Common use of Risk Warning Clause in Contracts

Risk Warning. 6.1 Some of the significant risks include the following: Leveraged Products The high degree of leverage that is obtainable in these type of Contracts because of small margin requirements, can work both for and against the Client. The use of leverage can lead to large losses as well as large gains. The Client may be required to pay further amounts to cover fees on open and closed positions. Derivative market volatility These markets are speculative and volatile. Prices of the Underlying Security can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict. Sometimes markets move so fast that ‘gapping’ or ‘slippage’ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the Underlying Market, this also affects the price and may mean the Client is unable to close out a position or open a new position at the price at which the Client has placed the order. The placing of contingent orders (such as a stop-loss order) may not always limit a Client’s losses to the amounts they may want. Conditions may prevent execution of such orders.

Risk Warning. 6.1 Some of the significant risks include the following: Leveraged Products The high degree of leverage that is obtainable in these type types of Contracts because of small margin requirements, can work both for and against the Client. The use of leverage can lead to large losses as well as large gains. The Client may be required to pay further amounts to cover fees on open and closed positions. Derivative market volatility These markets are speculative and volatile. Prices of the Underlying Security can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict. Sometimes markets move so fast that ‘gapping’ “gapping‟ or ‘slippage’ “slippage‟ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the Underlying Market, this also affects the price and may mean the Client is unable to close out a position or open a new position at the price at which the Client has placed the order. The placing of contingent orders (such as a stop-loss order) may not always limit a Client’s losses to the amounts they may want. Conditions may prevent execution of such orders.

Risk Warning. 6.1 Some of the significant risks include the following: Leveraged Products The high degree of leverage that is obtainable in these type types of Contracts because of small margin requirements, can work both for and against the Client. The use of leverage can lead to large losses as well as large gains. The Client may be required to pay further amounts to cover fees on open and closed positions. Derivative market volatility These markets are speculative and volatile. Prices of the Underlying Security can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict. Sometimes markets move so fast that ‘gapping’ „gapping‟ or ‘slippage’ „slippage‟ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the Underlying Market, this also affects the price and may mean the Client is unable to close out a position or open a new position at the price at which the Client has placed the order. The placing of contingent orders (such as a stop-loss order) may not always limit a Client’s losses to the amounts they may want. Conditions may prevent the execution of such orders.

Risk Warning. 6.1 Some of the significant risks include the following: Leveraged Products The high degree of leverage that is obtainable in these type types of Contracts because of small margin requirements, can work both for and against the Client. The use of leverage can lead to large losses as well as large gains. The Client may be required to pay further amounts to cover fees on open and closed positionsposit ions. Derivative market volatility These markets are speculative and volatile. Prices of the Underlying Security can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict. Sometimes markets move so fast that ‘gapping’ “gapping‟ or ‘slippage’ “slippage‟ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the Underlying Market, this also affects the price and may mean the Client is unable to close out a position or open a new position at the price at which the Client has placed the order. The placing of contingent orders (such as a stop-loss order) may not always limit a Client’s losses to the amounts they may want. Conditions may prevent execution of such orders.

Risk Warning. 6.1 Some of the significant risks include the following: Leveraged Products The high degree of leverage that is obtainable in these type types of Contracts because of small margin requirements, can work both for and against the Client. The use of leverage can lead to large losses as well as large gains. The Client may be required to pay further amounts to cover fees on open and closed positions. Derivative market volatility These markets are speculative and volatile. Prices of the Underlying Security can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict. Sometimes markets move so fast that ‘gapping’ „gapping‟ or ‘slippage’ „slippage‟ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the Underlying Market, this also affects the price and may mean the Client is unable to close out a position or open a new position at the price at which the Client has placed the order. The placing of contingent orders (such as a stop-loss order) may not always limit a Client’s Client‟s losses to the amounts they may want. Conditions may prevent execution of such orders.

Risk Warning. 6.1 Some of the significant risks include the following: Leveraged Products The high degree of leverage that is obtainable in these type types of Contracts because of small margin requirements, can work both for and against the Client. The use of leverage can lead to large losses as well as large gains. The Client may be required to pay further amounts to cover fees on open and closed positions. Derivative market volatility These markets are speculative and volatile. Prices of the Underlying Security can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict. Sometimes markets move so fast that ‘gapping’ or ‘slippage’ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the Underlying Market, this also affects the price and may mean the Client is unable to close out a position or open a new position at the price at which the Client has placed the order. The placing of contingent orders (such as a stop-loss order) may not always limit a Client’s losses to the amounts they may want. Conditions may prevent execution of such orders.