Common use of Variable Degree of Risk Clause in Contracts

Variable Degree of Risk. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (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 would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contract, the purchaser will have to acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, the chance of such options becoming profitable is remote. (iii) 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 the amount of premium received. The seller will be liable 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contract, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the options 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 futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthlessoption is out-of- the-money when it expires, 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the deliverthe underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, a future with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option is ‘"covered’ " by the seller holding a corresponding position in the underlying futures contractasset, OTC derivatives contract, Spot LFX trading contract in a future or in another option, the risk may be reduced. If In case the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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 (iEuropean-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 familiarise themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contract, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above)margin. If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium paid 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-money options, you should be aware that, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contract, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) 3.2.1.1 Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) 3.2.1.2 The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contract, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above)margin. If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) 3.2.1.3 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contract, the seller will acquire a position in the a futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above)margin. If the option is ‘“covered’ ” by the seller holding a corresponding position in the underlying interest or a futures contract, OTC derivatives contract, Spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can an be unlimited. (iv) 3.2.1.4 Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contract, the purchaser will have to acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, interest with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above)margin. If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 either to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contract, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts above). If the option is ‘“covered’ ” by the seller holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract or another optionposition, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (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 would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives OTCD currency contract or Spot LFX trading contract, the purchaser will have to acquire a position in the futures contract, OTC derivatives OTCD currency contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract OTCD currency contracts and Spot LFX trading contracts above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, the chance of such options becoming profitable is remote. (iii) . 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 the amount of premium received. The seller will be liable 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives OTCD currency contract or Spot spot LFX trading contract, the seller will acquire a position in the futures contract, OTC derivatives OTCD currency contract or Spot spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract OTCD currency contracts and Spot LFX trading contracts above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTC derivatives OTCD currency contract, Spot spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the options 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 futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthlessoption is out-ofthe-money when it expires, 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, a future with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option is ‘"covered’ " by the seller holding a corresponding position in the underlying futures contractasset, OTC derivatives contract, Spot LFX trading contract in a future or in another option, the risk may be reduced. If In case the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contract, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contract, the seller will acquire a position in the a futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option is ‘“covered’ ” by the seller holding a corresponding position in the underlying interest or a futures contract, OTC derivatives contract, Spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the options 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 futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthlessoption is out-of-the-money when it expires, 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the deliverthe underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, a future with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option is ‘"covered’ " by the seller holding a corresponding position in the underlying futures contractasset, OTC derivatives contract, Spot LFX trading contract in a future or in another option, the risk may be reduced. If In case the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contractleveraged foreign exchange transaction, the purchaser will have to acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contracta leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract Futures and Spot LFX trading contracts Leveraged Foreign Exchange Trading above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, the chance of such options becoming profitable is remote. (iii) . 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 the amount of premium received. The seller will be liable 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contractleveraged foreign exchange transaction, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contracta leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract Futures and Spot LFX trading contracts Leveraged Foreign Exchange Trading above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract leveraged foreign exchange transaction or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to 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. (i) Transactions Transaction in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, a future with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option is ‘“covered’ ” by the seller 5966 (4/2011) Page 2 of 37 holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract interest or a future or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contract, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contract, the seller will acquire a position in the a futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying interest or a futures contract, OTC derivatives contract, Spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the options 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 futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthlessoption is out-ofthe-money when it expires, 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-of- the- money options, you should be aware that, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, a future with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option is ‘"covered’ " by the seller holding a corresponding position in the underlying futures contractasset, OTC derivatives contract, Spot LFX trading contract in a future or in another option, the risk may be reduced. If In case the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options 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 would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contractleveraged foreign exchange transaction, the purchaser will have to acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contracta leveraged foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract Futures and Spot LFX trading contracts Leveraged Foreign Exchange Trading above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, the chance change of such options becoming profitable is remote. (iii) . 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 the amount of premium received. The seller will be liable 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contracta leveraged foreign exchange transaction, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contracta leverage foreign exchange position, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract Futures and Spot LFX trading contracts Leveraged Foreign Exchange Trading above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract leveraged foreign exchange transaction or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise familiarize themselves with the type of options 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 would have to must increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the purchaser will have to acquire a futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the-money deep out‐of‐the‐money options, you should be aware that, ordinarily, that the chance of such options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives contract or Spot LFX trading contractfuture, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, a future with associated liabilities for margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option position is ‘covered’ covered by the seller holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract interest or a future or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of 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. (i) Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (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 would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. (ii) . The purchaser of options may offset its position by trading in the market or exercise the options or allow the 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 futures contract, OTC derivatives OTCD currency contract or Spot LFX trading contract, the purchaser will have to acquire a position in the futures contract, OTC derivatives OTCD currency contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract OTCD currency contracts and Spot LFX trading contracts above). If the purchased options expire worthless, you will suffer a total loss of your 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, ordinarily, the chance of such options becoming profitable is remote. (iii) . 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 the amount of premium received. The seller will be liable 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 deliver the underlying interest. If the option is on a futures contract, OTC derivatives OTCD currency contract or Spot spot LFX trading contract, the seller will acquire a position in the futures contract, OTC derivatives OTCD currency contract or Spot spot LFX trading contract, as the case may be, with associated liabilities for margin (see the section on Futures, OTC derivatives contract OTCD currency contracts and Spot LFX trading contracts above). If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTC derivatives OTCD currency contract, Spot spot LFX trading contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to 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. (c) Additional Risks Common to Futures, Options and Leveraged Foreign Exchange Trading

Variable Degree of Risk. (i) Transactions in options Options carry a high degree of risk. Purchasers and sellers of options Options should familiarise familiarize themselves with the type of options 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 would have to Options must increase for your position to become profitable, taking into account Account the premium paid and all transaction costs. (ii) . The purchaser of options Options may offset its position by trading in the market or exercise the options Options or allow the options 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 futures contract, OTC derivatives contract or Spot LFX trading contractFuture, the purchaser will have to acquire a Futures position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, with associated liabilities for margin Margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the purchased options Options expire worthless, you will suffer a total loss of your investment which will consist of the option Option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the-money optionsdeepoutofthemoney Options, you should be aware that, ordinarily, that the chance of such options Options becoming profitable ordinarily is remote. (iii) . 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 the amount of premium receivedthat amount. The seller will be liable to deposit 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 deliver the underlying interest. If the option Option is on a futures contract, OTC derivatives contract or Spot LFX trading contractFuture, the seller will acquire a position in the futures contract, OTC derivatives contract or Spot LFX trading contract, as the case may be, a Future with associated liabilities for margin Margin (see the section on Futures, OTC derivatives contract and Spot LFX trading contracts Futures above). If the option Option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract, OTC derivatives contract, Spot LFX trading contract interest or a Future or another optionOption, the risk may be reduced. If the option Option is not covered, the risk of loss can be unlimited. (iv) . Certain exchanges in some jurisdictions permit deferred payment of the option Option premium, limiting the liability of exposing the purchaser to margin 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 Option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.