Common use of Additional Risks Common to Futures and Options Clause in Contracts

Additional Risks Common to Futures and Options. 3.1 Terms and conditions of contracts The Client should ask the firm with which it deals about the terms and conditions of the specific futures or options which it are trading and associated obligations (e.g. the circumstances under which it may become obliged to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. 3.2 Suspension or restriction of trading and pricing relationships Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Client has sold options, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the futures, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “fair” value. 3.3 Deposited cash and property The Client should familiarize itself with the protections given to money or other property it deposited for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which the Client may recover its money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as its own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. 3.4 Commission and other charges Before the Client begins to trade, it should obtain a clear explanation of all commission, fees and other charges for which it will be liable. These charges will affect its net profit (if any) or increase its loss.

Additional Risks Common to Futures and Options. 3.1 Terms and conditions of contracts contracts: The Client should ask the firm with which it the Client deals about the terms and conditions of the specific futures or options which it are the Client is trading and associated obligations (e.g. the circumstances under which it the Client may become obliged to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. 3.2 . Suspension or restriction of trading and pricing relationships relationships: Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “"circuit breakers”") may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Client has sold options, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the futures, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “fair” value. 3.3 Deposited cash and property property: The Client should familiarize itself himself/herself with the protections given to accorded money or other property it deposited the Client deposits for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which the Client may recover its the Client’s money or property may be governed by specific legislation or local rules. In some jurisdictions, property property, which had been specifically identifiable as its own the Client’s own, will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. 3.4 . Commission and other charges charges: Before the Client begins to trade, it the Client should obtain a clear explanation of all commission, fees and other charges for which it the Client will be liable. These charges will affect its the Client’s net profit (if any) or increase its the Client’s loss. Transactions in other jurisdictions: Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose the Client to additional risk. Such markets may be subject to regulation, which may offer different or diminished investor protection. Before the Client trades, the Client should enquire about any rules relevant to the Client’s particular transactions. The Client’s local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where the Client’s transactions have been effected. The Client should ask the firm with which the Client deals with for details about the types of redress available in both the Client’s home jurisdiction and other relevant jurisdictions before the Client starts to trade. Currency risks: The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in the Client’s own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency. Trading facilities: Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. The Client’s ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or member firms. Such limits may vary: the Client should ask the firm with which the Client deals for details in this respect. Electronic trading: Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If the Client undertakes transactions on an electronic trading system, the Client will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that the Client’s order is either not executed according to the Client’s Instruction or is not executed at all. Off-exchange transactions: In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which the Client deals with may be acting as the Client’s counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before the Client undertakes such transactions, the Client should familiarize himself/herself with applicable rules and attendant risks.

Additional Risks Common to Futures and Options. 3.1 Terms and conditions of contracts contracts: The Client should ask the firm with which it the Client deals about the terms and conditions of the specific futures or options which it are the Client is trading and associated obligations (e.g. the circumstances under which it the Client may become obliged to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. 3.2 . Suspension or restriction of trading and pricing relationships relationships: Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “"circuit breakers”") may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Client has sold options, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the futures, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “fair” value. 3.3 Deposited cash and property property: The Client should familiarize itself himself/herself with the protections given to accorded money or other property it deposited the Client deposits for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which the Client may recover its the Client’s money or property may be governed by specific legislation or local rules. In some jurisdictions, property property, which had been specifically identifiable as its own the Client’s own, will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. 3.4 . Commission and other charges charges: Before the Client begins to trade, it the Client should obtain a clear explanation of all commission, fees and other charges for which it the Client will be liable. These charges will affect its the Client’s net profit (if any) or increase its the Client’s loss. Transactions in other jurisdictions: Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose the Client to additional risk. Such markets may be subject to regulation, which may offer different or diminished investor protection. Before the Client trades, the Client should enquire about any rules relevant to the Client’s particular transactions. The Client’s local regulatory authority will be unable Currency risks: The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in the Client’s own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency. Trading facilities: Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. The Client’s ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or member firms. Such limits may vary: the Client should ask the firm with which the Client deals for details in this respect. Electronic trading: Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If the Client undertakes transactions on an electronic trading system, the Client will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that the Client’s order is either not executed according to the Client’s Instruction or is not executed at all. Off-exchange transactions: In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which the Client deals with may be acting as the Client’s counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before the Client undertakes such transactions, the Client should familiarize himself/herself with applicable rules and attendant risks.

Additional Risks Common to Futures and Options. 3.1 (a) Terms and conditions Conditions of contracts The Client Contracts You should ask the firm with which it deals you deal about the terms and conditions of the specific futures or options which it you are trading and associated obligations (e.g. e.g., the circumstances under which it you may become obliged obligated to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. 3.2 (b) Suspension or restriction Restriction of trading Trading and pricing relationships Pricing Relationships Market conditions (e.g. e.g., illiquidity) and/or the operation of the rules of certain markets (e.g. e.g., the suspension of trading in any contract or contract month because of price limits or “"circuit breakers”") may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Client has you have sold options, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the futuresfuture, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “"fair” " value. 3.3 (c) Deposited cash Cash and property The Client Property You should familiarize itself yourself with the protections given accorded to money or other property it deposited you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which the Client you may recover its your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as its your own will be pro-rated prorated in the same manner as cash for purposes of distribution in the event of a shortfall. 3.4 (d) Commission and other charges Other Charges Before the Client begins you begin to trade, it you should obtain a clear explanation of all commission, fees and other charges for which it you will be liable. These charges will affect its your net profit (if any) or increase its your loss. (e) Transactions in Other Jurisdictions Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should enquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade. (f) Currency Risks The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

Additional Risks Common to Futures and Options. 3.1 Terms and conditions of contracts contracts: The Client should ask the firm with which it the Client deals about the terms and conditions of the specific futures or options Options which it are the Client is trading and associated obligations (e.g. the circumstances under which it the Client may become obliged to make or take delivery of the underlying interest of a futures contract and, in respect of optionsOptions, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an optionOptions) may be modified by the exchange or clearing house to reflect changes in the underlying interest. 3.2 . Suspension or restriction of trading and pricing relationships relationships: Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “"circuit breakers”") may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Client has sold optionsOptions, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the futuresfuture, and the underlying interest and the option Options may not exist. This can occur when, for example, the futures contract underlying the option Options is subject to price limits while the option Options is not. The absence of an underlying reference price may make it difficult to judge “"fair” " value. 3.3 . Deposited cash and property property: The Client should familiarize itself himself/herself with the protections given to accorded money or other property it deposited the Client deposits for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which the Client may recover its the Client’s money or property may be governed by specific legislation or local rules. In some jurisdictions, property property, which had been specifically identifiable as its own the Client’s own, will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. 3.4 . Commission and other charges charges: Before the Client begins to trade, it the Client should obtain a clear explanation of all commission, fees and other charges for which it the Client will be liable. These charges will affect its the Client’s net profit (if any) or increase its the Client’s loss. Transactions in other jurisdictions: Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose the Client to additional risk. Such markets may be subject to regulation, which may offer different or diminished investor protection. Before the Client trades, the Client should enquire about any rules relevant to the Client’s particular transactions. The Client’s local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where the Client’s transactions have been effected. The Client should ask the firm with which the Client deals with for details about the types of redress available in both the Client’s home jurisdiction and other relevant jurisdictions before the Client starts to trade. Currency risks: The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in the Client’s own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

Additional Risks Common to Futures and Options. 3.1 i) Terms and conditions of contracts The Client should ask the firm with which he/she/it deals about the terms and conditions of the specific futures or options which he/she/it are is trading and associated obligations (e.g. the circumstances under which it the Client may become obliged to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances circumstances, the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. 3.2 ii) Suspension or restriction of trading and pricing relationships Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or “'circuit breakers”') may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Client has sold options, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the futuresfuture, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge “"fair” " value. 3.3 iii) Deposited cash and property The Client should familiarize himself/herself/itself with the protections given to money or other property it deposited the Client deposits for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which the Client may recover his/her/its money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as its own the Client’s will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. 3.4 iv) Commission and other charges Before the Client begins to trade, he/she/it should obtain a clear explanation of all commission, fees and other charges for which he/she/it will be liable. These charges will affect his/her/its net profit (if any) or increase his/her/its loss. v) Transactions in other jurisdictions Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose the Client to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before the Client trades, he/she/it should enquire about any rules relevant to his/her/its particular transactions. The Client’s local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where his/her/its transactions have been effected. The Client should ask the firm with which he/she/it deals for details about the types of redress available in both the Client’s home jurisdiction and other relevant jurisdictions before he/she/it starts to trade. vi) Currency risks The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in the Client’s own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency. vii) Trading facilities Electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. The Client’s ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or participant firms. Such limits may vary; the Client should ask the firm with which you deal for details in this respect.