  • Could be adversely affected by market disruptions
  • May be subject to technological failures

XR7 Trading regularly reviews and updates its algorithms and models, but cannot guarantee their performance in all market conditions.

9. Counterparty Risk

Counterparty risk is the risk that the other party in a transaction will not fulfill its contractual obligations. This risk is particularly relevant in over-the-counter (OTC) markets, where the trade is directly between two parties rather than through an exchange. The failure of a counterparty to fulfill its obligations could result in financial loss.

10. Risk of Loss of Investment

All investments involve risk, and the possibility exists that you could lose all or part of your investment. Even investments that appear to be low risk or conservative in nature can result in loss of principal. Before investing, you should carefully consider your investment objectives, level of experience, and risk appetite.

You should be aware that you may sustain a total loss of the funds that you deposit with XR7 Trading to establish or maintain a position in the financial markets.

11. Tax Implications

Trading and investment activities may have tax consequences that will depend on your individual financial circumstances and may differ according to your residence jurisdiction. XR7 Trading does not provide tax advice. You should consult a tax professional to understand the tax implications of your investment activities.

12. Past Performance Not Indicative of Future Results

The past performance of any investment, trading strategy, or methodology is not necessarily indicative of future results. XR7 Trading cannot guarantee any particular level of performance or that any investment or trading strategy will be profitable.

Historical performance data should be viewed as hypothetical and not as an indicator of future performance. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

13. Risk Management

While XR7 Trading employs various risk management strategies, these measures cannot eliminate all risks or guarantee against loss. You should not rely solely on XR7 Trading's risk management practices to protect your investments.

We encourage you to:

  • Diversify your investments across different asset classes, sectors, and geographic regions
  • Only invest funds that you can afford to lose
  • Regularly review your investment objectives and risk tolerance
  • Stay informed about market conditions and factors that may affect your investments
  • Consider consulting with an independent financial advisor

14. Suitability

XR7 Trading's services may not be suitable for all investors. You should carefully consider your investment objectives, level of experience, and risk appetite before deciding to trade with XR7 Trading. If you have any doubts, you should seek advice from an independent financial advisor.

15. Changes to Risk Disclosure

XR7 Trading may update this Risk Disclosure Statement from time to time to reflect changes in market conditions, regulations, or our services. We will notify you of any material changes to this document by posting the updated version on our website. You should review this document periodically to ensure you are aware of the risks associated with our services.

16. Additional Information

If you have any questions about the risks associated with our services or require additional information, please contact:

XR7 Trading LLC
550 West Jackson Blvd
Chicago, IL 60661
Email: [email protected]
Phone: +1 (312) 555-7800

BY USING XR7 TRADING'S SERVICES, YOU ACKNOWLEDGE THAT YOU HAVE READ AND UNDERSTOOD THIS RISK DISCLOSURE STATEMENT AND ACCEPT ALL RISKS ASSOCIATED WITH INVESTING.