The purpose of the Risk Disclosure Statement is to provide the Clientappropriate guidance on the nature and risks of the specific types offinancial instruments offered by the Company.

The Client acknowledges, understands and agrees with the risks, disclosedbelow.

Statement

1. Trading is very speculative and risky. Contracts for Difference (‘CFDs’)are complex financial products, most of which have no set maturity date.Therefore, a CFD position matures on the date you choose to close anexisting open position. CFDs, which are leveraged products, incur a highlevel of risk and can result the loss of all of your invested capital. Trading inCFDs is highly speculative and therefore is suitable only for those Clientswho:

a. Understand and are willing to assume the economic, legal and otherrisks involved;

b. Are financially able to assume the risk of losses up to their investedcapital; c. Understand and are knowledgeable about CFDs and theunderlying assets.

The Client represents, warrants and agrees that he/she understands theserisks, is willing and able, financially and otherwise, to assume the risks oftrading CFD’s. Before deciding to trade, a client should ensure that heunderstands the risks involved and take into account his level ofexperience, and if necessary seek independent advice. The Client isresponsible for all the losses suffered in his account. Consequently, theClient should be prepared to lose all the invested capital.

2. When trading CFD you need to take into the consideration the followingmain risks:

a. CFD3’s are leveraged products; therefore, they carry a higher level ofrisk to your capital compared to other financial products and may result in the loss of all of your invested capital. However, it should be noted thatthe Company operates on a ‘negative balance protection’ basis, this meansthat you cannot lose more than your initial investment;

b. The value of CFD may increase or decrease depending on marketconditions, and the potential for profit should be balanced alongside thesignificant losses that may be generated over a very short period of timewhen trading CFD;

c. CFD trading, unlike traditional trading, enables you to trade the marketsby paying only a small fraction of the total trade value. However, this entailsthat a relatively small market movement may lead to a proportionately much larger movement in the value of your position;

d. The Client needs to make sure that he has sufficient margin in his tradingaccount, at all times, in order to maintain an open position. In addition, theClient needs to continuously monitor any open positions in order to avoidpositions being closed due to the unavailability of funds; it should be notedthat the Company is not responsible for notifying you for any such instances.

3. Prices are set by the Company and may be different from prices reportedelsewhere. The Company will provide the prices to be used in trading andvaluation of the Client’s positions in accordance with its Trading Policies and Procedures. As such, they may not directly correspond to real timemarket levels at the point in time at which the sale of options occurs.

4. Orders and Immediate Execution. Market orders executed over thephone through the Company’s Dealing Room and are completed when theCompany’s analyst says “deal” or “done” following the Client’s placing of anorder. Upon such confirmation of the manager, the Client has bought or sold and cannot cancel the order. By placing orders through the Company’sDealing Room, the Client agrees to such immediate execution and acceptsthe risk of this immediate execution feature.

5. The Company is not an adviser or a fiduciary to a customer. Where theCompany provides generic market recommendations, such genericrecommendations do not constitute a personal recommendation orinvestment advice and do not consider any of the Client’s personalcircumstances or investment objectives, nor is it an offer to trade, or thesolicitation of an offer to trade. Each decision taken by the Client to tradewith the Company and each decision as to whether a transaction isappropriate for the Client is an independent decision made by the Client.The Company is not acting as an advisor. The Client agrees that theCompany has no fiduciary duty to the Client and no liability in connectionwith and is not responsible for any liabilities, claims, damages, costs andexpenses, including attorneys’ fees, incurred in connection with the Clientfollowing the Company’s generic trading recommendations and taking ornot taking any action based upon any generic recommendation orinformation provided by the Company.

6. Recommendations are not guaranteed. The generic marketrecommendations provided by the Company are based solely on thejudgment of its personnel and should be considered as such. The Client acknowledges that it enters intoany transactions relying on his/her own judgment. Any marketrecommendations provided are generic only and may or may not beconsistent with the market positions or intentions of the Company and/or itsaffiliates. The generic market recommendations of the Company are basedupon information believed to be reliable, but the Company cannot and doesnot guarantee the accuracy or represent that following such genericrecommendations will reduce or eliminate the risk inherent in trading.

7. No guarantees of profit. There are no guarantees of profit nor of avoidinglosses when trading. The Client has received no such guarantees from theCompany or from any of its representatives. The Client is aware of the risksinherent in trading and is financially able to bear such risks and withstandany losses incurred.

8. Risks

a. Technical Risks – Internet Trading. When the Client trades online (via theinternet), the Company shall not be liable for any claims, losses, damages,costs or expenses, caused, directly or indirectly, by any malfunction orfailure of any transmission, communication system, computer facility ortrading software, whether belonging to the Company, the Client, anyexchange or any settlement or clearing system.

b. Market Conditions. The Client acknowledges that under abnormal marketconditions the Company may be unable to execute the Client’s instructionsand therefore the period during which the Instructions and Requests areexecuted may be extended.

c. Communication.

– The Company bears no responsibility for any loss that arises as a result ofdelayed or unreceived communication sent to the Client by the Company.

– The Company bears no responsibility for any loss that arises as a result ofencrypted information sent to the Client by the Company, that has beenaccessed via unauthorised means.

– The Company bears no responsibility for any unreceived or unread internal messages sent to the Client through the trading platform(s); in casea message is not received or read within 3 (three) calendar days, themessage gets automatically deleted.

– The Client is solely responsible for the privacy of any informationcontained within the communication received by the Company.

– The Company has no responsibility regarding any loss as a result ofauthorized/unauthorised access to all information between the Companyand the Client by third parties.

d. Taxes. The Client shall make sure that investing in CFDs is not subject totax and/or any other duty in the Client’s jurisdiction. The Client isresponsible for any taxes and/or any other duty which may accrue in respect of his trades.

9. Costs, Swap Value and Other Considerations. Prior to investing in CFDsthe Client needs to be aware of any costs involved, such as spread(s),commission(s) and swap(s). For the purposes of this Statement, a swapmeans the interest added or deducted for holding a position openovernight. The swap for a position opened on Wednesday and held open overnight is three times that of other days; the reason forthis is that the value date of a trade held open overnight on a Wednesdaywould normally be Saturday, but since banks are closed, the value date isMonday and the client incurs an extra 2 (two) days of interest. From Fridayto Monday swap is charged once.

10. Expiry System Errors. In case the expiry system fails for any reason, itwill auto detect un-expired options and expire them in accordance to therates stored historically in the archive. If any position did not expire on time,the system will issue a notification to Risk Manager, detailing all positioninformation, in order to be resolved manually.

In case of any difficulties, please contact our customer support.