Risk Disclosure Agreement

“Market conditions” (e.g. B illiquidity) and/or the functioning of the rules of certain markets (e.g. B suspension of trading during a contract or contract month due to price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to trade or liquidate/clear positions. If you have sold options, this can increase the risk of loss. In some jurisdictions, and only then in limited circumstances, companies are allowed to conduct extra-exchangeable transactions. The company you are trading with may be considered a counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, assess value, determine a fair price, or assess risk exposure. For these reasons, these transactions may present increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory system. Before proceeding with such transactions, you should familiarize yourself with the rules and risks in force.

Trading on an e-commerce system can be different not only from trading in an open market of outcry, but also from trading on other e-commerce systems. When you trade on an electronic trading system, you are exposed to system-related risks, including hardware and software failure. The result of a system error may be that your command is not executed according to your instructions, or that it is not executed at all. Trading in markets in other jurisdictions, including markets that are formally linked to a domestic market, may expose you to additional risk. These markets may be subject to regulation that may offer different or reduced investor protection. Before acting, you should inquire about all the rules relevant to your specific transactions. Your local supervisory authority is not able to enforce the rules of supervisory or market authorities in other jurisdictions where your transactions have been carried out. You should ask the company you are negotiating with for details of the types of remedies available both in your home jurisdiction and in other relevant jurisdictions before you start trading. Options trading is high risk. Buyers and sellers of options should familiarize themselves with the nature of the option (i.e. the put or call) they wish to trade and the associated risks. You should calculate how much the value of the options needs to increase for your position to become profitable, taking into account the premium and all transaction costs.

The purchaser of options may account for or exercise the options or let the options expire. The exercise of an option gives rise either to a cash indemnity or to the buyer acquiring or providing the underlying interest. If the option of a future exists, the buyer acquires a forward position with associated margin commitments (see the section on futures above). If the purchased options run worthless, you will suffer a total loss of your investment, which results from the option premium plus the transaction fee. If you plan to buy options with deep money, be aware that the chances of such options normally becoming profitable are slim.