Risk Disclosure

The following statement is furnished pursuant to Commodity Futures Trading Commission (“CFTC”) Regulation 1.55(c). This brief statement does not disclose all of the risks and other significant aspects of trading any financial derivatives (such as but not limited to, futures, Forex, CFDs and options). In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading financial derivatives is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

The risk of loss in trading any futures contracts, CFDs and foreign currency can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points:

1. You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the markets, and you may incur losses beyond these amounts. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
2. The funds you deposit with a broker/provider or futures commission merchant (FCM) are not protected by insurance in the event of the bankruptcy or insolvency of the broker/provider/FCM, or in the event your funds are misappropriated.
3. The funds you deposit with a broker/provider/FCM for trading futures or forex positions are not protected by the Securities Investor Protection Corporation even if the futures commission merchant is registered with the Securities and Exchange Commission as a broker or dealer.  For traders outside of the United States, you must always assume that your funds are not protected by any regulatory body, unless explicitly stated.
4. The funds you deposit with a broker/provider/FCM are generally not guaranteed or insured by a derivatives clearing organization in the event of the bankruptcy or insolvency of the broker/provider/FCM, or if the broker/provider/FCM is otherwise unable to refund your funds. Certain derivatives clearing organizations, however, may have programs that provide limited insurance to customers. You should inquire of your broker/provider/FCM whether your funds will be insured by a derivatives clearing organization and you should understand the benefits and limitations of such insurance programs.
5. The funds you deposit with a broker/provider/FCM may not be held by broker/provider/FCM in a separate account for your individual benefit. Brokers/providers/FCMs commingle the funds received from customers in one or more accounts and you may be exposed to losses incurred by other customers if the broker/provider/FCM does not have sufficient capital to cover such other customers’ trading losses.
6. The funds you deposit with a broker/provider/FCM may be invested by the broker/provider/FCM in certain types of financial instruments that have been approved by the Commission for the purpose of such investments. For US clients permitted investments are listed in Commission Regulation 1.25 and include: U.S. government securities; municipal securities; money market mutual funds; and certain corporate notes and bonds. The broker/provider/FCM may retain the interest and other earnings realised from its investment of customer funds. You should be familiar with the types of financial instruments that a broker/provider/FCM may invest customer funds in.
7. Brokers/providers/FCMs are permitted to deposit customer funds with affiliated entities, such as affiliated banks, securities brokers or dealers, or foreign brokers. You should inquire as to whether your broker/provider/FCM deposits funds with affiliates and assess whether such deposits by the broker/provider/FCM with its affiliates increases the risks to your funds.
8. You should consult your broker/provider/FCM concerning the nature of the protections available to safeguard funds or property deposited for your account.
9. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit (“limit move”).
10. All futures, forex, options and derivatives positions involve risk, and a “spread” position may not be less risky than an outright “long” or “short” position.
11. The high degree of leverage (gearing) that is often obtainable when trading derivatives is because the small margin requirements can work against you as well as for you. Leverage (gearing) can lead to large losses as well as gains.
12. In addition to the risks noted in the paragraphs enumerated above, you should be familiar with the broker/provider/FCM you select to entrust your funds for trading futures positions. In the United States as of July 12, 2014, the Commodity Futures Trading Commission requires each futures commission merchant to make publicly available on its Web site firm specific disclosures and financial information to assist you with your assessment and selection of a futures commission merchant. Information regarding this for a broker/provider/FCM may be obtained by visiting the websites of the respective broker/provider/FCM
13. ALL OF THE POINTS NOTED ABOVE APPLY TO ALL FUTURES AND FOREX TRADING WHETHER FOREIGN OR DOMESTIC. IN ADDITION, IF YOU ARE CONTEMPLATING TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS, YOU SHOULD BE AWARE OF THE FOLLOWING ADDITIONAL RISKS:
14. Foreign futures transactions involve executing and clearing trades on a foreign exchange. This is the case even if the foreign exchange is formally “linked” to a domestic exchange, whereby a trade executed on one exchange liquidates or establishes a position on the other exchange. No domestic organization regulates the activities of a foreign exchange, including the execution, delivery, and clearing of transactions on such an exchange, and no domestic regulator has the power to compel enforcement of the rules of the foreign exchange or the laws of the foreign country. Moreover, such laws or regulations will vary depending on the foreign country in which the transaction occurs. For these reasons, customers who trade on foreign exchanges may not be afforded certain of the protections which apply to domestic transactions, including the right to use domestic alternative dispute resolution procedures. In particular, funds received from customers to margin foreign futures transactions may not be provided the same protections as funds received to margin futures transactions on domestic exchanges. Before you trade, you should familiarize yourself with the foreign rules which will apply to your particular transaction.
15. Finally, you should be aware that the price of any foreign futures or option contract and, therefore, the potential profit and loss resulting therefrom, may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the foreign futures contract is liquidated or the foreign option contract is liquidated or exercised.

THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE COMMODITY AND FOREIGN CURRENCY MARKETS.