Risk Disclosure

1. General Warning and Acknowledgement of Risk

Commodity futures trading involves substantial risk and is not suitable for every person. You may incur significant financial losses in a short period, including the loss of all funds available in your trading account. Depending on the contract, your positions, applicable margin requirements, market movements, and contractual obligations, your losses may exceed the margin initially deposited.

You should participate in futures trading only if you understand how futures contracts operate, how profits and losses arise, how margin requirements work, and the obligations associated with the contracts you trade.

Your decision to trade should take into account your financial circumstances, investment objectives, trading experience, knowledge of the relevant markets, ability to bear losses, and emotional tolerance for financial risk.

This document identifies important risks but does not describe every risk that may arise in commodity futures trading. Reading or signing it does not eliminate those risks or guarantee any particular trading outcome.

PMEX operates under the applicable regulatory framework in Pakistan. Regulation and exchange supervision do not guarantee profits, prevent all losses, or eliminate market, operational, counterparty, or technology risks.

2. Leverage and Exposure to Market Movements

In futures trading, the margin required to maintain a position may be substantially smaller than the total economic exposure represented by that position. This creates leverage: a relatively small movement in the underlying commodity price may produce a large gain or loss relative to the margin available in your account.

For example, a price movement that appears small in percentage terms may cause a substantial loss relative to your deposited margin. Adverse price movements can rapidly reduce your available funds and may cause your account to fall below the applicable margin requirements.

Leverage magnifies losses as well as gains. You must not assume that the amount initially deposited represents the maximum amount you can lose.

Before opening a position, you should understand the contract size, tick value, quotation currency, settlement method, margin requirements, applicable charges, and the potential financial impact of adverse price movements.

3. Margin Requirements and Additional Deposits

Futures trading requires customers to maintain the margin prescribed by PMEX and applicable account and contract requirements. Margin requirements may change in response to market volatility, exchange policies, regulatory requirements, or other circumstances.

You may be required to provide additional funds or reduce your positions when your available margin becomes insufficient. Such requirements may arise at short notice and may need to be met within the time limits communicated by PMEX or Titan Capital in accordance with applicable rules.

You are responsible for monitoring your account balance, margin utilization, open positions, and any margin-related notifications. You should maintain sufficient funds to meet your obligations without relying on the assumption that you will have time to arrange additional money after an adverse market movement.

Failure to meet applicable margin requirements may result in the reduction or liquidation of some or all of your open positions, subject to applicable rules and contractual arrangements. Liquidation may occur at an unfavourable price and may not prevent further losses or eliminate any outstanding amount you owe.

4. Daily Mark-to-Market Settlement

Commodity futures positions are subject to the applicable valuation and settlement procedures prescribed by PMEX. Open positions may be marked to market using the settlement prices determined under the relevant exchange rules.

If the market moves against your position, the resulting loss may reduce your account balance and create a requirement to pay variation margin or other amounts due under the applicable settlement and margin framework.

You must meet these obligations within the prescribed time limits. Failure to do so may lead to restrictions on trading, liquidation of positions, or other measures permitted under PMEX rules and the applicable customer agreement.

You should not assume that an unrealized loss can remain unpaid indefinitely or that you can always wait for the market to recover.

5. Forced Liquidation and Outstanding Liabilities

Where permitted under the applicable PMEX rules, customer agreement, and risk-management procedures, positions may be reduced or closed if margin requirements are not met, account exposure becomes unacceptable, or other circumstances require action to manage risk.

In fast-moving markets, liquidation may occur at a price materially different from the price at which a position was opened, the price displayed on your screen, or the price you expected to receive.

Liquidation may not be possible immediately during market disruption, illiquidity, trading halts, or technical failures. Consequently, closing a position does not necessarily limit the loss to the amount of margin initially deposited.

You remain responsible for financial obligations properly arising from your transactions under the applicable rules and agreements, including any outstanding deficit, fees, charges, or settlement obligations. The treatment and recovery of any outstanding amount will be governed by applicable law, PMEX rules, and the relevant customer agreement.

6. Market Volatility, Liquidity, and Price Gaps

Commodity prices may be affected by a wide range of factors, including global supply and demand, geopolitical developments, economic data, central bank decisions, currency movements, interest rates, weather conditions, inventories, production decisions, government policies, and unexpected events.

Prices may change rapidly, and a market may move significantly between successive transactions. Prices may also open substantially above or below previous closing levels following news or events occurring outside normal trading hours.

There may be insufficient buyers or sellers to execute your order at the desired price. Bid-ask spreads may widen, available liquidity may decline, and your order may be partially executed, delayed, or remain unexecuted.

Under such conditions, you may be unable to close a position when desired or may be required to accept a materially less favourable price.

Historical price movements and past trading performance do not reliably predict future results.

7. Trading Suspensions, Price Limits, and Exchange Measures

PMEX may apply trading controls, price limits, circuit breakers, trading suspensions, changes to margin requirements, position limits, or other measures in accordance with its rules and applicable regulatory requirements.

Such measures may affect your ability to open, modify, or close positions and may change the financial resources required to maintain existing positions.

Exchange measures may apply to positions that you already hold. You may therefore need to deposit additional funds, reduce exposure, or take other action within the applicable time limits.

You should not assume that trading will remain continuously available or that an existing position can always be closed at the prevailing displayed price.

8. Stop-Loss Orders and Other Risk-Management Strategies

Stop-loss orders, stop-limit orders, price alerts, hedging strategies, and other risk-management techniques may help manage exposure, but they do not guarantee that losses will be limited to a specified amount.

Depending on the order type, market conditions, liquidity, price gaps, and exchange or platform functionality, an order may be triggered without being executed, executed at a different price, partially executed, or not executed at all.

A stop-limit order may remain unexecuted if the market moves beyond the permitted limit price. A stop-loss instruction may not protect you against a sudden or substantial price movement.

Strategies involving multiple positions, spreads, or related contracts also carry risk. Different contracts may not move together as expected, and liquidity or pricing relationships may change unexpectedly.

You remain responsible for understanding the operation and limitations of the orders and strategies you choose to use.

9. Customer Funds and Deposits

Customer funds intended for PMEX trading must be deposited through the channels and into the accounts designated for that purpose under applicable PMEX procedures. Customers should transfer funds only from their own registered bank accounts and must follow the applicable verification and payment requirements.

Titan Capital does not intend to accept customer trading deposits into its own corporate bank account or receive money under private arrangements promising fixed, assured, or guaranteed returns.

You should not pay trading deposits to a broker's employee, representative, personal bank account, or any other unauthorized recipient. You should independently verify the beneficiary and payment instructions before transferring funds.

Keep evidence of deposits, withdrawals, account statements, transaction confirmations, and communications relating to your trading account.

The handling, safeguarding, reconciliation, and recovery of customer funds are subject to the applicable PMEX rules, banking arrangements, and relevant laws. Exchange regulation should not be interpreted as an unconditional guarantee against every possible loss, delay, dispute, or recovery shortfall.

If you notice an unauthorized transaction, discrepancy, or suspicious payment request, promptly contact Titan Capital through its verified official communication channels and follow the applicable PMEX complaint procedures.

10. Electronic Trading Platforms and Technology Risks

Electronic trading depends on computer systems, internet connectivity, communication networks, market data feeds, order-routing facilities, exchange infrastructure, and other technology services.

These systems may experience interruptions, delays, outages, software errors, connectivity problems, cyber incidents, or other technical failures. Such events may prevent you from viewing accurate or timely information, entering orders, modifying orders, receiving confirmations, or closing positions when intended.

Displayed prices, account information, and order status may be delayed or temporarily inconsistent during a disruption. An order submitted through a platform should not be assumed to have been accepted or executed until its status has been appropriately confirmed.

The availability and operation of trading facilities are subject to the applicable terms and limitations of PMEX, the relevant platform providers, and other service providers. Any allocation of responsibility or limitation of liability will be determined by applicable law and the relevant agreements.

You should maintain appropriate access to official account statements and transaction confirmations and contact the appropriate support channel if you suspect a system or order-status problem.

11. Contract Specifications, Expiry, and Delivery Obligations

Each futures contract has its own specifications, which may include contract size, trading hours, minimum price movement, quotation method, expiry date, settlement method, margin requirements, and other conditions.

Depending on the particular contract, settlement may be financial, physical, or otherwise conducted in accordance with the applicable contract specifications and PMEX rules.

If a contract involves physical delivery, additional obligations may apply concerning delivery notices, locations, quality, documentation, storage, transportation, timing, costs, or other requirements.

You must understand the settlement and expiry arrangements of every contract before entering a position. Do not assume that all commodity futures contracts are cash-settled or that a position can always be carried beyond its expiry date.

Failure to comply with applicable expiry, settlement, or delivery obligations may result in additional costs, penalties, or other consequences under the relevant rules.

12. Commission, Fees, Taxes, and Other Charges

Trading may involve brokerage commission, exchange charges, clearing and settlement charges, taxes, duties, levies, and other applicable costs.

These charges may apply to transactions, account activity, or settlement and may change in accordance with applicable schedules, regulations, or contractual terms.

You should obtain and understand Titan Capital's applicable commission and charges schedule before commencing trading. Ask for clarification if any charge or calculation is unclear.

Transaction costs reduce net profits and may increase net losses. Frequent trading may result in substantial cumulative costs even where individual transactions involve relatively small price movements.

13. Trading Decisions and No Guarantee of Returns

You are responsible for evaluating the risks of your trading decisions and determining whether a particular transaction is suitable for your financial circumstances and objectives.

No person can guarantee a profit or assure you that a particular commodity price, trading strategy, market direction, or return will materialize.

You should not make trading decisions solely on the basis of rumours, social media posts, unofficial tips, past performance, or statements suggesting that losses are impossible or that profits are assured.

Any market information or educational material made available to you should not be interpreted as a guarantee of future results. Where Titan Capital provides market information or other assistance, the nature and scope of that service will be determined by the relevant agreement and applicable regulatory requirements.

You should never trade with money required for essential living expenses, emergency needs, debt repayments, or other financial commitments that you cannot afford to lose.

14. Account Types and Applicable Trading Conditions

Titan Capital may facilitate account opening for eligible customers under the account categories permitted by PMEX and applicable regulations.

The applicable margin, leverage, investment limits, trading permissions, and other risk controls may differ between account types.

Customers using a Sahulat Account must comply with the limits and conditions applicable to that account. Customers using a Regular PMEX Trading Account must comply with the margin requirements, trading limits, and other conditions applicable to that account and the contracts traded.

The terms applicable to your account will be determined by the relevant PMEX rules, account documentation, and applicable instructions. You must not assume that conditions applying to one account category also apply to another.

15. Account Security, Monitoring, and Customer Responsibilities

You are responsible for providing accurate and complete information during account opening and for promptly notifying Titan Capital of relevant changes to your information.

You should protect your trading credentials, use appropriate security measures, and never share passwords, one-time passcodes, or other authentication information with unauthorized persons.

You should regularly review account statements, order confirmations, transaction records, margin information, and notifications. Report any suspected unauthorized access, transaction discrepancy, or other irregularity promptly.

You should understand the trading platform and relevant contract specifications before placing orders. If you do not understand a transaction, its potential exposure, or the obligations it creates, you should seek clarification before proceeding.

16. Complaints and Dispute Resolution

If you have a complaint concerning your account, transactions, funds, or services provided by Titan Capital, you should submit it through the company's official complaint-handling channels and retain the relevant correspondence and supporting documents.

Titan Capital will handle complaints in accordance with its applicable procedures, PMEX requirements, and relevant law.

Where a complaint is not resolved satisfactorily, you may use the complaint or grievance procedures available through PMEX and, where appropriate, the SECP, subject to the applicable requirements and jurisdiction of those authorities.

Any arbitration, adjudication, or other dispute-resolution process will be governed by the applicable law, PMEX rules, and relevant contractual provisions.

Nothing in this document is intended to remove any right or remedy that cannot lawfully be excluded.

17. Final Risk Warning

Commodity futures trading is a high-risk activity. You may lose some or all of your trading funds, and in certain circumstances you may incur liabilities exceeding the margin initially deposited.

Market volatility, leverage, margin requirements, liquidity conditions, trading restrictions, settlement obligations, technology failures, and transaction costs can materially affect your results.

You should not commence trading until you have read and understood this document, reviewed the applicable account-opening documents and contract specifications, and satisfied yourself that you can financially and emotionally bear the risks involved.

If you do not understand these risks or cannot afford the potential losses, you should not trade commodity futures contracts.