Common use of Trading of Asset Linked Products Clause in Contracts

Trading of Asset Linked Products. 6.1 An asset linked product:- 6.1.1 is an option with an underlying asset which is traded on an Exchange or otherwise; 6.1.2 pays a cash return with a predetermined yield if the price/level of the underlying asset remains at or above the strike price/level or if the underlying asset occurs (as the case may be) on the price/level fixing date; 6.1.3 delivers shares/units of the underlying asset if the price/level of the underlying asset falls below the strike price or if the underlying asset does not occur at maturity (as the case may be); 6.1.4 if shares/units of the underlying asset are delivered at maturity, the value of such shares/units may be less than the original amount of investment; and 6.1.5 is not to be confused with other short term investments such as traditional time deposits which are principal protected and which the Client will be entitled to an interest at maturity as there is a possibility of the delivery of the shares/units in the underlying asset and therefore is generally not principal protected except where expressly stated otherwise. 6.2 The following serves to highlight some features which normally appear in an asset linked product and the risks involved in establishing it:- 6.2.1 The interest return on the asset linked product will depend on the movements or occurrence of the underlying asset (as the case may be) and may therefore be higher or lower than the interest return on a traditional time deposit. If the structure of the relevant asset linked product is such that a negative interest rate results from extreme fluctuation or non-occurrence of the underlying asset (as the case may be), the Client may not be able to receive the entire principal amount of the relevant asset linked product upon its maturity. 6.2.2 If the structure of the relevant asset linked product is such that the principal and interest return may be payable to the Client in a currency which is different from the base currency of the relevant asset linked product or in the form of another asset, then although such alternate currency or asset was pre-specified at the time the relevant asset linked product was established, the Client may still be subject to a loss arising from the decline in the exchange rate of the alternate currency in terms of the base currency or the decline in the value of the asset delivered to the Client. 6.2.3 By establishing an asset linked product, the Client is taking a view on the direction of fluctuation or occurrence of the underlying asset (as the case may be), based on the Client’s own assessment and judgment. 6.2.4 Unless otherwise agreed by CAL and subject to any conditions CAL may impose, the principal amount of the asset linked product may not be withdrawn at any time prior to its maturity date. In such circumstances, the Client shall be fully liable to all potential losses, costs and expenses resulted there from. The Client may not be able to receive the entire principal amount of the Asset Linked Product or even incur extra loss. 6.2.5 If the relevant asset linked product is purchased on a leveraged basis, the Client should note that the risk of loss can be substantial. The Client may sustain a total loss of the principal amount and any additional amounts that the Client used to establish or maintain the relevant leveraged asset linked product. If the underlying asset moves against the Client, the Client may be called upon to deposit a substantial amount of additional funds, on short notice, in order to maintain the relevant leveraged asset linked product. If the Client does not provide the required funds within the prescribed time, the Client’s position may be liquidated at a loss, and the Client will be liable for the resulting deficit. Under certain market conditions, it may be difficult or impossible to liquidate such a position. In these circumstances, the Client’s total loss may not be limited to the principal amount and additional amounts the Client used to establish and maintain the relevant leveraged asset linked product alone. The high degree of leverage can work against the Client as well as for the Client. The use of leverage can lead to large losses as well as gains. 6.2.6 The Client should therefore firstly, carefully read, study and fully understand the relevant offering documents and constitutive documents and the structure of such investment before the Client instructs CAL to establish an asset linked product and secondly, carefully consider whether such an establishment is suitable in light of the Client’s own financial position and investment objectives. If the Client provides the irrevocable Instructions to CAL, the Client does so at the Client’s own risk and have not relied on its advice or recommendation.

Trading of Asset Linked Products. 6.1 An asset linked product:-product: 6.1.1 is an option with an underlying asset which is traded on an Exchange or otherwise; 6.1.2 pays a cash return with a predetermined yield if the price/level of the underlying asset remains at or above the strike price/level or if the underlying asset occurs (as the case may be) on the price/level fixing date; 6.1.3 delivers shares/units of the underlying asset if the price/level of the underlying asset falls below the strike price or if the underlying asset does not occur at maturity (as the case may be); 6.1.4 if shares/units of the underlying asset are delivered at maturity, the value of such shares/units may be less than the original amount of investment; and 6.1.5 is not to be confused with other short term investments such as traditional time deposits which are principal protected and which the Client will be entitled to an interest at maturity as there is a possibility of the delivery of the shares/units in the underlying asset and therefore is generally not principal protected except where expressly stated otherwise. 6.2 The following serves to highlight some features which normally appear in an asset linked product and the risks involved in establishing it:-it: 6.2.1 The interest return on the asset linked product will depend on the movements or occurrence of the underlying asset (as the case may be) and may therefore be higher or lower than the interest return on a traditional time deposit. If the structure of the relevant asset linked product is such that a negative interest rate results from extreme fluctuation or non-occurrence of the underlying asset (as the case may be), the Client may not be able to receive the entire principal amount of the relevant asset linked product upon its maturity. 6.2.2 If the structure of the relevant asset linked product is such that the principal and interest return may be payable to the Client in a currency which is different from the base currency of the relevant asset linked product or in the form of another asset, then although such alternate currency or asset was pre-specified at the time the relevant asset linked product was established, the Client may still be subject to a loss arising from the decline in the exchange rate of the alternate currency in terms of the base currency or the decline in the value of the asset delivered to the Client. 6.2.3 By establishing an asset linked product, the Client is taking a view on the direction of fluctuation or occurrence of the underlying asset (as the case may be), based on the Client’s own assessment and judgment. 6.2.4 Unless otherwise agreed by CAL and subject to any conditions CAL may impose, the principal amount of the asset linked product may not be withdrawn at any time prior to its maturity date. In such circumstances, the Client shall be fully liable to all potential losses, costs and expenses resulted there from. The Client may not be able to receive the entire principal amount of the Asset Linked Product or even incur extra loss. 6.2.5 If the relevant asset linked product is purchased on a leveraged basis, the Client should note that the risk of loss can be substantial. The Client may sustain a total loss of the principal amount and any additional amounts that the Client used to establish or maintain the relevant leveraged asset linked product. If the underlying asset moves against the Client, the Client may be called upon to deposit a substantial amount of additional funds, on short notice, in order to maintain the relevant leveraged asset linked product. If the Client does not provide the required funds within the prescribed time, the Client’s position may be liquidated at a loss, and the Client will be liable for the resulting deficit. Under certain market conditions, it may be difficult or impossible to liquidate such a position. In these circumstances, the Client’s total loss may not be limited to the principal amount and additional amounts the Client used to establish and maintain the relevant leveraged asset linked product alone. The high degree of leverage can work against the Client as well as for the Client. The use of leverage can lead to large losses as well as gains. 6.2.6 The Client should therefore firstly, carefully read, study and fully understand the relevant offering documents and constitutive documents and the structure of such investment before the Client instructs CAL to establish an asset linked product and secondly, carefully consider whether such an establishment is suitable in light of the Client’s own financial position and investment objectives. If the Client provides the irrevocable Instructions to CAL, the Client does so at the Client’s own risk and have not relied on its advice or recommendation.

Trading of Asset Linked Products. 6.1 An asset linked product:- 6.1.1 is an option with an underlying asset which is traded on an Exchange or otherwise; 6.1.2 pays a cash return with a predetermined yield if the price/level of the underlying asset remains at or above the strike price/level or if the underlying asset occurs (as the case may be) on the price/level fixing date; 6.1.3 delivers shares/units of the underlying asset if the price/level of the underlying asset falls below the strike price or if the underlying asset does not occur at maturity (as the case may be); 6.1.4 if shares/units of the underlying asset are delivered at maturity, the value of such shares/units may be less than the original amount of investment; and 6.1.5 is not to be confused with other short term investments such as traditional time deposits which are principal protected and which the Client will be entitled to an interest at maturity as there is a possibility of the delivery of the shares/units in the underlying asset and therefore is generally not principal protected except where expressly stated otherwise. 6.2 The following serves to highlight some features which normally appear in an asset linked product and the risks involved in establishing it:- 6.2.1 The interest return on the asset linked product will depend on the movements or occurrence of the underlying asset (as the case may be) and may therefore be higher or lower than the interest return on a traditional time deposit. If the structure of the relevant asset linked product is such that a negative interest rate results from extreme fluctuation or non-occurrence of the underlying asset (as the case may be), the Client may not be able to receive the entire principal amount of the relevant asset linked product upon its maturity. 6.2.2 If the structure of the relevant asset linked product is such that the principal and interest return may be payable to the Client in a currency which is different from the base currency of the relevant asset linked product or in the form of another asset, then although such alternate currency or asset was pre-specified at the time the relevant asset linked product was established, the Client may still be subject to a loss arising from the decline in the exchange rate of the alternate currency in terms of the base currency or the decline in the value of the asset delivered to the Client. 6.2.3 By establishing an asset linked product, the Client is taking a view on the direction of fluctuation or occurrence of the underlying asset (as the case may be), based on the Client’s own assessment and judgment. 6.2.4 Unless otherwise agreed by CAL and subject to any conditions CAL may impose, the principal amount of the asset linked product may not be withdrawn at any time prior to its maturity date. In such circumstances, the Client shall be fully liable to all potential losses, costs and expenses resulted there fromtherefrom. The Client may not be able to receive the entire principal amount of the Asset Linked Product or even incur extra loss. 6.2.5 If the relevant asset linked product is purchased on a leveraged basis, the Client should note that the risk of loss can be substantial. The Client may sustain a total loss of the principal amount and any additional amounts that the Client used to establish or maintain the relevant leveraged asset linked product. If the underlying asset moves against the Client, the Client may be called upon to deposit a substantial amount of additional funds, on short notice, in order to maintain the relevant leveraged asset linked product. If the Client does not provide the required funds within the prescribed time, the Client’s position may be liquidated at a loss, and the Client will be liable for the resulting deficit. Under certain market conditions, it may be difficult or impossible to liquidate such a position. In these circumstances, the Client’s total loss may not be limited to the principal amount and additional amounts the Client used to establish and maintain the relevant leveraged asset linked product alone. The high degree of leverage can work against the Client as well as for the Client. The use of leverage can lead to large losses as well as gains. 6.2.6 The Client should therefore firstly, carefully read, study and fully understand the relevant offering documents and constitutive documents and the structure of such investment before the Client instructs CAL to establish an asset linked product and secondly, carefully consider whether such an establishment is suitable in light of the Client’s own financial position and investment objectives. If the Client provides the irrevocable Instructions to CAL, the Client does so at the Client’s own risk and have not relied on its advice or recommendation.

Trading of Asset Linked Products. 6.1 An asset linked product:- 6.1.1 is an option with an underlying asset which is traded on an Exchange or otherwise; 6.1.2 pays a cash return with a predetermined yield if the price/level of the underlying asset remains at or above the strike price/level or if the underlying asset occurs (as the case may be) on the price/level fixing date; 6.1.3 delivers shares/units of the underlying asset if the price/level of the underlying asset falls below the strike price or if the underlying asset does not occur at maturity (as the case may be); 6.1.4 if shares/units of the underlying asset are delivered at maturity, the value of such shares/units may be less than the original amount of investment; and 6.1.5 is not to be confused with other short term investments such as traditional time deposits which are principal protected and which the Client Customer will be entitled to an interest at maturity as there is a possibility of the delivery of the shares/units in the underlying asset and therefore is generally not principal protected except where expressly stated otherwise. 6.2 The following serves to highlight some features which normally appear in an asset linked product and the risks involved in establishing it:- 6.2.1 The interest return on the asset linked product will depend on the movements or occurrence of the underlying asset (as the case may be) and may therefore be higher or lower than the interest return on a traditional time deposit. If the structure of the relevant asset linked product is such that a negative interest rate results from extreme fluctuation or non-occurrence of the underlying asset (as the case may be), the Client Customer may not be able to receive the entire principal amount of the relevant asset linked product upon its maturity. 6.2.2 If the structure of the relevant asset linked product is such that the principal and interest return may be payable to the Client Customer in a currency which is different from the base currency of the relevant asset linked product or in the form of another asset, then although such alternate currency or asset was pre-specified at the time the relevant asset linked product was established, the Client Customer may still be subject to a loss arising from the decline in the exchange rate of the alternate currency in terms of the base currency or the decline in the value of the asset delivered to the ClientCustomer. 6.2.3 By establishing an asset linked product, the Client Customer is taking a view on the direction of fluctuation or occurrence of the underlying asset (as the case may be), based on the ClientCustomer’s own assessment and judgment. 6.2.4 Unless otherwise agreed by CAL the Bank and subject to any conditions CAL the Bank may impose, the principal amount of the asset linked product may not be withdrawn at any time prior to its maturity date. In such circumstances, the Client Customer shall be fully liable to all potential losses, costs and expenses resulted there fromtherefrom. The Client Customer may not be able to receive the entire principal amount of the Asset Linked Product or even incur extra loss. 6.2.5 If the relevant asset linked product is purchased on a leveraged basis, the Client Customer should note that the risk of loss can be substantial. The Client Customer may sustain a total loss of the principal amount and any additional amounts that the Client Customer used to establish or maintain the relevant leveraged asset linked product. If the underlying asset moves against the ClientCustomer, the Client Customer may be called upon to deposit a substantial amount of additional funds, on short notice, in order to maintain the relevant leveraged asset linked product. If the Client Customer does not provide the required funds within the prescribed time, the ClientCustomer’s position may be liquidated at a loss, and the Client Customer will be liable for the resulting deficit. Under certain market conditions, it may be difficult or impossible to liquidate such a position. In these circumstances, the ClientCustomer’s total loss may not be limited to the principal amount and additional amounts the Client Customer used to establish and maintain the relevant leveraged asset linked product alone. The high degree of leverage can work against the Client Customer as well as for the ClientCustomer. The use of leverage can lead to large losses as well as gains. 6.2.6 The Client Customer should therefore firstly, carefully read, study and fully understand the relevant offering documents and constitutive documents and the structure of such investment before the Client Customer instructs CAL the Bank to establish an asset linked product and secondly, carefully consider whether such an establishment is suitable in light of the ClientCustomer’s own financial position and investment objectives. If the Client Customer provides the irrevocable Instructions to CALthe Bank, the Client Customer does so at the ClientCustomer’s own risk and have not relied on its advice or recommendation.

Trading of Asset Linked Products. 6.1 An asset linked product:- 6.1.1 is an option with an underlying asset which is traded on an Exchange or otherwise; 6.1.2 pays a cash return with a predetermined yield if the price/level of the underlying asset remains at or above the strike price/level or if the underlying asset occurs (as the case may be) on the price/level fixing date;the 6.1.3 delivers shares/units of the underlying asset if the price/level of the underlying asset falls below the strike price or if the underlying asset does not occur at maturity (as the case may be); 6.1.4 if shares/units of the underlying asset are delivered at maturity, the value of such shares/units may be less than the original amount of investment; and 6.1.5 is not to be confused with other short term investments such as traditional time deposits which are principal protected and which the Client will be entitled to an interest at maturity as there is a possibility of the delivery of the shares/units in the underlying asset and therefore is generally not principal protected except where expressly stated otherwise. 6.2 The following serves to highlight some features which normally appear in an asset linked product and the risks involved in establishing it:- 6.2.1 The interest return on the asset linked product will depend on the movements or occurrence of the underlying asset (as the case may be) and may therefore be higher or lower than the interest return on a traditional time deposit. If the structure of the relevant asset linked product is such that a negative interest rate results from extreme fluctuation or non-occurrence of the underlying asset (as the case may be), the Client may not be able to receive the entire principal amount of the relevant asset linked product upon its maturity. 6.2.2 If the structure of the relevant asset linked product is such that the principal and interest return may be payable to the Client in a currency which is different from the base currency of the relevant asset linked product or in the form of another asset, then although such alternate currency or asset was pre-specified at the time the relevant asset linked product was established, the Client may still be subject to a loss arising from the decline in the exchange rate of the alternate currency in terms of the base currency or the decline in the value of the asset delivered to the Client. 6.2.3 By establishing an asset linked product, the Client is taking a view on the direction of fluctuation or occurrence of the underlying asset (as the case may be), based on the Client’s own assessment and judgment. 6.2.4 Unless otherwise agreed by CAL and subject to any conditions CAL may impose, the principal amount of the asset linked product may not be withdrawn at any time prior to its maturity date. In such circumstances, the Client shall be fully liable to all potential losses, costs and expenses resulted there from. The Client may not be able to receive the entire principal amount of the Asset Linked Product or even incur extra loss. 6.2.5 If the relevant asset linked product is purchased on a leveraged basis, the Client should note that the risk of loss can be substantial. The Client may sustain a total loss of the principal amount and any additional amounts that the Client used to establish or maintain the relevant leveraged asset linked product. If the underlying asset moves against the Client, the Client may be called upon to deposit a substantial amount of additional funds, on short notice, in order to maintain the relevant leveraged asset linked product. If the Client does not provide the required funds within the prescribed time, the Client’s position may be liquidated at a loss, and the Client will be liable for the resulting deficit. Under certain market conditions, it may be difficult or impossible to liquidate such a position. In these circumstances, the Client’s total loss may not be limited to the principal amount and additional amounts the Client used to establish and maintain the relevant leveraged asset linked product alone. The high degree of leverage can work against the Client as well as for the Client. The use of leverage can lead to large losses as well as gains. 6.2.6 The Client should therefore firstly, carefully read, study and fully understand the relevant offering documents and constitutive documents and the structure of such investment before the Client instructs CAL to establish an asset linked product and secondly, carefully consider whether such an establishment is suitable in light of the Client’s own financial position and investment objectives. If the Client provides the irrevocable Instructions to CAL, the Client does so at the Client’s own risk and have not relied on its advice or recommendation.

Trading of Asset Linked Products. 6.1 An asset linked product:- 6.1.1 is Is an option with an underlying asset which is traded on an Exchange or otherwise; 6.1.2 pays Pays a cash return with a predetermined yield if the price/level of the underlying asset remains at or above the strike price/level or if the underlying asset occurs (as the case may be) on the price/level fixing date; 6.1.3 delivers Delivers shares/units of the underlying asset if the price/level of the underlying asset falls below the strike price or if the underlying asset does not occur at maturity (as the case may be); 6.1.4 if If shares/units of the underlying asset are delivered at maturity, the value of such shares/units may be less than the original amount of investment; and 6.1.5 is Is not to be confused with other short term investments such as traditional time deposits which are principal protected and which the Client will be entitled to an interest at maturity as there is a possibility of the delivery of the shares/units in the underlying asset and therefore is generally not principal protected except where expressly stated otherwise. 6.2 The following serves to highlight some features which normally appear in an asset linked product and the risks involved in establishing it:- 6.2.1 The interest return on the asset linked product will depend on the movements or occurrence of the underlying asset (as the case may be) and may therefore be higher or lower than the interest return on a traditional time deposit. If the structure of the relevant asset linked product is such that a negative interest rate results from extreme fluctuation or non-occurrence of the underlying asset (as the case may be), the Client may not be able to receive the entire principal amount of the relevant asset linked product upon its maturity. 6.2.2 If the structure of the relevant asset linked product is such that the principal and interest return may be payable to the Client in a currency which is different from the base currency of the relevant asset linked product or in the form of another asset, then although such alternate currency or asset was pre-specified at the time the relevant asset linked product was established, the Client may still be subject to a loss arising from the decline in the exchange rate of the alternate currency in terms of the base currency or the decline in the value of the asset delivered to the Client. 6.2.3 By establishing an asset linked product, the Client is taking a view on the direction of fluctuation or occurrence of the underlying asset (as the case may be), based on the Client’s own assessment and judgment. 6.2.4 Unless otherwise agreed by CAL and subject to any conditions CAL may impose, the principal amount of the asset linked product may not be withdrawn at any time prior to its maturity date. In such circumstances, the Client shall be fully liable to all potential losses, costs and expenses resulted there from. The Client may not be able to receive the entire principal amount of the Asset Linked Product or even incur extra loss. 6.2.5 If the relevant asset linked product is purchased on a leveraged basis, the Client should note that the risk of loss can be substantial. The Client may sustain a total loss of the principal amount and any additional amounts that the Client used to establish or maintain the relevant leveraged asset linked product. If the underlying asset moves against the Client, the Client may be called upon to deposit a substantial amount of additional funds, on short notice, in order to maintain the relevant leveraged asset linked product. If the Client does not provide the required funds within the prescribed time, the Client’s position may be liquidated at a loss, and the Client will be liable for the resulting deficit. Under certain market conditions, it may be difficult or impossible to liquidate such a position. In these circumstances, the Client’s total loss may not be limited to the principal amount and additional amounts the Client used to establish and maintain the relevant leveraged asset linked product alone. The high degree of leverage can work against the Client as well as for the Client. The use of leverage can lead to large losses as well as gains. 6.2.6 The Client should therefore firstly, carefully read, study and fully understand the relevant offering documents and constitutive documents and the structure of such investment before the Client instructs CAL to establish an asset linked product and secondly, carefully consider whether such an establishment is suitable in light of the Client’s own financial position and investment objectives. If the Client provides the irrevocable Instructions to CAL, the Client does so at the Client’s own risk and have not relied on its advice or recommendation.