Understanding CFDs
Contracts For Difference are leveraged products that mirror the price of an underlying asset. Below: how they work, what makes them risky, and why we built a different product.
What is a CFD?
A Contract For Difference is an agreement to exchange the difference in price of an asset between when the contract opens and closes. You don't own the underlying — you're betting on its direction. Leverage of 1:30, 1:100, or higher is common, meaning a 1% adverse move can wipe out 30-100% of your margin.
Regulators in the EU, UK, and Australia have repeatedly published statistics showing 70-85% of retail CFD traders lose money. The combination of leverage, overnight funding fees, and bid/ask spreads erodes capital quickly even when directional calls are correct.
Why we built subscriptions and stakes instead
Leveraged speculation isn't an investment thesis — it's a tax on the patient capital provided by long-term holders. We built AureliaFalcon Global Trades for the other side of that trade: investors who want predictable USDT yield from locked-tenure products, with principal returned on schedule, no margin calls, no leverage, no liquidation risk.
- No leverage — your principal is exactly what you committed.
- Predictable payout cadence — published rate, fixed cycle.
- Principal returned at unlock — no liquidation event ever takes it.
- USDT in, USDT out — no FX conversion noise on entry or exit.