Risk Disclosure Statement

This brief statement does not disclose all of the risks and other significant aspects of spot foreign currency (collectively “Forex”). In light of the risks, you should undertake such transactions only if you (“Trader” or “Client”) understand the nature of the trading into which you are about to engage and the extent of your exposure to risk. Trading the Forex is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

Spot Forex Trading

1. Effect of “Leverage” or “Gearing”
Forex Transactions carry a high degree of risk. The amount of initial margin may be small relative to the value of the foreign currency so that transactions are “leveraged” or “geared”. A relatively small market movement may have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

2. Risk-reducing orders or strategies
The placing of certain orders (e.g., “stop-loss” orders, where permitted under local law, or “stop-limit” orders), which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as “spread” and “straddle” positions, may be as risky as taking simple “long” or “short” positions.

Additional Risks common to Spot Forex Trading

1. Terms and conditions of Spot Forex Trading
You should ask the firm with which you deal about the terms and conditions of the specific foreign currency that you are trading and associated obligations.

2. Suspension or restriction of trading and pricing relationship.
Market conditions (e.g., liquidity) and/or the operation of the rules of certain markets (e.g., the suspension of trading in any foreign currency 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.

3. Deposited cash and property
You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which has been specifically identifiable as your own will be prorated in the same manner as cash for purposes of distribution in the event of a shortfall.

4. Commission and other charges
Before you begin to trade, you should obtain a clear explanation of all commission, fees, and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

5. 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 inquire 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.

6. Currency risks
The profit or loss in transactions in foreign currency (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 foreign currency position to another currency.

7. 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. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearinghouse, and/or member firms. Such limits may vary. Therefore, you should ask the firm with which you deal for details in this respect.

8. 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 you undertake transactions on an electronic trading system, you 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 your order is either not executed according to your instruction or is not executed at all.

9. Off-exchange transactions
In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which you deal may be acting as your counterparty to the transaction. IntelliSource Markets B.V. functions as a direct counterparty to Traders in many currency transactions. IntelliSource Markets B.V. neither offers the right to offset, nor guarantees a market in which to offset, transactions it effects as counterparty. Therefore, it may be difficult or impossible to liquidate an existing position, to assess its 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 you undertake such transactions, you should familiarize yourself with applicable rules and attendant risks.

Additional Risk Disclosure Statement

If your current financial situation reflects one or more of the following:
1. An income of less than $40,000 US
2. A net worth of less than $60,000 US
3. You are over the age of 55, or
4. You have no previous investment experience

You should read this statement carefully because it may be interpreted that: (1) The amount of money you are considering depositing in the Foreign Currency Trading Account may be excessive relative to your net worth or annual income, or (2) based on your age, investment experience or personal circumstances, trading in foreign currencies and/or derivatives may involve too high a risk of loss.

Forex trading involves an extremely high degree of risk of loss and is inappropriate for many individuals. Some studies have shown that more than eighty percent of small investors who trade in currencies ultimately lose money. You could lose all or part of the money you deposit in the Forex Trading Account. If you meet any of the criteria set forth above, or if you have pursued only conservative forms of investment in the past, you may wish to study the risks of loss involved in foreign currency before you deem it an appropriate vehicle for you.

If you decide to open a Forex Trading Account, we ask that you acknowledge below that you fully understand the very risky nature of Forex trading and that the funds you intend to deposit are purely risk capital (i.e., money you can afford to lose). You further acknowledge that the loss of any deposited funds will not jeopardize your style of living, nor will it substantially detract from your retirement program or other personal or family needs, and that such funds have not been borrowed.

Aggressive and Day-Trading Authorization

You should understand that aggressive trading, and especially day trading, is an extremely high-risk strategy. Understand that such trading generates substantial commission charges to your account. Understand that due to such active trading, the commission charges relative to the funds deposited in my account may exceed what is considered normal or even prudent. Understand that such commission charges will increase your risk of loss and can account for all or part of your trading losses.

You should acknowledge and reconcile these additional risks of an aggressive or day-trading strategy with your overall trading philosophy and risk tolerance. Further acknowledge that you are in control of, and responsible for, all trades executed in your account, and plan and implement a policy of reviewing your account and any open market positions daily and report any discrepancy immediately.

TRADING IN CURRENCIES INVOLVES AN EXTREMELY HIGH DEGREE OF RISK. INVESTORS CAN AND FREQUENTLY DO LOSE ALL OR PART OF THE MONEY THEY DEPOSIT. PLEASE READ, UNDERSTAND AND CAREFULLY CONSIDER THE RISK DISCLOSURE STATEMENT BEFORE MAKING A DECISION TO TRADE CURRENCIES.