Common use of Variable Degree of Risk Clause in Contracts

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of- the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Some Options may only be exercised on an expiry day (European-style exercise) and that other options may be exercised at any time before expiration (American-style exercise). Upon exercise some options require delivery and receipt of the underlying securities and that other options require a cash payment. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above)margin. If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If the option is “covered” by the seller holding a corresponding position in the underlying interest or a futures contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. If you are contemplating purchasing deep-out-of-the- the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time. Options can involve a high degree of risk and may not be suitable for every investor. Investors should ensure they understand those risks before participating in the options market.

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of- theofthe-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract or leveraged foreign exchange transaction, the purchaser will have to acquire a futures position or a leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the- money options, you should be aware that that, ordinarily, the chance of such options becoming profitable ordinarily is remote. Selling ("‘writing" ’ or "‘granting"’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amountthe amount of premium received. The seller will be liable for to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a futurefutures contract or leveraged foreign exchange transaction, the seller will acquire a position in futures or a future leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying assetfutures contract, in a future leveraged foreign exchange transaction or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing limiting the liability of the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject subjected to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the- the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("‘writing" ’ or "‘granting"’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions Transaction in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the- the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("“writing" ” or "“granting"”) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "“covered" ” by the seller 5966 (4/2011) Page 2 of 37 holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract or leveraged foreign exchange transaction, the purchaser will have to acquire a futures position or a leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the- the-money options, you should be aware that that, ordinarily, the chance change of such options becoming profitable ordinarily is remote. Selling ("‘writing" ’ or "‘granting"’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amountthe amount of premium received. The seller will be liable for to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a futurefutures contract or a leveraged foreign exchange transaction, the seller will acquire a position in futures or a future leverage foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures and Leveraged Foreign Exchange Trading above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying assetfutures contract, in a future leveraged foreign exchange transaction or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing limiting the liability of the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions in options Options carry a high degree of risk. Purchasers and sellers of options Options should familiarize themselves with the type of option Option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options Options must increase for your position to become profitable, taking into account Account the premium and all transaction costs. The purchaser of options Options may offset or exercise the options Options or allow the option Options to expire. The exercise of an option Option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option Option is on a futureFuture, the purchaser will acquire a futures Futures position with associated liabilities for margin Margin (see the section on Futures above). If the purchased option is out-of- the-money when it expiresOptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option Option premium plus transaction costs. If you are contemplating purchasing out-of-the- money optionsdeepoutofthemoney Options, you should be aware that the chance of such options Options becoming profitable ordinarily is remote. Selling ("‘writing" ’ or "‘granting"’) an option Option generally entails considerably greater risk than purchasing optionsOptions. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin Margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option Option and the seller will be obligated to either settle the option Option in cash or to acquire or deliverthe deliver the underlying interest. If the option Option is on a futureFuture, the seller will acquire a position in a future Future with associated liabilities for margin Margin (see the section on Futures above). If the option Option is "‘covered" ’ by the seller holding a corresponding position in the underlying asset, in interest or a future Future or in another optionOption, the risk may be reduced. In case If the option Option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option Option premium, exposing the purchaser to liability for margin Margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option Option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., Le. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the- money deep out‐of‐the‐money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" writing or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourablyunfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option position is "covered" covered by the seller holding a corresponding position in the underlying asset, in interest or a future or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.. Additional risks common to futures and options

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option options (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, OTCD currency contract or Spot LFX trading contract, the purchaser will have to acquire a position in the futures position contract, OTCD currency contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures Futures, OTCD currency contracts and Spot LFX trading contracts above). If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the- the-money options, you should be aware that that, ordinarily, the chance of such options becoming profitable ordinarily is remote. Selling ("‘writing" ’ or "‘granting"’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amountthe amount of premium received. The seller will be liable for to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a futurefutures contract, OTCD currency contract or spot LFX trading contract, the seller will acquire a position in a future the futures contract, OTCD currency contract or spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures Futures, OTCD currency contracts and Spot LFX trading contracts above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying assetfutures contract, in a future OTCD currency contract, spot LFX trading contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing limiting the liability of the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize familiarise themselves with the type of option (i.e., i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futurefutures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of- the-money when it expiresoptions expire worthless, you will suffer a total loss of your investment, investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the- the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("‘writing" ’ or "‘granting"’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe deliver the underlying interest. If the option is on a futurefutures contract, the seller will acquire a position in a future futures contract with associated liabilities for margin (see the section on Futures above). If the option is "‘covered" ’ by the seller holding a corresponding position in the underlying asset, in interest or a future futures contract or in another option, the risk may be reduced. In case If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Variable Degree of Risk. Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the option to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased option is out-of- of-the-money when it expires, you will suffer a total loss of your investment, which will consist of the option premium plus transaction costs. If you are contemplating purchasing out-of-the- money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliverthe underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying asset, in a future or in another option, the risk may be reduced. In case the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.